Net income was halved to $6,211,000 from $12,349,000for the first quarter ended Jul. 31 as revenues fell 7% to $94,884,000 from$101,688,000. Firearms sales declined 22% to $77,763,000 from $99,573,000 whilesecurity sales rose to $17,121,000 from $2,115,000, partially as a result ofthe timing of the acquisition last year although pro forma revenues rose 60% inthe division.

Inventories shot up to $62.6 million from $50.7million during the quarter as SWHC noted cautious ordering patterns fromdealers and lower demand for firearms. It plans to reduce production andincrease promotional activity during the current quarter to bring downinventories, though it stopped short of promising to get ... Log in to view full article.