For the quarter, the figures showed sales of $60.8m, with $8.6m from its Pantone division - a year on year drop of 20%. However, the company also recorded a number of charges, including a $3.8m cost related to its deferred financing arrangements and a $58.1m non-cash charge related to its 2007 acquisition of Pantone.

The company said that the latter would not affect its cashflow, liquidity position or credit facilities.

For the full year X-Rite reported sales of $261.5m, down 7.7% year on year (including Pantone) and a net loss of $117.8m. However it reduced its debt balance to $270.9m and said it maintained $50.8m in cash.

X-Rite chief executive officer Thomas J. Vacchiano said: "Our team made good progress on a number of fronts in the fourth quarter that resulted in a stronger balance sheeet, exciting new product shipments, and important new customer projects... Pantone's brand, customer base and business model continue to be extremely valuable to X-Rite and will create a range of new opportunitites for X-Rite by serving the complete value chain of many of our targeted markets."

The company expects Q1 2009 to be down between 25% and 30% down year on year, although it is also implementing a range of cost-reduction measures in line with the effects of the recession and to maintain the necessary margins under its credit facility covenants.

Shares in X-Rite closed at $1 yesterday, down from the previous day's close of $1.05.

See also:

X-Rite reins in 2009 estimates and announces redundancies