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Posted: 12/21/2005 10:38:00 PM EDT
I have no link, nothing to back up this story.......other than a call from our dealer rep that was assisting our department with getting 100+ new MP 40 pistols from Smith and Wesson.... The rep said that much of upper management had been fired within the last 48 hours....which may impact our getting our pistols.

Perhaps someone on here can prove or disprove this one........as all I have now is a rumor.......

VJ
Link Posted: 12/21/2005 10:38:45 PM EDT
tag
Link Posted: 12/21/2005 10:43:37 PM EDT
Taggage.
Link Posted: 12/21/2005 10:46:40 PM EDT
Hope not, I like the direction that company has moved.
Link Posted: 12/21/2005 10:54:15 PM EDT
Tag. Where do I apply?
Link Posted: 12/21/2005 10:54:21 PM EDT
Only this turned up at news.google.com

www.masslive.com/business/republican/index.ssf?/base/business-0/1135155061305100.xml&coll=1

Smith & Wesson files late report

Wednesday, December 21, 2005
By WILLIAM FREEBAIRN
wfreebairn@repub.com

Smith & Wesson Holding Corp. filed its required quarterly financial report yesterday as it had promised, two days late because of a new independent auditor.

The company filed the fiscal second-quarter report with the U.S. Securities and Exchange Commission yesterday morning. Smith & Wesson had said Friday it would file yesterday and had received an automatic five-day extension.

The adoption of new rules on accounting for stock options caused the company to change its reported stock compensation costs for several years. The net effect was to reduce the company's net income in the second quarter of fiscal 2005 by $137,000, or one cent per diluted share, the firm reported yesterday.

The company's financial filing yesterday differed slightly with that it released earlier this month in conjunction with a conference call for analysts and investors. The company changed how it categorized revenue and expenses relating to the sale of the bulk of two executives' stock options, which it bought for $24 million from the two men in September.

The changes did not affect the net income for the period, officials said.

Company officials said last week the firm filed its financial statements late because it had just changed independent auditors. The company let go its auditors in October and hired a new firm, BDO Siedman.

Getting the auditors up to speed on the company's finances and stock option transactions took more time than expected, officials said.
Link Posted: 12/22/2005 3:34:56 AM EDT
they were fired for haveing firearms on company property
Link Posted: 12/22/2005 3:47:00 AM EDT
Tag!
Link Posted: 12/22/2005 3:58:03 AM EDT
Link Posted: 12/22/2005 5:21:56 AM EDT
thats not good
Link Posted: 12/22/2005 5:27:07 AM EDT
Tag.
Link Posted: 12/22/2005 5:27:47 AM EDT
Its all my fault. Havent bought anything that says S&W in years.





Link Posted: 12/22/2005 5:40:37 AM EDT
[Last Edit: 12/22/2005 5:42:33 AM EDT by uglygun]
S&W hasn't made a damn thing that I have been interested in for over 5+ years.

Their guns have lost much of the heritage that makes them appealing to me. Deep rich bluing and roll marks are just a part of it. Metal injection molded parts was another part. Ditching the damn square butt to round butts, that was fairly big to me.


Hence the reason all my S&W N-frames are 20+ years old, most more than 30-40 years old.

Why would I buy some recent manufacture S&W revolver that goes for 700+ dollars on average when I could look around for an older S&W that is in many ways a better gun and costs only 1/2 the price.

There's only one gun I could forsee buying if S&W was smart enough to build it. If they made a 10mm Auto N-framed blued revolver without the goddamn gold enlay lazer engraving. I would buy it. I would over look the MIM parts, the internal lock bullshit, and the non-square butt BS.


As it stands now, there is nothing that S&W makes that interests me as a collector or as a shooter.


These are what earned S&W it's reputation and it's name. S&W needs to figure out what it did right and return to those ways before they will ever see another dime from me.
Link Posted: 12/22/2005 5:45:20 AM EDT

Originally Posted By uglygun:
S&W hasn't made a damn thing that I have been interested in for over 5+ years.

