Candie’s made a net income of $518,000 for its second quarter ended July 31, compared to a loss of $3.8 million for the same period in 2003, while licensing income increased to $2.1 million from $1.8 million. At the end of the 2004 fiscal year, Candie’s completed the transaction of its wholesale and retail footwear business to a new licensing model. The company is in the midst of transferring its jeanswear operations to TKO Apparel Licensing, which is the new license for Bongo jeans and which is set to acquire Unzipped Apparel, the company’s wholly-owned subsidiary. The jeanswear licensee will begin generating licensing income from the third quarter of this year.