Stanley 1Q Earnings Fall

Stankeytown, VA, April 18, 2007--Stanley Furniture said first -quarter net income dropped 69 percent due to a drop in sales and increased raw material costs.

Earnings fell to $1.7 million, or 15 cents per share, from $5.4 million, or 43 cents per share, in last year's first quarter.

Revenue declined to $75.1 million from $83.5 million in the year-earlier period.

Analysts expected earnings of 15 cents per share on $71.6 million in sales, according to a poll conducted by Thomson Financial.

Jeffrey Scheffer, president and chief executive, said he was disappointed with the drop in sales and earnings, but "we believe this is consistent with current industry-wide conditions."

The company reiterated its guidance that earnings per share for 2007 will come in between $1 and $1.15, while revenue will be in the range of $300 million to $315 million.

For the second quarter of 2007, the company guided earnings below analysts' estimates. Stanley said that earnings are expected to be between 19 cents and 23 cents per share, below the current average analysts' estimate of 24 cents. Revenue is expected to be between $69 million and $73 million, the company said. Analysts expect $71.6 million in sales.

Shares of Stanley rose 41 cents, or 2 percent, to $21.05 in aftermarket trading, after dropping 59 cents, or 2.8 percent, to $20.64 on the Nasdaq Stock Market.