================================================================================
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


[X]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
       ACT OF 1934.

                  For the quarterly period ended July 31, 2007

                                       OR

[ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934.


            For the transition period from __________ to __________.


                         Commission file number 0-23001


                             SIGNATURE EYEWEAR, INC.
             (Exact Name of Registrant as Specified in its Charter)

           CALIFORNIA                                            95-3876317
(State or Other Jurisdiction of                               (I.R.S. Employer
 Incorporation or Organization)                              Identification No.)

                              498 NORTH OAK STREET
                           INGLEWOOD, CALIFORNIA 90302
                    (Address of Principal Executive Offices)

                                 (310) 330-2700
              (Registrant's Telephone Number, Including Area Code)

     Indicate by check whether the registrant: (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days:

                                 Yes [X] No [ ]

     Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):

Large Accelerated Filer [ ]   Accelerated Filer [ ]   Non-accelerated Filer [X]

     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

     State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 6,855,639 shares issued and
outstanding as of September 13, 2007.
================================================================================
<PAGE>

                             SIGNATURE EYEWEAR, INC.

                               INDEX TO FORM 10-Q

                                                                           PAGE
PART I  FINANCIAL INFORMATION

Item 1  Financial Statements

        Balance Sheets                                                      3-4

        Statements of Income                                                 5

        Statements of Cash Flows                                            6-7

        Notes to Financial Statements                                        8

Item 2  Management's Discussion and Analysis of Financial
        Condition and Results of Operations                                 13

Item 3  Quantitative and Qualitative Disclosures About Market Risk          17

Item 4  Controls and Procedures                                             17


PART II  OTHER INFORMATION

Item 6  Exhibits                                                            18








                                        2
<PAGE>

ITEM 1. FINANCIAL STATEMENTS

                                                         SIGNATURE EYEWEAR, INC.
                                                                  BALANCE SHEETS
                        JULY 31, 2007 (UNAUDITED) AND OCTOBER 31, 2006 (AUDITED)
================================================================================

                                     ASSETS

                                                        July 31,    October 31,
                                                          2007         2006
                                                      -----------   -----------
Current assets
  Cash and cash equivalents                           $   353,964   $   554,138
  Certificate of deposit, restricted                      250,000       250,000
  Accounts receivable - trade, net of allowance
    for doubtful accounts of $57,373, each period       2,758,369     2,943,487
  Inventory                                             4,853,938     4,759,893
  Promotional products and materials                      165,312       116,394
  Prepaid expenses and other current assets               236,338       139,988
  Deferred income taxes                                   350,200       255,000
                                                      -----------   -----------
     Total current assets                               8,968,121     9,018,900

Property and equipment, net                               391,891       494,815
Deposits                                                   92,769        97,374
Deferred income taxes                                   1,003,000       622,200
                                                      -----------   -----------
     Total assets                                     $10,455,781   $10,233,289
                                                      ===========   ===========




   The accompanying notes are an integral part of these financial statements.

                                        3
<PAGE>
                                                         SIGNATURE EYEWEAR, INC.
                                                                  BALANCE SHEETS
                        JULY 31, 2007 (UNAUDITED) AND OCTOBER 31, 2006 (AUDITED)
================================================================================

                      LIABILITIES AND SHAREHOLDERS' DEFICIT

                                                        July 31,    October 31,
                                                          2007          2006
                                                      -----------   -----------
Current liabilities
  Accounts payable - trade                            $ 4,692,482   $ 4,640,088
  Accrued expenses and other current liabilities        1,392,899     1,491,984
  Reserve for customer returns                            300,309       300,309
  Current portion of long-term debt                       643,171       767,655
                                                      -----------   -----------
     Total current liabilities                          7,028,861     7,200,036

Long-term debt, net of current portion                  4,965,702     5,702,765
                                                      -----------   -----------
     Total liabilities                                 11,994,563    12,902,801
                                                      -----------   -----------
Commitments and contingencies

Shareholders' deficit
  Preferred stock, $0.001 par value
      5,000,000 shares authorized
          Series A 2% convertible preferred stock,
          $0.001 par value;
          1,360,000 shares authorized
          1,200,000 issued and outstanding                  1,200         1,200
  Common stock, $0.001 par value
      30,000,000 shares authorized
      6,855,639 shares and 6,555,639 issued
          and outstanding, respectively                     6,856         6,556
  Additional paid-in capital                           15,589,912    15,383,962
  Accumulated deficit                                 (17,136,750)  (18,061,230)
                                                      -----------   -----------
     Total shareholders' deficit                       (1,538,782)   (2,669,512)
                                                      -----------   -----------
     Total liabilities and shareholders' deficit      $10,455,781   $10,233,289
                                                      ===========   ===========

   The accompanying notes are an integral part of these financial statements.

