Kona Grill Inc (OTC:KONA)

Second Quarter 2011 Results

• Restaurant sales increased 13.6% to $25.8 million from $22.7 million in the same year-ago quarter.
• Excluding severance and other charges related to the departure of the company's former CEO, net income for the second quarter of 2011 was $1.0 million or $0.11 per share. This compares to net income of $0.4 million or $0.05 per share in the same year-ago quarter

"Top-line results exceeded the high end of our sales guidance for the quarter, driven by a 9.1% increase in same-store sales," said Michael Nahkunst, interim president and CEO of Kona Grill. "Our restaurants did a fantastic job driving additional sales through recent marketing and menu improvement initiatives, while also leveraging these sales to improve our restaurant operating margins. The strong earnings during the quarter firmly support our forecast of achieving profitability for 2011."

Third quarter guidance

• As the result of strong sales growth during the quarter, the company has increased its third quarter revenue guidance and now expects revenue to range between $24.1 million and $24.2 million
• Net income guidance to $0.5 million to $0.6 million, or $0.05 to $0.06 per share