SAN DIEGO--In fiscal year 2005 third quarter results, for the period ending Dec. 31, 2004, SOLA International's (NYSE:SOL) posted net sales of $163.1 million compared to $159.3 million in the prior-year period, an increase of 2.4 percent. SOLA reported net income of $9.4 million compared to a net loss of $25.3 million; adjusted net income was $10.4 million compared to $7.6 million.

The company generated $22.6 million in cash flow from operations compared to $21.6 million. Gross margins were 39.7 percent in the third quarter compared to 40.7 percent in the year-ago quarter. A planned reduction in manufacturing output, as a result of lower sales to Wal-Mart and continued sales weakness in Germany, temporarily increased production costs, the company said. Operating expense on a reported basis was $48.0 million compared to $49.4 million.

Net sales for the nine months ended Dec. 31, 2004 were $494.5 million compared to $471.9 million for the prior-year period, an increase of 4.8 percent. On a constant-currency basis, sales increased 0.6 percent for the first nine months of fiscal 2005. For the nine months ended Dec. 31, 2004, sales on a constant currency basis in North America decreased 2.6 percent, Europe increased 1.1 percent and rest of world increased 6.5 percent compared to the nine months ended Dec. 31, 2003.