                                        4
<PAGE>
<TABLE><CAPTION>
                                                                            SIGNATURE EYEWEAR, INC.
                                                                               STATEMENTS OF INCOME
          FOR THE THREE MONTHS AND NINE MONTHS ENDED JULY 31, 2007 (UNAUDITED) AND 2006 (UNAUDITED)
---------------------------------------------------------------------------------------------------

                                      For The Three Months Ended        For The Nine Months Ended
                                       July 31,        July 31,          July 31,        July 31,
                                         2007            2006              2007            2006
                                     ------------    ------------      ------------    ------------
<S>                                  <C>             <C>               <C>             <C>
Net sales                            $  6,175,318    $  5,690,177      $ 18,616,104    $ 17,136,485
Cost of sales                           2,287,475       1,875,156         6,710,186       5,743,337
                                     ------------    ------------      ------------    ------------
Gross profit                            3,887,843       3,815,021        11,905,918      11,393,148
                                     ------------    ------------      ------------    ------------
Operating expenses
  Selling                               2,185,469       2,125,329         6,626,748       6,242,782
  General and administrative            1,407,891       1,394,368         4,297,423       4,240,634
  Depreciation and amortization            49,814          52,463           145,000         150,437
                                     ------------    ------------      ------------    ------------
     Total operating expenses           3,643,174       3,572,160        11,069,171      10,633,853
                                     ------------    ------------      ------------    ------------

Income from operations                    244,669         242,861           836,747         759,295
                                     ------------    ------------      ------------    ------------
Interest expense                         (124,122)       (140,068)         (378,060)       (420,974)
                                     ------------    ------------      ------------    ------------

Income before benefit  for
       income taxes and                   120,547         102,793           458,687         338,321
Benefit of income taxes                  (135,887)       (126,737)         (465,795)       (317,400)
                                     ------------    ------------      ------------    ------------

Net Income                                256,434         229,530           924,482         655,721
                                     ------------    ------------      ------------    ------------

Net income available to
     common stock shareholders       $    256,434    $    229,530      $    924,482    $    655,721
                                     ============    ============      ============    ============
Basic earnings per share             $       0.04    $       0.04      $       0.14    $       0.10
                                     ============    ============      ============    ============
Diluted earnings per share           $       0.04    $       0.04      $       0.14    $       0.10
                                     ============    ============      ============    ============
Weighted-average common shares
     outstanding - Basic                6,855,639       6,381,677         6,664,132       6,381,677
                                     ============    ============      ============    ============
Weighted-average common shares
     outstanding - Diluted              6,855,639       6,530,163         6,664,132       6,530,163
                                     ============    ============      ============    ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                        5
<PAGE>

                                                         SIGNATURE EYEWEAR, INC.
                                                        STATEMENTS OF CASH FLOWS
        FOR THE NINE MONTHS ENDED JULY 31, 2007 (UNAUDITED) AND 2006 (UNAUDITED)
--------------------------------------------------------------------------------

                                                           2007         2006
                                                        ---------    ---------
Cash flows from operating activities
 Net income                                             $ 924,482    $ 655,721
 Adjustments to reconcile net income
  to net cash provided by
  operating activities:
    Deferred income taxes                                (476,000)    (324,700)
    Depreciation and amortization                         145,000      150,437
    Provision for bad debts                                  --        (73,269)
    (Increase) decrease in:
      Accounts receivable - trade                         185,119      286,580
      Inventories                                         (94,045)    (580,976)
      Promotional products and materials                  (48,918)     (41,335)
      Prepaid expenses and other current assets           (96,350)      42,580
    Increase (decrease) in:
      Accounts payable - trade                             52,394      305,257
      Accrued expenses and other current liabilities      (99,085)    (395,185)
                                                        ---------    ---------
Net cash provided by operating activities                 492,597       25,110
                                                        ---------    ---------

Cash flows from investing activities
  Purchase of property and equipment                      (42,079)     (40,654)
  Deposits and other assets                                 4,605       22,539
                                                        ---------    ---------

Net cash used in investing activities                     (37,474)     (18,115)
                                                        ---------    ---------

   The accompanying notes are an integral part of these financial statements.

