Cygne Designs, Inc (OTC BB:CYDS.OB) today announced results of operations for the third quarter and nine months ended October 28, 2000.

Net sales for the third quarter ended October 28, 2000 were $8,350,000, a decrease of $14,449,000 or 63 per cent from the third quarter of 1999. Net sales for the nine months of 2000 were $20,238,000, a decrease of $29,288,000 or 59 per cent from the nine months of 1999.

The decrease in net sales for the third quarter and nine months ended October 28, 2000 was primarily attributable to the sale as of October 31, 1999 of the Israeli-based Knit division, which had sales of $18,037,000 and $32,007,000 in the third quarter and nine months of 1999, respectively.

Woven division sales for the third quarter of 2000 were $8,350,000, an increase of $3,588,000 or 75 per cent from $4,762,000 in the third quarter of 1999. Net sales for the nine months of 2000 were $20,238,000, an increase of $2,719,000 or 16 per cent from $17,519,000 for the comparable period in 1999. The increases in sales were primarily attributed to increased sales to The Limited, Inc. The Limited, Inc. accounted for 97 per cent of the sales for the third quarter of 2000 compared to 100 per cent in the comparable period in 1999 and accounted for 98 per cent for the nine months of 2000 and 1999.

Net income for the third quarter ended October 28, 2000 was $118,000 or $0.01 on a basic and dilutive per share basis, compared to a net loss of $470,000 or $0.04 on a basic and dilutive per share basis, in the comparable prior period. Net income for the nine months ended October 28, 2000 was $225,000 or $0.02 on a basic and dilutive per share basis, compared to a net loss of $1,056,000 or $0.08 on a basic and dilutive per share basis, in the comparable prior period.

If the sale of the Israeli-based knit business had been consummated on January 31, 1999, the company would have had proforma net sales of $4,762,000 for the third quarter ended October 30, 1999 and proforma loss from operations of $308,000. Proforma net loss for the third quarter ended October 30, 1999 would have been $286,000 or $0.02 on a per share basis. The company would have had proforma net sales of $17,519,000 for the nine months ended October 30, 1999 and proforma income from operations of $9,000. Proforma net loss for the nine months ended October 30, 1999 would have been $16,000 or breakeven on a per share basis.

Cygne Designs, Inc. is a private label manufacturer of women's career and casual apparel.