Kentwood-based X-Rite Inc. (NASDAQ: XRIT) reported a 1.7 percent rise in second quarter sales over the year-earlier period, as well as a net loss of $20.9 million.

Company officials said they didn't provide a comparable second-quarter 2007 figure because the operations of Europe's Pantone, acquired last Oct. 27, were so different from those of a publicly held company that direct comparisons were impossible.

Revenue in the second quarter was $73.5 million, up 1.7 percent from $72.3 million in the second quarter of 2007 on a pro forma combined basis. Pantone's sales contribution was $11.6 million in the second quarter.

X-Rite sells hardware, software and services for the communication and verification of color data. Its markets range from coatings to graphic arts.

Operating expenses declined in the second quarter by 7.7 percent versus first quarter 2008 excluding restructuring and other related charges, which the company cited as evidence that its restructuring plan has begun to impact its results.
 
The company added $9.9 million in cash flow, bringing its total cash hoard to $28.3 million, and said it made "significant progress" regarding its refinancing efforts and an amended credit agreement.

Earnings before interest, taxes, depreciation and amortization rose to $17.2 million from $13.2 million in the first quarter. Operating income was $500,000. But after interest expense of $11.2 million and booked income taxes of $10.3 million, the company posted its $20.9 million loss.

The company said it expects total 2008 sales of $272 million to $286 million. The company's sales in 2007 were $283 million. EBITDA is predicted at $60 million to $68 million, excluding costs related to changes in the company's lending agreements or capital structure, which are now being negotiated.

To listen to a recording of a conference call discussing the results, visit www.xrite.com.