                                        6
<PAGE>

                                                         SIGNATURE EYEWEAR, INC.
                                                        STATEMENTS OF CASH FLOWS
        FOR THE NINE MONTHS ENDED JULY 31, 2007 (UNAUDITED) AND 2006 (UNAUDITED)
--------------------------------------------------------------------------------

                                                          2007          2006
                                                       ----------    ----------
Cash flows from financing activities
    Net increase (decrease) in lines of credit         $ (500,000)   $  205,000
    Payments on short-term debt                              --        (100,000)
    Borrowings on long-term debt                          875,000          --
    Payments on long-term debt                         (1,236,547)     (595,089)
    Proceeds from sale of common stock                    206,250        94,001
                                                       ----------    ----------

Net cash used in financing activities                    (655,297)     (396,088)
                                                       ----------    ----------

Net decrease in cash and cash equivalents                (200,174)     (389,093)


Cash and cash equivalents, beginning of year              554,138       735,654
                                                       ----------    ----------

Cash and cash equivalents, end of year                 $  353,964    $  346,561
                                                       ==========    ==========

Supplemental disclosures of cash
    flow information

      Interest paid                                    $  289,948    $  256,597
                                                       ==========    ==========
      Income taxes paid                                $    8,613    $    7,250
                                                       ==========    ==========

   The accompanying notes are an integral part of these financial statements.

                                        7
<PAGE>

                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. ORGANIZATION AND LINE OF BUSINESS

     Signature Eyewear, Inc. ("we" or the "Company") designs, markets and
distributes eyeglass frames throughout the United States and internationally.
Primary operations are conducted from leased premises in Inglewood, California,
with a warehouse and sales office in Belgium.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation
---------------------

     The accompanying unaudited financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form 10-Q
and Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States of America for complete financial statements. In the opinion of
management, all normal, recurring adjustments considered necessary for a fair
presentation of financial position, results of operations and cash flows for the
periods presented have been included. These unaudited financial statements
should be read in conjunction with the audited financial statements and notes
thereto included in the Company's Annual Report on Form 10-K for the year ended
October 31, 2006. The results of operations for the three months and nine months
ended July 31, 2007 are not necessarily indicative of the results that may be
expected for the year ending October 31, 2007.

Inventories
-----------

     Inventories are stated at the lower of cost (first-in first-out method) or
market.

Property and Equipment
----------------------

     Property and equipment are recorded at cost. Depreciation and amortization
are provided using the straight-line method over the estimated useful lives of
the assets as follows:

     Office furniture and equipment          7 years
     Computer equipment                      3 years
     Software                                3 years
     Machinery and equipment                 5 years
     Leasehold improvements                  lesser of lease or useful life

Fair Value of Financial Instruments
-----------------------------------

     For certain of the Company's financial instruments, including cash and cash
equivalents, accounts receivable, accounts payable - trade, and line of credit,
the carrying amounts approximate fair value due to their short maturities. The
amounts shown for long-term debt also approximate fair value because current
interest rates offered to the Company for debt of similar maturities are
substantially the same.

                                        8
<PAGE>

Earnings Per Share
------------------

     The Company calculates earnings per share in accordance with SFAS No. 128,
"Earnings per Share." Basic earnings per share is computed by dividing the
income available to common shareholders by the weighted-average number of common
shares outstanding. Diluted earnings per share is computed similar to basic
earnings per share except that the denominator is increased to include the
number of additional common shares that would have been outstanding if the
potential common shares had been issued and if the additional common shares were
dilutive. The following data show the amounts used in computing earnings per
share and the effect on the weighted average number of shares of potential
dilutive common stock:
<TABLE><CAPTION>
                                                                NINE MONTHS ENDED    NINE MONTHS ENDED
                                                                  JULY 31, 2007        JULY 31, 2006
                                                                -----------------    -----------------
<S>                                                                <C>                   <C>
Net income available to common shareholders                        $  924,482            $  655,721
                                                                   ==========            ==========
Weighted average number of common shares used in basic EPS          6,664,132             6,381,677
Effect of dilutive stock options                                            0               148,486
                                                                   ----------            ----------
Weighted average number of common shares and dilutive
      potential common shares used in dilutive EPS                  6,664,132             6,530,163
                                                                   ==========            ==========
</TABLE>

     The Company had no dilutive shares from stock options or warrants for the
nine months ended July 31, 2007, but did have dilutive stock options for the
nine months ended July 31, 2006.

     The following potential common shares have been excluded from the
computations of diluted earnings per share for the nine months ended July 31,
2007 and 2006 because the exercise price was above the average market price for
all periods presented during which such options or warrants were outstanding:

                                    2007          2006
                                 --------      --------
          Stock options            96,300        97,500
          Warrants                400,000       100,000
                                 --------      --------
             TOTAL                496,300       197,500
                                 ========      ========


Foreign Currency Translation
----------------------------

     The Company's Belgium branch's functional currency is the Euro. Assets and
liabilities are translated at exchange rates in effect at the balance sheet
date. Income and expense accounts are translated at average rates. In addition,
some of the Company's liabilities are denominated in foreign currencies. Such
liabilities are converted into U.S. Dollars at the exchange rate prevailing at
the balance sheet date. The resulting gains or losses were immaterial for the
periods ended July 31, 2007 and 2006.