Their guns have lost much of the heritage that makes them appealing to me. Deep rich bluing and roll marks are just a part of it. Metal injection molded parts was another part. Ditching the damn square butt to round butts, that was fairly big to me.


Hence the reason all my S&W N-frames are 20+ years old, most more than 30-40 years old.

Why would I buy some recent manufacture S&W revolver that goes for 700+ dollars on average when I could look around for an older S&W that is in many ways a better gun and costs only 1/2 the price.

There's only one gun I could forsee buying if S&W was smart enough to build it. If they made a 10mm Auto N-framed blued revolver without the goddamn gold enlay lazer engraving. I would buy it. I would over look the MIM parts, the internal lock bullshit, and the non-square butt BS.


As it stands now, there is nothing that S&W makes that interests me as a collector or as a shooter.


These are what earned S&W it's reputation and it's name. S&W needs to figure out what it did right and return to those ways before they will ever see another dime from me.
home.bak.rr.com/varmintcong/nframes/6guns/6guns.jpg



Amen, Brother!!! They really lost me when they quit pinning barrels and recessing chambers on their L and N frame guns. THEN they started that shitty phosphate black looking finish and turned the M17 into a ten shot shit gun. What a cheap looking piece of shit it became.........I still have my gorgeous polished M-17L's though!!!

don't even ask me about the Smith 1911 abortion.....
Link Posted: 12/22/2005 5:47:27 AM EDT
uglygun....them's some pretty guns!!!!
Link Posted: 12/22/2005 5:55:41 AM EDT
I checked for news reports on Ameritrade. Nothing about any firings. They did mention that S&W will be releasing a 75th Anniversary Edition of the Walther PPK.
Link Posted: 12/22/2005 5:55:54 AM EDT
One of the guns in the above picture is an M29-3 and it just doesn't hold the same level of fascination or symbolic heritage to me as the other guns which all come from an era of pinned barrels and recessed chambers.

The one reason why I am keeping the 29-3 is because one of these days I will find a 4 inch barrel from a 24-3, the barrels that have the older lighter 1950s Target Model taper. I'm gonna put the 24-3 barrel on the 29-3 to make a gun that compares to that of the "Mountain Gun" line. Why not just buy a "Mountain Gun"? BECAUSE THOSE STUPID IDIOTS AT S&W LIKE TO PUT BIG GAWDY WORDS 'MOUNTAIN GUN" ON THE SIDE OF THE GUN, THEN PUT GOLD INLAY IN IT



I still have 4-5 N-frames to try to collect before I consider it a complete collection, stuff that doesn't pop up all that often unless somebody gets out of a collection or dies.
Link Posted: 12/22/2005 6:10:45 AM EDT
+1 I've only bought used S&Ws for years. And sold most of them. The new stuff leaves me cold.

Too bad, so sad.
Link Posted: 12/22/2005 6:13:22 AM EDT
Damnit.
I really want a S&W 1911 too.
Link Posted: 12/22/2005 6:14:00 AM EDT
Link Posted: 12/22/2005 6:19:03 AM EDT
I suppose it's hard for S&W to innovate new things in their market which they have controlled for so damn long and virtually made everything under the moon in just about every variation.


Hence the reason I think the 10mm Auto blued N-frame would take off. They have only ever made the 10mm wheel gun in a stainless attrocity.


The Scandium stuff is interesting but I think it's pointless as well as worthless in magnums. The 45ACP 325PD is about the only gun I could foresee having a practical carry use for but I would want a 3 1/2 inch to 4 inch barrel.


I'd like to see a couple blued steel guns like a 5 shot 44Spl concealment minded gun. Friend at the local shop has the trail/carry 5 shot Scandium or Aluminum jobber, nice and light but no soul.

I liked the concept of the 8 shot PC 38Super with moon clips but give us a blued option please. Don't care how limited run it is, I'd buy it.


