Hirsch International Corp, the supplier of equipment and services to the embroidery industry, said revenues were down $4.1 million for the third quarter of fiscal 2002, which ended 31 October 2001. Total revenues were $15.6 million compared to $19.7 million in the third quarter of the prior year. The net loss for the quarter was $2.3 million versus a net loss of $1.0 million for the same period last year.

The company blamed this slump on reduced demand for large-scale embroidery machines as manufacturers opt to move their operations off shore where labour is less expensive.

Hirsch also announced that it has initiated plans to reorganise various operational functions to meet the needs of the marketplace. This restructuring is projected to result in annual savings of $5 to $8 million.

According to Paul Gallagher, chief operating officer, these actions are designed to improve all aspects of the business, from faster delivery times to better customer service. "We are developing an enterprise-wide approach to generating significant improvements over the next year", he said. "As an integral part of this process, we expect to make considerable reductions in our cost structure throughout the organisation."

For the nine months ended 31 October 2001, revenues were $45.6 million versus $57.0 million last year. The net loss for the period was $6.0 million compared with a loss of $3.7 million or $0.41 per diluted share for the comparable nine-month period last year.