                                        9
<PAGE>

Estimates
---------

     The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.

NOTE 3. PROPERTY AND EQUIPMENT

     Property and equipment at the dates indicated consisted of the following:

                                              JULY 31, 2007    OCTOBER 31, 2006
                                              -------------    ----------------

Computer equipment                             $ 1,624,362        $ 1,619,621
Leasehold improvements                           1,200,590          1,200,590
Software                                         1,153,644          1,143,259
Office furniture and equipment                     914,975            912,756
Machinery and equipment                            733,947            709,216
                                               -----------        -----------
                                                 5,627,518          5,585,442

Less accumulated depreciation and
  amortization                                  (5,235,627)        (5,090,627)
                                               -----------        -----------
                        TOTAL                  $   391,891        $   494,815
                                               ===========        ===========

     Depreciation and amortization expense was $145,000 and $150,437 for the
nine months ended July 31, 2007 and 2006, respectively, and $49,814 and $52,463
for the three months ended July 31, 2007 and 2006, respectively.

NOTE 4. SHORT-TERM AND LONG-TERM DEBT

     Short-term and long-term debt at the dates indicated consisted of the
following:
                                                          JULY 31,   OCTOBER 31,
                                                            2007        2006
                                                         ---------   -----------

Term note payable to Home Loan Investment Corporation
     ("HLIC") in the original amount of $3,000,000,
     bearing interest at 10% per annum, secured by the
     assets of the Company, a letter of credit in the
     amount of $1,250,000 and a $250,000 certificate of
     deposit issued by HLIC; payments of interest only
     through March 2004 and thereafter monthly
     installments of principal and interest ($39,777)
     with a payment of $2,044,206 in April 2008          $2,358,350   $2,532,146


                                       10
<PAGE>

Term note payable to Bluebird Finance Limited in the
     original amount of $2,900,000, secured by the
     assets of the Company (subordinated to the HLIC
     credit facility), bearing interest at 5% per
     annum, and payable in quarterly installments of
     $72,500, commencing in July 2005                     2,247,500    2,537,500

Note payable to a commercial bank in the original
     amount of $750,000, secured by certain property
     and equipment, bearing interest at 4% per annum,
     payable in 39 monthly installments of $13,812,
     commencing March 31, 2003, with the remaining
     principal and accrued interest due and payable in
     full on February 28, 2008                              128,023      245,081

Term note payable to HLIC in the original amount of
     $750,000, secured by the collateral securing the
     HLIC note, bearing interest at 12% per annum and
     due and payable in April 2008                          750,000         --

Term note payable to Ashford Capital, LLC in the
     original amount of $125,000, unsecured, bearing
     interest at 8% per annum, payable on May 15, 2010      125,000         --

Revolving line of credit from HLIC in the amount of
     $500,000, secured by the collateral securing the
     HLIC term note, bearing interest at 12% per annum
     on the outstanding balance, due in April 2008             --        500,000

Term note payable to HLIC in the original amount of
     $655,693, secured by the collateral securing the
     HLIC note, bearing interest at 12% per annum, paid
     in full during the three months ended January 31,
     2007                                                      --        655,693
                                                         ----------   ----------
                                                          5,608,873    6,470,420
Less current portion                                        643,171      767,655
                                                         ----------   ----------
     LONG-TERM PORTION                                   $4,965,702   $5,702,765
                                                         ==========   ==========


NOTE 5. INCOME TAXES

     The benefit of income taxes for the three months and nine months ended July
31, 2007 includes decreases of $144,500 and $476,000, respectively, as compared
to $129,200 and $325,200, respectively, in the 2006 periods, in the valuation
allowance for deferred tax assets. The decrease in the valuation allowance is
primarily due to the Company's determination that the future tax benefits of the
net operating loss carryforwards may be realized.

                                       11
<PAGE>

NOTE 6. SHARE-BASED COMPENSATION

     The Company was required to adopt the provisions of FASB Statement No.
123R, "Share-Based Payment" ("SFAS 123R"), effective November 1, 2005. Prior to
November 1, 2005, the Company used the fair value method permitted by FASB
Statement No. 123, "Accounting for Stock-Based Compensation" ("SFAS 123"), to
account for stock options granted to employees. The Company had elected the
disclosure-only provisions of SFAS 123 and, accordingly, did not recognize
compensation expense for stock option grants.