There is one fundamental problem though with any new release that I actually became interested in. I live in California where all new releases have to be approved by the Cali DOJ with their damned "handgun safety" bullshit. It's part of the reason behind why my N-frame collection isn't complete, I have to luck into finding somebody wanting to do a private party transfer in Ca. or I have to walk into a shop that just happens to have what I want on consignment. The way the state law is written, I can't get a person with an old M24 or M29 to sell me their gun and send it to my FFL for transfer to me due to the way it hits the dealer's books(unless it's a C&R eligable gun which is part of what I'm having to hold out for on some models).
Link Posted: 12/22/2005 6:20:13 AM EDT

Originally Posted By uglygun:
These are what earned S&W it's reputation and it's name.

Thank you.
Link Posted: 12/22/2005 6:32:05 AM EDT
[Last Edit: 12/22/2005 6:47:23 AM EDT by warlord]
Airwolf: This news story doesn't bode well for the company. Restating the financials for previous years and being late is pretty serious in the financial reporting and disclosures. Something is going on at S&W that they are not making public at the moment. Even though the amount of money doesn't seem like much, it could affect the high-up mucky-muck's compensation. Remember the the gun biz is pretty much a cottage type industry in the USA, and a few dollars here and there could make a big difference one way or the other. We will just have to stay tuned to see what happens next. Another words, it sounds like the execs were cooking the books to their advantage.

Not sure of what the actual implications to the people buying their products at the moment.
Link Posted: 12/22/2005 6:42:56 AM EDT
When/if the CFO leaves to "spend more time with his family"...................................
Link Posted: 12/22/2005 6:57:55 AM EDT
[Last Edit: 12/22/2005 6:58:42 AM EDT by warlord]

Originally Posted By uglygun:
I suppose it's hard for S&W to innovate new things in their market which they have controlled for so damn long and virtually made everything under the moon in just about every variation.

Hence the reason I think the 10mm Auto blued N-frame would take off. They have only ever made the 10mm wheel gun in a stainless attrocity.

The Scandium stuff is interesting but I think it's pointless as well as worthless in magnums. The 45ACP 325PD is about the only gun I could foresee having a practical carry use for but I would want a 3 1/2 inch to 4 inch barrel.

I'd like to see a couple blued steel guns like a 5 shot 44Spl concealment minded gun. Friend at the local shop has the trail/carry 5 shot Scandium or Aluminum jobber, nice and light but no soul.

I liked the concept of the 8 shot PC 38Super with moon clips but give us a blued option please. Don't care how limited run it is, I'd buy it.


There is one fundamental problem though with any new release that I actually became interested in. I live in California where all new releases have to be approved by the Cali DOJ with their damned "handgun safety" bullshit. It's part of the reason behind why my N-frame collection isn't complete, I have to luck into finding somebody wanting to do a private party transfer in Ca. or I have to walk into a shop that just happens to have what I want on consignment. The way the state law is written, I can't get a person with an old M24 or M29 to sell me their gun and send it to my FFL for transfer to me due to the way it hits the dealer's books(unless it's a C&R eligable gun which is part of what I'm having to hold out for on some models).


OT: For guns that S&W don't sell a lot, don't bank on it. The one-gun a month thing that they did a few years back caused them all sorts of headaches. S&W is trying to cut down on the number of SKUs(stock keeping units, ie different types of guns). Notice in their lineup of auto-pistols how many are 100% carbon or stainless steel, most of their offerings are aluminum frame because aluminum is easier and faster(read cheaper) to machine than steel.
Link Posted: 12/22/2005 8:35:53 AM EDT

Originally Posted By CavVet:
Its all my fault. Havent bought anything that says S&W in years.








+1
Link Posted: 12/22/2005 8:41:51 AM EDT
Looks like I dumped my S&W stock at just the right time.

I made a nice little profit on it, but then I realized they had nothing I wanted to buy.
Link Posted: 12/22/2005 8:44:17 AM EDT
smith and taggon
Link Posted: 12/22/2005 9:57:21 AM EDT
This past summer I bought a new SW model 60 revolver with a 5" barrel. Quality and finish was very good, but I was disappointed by the aluminum trigger and hammer.
Link Posted: 12/22/2005 10:10:08 AM EDT

Originally Posted By Loaded_For_Bear:
This past summer I bought a new SW model 60 revolver with a 5" barrel. Quality and finish was very good, but I was disappointed by the aluminum trigger and hammer.



