Net income slumped 79% in the fiscal third quarter ended Jan. 31 to $1,663,000 from $7,882,000 on a 16% drop in sales to $115,885,000 from $137,484,000. The bottom line would have struggled to break even without a $2.4 million gain on the sale of some real estate. Gross margin contracted 460 basis points to 24.1%, partly due to fixed costs deleverage. Operating expenses were reduced by 7%, with a 19% cut in general and administrative costs more than offsetting 3% higher selling, marketing, and distribution expenses and a 46% jump in ... Log in to view full article.