     The provisions of SFAS 123R are applicable to stock options awarded by the
Company beginning November 1, 2005. Under SFAS No. 123R, the Company is required
to recognize compensation expense for options granted after November 1, 2005.
The Company used the modified prospective application transition method in
adoption of SFAS No. 123R. Under this transition method, the Company was also
required to recognize compensation expense for the portion of awards granted
before November 1, 2005 for which the requisite service had not been rendered.
Provisions of SFAS No. 123R preclude the Company from changing the grant date
fair value of awards granted before November 1, 2005. Using the
Black-Scholes-Merton option-pricing model, management has determined that the
result of recognizing compensation expense for options granted before October
31, 2005 would have an insignificant effect on income and no effect on cash
flows for the periods ended July 31, 2007. Furthermore, no options were granted
or exercised since October 31, 2005.

NOTE 7. RECENT ACCOUNTING PRONOUNCEMENTS

     In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities," including an amendment of FASB
Statement No. 115, which permits entities to choose to measure many financial
instruments and certain other items at fair value. Most of the provisions of
this Statement apply only to entities that elect the fair value option. However,
the amendment to FASB Statement No. 115, "Accounting for Certain Investments in
Debt and Equity Securities," applies to all entities with available-for-sale and
trading securities. SFAS No. 159 is effective as of the beginning of an entity's
first fiscal year that begins after November 15, 2007. Early adoption is
permitted as of the beginning of a fiscal year that begins on or before November
15, 2007, provided the entity also elects to apply the provisions of FASB
Statement No. 157, "Fair Value Measurements." The Company does not believe that
the adoption of SFAS No. 159 will have a material effect on its financial
statements.

     Other recent accounting pronouncements issued by the FASB (including its
Emerging Issues Task Force), the American Institute of Certified Public
Accountants and the United States Securities and Exchange Commission did not or
are not believed to have a material impact on the Company's present or future
financial statements.

NOTE 8. SUBSEQUENT EVENTS

     On September 14, 2007, the Company entered into a $4.8 million revolving
line of credit facility with Comerica Bank to replace the current credit
facilities with Home Loan Investment Corporation and its subsidiary Home Loan
Industrial Bank. The revolving line of credit bears interest payable monthly at
either Comerica Bank's base rate plus 0.50% or LIBOR plus 3.25%, as selected in
advance by the Company. The revolving line of credit is secured by the assets of
the

                                       12
<PAGE>

Company and a letter of credit in the amount of $1,250,000, and will expire on
February 28, 2010. The revolving line of credit includes a number of financial
and operating covenants, which include: (i) quarterly minimum pre-tax income,
(ii) quarterly maximum ratio of total liabilities minus subordinated debt to
subordinated liabilities and net worth, (iii) quarterly minimum ratio of cash
and accounts receivables to current liabilities and revolving debt minus
unsubordinated debt, (iv) annual capital expenditures limitations, and (v)
without the consent of the bank, acquire any business or incur indebtedness.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

     The following discussion and analysis, which should be read in connection
with Signature Eyewear's Financial Statements and accompanying footnotes,
contain forward-looking statements that involve risks and uncertainties.
Important factors that could cause actual results to differ materially from the
Signature Eyewear's expectations are set forth in Item 1A - Risk Factors in
Signature Eyewear's Annual Report on Form 10-K for the year ended October 31,
2006, as well as those discussed elsewhere in this Form 10-Q. Those
forward-looking statements relate to, among other things, Signature Eyewear's
plans and strategies, new product lines, and relationships with licensors,
distributors and customers, distribution strategies and the business environment
in which the company operates.

OVERVIEW

     Signature Eyewear ("we" or the "Company") derives revenues through the sale
of eyeglass frames under licensed brand names, including bebe eyes, Cutter &
Buck Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer Eyegear,
Laura Ashley Eyewear and Nicole Miller Eyewear, and under its proprietary
Signature brand. Our products are primarily ophthalmic frames, although in
recent years we have increased our focus on fashion sunwear, one of the fastest
growing segments of the optical industry. We distribute our products: (i) to
independent optical retailers in the United States, primarily through our
national direct sales force and independent sales representatives; (ii) to
national and regional optical retail chains; (iii) internationally, primarily
through exclusive distributors in foreign countries and a direct sales force in
Western Europe; and (iv) through selected distributors in the United States. Our
cost of sales consists primarily of purchases from foreign contract
manufacturers that produce frames and cases to our specifications.

     We reported net income of $256,000 and $924,000 for the three months and
nine months ended July 31, 2007 (the "2007 Quarter" and the "2007 Nine Months,"
respectively) compared to net income of $229,000 and $656,000 for the three
months and nine months ended July 31, 2006 (the "2006 Quarter" and "2006 Nine
Months," respectively). This increase was due primarily to 8.5% and 8.6%
increases in net sales for the 2007 Quarter and 2007 Nine Months compared to the
comparable periods of the prior year.

