Click here to close now.


Microsoft Cloud Authors: Jordan Sanders, Carmen Gonzalez, Pat Romanski, Keith Mayer, Jayaram Krishnaswamy

News Feed Item

Ironclad Performance Wear Reports Third Quarter 2012 Financial Results

Third Quarter Revenue up 22% Sequentially to $5.55 Million, Maintaining Momentum for a Strong Second Half 2012

LOS ANGELES, Nov. 7, 2012 /PRNewswire/ -- Ironclad Performance Wear Corporation (ICPW.OB), the recognized leader in high-performance task-specific gloves, reported financial results for the third quarter ended September 30, 2012.


Third Quarter 2012 Financial Results

Net sales for the third quarter totaled $5.55 million, increasing 22.0% from $4.55 million in the previous quarter and lower by 2.8% compared to $5.71 million in the third quarter of 2011.  The marginal decline from the year-ago quarter was primarily due to the company's decision not to participate in a "Big Box" retailer promotion this year that involved unacceptably low margins. Net sales was also affected by the timing of certain sales orders which were originally expected to ship in the third quarter, but were pushed into the current fourth quarter of this year.

Gross profit increased 3% to $2.22 million, or 40.0% of net sales, compared to $2.16 million, or 37.8% of net sales in the third quarter of 2011.

Operating expenses as a percent of net sales increased to 34.4%, or $1.91 million, compared to 27.4% of net sales, or $1.56 million, during the same period last year.  This increase was primarily caused by higher personnel costs; legal fees – primarily to defend against minority shareholder actions; outside third-party services for warehousing, logistics and quality control; and research & development certification testing expenses.

Income from operations was $314,133, compared to $592,313 during the same period in 2011. Net income was $256,044 in the third quarter 2012, compared to $543,918 during the same period last year.

"Third quarter performance was significantly impacted by our decision not to participate in a 'Big Box' retailer promotion and the timing of certain orders," said Scott Jarus, Chairman and CEO of Ironclad. "It's also important to note that Ironclad's focus on margin during the quarter is demonstrated by the nearly 3% increase in gross profit.  For the first nine months of 2012, our net sales were up 12.6% and gross profit was up by 12.4% versus the same year-ago period."

Guidance for 2012

"We have good visibility going into the fourth quarter, our historically strongest quarter.  The pipeline of orders expected or already received for delivery in the fourth quarter and our current production capacity, coupled with our year-to-date performance, gives us confidence that we will see solid year-over-year and sequential quarterly revenue growth that enables us to meet our established guidance range for the full year," said Mr. Jarus.

Management reiterates its previous financial guidance for the full-year of 2012.  Therefore, the company expects 2012 net sales to increase 15%-20% to $24.6 million to $25.7 million.  EBITDA +ASC718 (a non-GAAP term the company defines as earnings before interest, taxes, depreciation, amortization and ASC 718 non-cash stock option expense), is expected to be between $2.0 million to $2.4 million, representing an increase of 19%-42% from 2011. Earnings per share are expected to increase marginally.

This expectation is based solely upon the outlook for organic growth, and does not contemplate acquisition opportunities which, if identified and concluded, would be expected to be accretive to net sales and net income.

Mr. Jarus concluded: "Our financial results to-date demonstrate the company's ability to leverage the Ironclad brand and apply our expertise to produce innovative products for growth and profitability. Such innovation includes our new Mechanic glove designed specifically for auto mechanics and technicians, and our new TouchScreen performance work glove designed to keep hard working men and women protected and connected. Also during the third quarter, we introduced the newest member to the KONG glove family, the Cut Resistant KONG designed for the particular hazardous conditions found on an oil and gas platform.  Given the increasing strength of our business and product line, we are very optimistic about our performance in the fourth quarter and how it will set the stage for a successful 2013."

Conference Call

Ironclad will hold a conference call to discuss third quarter 2012 financial results today, Wednesday, November 7, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).

Ironclad's Chairman and CEO, Scott Jarus, and Senior Vice President of Finance, Thomas Kreig, will host the presentation, followed by a question and answer period. They will be joined by the Company's founder & head of Business Development, Ed Jaeger; Vice President of Sales & Marketing, Fred Castro; and Director of Marketing, Shawn Norfolk.

