Tefron Ltd. reported earnings results for second quarter and first half of 2012. For the quarter, the company's sales totaled $29.3 million, a 1.4% increase in comparison to $28.8 million in the corresponding period last year. Operating profit totaled $149,000 in comparison to operating loss in the amount of $1.3 million in the corresponding period last year. EBITDA (Earnings before interest, taxes, depreciation and amortization) totaled $1.6 million in comparison to $0.5 million EBITDA in the corresponding quarter last year. Cash flow from operating activities totaled $3.2 million in comparison to a negative cash flow in the amount of $1.5 million in the corresponding period last year. Net income totaled $1.3 million, or 20 cents diluted earnings per share compared to a loss in the amount of $1.7 million during the corresponding period last year. Profit per share in full dilution is $0.2 per share in comparison to loss in the amount of $0.3 per share in full dilution during the corresponding period last year.

For six months, the company's sales totaled $57.6 million, a 1.5% increase in comparison to $56.8 million in the corresponding period last year. Operating profit in the first half of 2012 totaled $256,000 in comparison to operating loss in the amount of $3.2 million in the corresponding period last year. In the first half of 2012 EBITDA totaled $3.0 million, an improvement of $2.3 million in comparison to $0.8 million EBITDA in the corresponding period last year. In the first half of 2012, cash flow from operating activities totaled $0.6 million in comparison to a negative cash flow in the amount of $9.2 million in the corresponding period last year. The transition from a negative to a positive cash flow can be mainly attributed to an improvement in the company's financial results and a decrease in the trade receivables in the quarter due to seasonality in the swimwear sector. In the corresponding periods, the company faced a negative cash flow especially due to the high working capital which the company needed in the beginning of 2011 that was meant to support the significant increase in activities following acquisition of Nouvelle activities at the end of 2010. Net income in the first half of 2012 totaled $477,000 or 7 cents diluted earnings per share compared to a loss of $4.0 million during the corresponding period last year. Profit per share in full dilution is $0.07 in the reporting period in comparison to a loss per share in full dilution of $0.6 in the corresponding period last year.