LOS ANGELES--Signature Eyewear, Inc. (OTCBB: SEYE) has reported its financial results for the second quarter ended April 30, 2008. Net sales were $6.7 million for the second fiscal quarter of 2008, compared to net sales of $6.5 million for the 2007 quarter, a 3 percent increase. The increase was due to continued growth in the company’s three best-selling lines: bebe eyes, Nicole Miller Eyewear and Laura Ashley Eyewear, according to a statement from the company.

Net income was $212,000 for the quarter, compared to net income of $514,000 for the same quarter in 2007. According to a statement from the company, the difference was due to the realization of an income tax benefit of $254,000 in the 2007 quarter, “which resulted from a decrease in the valuation allowance on the company’s deferred tax asset; the company did not realize an income tax benefit in the 2008 quarter.” The company also attributed the decrease in net income to a $146,000 increase in selling expenses for the 2008 quarter.

For the six months ended April 30, 2008, Signature reported net income of $362,000 on net sales of $12.2 million, compared to net income of $668,000 on net sales of $12.4 million for the six months ended April 30, 2007. The income tax benefit of $330,000 favorably impacted the first six months of 2007 compared to 2008, the company said.

“Our sales in the second quarter reflect the continued strong performance of our best-selling eyewear lines, bebe eyes, Nicole Miller Eyewear and Laura Ashley Eyewear, which have maintained critical market presence,” said Michael Prince, CEO of Signature Eyewear. “However, the general slowdown in the domestic economy and the optical frame market in particular have affected our operating results.”

The company has also reported a continued reduction to its long-term debt (including current portion), which decreased by $193,000 from Oct. 31, 2007 to April 30, 2008.

“We are pleased to see the sustained reduction of our long-term debt which, coupled with declining market interest rates, reduced our interest expense by more than $60,000 for the quarter and $100,000 for the six months,” added Prince.