Ya know, I always wondered about the company that bought Smith and Wesson. The company, from Scttsdale, AZ was called Safe T Lock and they patented a nifty trigger lock that you could put on as an OEM or Aftermarket accessory. It was really neat idea ( though I hate such devices, myself ) but I have NEVER actually SEEN one of these on a gun, except for Safe T Lock demos....EVER. Now, how the hell could a company that never SOLD a product come off with the 15 mil they purchased Smith and Wesson for???? 15 mil was a STEAL, by the way...considering that Tomkins PLC purchased Smith from Lear Siegler to the tune of around 115 million.

Another consideration: the guy who OWNED SAFE T LOCK....the guy who INVENTED it.....DIDN'T KNOW SHIT ABOUT GUNS. Not a god damn thing....he just came up with the idea and patented it, etc., etc. So consider that S and W is owned by a very clever guy who is most likely a buffoon when it comes to guns and the gun business.

Smith and Wesson.....we should buy it.



Link Posted: 12/22/2005 10:13:39 AM EDT

Originally Posted By warlord:
Airwolf: This news story doesn't bode well for the company. Restating the financials for previous years and being late is pretty serious in the financial reporting and disclosures. Something is going on at S&W that they are not making public at the moment.



+1

Thier business isn't exactly going gangbusters.
Link Posted: 12/22/2005 1:28:42 PM EDT

Originally Posted By desertmoon:
blah blah blah...
don't even ask me about the Smith 1911 abortion.....



You mean this abortion?

Seriously, look at that POS. 2-piece GI guide rod, low mount Novak Sights, single side serrations, how atrocious!

But I know what you're talking about. When I bought my $600 S&W 1911, and found out that not only was it accurate and tight but incredibly reliable straight from the box (unlike 2 Kimbers in my safe), I was very disappointed in Smith. I called their customer service line and raised holy hell for making a superb runner cheaper than most of their competition. How fucking DARE THEY!!!
Link Posted: 12/22/2005 1:38:24 PM EDT
As a fan and satisfied owner of S&W products - revolver & auto, old & recent - I am saddened by this news...
Link Posted: 12/22/2005 1:47:55 PM EDT
tag for mgmt info
Link Posted: 12/22/2005 1:49:14 PM EDT
S&W should discontinue making their automatic pistols (except for the 1911), and concentrate on the revolver side. It would be a shame if the only J-frame(ish) revolvers available were Taurus and Ruger. S&W is the only game in town when it comes to compact carry revolvers, and as far as I know they are the only manufacturer that makes a truly hammerless revolver.
Link Posted: 12/22/2005 2:02:08 PM EDT

Originally Posted By uglygun:
S&W hasn't made a damn thing that I have been interested in for over 5+ years.

Their guns have lost much of the heritage that makes them appealing to me. Deep rich bluing and roll marks are just a part of it. Metal injection molded parts was another part. Ditching the damn square butt to round butts, that was fairly big to me.


Hence the reason all my S&W N-frames are 20+ years old, most more than 30-40 years old.

Why would I buy some recent manufacture S&W revolver that goes for 700+ dollars on average when I could look around for an older S&W that is in many ways a better gun and costs only 1/2 the price.

There's only one gun I could forsee buying if S&W was smart enough to build it. If they made a 10mm Auto N-framed blued revolver without the goddamn gold enlay lazer engraving. I would buy it. I would over look the MIM parts, the internal lock bullshit, and the non-square butt BS.


As it stands now, there is nothing that S&W makes that interests me as a collector or as a shooter.


These are what earned S&W it's reputation and it's name. S&W needs to figure out what it did right and return to those ways before they will ever see another dime from me.
home.bak.rr.com/varmintcong/nframes/6guns/6guns.jpg



+1

Preach it brotha!!
Link Posted: 12/22/2005 2:10:27 PM EDT
Taggage
Link Posted: 12/22/2005 2:13:15 PM EDT

Originally Posted By swingset:

Originally Posted By desertmoon:
blah blah blah...
don't even ask me about the Smith 1911 abortion.....



