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.