Automotive product sales were down by 29 percent from the second quarter of 2001.
The decline was primarily due to less volume and lower average prices of products sold. Sales of electronic display products decreased 13 percent from the comparable quarter of 2001 primarily as a result of a decrease in Southwall's average sales prices for products used in flat screen CRT monitors, partially offset by higher sales of products used in LCD's and Plasma Display products. Sales of architectural products were up 27 percent from the same quarter of 2001 as a result of increased sales of Heat Mirror products produced as a result of increased manufacturing capacity.
Net income for the second quarter of 2002 was $1.4 million compared to $1.2 million in the comparable period last year. The net income increase of 17 percent was the result of improved gross margins of 34 percent compared to 26 percent for the same period in 2001. Sequentially net income increased $0.2 million, or 17 percent, from $1.2 million in the first quarter of 2002.
"I am pleased to report another quarter of positive earnings despite a softening of demand in the European automobile markets that use our solar control film in the windshields of cars," said Thomas G. Hood, CEO of Southwall Technologies. "Despite the 10 percent revenue reduction in the second quarter of 2002, net income increased as a result of continuing Improved gross margins. We were able to improve our gross margins by lowering costs across the company and we continued to benefit from lower cost production from the company's plant in Germany."