     The increase in our net sales was primarily due to an increase in net sales
of bebe eyes and Nicole Miller Eyewear. We were able to increase the 2007
Quarter and the 2007 Nine Months net sales notwithstanding the impact of the
termination of the Eddie Bauer Eyewear license. Net sales of Eddie Bauer Eyewear
were $191,000 and $1.2 million in the 2006 Quarter and Nine Months,
respectively.

                                       13
<PAGE>

     We increased our advertising expenses by $88,000 during the 2007 Quarter
and $270,000 during the 2007 Nine Months primarily in connection with the launch
of Cutter & Buck Eyewear and the Nicole Miller Luxury Collection.

     The increase in our net income was due in part to increases of $15,000 and
$151,000 in benefit of income taxes for the 2007 Quarter and 2007 Nine Months,
respectively, as compared to the comparable periods of 2006.

RESULTS OF OPERATIONS

     The following table sets forth for the periods indicated selected
statements of operations data shown as a percentage of net sales.
<TABLE><CAPTION>
                                       THREE MONTHS ENDED     NINE MONTHS ENDED
                                             JULY 31,              JULY 31,
                                       ------------------     ------------------
                                         2007       2006        2007       2006
                                       -------    -------     -------    -------
<S>                                     <C>        <C>         <C>        <C>
Net sales                               100.0%     100.0%      100.0%     100.0%
Cost of sales                            37.0       33.0        36.0       33.5
                                       ------     ------      ------     ------
Gross profit                             63.0       67.0        64.0       66.5
                                       ------     ------      ------     ------
Operating expenses:
     Selling                             35.4       37.4        35.6       36.4
     General and administrative          22.8       24.5        23.1       24.7
     Depreciation and amortization        0.8        0.9         0.8        0.9
                                       ------     ------      ------     ------
          Total operating expenses       59.0       62.8        59.5       62.0
                                       ------     ------      ------     ------
 Income from operations                   4.0        4.2         4.5        4.5
                                       ------     ------      ------     ------
 Interest expense                        (2.0)      (2.5)       (2.0)      (2.5)
                                       ------     ------      ------     ------
 Income before provision for
   income taxes                           2.0        1.7         2.5        2.0
                                       ------     ------      ------     ------
 Benefit of income taxes                 (2.2)      (2.2)       (2.5)      (1.8)
                                       ------     ------      ------     ------
 Net income                               4.2%       3.9%        5.0%       3.8%
                                       ======     ======      ======     ======
</TABLE>

     NET SALES. Our net sales increased by 8.5% or $485,000 from the 2006
Quarter to the 2007 Quarter and 8.6% or $1.5 million from the 2006 Nine Months
to the 2007 Nine Months. The following table contains information regarding our
net sales for the periods indicated:
<TABLE><CAPTION>
                              THREE MONTHS ENDED JULY 31,            NINE MONTHS ENDED JULY 31,
                          -----------------------------------   -----------------------------------
Dollars in thousands             2007              2006                2007              2006
                          ----------------   ----------------   ----------------   ----------------
<S>                       <C>       <C>      <C>       <C>      <C>       <C>      <C>       <C>
bebe eyes                 $ 2,189    35.5%   $ 1,755    30.8%   $ 6,315    33.9%   $ 4,670    27.2%
Nicole Miller Eyewear       1,489    24.1      1,223    21.5      4,319    23.2      3,563    20.8
Laura Ashley Eyewear        1,094    17.7        938    16.5      2,561    13.8      3,202    18.7
Other                       1,403    22.7      1,774    31.2      5,421    29.1      5,701    33.3
                          -------   -----    -------   -----    -------   -----    -------   -----
Total                     $ 6,175   100.0%   $ 5,690   100.0%   $18,616   100.0%   $17,136   100.0%
                          =======   =====    =======   =====    =======   =====    =======   =====
</TABLE>

     Our net sales were higher in the 2007 Quarter and 2007 Nine Months
primarily due to an increase in net sales of bebe eyes and Nicole Miller
Eyewear. Net sales in the 2007 Quarter and 2007 Nine Months were also positively
affected by the introduction of Cutter & Buck Eyewear, which began shipping in
late October 2006.

                                       14
<PAGE>

     Direct sales to independent optical retailers decreased $229,000 from the
2006 Quarter to the 2007 Quarter and increased $684,000 from the 2006 Nine
Months to the 2007 Nine Months. Sales to national optical retail chains
increased $325,000 from the 2006 Quarter to the 2007 Quarter and $430,000 from
the 2006 Nine Months to the 2007 Nine Months. International sales increased
$311,000 in the 2007 Quarter from the 2006 Quarter and $268,000 in the 2007 Nine
Months from the 2006 Nine Months.

