Zipper-maker Talon International Inc. announced higher income Tuesday for its second quarter, largely fueled by growth in sales.
The Woodland Hills company reported net income of $1.3 million (5 cents a share) for the quarter ended June 30, compared to $671,134 (3 cents) for the same period a year earlier. Revenue rose 26 percent to $16.6 million.
Zipper sales saw the most growth in the second quarter, rising almost 38 percent to $9.5 million.
In July, Talon eliminated all of its preferred stock in an $18.8 million cash-and-debt deal. The move saved the company from a preferential $25.9 million payment to preferred stockholders should Talon be liquidated. The liquidation preference was scheduled to increase to more than $40 million in 2016.
Chief Executive Lonnie Schnell said he was pleased with the second quarter results, and has a positive outlook on the year ahead.
“Importantly, now that we have successfully eliminated the preferred stock liabilities, we are better capitalized, and even better positioned to compete and grow significantly," he said in a prepared statement.
Shares gained 4 cents, or almost 13 percent, to close at 35 cents in over-the-counter trading.