Apparel trim specialist Tag-It Pacific Inc reported a 37 per cent drop in net sales for the third quarter 2001, down to $11.039m compared to $17.515m for same period last year.

But the company believes its restructuring programme, launched at the beginning of the 2001 fiscal year, is now starting to show up in reduced operating costs and improved operations. It says that it has also solved distribution problems linked to its Talon products. 

Colin Dyne, CEO of Tag-it Pacific noted: "As a result of our restructuring, Tag-it has begun to realise important operational efficiencies and was able to increase its gross margins.

"With the slowing of the economy and the growth in demand for full-service, outsourced trim management, we believe that our Managed Trim Solution business model offers a superior and cost effective solution to apparel manufactures' problems related to the ordering, production, inventory management and delivery of their trim requirements."

Net sales for the nine months ended 30 September 2001 decreased 3.4 per cent to $35.797m compared to $37.064m in the same period last year.