Smaller Inventories Lead to Loss for Talon

Limited inventory purchasing plans by clothes makers contributed to Talon International Inc. widening its net loss in the third quarter when compared to a year ago. The Woodland Hills-based manufacturer of zippers, apparel fasteners and interlining products reported a loss of $1.2 million, or $0.13 per diluted share, on revenues of $9.3 million for the quarter ending Sept. 30. For the same period in 2009, Talon reported a net loss of $647,156, or $0.03 per diluted share, on revenues of $10.4 million. With consumer spending still low, retailers were cautious about not having too much inventory and did not purchase as much Talon products as in the past. These concerns also affected buying at the wholesale level, the company said. A bright spot in the quarter was the elimination of $16.7 million in debt in exchange for Series B Convertible Preferred Stock., a move that enhances Talon’s future liquidity and positions the Company to generate quality net earnings in future periods, according to CEO Lonnie Schnell. Mark R. Madler