BOCA RATON, Fla., Oct. 15, 2008 (GLOBE NEWSWIRE) -- Q.E.P. Co., Inc. (Nasdaq:QEPC) (the "Company") today filed a Form 10-Q with the SEC to announce its financial results for the second quarter of its fiscal year ending on February 28, 2009.

The Company reported record quarterly net sales of $61.0 million for the second quarter of fiscal 2009, an increase of $3.8 million from the $57.2 million reported in the same quarter of fiscal 2008. In addition, gross profit margin increased by 47 basis points from 28.3% in the second quarter of fiscal 2008 to 28.8% in the second quarter of fiscal 2009.

Sales were $113.9 million for the first six months of fiscal 2009 with a gross profit margin of 29.5% compared to sales of $114.1 million with a gross profit margin of 28.7% for the first six months of fiscal 2008.

Improved margins in both the second quarter and year to date of fiscal 2009 offset by increased operating costs and the second quarter fiscal 2008 realization of a one-time $0.6 million gain on the sale of businesses resulted in second quarter fiscal 2009 operating income of $2.0 million compared to $3.6 million for the second quarter of fiscal 2008 and year to date fiscal 2009 operating income of $4.5 million compared to $6.3 million for fiscal 2008.

Net income for the second quarter of fiscal 2009 was $0.8 million ($0.23 per diluted share) compared to $0.1 million ($0.02 per diluted share) for the second quarter of fiscal 2008. The fiscal 2008 period includes a $1.4 million, non-tax deductible, expense related to the Company's settlement of its then outstanding put warrant liability.

Year to date fiscal 2009 net income was $2.1 million ($0.59 per diluted share) compared to $0.9 million ($0.25 per diluted share) for the first six months of fiscal 2008.

                   Q.E.P. CO., Inc.