     Net sales reflect gross sales less a reserve for product returns we
establish based on products that we are aware will be returned as of that date.
Our reserve was $483,000 at July 31, 2007. We had $964,000 and $937,000 in
returns in the 2007 Quarter and 2006 Quarter, respectively, and the product
returns as a percentage of gross sales were 13.5% for the 2007 Quarter as
compared to 14.1% in the 2006 Quarter. We had $2.7 million and $2.9 million in
returns in the 2007 Nine Months and 2006 Nine Months, respectively, and the
product returns as a percentage of gross sales were 12.6 % for the 2007 Nine
Months as compared to 14.5% in the 2006 Nine Months.

     We also maintain an additional allowance for product returns. Changes in
the allowance in any period will have a corresponding impact on net sales during
the period. Our allowance for product returns did not change in the 2007
Quarter.

     GROSS PROFIT AND GROSS MARGIN. Our gross profit increased $73,000 or 1.9%
from the 2006 Quarter to the 2007 Quarter and $513,000 or 4.5% from the 2006
Nine Months to the 2007 Nine Months due to higher net sales. Our gross margin
was 63.0% and 64.0% in the 2007 Quarter and 2007 Nine Months, respectively,
compared to 67.0% and 66.5% in the 2006 Quarter and 2006 Nine Months,
respectively. Our gross margin was negatively impacted in the 2007 Quarter and
2007 Nine Months by increases in international and chain sales which both have
lower gross margins.

     SELLING EXPENSES. Our selling expenses for the 2007 Quarter increased
$60,000 from the 2006 Quarter primarily due to an increase of $88,000 in
advertising expense and an increase of $68,000 in royalty expense. Our selling
expenses increased $384,000 or 6.2% from the 2006 Nine Months to the 2007 Nine
Months due primarily to a $270,000 increase in advertising expense and a
$130,000 increase in convention expense.

     GENERAL AND ADMINISTRATIVE EXPENSES. Our general and administrative
expenses for the 2007 Quarter increased $13,000 from the 2006 Quarter.
Professional fees increased by $61,000 in the 2007 Quarter as compared to the
2006 Quarter, but this increase was offset by smaller decreases in many other
expense categories for the 2007 Quarter. Our general and administrative expenses
increased by $57,000 or 1.3% from the 2006 Nine Months to the 2007 Nine Months
primarily due to a $57,000 increase in professional fees.

     OTHER INCOME (EXPENSE), NET. Other expenses included primarily interest
expense.

     BENEFIT OF INCOME TAXES. As a result of our net loss carry-forward, we had
no income tax expense other than minimum franchise taxes in various states. We
recognized an income tax benefit of $144,500 in the 2007 Quarter resulting from
a decrease in the valuation allowance on our deferred tax asset relating
primarily to our net operating loss carryforwards.

                                       15
<PAGE>

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

     Our accounts receivable (net of allowance for doubtful accounts) decreased
from $ 2.9 million at October 31, 2006 to $2.8 million at July 31, 2007. Our
allowance for doubtful accounts remained unchanged from October 31, 2006 to July
31, 2007.

     Our inventories increased to $4.9 million at July 31, 2007 from $4.8
million at October 31, 2006, due to inventory for our new product lines and a
higher average cost per frame due in part to higher sunwear inventory.

     Our long-term debt at July 31, 2007 included principally: (i) $3.1 million
under two credit facilities with Home Loan Investment Corporation and its
subsidiary Home Loan Industrial Bank ("HLIC"); (ii) $2.2 million under a credit
facility with Bluebird Finance Limited; (iii) $128,000 under a commercial bank
loan the proceeds of which were used to purchase our computer system and related
equipment; and (iv) $125,000 under a note payable to Ashford Capital, LLC. At
July 31, 2007, we had $500,000 of borrowing availability under the HLIC
revolving credit facility. See Note 4 of Notes to Financial Statements.

     At July 31, 2007, $541,000 of our accounts payable were payable in foreign
currency. To monitor risks associated with currency fluctuations, on a weekly
basis we assess the volatility of certain foreign currencies and review the
amounts and expected payment dates of our purchase orders and accounts payable
in those currencies. Based on those factors, we may from time to time mitigate
some portion of that risk by purchasing forward commitments to deliver foreign
currency to us. We held no forward commitments for foreign currencies at July
31, 2007.

     On September 14, 2007, the Company entered into a $4.8 million revolving
line of credit facility with Comerica Bank to replace the current credit
facilities with Home Loan Investment Corporation and its subsidiary Home Loan
Industrial Bank. See Note 8 of Notes to Financial Statements.

