Cycle Country Accessories Corp. has reduced its guidance for the second quarter. The company cited the record warm winter, which adversely impacted snowplow reorders from distributors that traditionally occur during the second quarter. The reorders were light early in the quarter and stayed that way to the end of the quarter.
In addition, in implementing a new ERP software package, the company determined a few recent transactions had not been treated accurately. The transactions impacted both sales and cost of sales negatively. The company retained a consultant from the software supplier to review the implementation of the financial package. Based on the review, the company is comfortable the new package is now accounting for transactions properly.
The original guidance for the second quarter was zero cents to two cents. The revised guidance is negative five cents to negative two cents.
The company maintains its previous guidance for the fiscal year at $0.17 to $0.22. The company reaffirms the guidance based on the projected strength of new products and the anticipated increased sales of snow-related products during the fourth quarter. The fourth quarter increases will be a result of distributors and dealers replenishing their inventories the late and heavy snow of this past winter depleted.