You mean this abortion?
www.smith-wesson.com/wcsstore/SmWesson/upload/images/firearms/108299_large.jpg
Seriously, look at that POS. 2-piece GI guide rod, low mount Novak Sights, single side serrations, how atrocious!

But I know what you're talking about. When I bought my $600 S&W 1911, and found out that not only was it accurate and tight but incredibly reliable straight from the box (unlike 2 Kimbers in my safe), I was very disappointed in Smith. I called their customer service line and raised holy hell for making a superb runner cheaper than most of their competition. How fucking DARE THEY!!!



Show me the other side.......SHOW ME THE MONKEY....ERRRR.....you know what I'm looking for!!!
Link Posted: 12/22/2005 2:20:32 PM EDT
Wave, that 625 is SWEEEETTTTT!!!!! Do you mind me askin' what that set you back?
Link Posted: 12/22/2005 3:00:42 PM EDT
[Last Edit: 12/22/2005 3:01:42 PM EDT by swingset]

Originally Posted By desertmoon:

Originally Posted By swingset:

Originally Posted By desertmoon:
blah blah blah...
don't even ask me about the Smith 1911 abortion.....



You mean this abortion?
www.smith-wesson.com/wcsstore/SmWesson/upload/images/firearms/108299_large.jpg
Seriously, look at that POS. 2-piece GI guide rod, low mount Novak Sights, single side serrations, how atrocious!

But I know what you're talking about. When I bought my $600 S&W 1911, and found out that not only was it accurate and tight but incredibly reliable straight from the box (unlike 2 Kimbers in my safe), I was very disappointed in Smith. I called their customer service line and raised holy hell for making a superb runner cheaper than most of their competition. How fucking DARE THEY!!!



Show me the other side.......SHOW ME THE MONKEY....ERRRR.....you know what I'm looking for!!!





Dunno what the monkey is?

Here's the other side of their gun:


If you're talking about the "billboard" lettering on their slide, they haven't done that on their slides since the first release pistols. I agree, it was ugly, but they got the message. Mine doesn't have it.
Link Posted: 12/22/2005 3:05:23 PM EDT
Nothing on the local news. (springfield mass station where S&W is located)
Link Posted: 12/22/2005 5:03:04 PM EDT

Originally Posted By lu380:
S&W should discontinue making their automatic pistols (except for the 1911), and concentrate on the revolver side. It would be a shame if the only J-frame(ish) revolvers available were Taurus and Ruger. S&W is the only game in town when it comes to compact carry revolvers, and as far as I know they are the only manufacturer that makes a truly hammerless revolver.



I disagree. I own a pair of 4583TSWs and I think they're great.
Link Posted: 12/22/2005 5:31:44 PM EDT
Link Posted: 12/22/2005 5:47:38 PM EDT

Originally Posted By crazyquik:

Originally Posted By warlord:
Airwolf: This news story doesn't bode well for the company. Restating the financials for previous years and being late is pretty serious in the financial reporting and disclosures. Something is going on at S&W that they are not making public at the moment.



+1

Thier business isn't exactly going gangbusters.


I'm assuming that S&W overstated some good news, and now they are putting the numbers right, this could entail cut-backs in their current product line-up, I'm not sure, but it is just pure speculation on my part.
Link Posted: 12/22/2005 6:05:17 PM EDT
[Last Edit: 12/22/2005 6:20:38 PM EDT by LesBaer45]

Originally Posted By warlord:

Originally Posted By crazyquik:

Originally Posted By warlord:
Airwolf: This news story doesn't bode well for the company. Restating the financials for previous years and being late is pretty serious in the financial reporting and disclosures. Something is going on at S&W that they are not making public at the moment.



+1

Thier business isn't exactly going gangbusters.


I'm assuming that S&W overstated some good news, and now they are putting the numbers right, this could entail cut-backs in their current product line-up, I'm not sure, but it is just pure speculation on my part.



To early to tell, hell a lot of companies have been "restating" previous years earnings. It's hardly news anymore. I think GM was one of the latest.

New SarBox is causing some of it, the requirements to "expense" options is also adding to the fray.

