Skullcandy returned to the black in the second quarter ended June 30, posting a net profit of $1,572,000 against a loss of $635,000 a year earlier thanks to a cut of 4.7 percentage points in operating expenses. Sales increased by 6.0 percent to $39.5 million, with similar trends in the U.S. and internationally. They reached $14.4 million outside the U.S. but lagged in Europe due to late deliveries and weak demand. The gross margin remained nearly stable at 44.9 percent. The quarterly sales increase was driven by a 56 percent jump in in-ear products, and this source of revenues will become more important following the launch a few days ago of a new line of sports performance ear buds made with a proprietary material that prevents them from slipping during running and other aerobic activities that cause more sweating than others.

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