House of Taylor Jewels Q1 Net Losses Increase to $2 Million

House of Taylor Jewelry, Inc. announced financial results for the first quarter ended March 31. The international jewelry company saw first-quarter revenue rise 29 percent to $1.4 million from $1.1 million reported in the same period a year ago, reflecting demand for the company's branded products that were introduced late last year, as well as sales of the company's discontinued non-branded products.

The company recorded significantly higher selling, shipping and general administrative expenses, which amounted to $2 million in the 2006 first quarter versus $550,000 a year ago. The increase is attributed to higher professional fees, depreciation, and amortization expenses involving intellectual property and license agreements, along with costs associated with the company's move to NASDAQ.

House of Taylor Jewelry posted a net loss of $2 million, or $0.05 per share, compared with a net loss of $348,000, or $0.01 per share, in the year-ago period.

“The first quarter was a milestone period for us, as we began trading on NASDAQ on March 1," said Jack Abramov, president and chief executive officer of House of Taylor Jewelry. "Additionally, we made tremendous progress strengthening the company's infrastructure in preparation for our product launches at major industry trade shows throughout the year. We expect our participation in these trade shows will contribute to a significant expansion of the company's distribution channel through independent retailers of fine jewelry across the U.S. Moreover, with our financing completed, we now have the wherewithal to execute our strategic growth plans."

Subsequent to the close of the period, the company secured gross proceeds of $11.6 million in a private placement. Abramov said funds will be used for inventory purchases, marketing strategies, corporate partnering initiatives and general working capital.

Two pieces from the world renowned private collection of Elizabeth Taylor will be featured at the House of Taylor Jewelry salon during the upcoming, private Couture Jewelry Collection and Conference, May 31 - June 2, at the Wynn Hotel in Las Vegas.

House of Taylor Jewelry is a Los Angeles-based international jewelry company whose principal shareholders include entities owned by Dame Elizabeth Taylor and Kathy Ireland, along with members of the Abramov family. It serves fine jewelry retailers worldwide with diverse jewelry collections marketed under the brands Elizabeth®, House of Taylor Jewelry®, and Kathy Ireland Jewelry® Exclusively for House of Taylor Jewelry.