Plus just good old cutting it close on the GAP and tax code interpretations.

Wonder what the "long guns" part at the end will be? They getting back into the shotgun business or (SHOT show rumor) S&W starting up their own line of S&W AR15s?


Smith & Wesson Holding Corporation Reports Second Quarter Fiscal 2006 Financial Results
Company Posts Year-Over-Year Sales Growth of 22.2% FY 2006 Revenue Growth Forecast Increased to Between 13% - 15% Announces Initial Entry into Long Gun Market Segment
12/7/2005 4:19:28 PM





SPRINGFIELD, Mass., Dec 07, 2005 /PRNewswire-FirstCall via COMTEX/ -- Smith & Wesson Holding Corporation (SWB), parent company of Smith & Wesson Corp., the legendary 153-year old company in the global business of safety, security, protection and sport, today announced financial results for the second quarter ended October 31, 2005.

Second Quarter Financial Results (in millions, except EPS):

Net product sales were $35.5 million for the quarter ended October 31, 2005, an increase of 22.2% over net product sales of $29.1 million for the comparable quarter of 2004. Firearms sales for the second quarter of fiscal 2006 grew 25.5% over the quarter ended October 31, 2004. The increase in firearm sales reflected a 54.3% increase in pistol sales as well as a 14.5% increase in revolver sales.

Net income for the quarter ended October 31, 2005 was $692,377, or $.02 per diluted share, as compared with $2.1 million, or $.06 per diluted share, for the quarter ended October 31, 2004. The results for the quarter ended October 31, 2005 included $579,011 in stock option expense relative to our recent election under FAS 123(R), compared with $119,582 for the quarter ended October 31, 2004. The impact of that option expense election on the quarter ended October 31, 2005 was to reduce net income by approximately $0.01 per diluted share. In addition, results for the quarter ended October 31, 2004 included $4.1 million in one-time insurance benefits, which on an after-tax basis increased net income in that previous quarter by approximately $2.1 million, or $.06 per diluted share.

Gross profit of $10.5 million, or 29.3%, for the quarter ended October 31, 2005 was lower than gross profit of $12.4 million, or 41.8%, for the comparable quarter of 2004. The gross profit for the quarter ended October 31, 2004 included the $4.1 million in one-time insurance benefits. Without the impact of that one-time insurance event, gross profit for the quarter ended October 31, 2004 would have been $8.3 million, or 27.9%. On a year-over-year basis, we increased quarterly net product sales by $6.5 million and converted approximately $2.3 million, or 35% of that amount, into gross margin. We continue to improve our production and labor efficiencies, which resulted in savings of approximately $166,000 over the comparable quarter ended October 31, 2004.

Operating expenses of $9.3 million for the quarter ended October 31, 2005 increased $1.2 million over operating expenses of $8.1 million for the comparable quarter in 2004. Sales and marketing expenses increased as expected due to our investment in a NASCAR program and marketing programs supporting the launch of the Military & Police pistol series. In June of the current fiscal year, we announced that we intended to early adopt Statement of Financial Accounting Standards No. 123(R), "Share-based Payment (Revised 2004)" (SFAS 123(R)) using the modified retrospective application method. Consequently, we have restated prior periods to reflect the impact of SFAS 123(R). The adoption of SFAS 123(R) resulted in additional stock compensation expense of $579,011 for the quarter ended October 31, 2005 compared with stock compensation expense of $119,582 for the quarter ended October 31, 2004. We also incurred approximately $484,000 in consulting fees relative to the implementation of Sarbanes-Oxley 404 compliance. Finally, we incurred $398,500 in payroll tax expense relative to the exercise of warrants by, and repurchase of warrants from, two of our original investors during the second quarter of fiscal 2006.

Net cash outflow from operations for the six months ended October 31, 2005 was $3.6 million compared with $1.1 million for the six months ended October 31, 2004. Capital expenditures for the six months ended October 31, 2005 were $6.0 million, or $2.1 million, higher than the $3.9 million spent in the six months ended October 31, 2004. We had short-term borrowings of $4.5 million at October 31, 2005.

