IINGLEWOOD, Calif.--For its first fiscal quarter for the three months ended Jan. 31, 2005, Signature Eyewear (Nasdaq: SEYE) reported an improvement in net income and a slight decline in sales for the period.

In its filing, Signature reported net sales declined by 2.5 percent from $5.996 million in the year-ago period to $5.845 million. It noted that sales to independent optical retailers increased for the period and added that a decrease in the sales of the company's Eddie Bauer eyewear were offset by increases in the sales of bebe Eyewear and Nicole Miller Eyewear.

The company reported net income of $141,000 in the quarter compared to a net loss of $255,000 in the quarter ended Jan. 31, 2004. The company attributed the improvement primarily to higher gross margins and a continued reduction in selling, general and administrative expenses. Signature noted that product returns as a percentage of gross sales also declined, from 18 percent in fiscal 2004 to 14 percent in the 2005 first quarter.

The company also noted that in December 2004, Signature obtained an unsecured term loan in the amount of $350,000 from Eagle Star Finance. In addition, the company reported its long-term debt at Jan. 31, 2005 "included principally: $3.4 million under another two credit facilities with HLIC, $2.9 million under a credit facility with Bluebird Finance Ltd., and $500,000 under a commercial bank loan," and said the company "has fully utilized its borrowing capacity under its existing credit facilities."