Q.E.P. Reports 2Q Profit

Boca Raton, FL, October 16, 2007—Tool and accessories maker Q.E.P. swung to a profit in the fiscal second quarter versus a year-ago period, weighed by a hefty impairment loss.

The company reported net earnings of $59,000, or $0.02 per share, compared with a loss of $6.7 million, or $1.99 per share, in the year-ago quarter. The year-ago period included an impairment loss on goodwill and intangibles of $7.6 million.

Q.E.P. said earnings in the recent quarter would have been $1.1 million, or $0.29 per share, excluding a $1.4 million warrant liability expense.

Sales for the quarter ended Aug. 31 rose to $57.2 million from $54.4 million.

Operating expenses fell to $12.5 million from $21.8 million.