Hot Topic Up 12% After Beating Earnings Estimates

Shares of Hot Topic

are up 12% after the company beat earnings estimates. The company reported net income in the fourth quarter of $9.0 million, or $0.21 per share, compared to a net loss of $0.6 million, or $0.01 per share, for the comparable period last year. The fourth quarter results for last year include $9.8 million of expenses, for the implementation of the cost reduction plan. On a non-GAAP basis, which excludes the cost reduction plan expenses, the fourth quarter 2010 results were net income of $0.12 per share. (Refer to GAAP to non-GAAP reconciliation.) For the fiscal year of 2011, the company reported a net loss of $1.8 million, or $0.04 per share, compared to a net loss of $8.2 million, or $0.18 per share, for last year. The results for fiscal 2011 include a charge of $16.6 million for the implementation of the strategic business changes and cost reduction plan. The results for fiscal 2010 include a charge of $12.8 million for the implementation of the cost reduction plan and non-cash impairment of ShockHound assets. On a non-GAAP basis, which excludes the charges for the strategic business changes, cost reduction plan and ShockHound impairment, fiscal year 2011 net income was $0.19 per share compared to a net loss of $0.01 per share for fiscal year 2010. (Refer to GAAP to non-GAAP reconciliation.)