Salton, Inc. announced its fiscal 2003 results for the fourth quarter and full year ended Jun. 28, 2003. The company reported net sales of U.S. $189.2 million for the fourth quarter, versus $217.5 million for the same period in 2002. The company also reported a loss of $8.8 million, or $0.79 per share, on 11,185,533 weighted average common shares outstanding, versus a loss of $2.3 million, or $0.21 per share, on 10,990,988 weighted average common shares outstanding for the fourth quarter of 2002. According to the company, the decrease in net sales was due primarily to weakness in the domestic market. Earnings were affected by a reduction in gross margins due to continued SKU rationalization and inventory reduction initiatives that were announced earlier this year. The company said that its decision in the third quarter to reduce prices in an effort to gain market share in advance of product cost reductions also contributed to the decline in earnings. During the fourth quarter, the company reduced its net debt by $30 million.
For the full year ended Jun. 28, 2003, the company reported net sales of $894.9 million, versus $922.5 million for the year-earlier period. Salton generated net income of $8.0 million for the full year, or $0.53 per diluted share, versus $30.1 million, or $2.00 per diluted share, for the year earlier period. Primarily as a result of the company's working capital initiatives during fiscal 2003, it generated net cash from operating activities of $130.6 million for the full year, versus $5.3 million for fiscal 2002. During the year, the company reduced its indebtedness, net of cash, by $108 million.
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