Topps has announced financial results for its fiscal Q1, which ended May 28th.  In a period when the company's over-all sales and profits declined substantially, games and non-sports products were bright spots that partially offset poor performance in other areas. 

 

Sales for the quarter were down 10% to $78.9 million, with weak sales on sports products in Europe and the U.S. the biggest factor.  Confectionary sales were flat, and WizKids' CSGs (Pirates), Star Wars products in the U.S. and Europe, and WWE products in Italy the strongest performers.  

 

Expenses were high, due to a fine in Europe (see 'Topps Fined $1.9 Million'), professional fees paid in conjunction with the recently concluded proxy fight (see 'Topps Signs Truce with Hedge Fund'), and other factors. 

 

So net income was down.  Operating income for the quarter was $397,000 vs. $5.6 million last year; net income was $897,000 vs. $4.1 million last year. 

 

Regardless, Chairman and CEO Arthur Shorin was bullish on the company's prospects for the rest of the year.  'First quarter results do not diminish our confidence about achieving the full year plan we outlined at the beginning of fiscal 2006,' he said.  He mentioned WizKids introductions, national advertising for Wacky Packages (some national advertising was done last year, see 'TV Ads for Wacky Packages'), and improving confectionary sales as reasons for his optimism.