Michael Golden, President and CEO, said, "I am pleased with the progress we made this quarter on several fronts. First, our 25.5% growth rate in firearms sales was fueled by a follow-on order to the U.S. government for Afghanistan soldiers. We have received three orders this year from the U.S. government for shipment to Afghanistan, which reflects the effectiveness of a newly established segment of the Smith & Wesson sales team that focuses on growing our business with the military and federal government. In fact, military and federal government firearms sales, which were virtually non-existent one year ago, have so far totaled over $4.4 million for the first six months of fiscal 2006. With regard to firearms sold into the sporting goods channel, during the second quarter, we completed our transition from a sales network of independent manufacturers representatives to a directly employed, Smith & Wesson sales force. We believe this new organization is beginning to have positive impact. International sales have increased by over 51% for the first six months of this fiscal year. We believe the launch of our new Military & Police (M&P) pistol series, announced earlier this week, will help support continued strong growth in each of these markets, as well as the law enforcement market. Response to this exciting new polymer pistol series, designed specifically for law enforcement and military users, has been tremendously positive."

"We made notable operating improvements in our Springfield factory in the areas of manufacturing processes, supply chain management, and lean manufacturing practices. In November, efficiencies allowed us to return to a five-day work schedule throughout most of our machining operations, from the seven-day schedule we implemented in January of this year. The transition went extremely well, with production rates for the month of November meeting, and in some cases exceeding, the levels we were achieving under the seven-day schedule. This change, coupled with others, will begin to contribute to improved gross margins beginning in the third quarter of fiscal 2006."

Accounting Matters

Results for the quarter ended October 31, 2004 have been restated to correct the accounting for certain stock awards under APB 25 and the adoption of SFAS 123(R).

Updated Outlook for Fiscal 2006

We are raising our sales expectations and now expect net product sales for fiscal 2006 to increase by 13% to 15% over fiscal 2005 compared with our earlier expectations of growth in the 10% to 12% range, excluding potential additional revenue from new business ventures we may pursue. This increase is expected to come from improved sales penetration of the current sporting goods channel and new sales in law enforcement, fueled by enhancements to our sales organization structure and the introduction of the M&P pistol series in December 2005. The multiple orders we have received so far in fiscal 2006 from the U.S. government give us confidence that our sales to the federal government will continue to grow. We also expect that the international trade channels will continue to yield higher year-over-year sales levels, supported by new product introductions, including the M&P pistol series.

Estimated gross profit, as a percentage of product sales and licensing revenue, is expected to increase from 29.1%, before the impact of the one-time insurance recovery last year, to approximately 31% in fiscal 2006. We have adjusted our gross margin expectation down slightly compared with previous estimates, due entirely to oil and natural gas cost increases that have occurred as a result of Hurricane Katrina. Generally, electricity rates are expected to nearly triple by January 2006 compared with pre-Hurricane Katrina levels. While we are exploring alternative energy sources and implementing conservation programs in an effort to reduce the impact, we anticipate our energy costs will increase by $800,000 for fiscal 2006 over our initial expectations. Our adjusted gross margin expectation of 31% for fiscal 2006 incorporates this higher, anticipated energy expense.

As a percentage of sales and licensing, operating expenses in fiscal 2006, excluding the favorable environmental adjustment in the first quarter, are still expected to increase slightly compared with prior year levels as we expand our sales and marketing resources and activities. We expect our interest expense in fiscal 2006 to be approximately $1.5 million, substantially lower than fiscal 2005 levels, reflecting our refinancing activities in January 2005.

Net income for fiscal 2006 is still expected to increase to between $6.9 million and $7.5 million, or between $.19 and $.20 per diluted share. Though we have increased our sales growth expectations, rising utility costs will offset the benefit of this increased sales volume. Our current expectation includes an anticipated compensation expense relative to SFAS 123(R) of $1.9 million, or $.03 per share. While we are not providing quarterly guidance, we expect that the fourth quarter will be significantly stronger than the third quarter. This is due to our M&P start-up, launch, and production ramp-up costs, as well as the brunt of the increased energy costs.