Date: Wednesday, November 7, 2012
Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)
Domestic Dial-In Number: (877) 941-2321
International Dial-In Number: (480) 629-9666
Conference ID Number: 4574135

The conference call will be broadcast simultaneously and available for replay here and via the investor section of the Company's Website at

A telephone replay of the call will be available after 7:30 p.m. Eastern Time on the same day and until midnight on November 21, 2012.

Domestic Replay Number: (877) 870-5176
International Replay Number: (858) 384-5517
Replay ID Number: 4574135

About Ironclad Performance Wear Corporation

Ironclad Performance Wear is an aspirational brand leader in technical, task-specific, performance work gloves, having created the performance work glove category in 1998. The company continues to leverage its leadership position in the safety, construction and industrial markets through the design, development and distribution of specialized task-specific gloves for numerous industries, including oil & gas exploration, automotive and construction, as well as police, fire, first-responder and military. Ironclad engineers and manufactures its products with a focus on innovation, design, advanced material science and durability. Ironclad's gloves are available through industrial suppliers, hardware stores, home centers, lumber yards, auto parts stores and sporting goods retailers nationwide, and through authorized distributors in North America, Europe, Australia and Asia.

Built Tough for the Industrial Athlete™

For more information on Ironclad, please visit

Scott Jarus, CEO
[email protected]
(310) 643-7800 x120

Justin Vaicek
Liolios Group, Inc.
[email protected]
(949) 574-3860

Information about Forward-Looking Statements

This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at which, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Ironclad's products, the introduction of new products, Ironclad's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of Ironclad's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in Ironclad's filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include statements regarding guidance about and achievement of financial goals and exceptional performance for 2012, increasing interest and sales of Ironclad's products, market opportunities presented by new products and/or customers and Ironclad's profitability in 2012. For a more detailed description of the risk factors and uncertainties affecting Ironclad, please refer to the company's recent Securities and Exchange Commission filings, which are available at Ironclad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About the Use of Non-GAAP Financial Measures

This release contains disclosure and forward-looking statements regarding the non-GAAP financial measure "EBITDA", which the company defines as Earnings Before Interest, Taxes, Depreciation, Amortization and ASC 718 stock option expense. The company believes that use of EBITDA+ASC718 as a supplemental measure of performance improves the transparency of the company's disclosures and forward-looking statements.  This non-GAAP financial measure is not a substitute for GAAP financial results, and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.


Ironclad Performance Wear Corp.


September 30, 2012

December 31, 2011


  Current Assets

     Cash and cash equivalents

$                1,116,879

$               1,060,125

     Accounts receivable (net of allowance for doubtful accounts of $44,000 and $37,000)



     Due from factor



     Inventory net of reserve of $430,000 and $460,000



     Deposits on Inventory 



     Prepaid and other



  Total Current Assets



  Property and Equipment

     Computer equipment and software






     Office equipment and furniture



     Leasehold improvements



     Less: accumulated depreciation



  Total Property and Equipment, net



  Other Assets

     Trademarks and patents (net of accumulated amortization of $38,166 and $31,915)






  Total Other Assets



Total Assets

$              12,185,120

$               9,965,432


  Current Liabilities

     Accounts payable and accrued expenses

$                4,142,838

$               2,560,504

     Line of credit



  Total current liabilities



  Total Liabilities



  Stockholder's Equity

     Common stock, $.001 par value; 172,744,750 shares authorized; 76,397,149 and 74,550,754 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively



     Additional paid in capital



     Accumulated deficit



  Total Stockholders' Equity



Total Liabilities & Stockholders' Equity

$              12,185,120

$               9,965,432



Ironclad Performance Wear Corp.


Three Months Ended

Nine Months Ended

September 30, 2012

September 30, 2011

September 30, 2012

September 30, 2011


Net sales

$                5,546,484

$                5,705,619

$              15,440,944

$              13,718,607


Cost of sales











General and administrative





Sales and marketing





Research and development





Purchasing, warehousing and distribution





Depreciation and amortization





Total Operating Expenses











Interest expense





Interest income





Other income (expense), net





Loss on disposition of equipment





Total Other Income (Expense)
















$                   256,044

$                   543,918

$                   522,013

$                   516,311

























SOURCE Ironclad Performance Wear Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.