A.T. CROSS COMPANY REPORTS THIRD QUARTER AND NINE MONTH PROFIT
- Inventory down $2 Million
- Net Cash up $4.4 Million

Lincoln, RI – October 21, 2009 – A.T. Cross Company (NASDAQ: ATX) today announced financial results for the third quarter ended October 3, 2009.

Net income for the third quarter was $0.9 million or $0.06 per basic and diluted share. Net income for the nine month period ending October 3, 2009 was $0.6 million or $0.04 per basic and diluted share. Included in the 2009 nine month results were $0.05 per share of restructuring charges related to the consolidation of both the Company’s manufacturing operations and the reduction of its European support structure. In the third quarter of 2008, the Company earned $0.12 per basic share, and for the nine month period of 2008 the Company earned $0.28 per basic share.

Consolidated net sales for the third quarter declined 12.4% to $34.1 million. Net sales for the nine month period of $102.3 million declined 13.6% from the prior year. For the nine month period, Cross Optical Group sales were up 5% while Cross Accessory Division sales were down 23%.

Operating expenses were 10% lower in the third quarter and 9% lower in the first nine months of 2009 compared to 2008, excluding restructuring.

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, “While our three brands each delivered better revenue trends than they did in the first half of the year, the business environment during the third quarter continued to be difficult. Our response was to invest in our brands, focus on cost reduction and tightly manage our assets. Importantly, we reduced inventory by over $2 million from a year ago and increased our net cash position by $4.4 million. As a result, we believe that we are well positioned to take advantage of market opportunities and grow revenue and profit as the economy turns around.”

Guidance

The Company expects 2009 earnings per share to be between $0.11 and $0.15. This range is net of $0.08 per share of restructuring charges.

Conference Call

The Company’s management will host a conference call today, October 21, 2009 at 4:30 PM Eastern Time. Parties interested in participating in the conference call may dial-in at (888) 539-3612, while international callers may dial-in at (719) 457-2708. A live webcast of the call will be accessible here.The webcast will be archived for 30 days on this site, while a telephone replay of the call will be available beginning at 7:30 PM Eastern Time on October 21, 2009 through October 27, 2009 at (888) 203-1112 or (719) 457-0820 for international callers, and entering the pass code of 2644378.

About A.T. Cross Company

Building on the rich tradition of its award-winning writing instruments and reputation for innovation and craftsmanship, A.T. Cross Company is a designer and marketer of branded personal and business accessories. Cross provides a range of distinctive products that appeal to a growing market of consumers seeking to enhance their image and facilitate their lifestyle. A.T. Cross products, including award-winning quality writing instruments, timepieces, business accessories and Costa Del Mar and Native Eyewear sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website at www.cross.com, the Costa Del Mar website at www.costadelmar.com and the Native Eyewear website at www.nativeyewear.com/Native.

Statements contained in this release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (including but not limited to statements relating to the expected impact of the Company’s strategies to invest in its brands, reduce costs and tightly manage assets). In addition, words such as "believes," "anticipates," "expects," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to the depth and severity of the economic crisis and consumers’ willingness to purchase discretionary items, and are not guarantees since there are inherent difficulties in predicting future results. Actual results could differ materially from those expressed or implied in the forward-looking statements. The information contained in this document is as of October 21, 2009. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments. Additional discussion of factors that could cause actual results to differ materially from management's expectations is contained in the Company's filings under the Securities Exchange Act of 1934.

CONTACTS:
Kevin F. Mahoney
Senior Vice President, Finance and
Chief Financial Officer
401-335-8470

Download a spreadsheet with 2009 Third Quarter Results