Collectors Universe Reports Results for First Quarter Ended September 30, 2010: EPS of $0.22

Collectors Universe, Inc. CLCT, a leading provider of value-added authentication and grading services to dealers and collectors of high-value collectibles, today announced financial results for its first quarter ended September 30, 2010. Operational and Financial Highlights: * Net service revenue increased 5% in the current first quarter driven primarily by an 8% increase in coin service revenues. Notably, coin units graded increased by approximately 25% as compared to the prior year quarter, due primarily to an increase in modern coin authentication and grading submissions. * The gross profit margin in the first quarter was 61% of revenues, as compared to 60% in the prior year quarter. The gross profit margin improvement was driven by further reduction in our direct costs per coin unit graded and authenticated, offset by a lower average service fee. * Operating income of $1.8 million for the quarter was consistent with the first quarter of fiscal 2010. We chose to invest in sales and marketing initiatives, resulting in a $0.3 million increase in selling and marketing expenses in the first quarter of fiscal 2011, primarily to extend the geographical reach of our grading services into Europe and hold key events for both PCGS and PSA customers. * Income from continuing operations for the first quarter of fiscal 2011 was $1.1 million, or $0.14 per diluted share, compared to $1.7 million, or $0.22 per diluted share, for the first quarter of fiscal year 2010. * The results for the first quarter of fiscal 2011 reflect a tax provision of $0.7 million as a result of the release of valuation allowances against deferred tax assets at June 30, 2010, which represented an increase of $0.6 million, as compared to the tax provision in last year's first quarter. Cash taxes paid remain minimal. * The Company's cash position at September 30, 2010 was $19.3 million, compared with $20.3 million at June 30, 2010. We used net cash of $1.0 million for the quarter, comprised of cash generated from continuing operations of $1.3 million, including payment of annual incentive compensation of $0.7 million, primarily offset by the payment of $2.2 million of cash dividends to stockholders during the first three months of the current fiscal year. * On October 6, 2010, we announced the increase in our quarterly cash dividend to $0.325 per share per quarter with the first dividend under such policy to be paid on November 19, 2010 to stockholders of record on November 5, 2010.