     We believe that at least through the third quarter of fiscal 2008, assuming
there are no unanticipated material adverse developments, no material decrease
in revenues and continued compliance with our credit facilities, our cash flows
from operations and through credit facilities will be sufficient to enable us to
pay our debts and obligations as they mature. To support growth in excess of the
plan, we may be required to obtain the working capital through additional debt
or equity financing.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

     Our most critical accounting policies, which are those that require
significant judgment, include: revenue recognition and inventory valuation.
In-depth descriptions of these can be found in our Annual Report on Form 10-K
for the fiscal year ended October 31, 2006 (the "2006 Form 10-K"). There have
been no material changes in our existing accounting policies from the
disclosures included in our 2006 Form 10-K.

INFLATION

     We do not believe our business and operations have been materially affected
by inflation.

                                       16
<PAGE>

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     We are exposed to market risks, which include foreign exchange rates and
changes in U.S. interest rates. We do not engage in financial transactions for
trading or speculative purposes.

     FOREIGN CURRENCY RISKS. At any month-end during the 2007 Quarter, we had a
maximum of $541,000 payable in foreign currency. These foreign currencies
included Japanese yen and the Euro. Any significant change in foreign currency
exchange rates could therefore materially affect our business, operating results
and financial condition. To monitor risks associated with currency fluctuations,
from time to time we assess the volatility of certain foreign currencies and
review the amounts and expected payment dates of our purchase orders and
accounts payable in those currencies. Based on those factors, we may from time
to time mitigate some portion of that risk by purchasing forward commitments to
deliver foreign currency to us. We held no forward commitments for foreign
currencies during the nine months ended July 31, 2007.

     International sales accounted for approximately 14.9% and 11.3% of our net
sales for the three months and nine months ended July 31, 2007. Although our
international sales are principally in United States dollars, sales to
international customers may also be affected by changes in demand resulting from
fluctuations in interest and currency exchange rates. There can be no assurance
that these factors will not have a material adverse effect on our business,
operating results and financial condition. For frames purchased other than from
Hong Kong/China manufacturers, we generally pay for frames in the currency of
the country in which the manufacturer is located and thus the costs (in United
States dollars) of the frames vary based upon currency fluctuations. Increases
and decreases in costs (in United States dollars) resulting from currency
fluctuations generally do not affect the price at which we sell our frames, and
thus currency fluctuations can impact our gross margin.

     INTEREST RATE RISK. Our credit facilities existing at July 31, 2007 had
fixed interest rates. Accordingly, we do not believe we are subject to material
interest rate risk.

     In addition, we have fixed income investments consisting of cash
equivalents, which are also affected by changes in market interest rates. We do
not use derivative financial instruments in our investment portfolio. We place
our cash equivalents with high quality financial institutions, limit the amount
of credit exposure to any one institution and have established investment
guidelines relative to diversification and maturities designed to maintain
safety and liquidity.

ITEM 4. CONTROLS AND PROCEDURES

     We maintain disclosure controls and procedures (as defined in Exchange Act
Rule 13a-15(e)) that are designed to assure that information required to be
disclosed in our Exchange Act reports is recorded, processed, summarized and
reported within the time periods specified in the Securities and Exchange
Commission's rules and forms, and that such information is accumulated and
communicated to management, including our Chief Executive Officer and Chief
Financial Officer, as appropriate, to allow timely decisions regarding required
disclosures.

     In designing and evaluating the disclosure controls and procedures,
management recognizes that any controls and procedures, no matter how well
designed and operated, can provide reasonable assurance only of achieving the
desired control objectives, and management necessarily is required to apply its
judgment in weighting the costs and benefits of possible new or different
controls and

                                       17
<PAGE>

procedures. Limitations are inherent in all control systems, so no evaluation of
controls can provide absolute assurance that all control issues and any fraud
within us have been detected.

     As required by Exchange Act Rule 13a-15(b), as of the end of the period
covered by this report, management, under the supervision and with the
participation of the Chief Executive Officer and Chief Financial Officer (the
same person has both titles), evaluated the effectiveness of our disclosure
controls and procedures. Based on this evaluation, management concluded that our
disclosure controls and procedures were effective as of that date.

     There was no change in our internal control over financial reporting during
our most recently completed fiscal quarter that has materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting.

                                    PART II.
                                OTHER INFORMATION

ITEM 6. EXHIBITS.

     See Exhibit Index attached


















                                       18
<PAGE>

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Date: September 14, 2007                      SIGNATURE EYEWEAR, INC.


                                              By: /s/ Michael Prince
                                                  ---------------------------
                                                  Michael Prince
                                                  Chief Executive Officer
                                                  Chief Financial Officer




























                                       19
<PAGE>

                                  EXHIBIT INDEX

Exhibit
Number        Exhibit Description
------        -------------------
 31.1         Certification Pursuant to SEC Rule 13a-14(a)/15d-14(a)
 32.1         Certification Pursuant to 18 U.S.C. ss. 1350



































                                       20