Golden added, "We focused heavily during the second quarter on efforts to diversify and grow our business and have now identified several opportunities. We have decided to enter a segment of the long-gun market and plan to introduce our first new products in that category at SHOT Show, our industry's major event, at the Las Vegas Convention Center in February 2006. The long-gun market presents a tremendous opportunity to leverage the historic Smith & Wesson brand name and to further develop our reputation as a company in the business of safety, security, protection and sport. We look forward to sharing more details of this entry in February. We are very excited at the prospect of returning Smith & Wesson to the long gun market after a 21 year absence."

Conference Call

The Company will host a conference call today, December 7, 2005, to discuss its second quarter results and its outlook for 2006. The conference call may include forward-looking statements. The conference call will be Web cast and is scheduled to begin at 5:00pm Eastern Time (2:00pm Pacific). The live audio broadcast and replay of the conference call can be accessed on the Company's Web site at www.smith-wesson.com, under the Investor Relations section. The Company will maintain an audio replay of this conference call on its website for a period of time after the call. No other audio replay will be available.

About Smith & Wesson

Smith & Wesson Holding Corporation, through its subsidiary Smith & Wesson Corp., is one of the world's largest manufacturers of quality handguns, law enforcement products and firearm safety/security products. The Company also licenses shooter protection, knives, apparel, footwear and other accessory lines. The Company is based in Springfield, Mass., with manufacturing facilities in Springfield and Houlton, Maine. The Smith & Wesson Academy is America's longest-running firearms training facility for America's public servants. For more information, call (800) 331-0852 or log on to www.smith-wesson.com.

Safe Harbor Statement

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and the Company intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include statements regarding the Company's anticipated sales, sales margins, gross margins, expenses, including anticipated energy costs, earnings, capital expenditures, penetration rates for new and existing markets and new product shipments, for the fiscal year ending April 30, 2006; the Company's strategies; the demand for the Company's products; the success of the Company's efforts to achieve improvements in manufacturing processes; the ability of the Company to introduce any new products and the success of any new products, including the Military and Police pistol series and long guns(rifles and shotguns). The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the demand for the Company's products, the Company's growth opportunities, the ability of the Company to obtain operational enhancements, the ability of the Company to increase its production capacity, the ability of the Company to engage additional key employees, and other risks detailed from time to time in the Company's reports filed with the SEC, including its Form 10-K Report for the fiscal year ended April 30, 2005.

Contacts:
John Kelly, Chief Financial Officer
Smith & Wesson Holding Corp.
(413) 747-3305

Liz Sharp, VP Investor Relations
Smith & Wesson Holding Corp.
(480) 949-9700 x. 115
lsharp@smith-wesson.com
Link Posted: 12/22/2005 6:35:22 PM EDT
Several of S&W management have been replaced.I noticed in the Feb/March issue of G&A's Handgun magazine Dave Spaulding's article on the M&P.S&W called him for input when designing the M&P but when they called him to look at the finished pistol lotsa faces and names had changed.Just in the first paragraph he mentions (then) communications director (then)handgun production manager and (then) president,they seem like some high positions to just let go all in a row.The time frame of the article was Oct 03 to May 05. That doesn't fit in your 48 hrs but maybe they decided to let a few more go.
Link Posted: 12/22/2005 7:20:08 PM EDT
If they had fired all females would it have been a miss-firing at S&W?
Link Posted: 12/22/2005 7:28:58 PM EDT
No Ruger nor S&W products allowed in my home...

Link Posted: 12/22/2005 7:39:27 PM EDT
I used to really like S&W stuff a 4006 was my first auto pistol
however until they get rid of that faggity lock I will never buy another wheel gun
I tried a 610 in 2003 I shot 10 rounds out of it between its 3 trips to the factory
I will never buy a smith again
Link Posted: 12/22/2005 7:45:02 PM EDT
[Last Edit: 12/22/2005 7:46:22 PM EDT by Easy_E]
Sold a few (7) 460's for deer season. Guys seem to like them.I been looking at the performace center 10" barrel model.
Link Posted: 12/22/2005 7:54:24 PM EDT
if S&W would get into the AR15 market, things would get interesting heheh
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