Comparison of Three Months Ended
Domestic sales accounted for 75.0% and 69.0% of the revenues for the three months ended
Gross profit increased 25.2% primarily due to lower cost of manufacturing. Gross profit as a percentage of net sales was 31.7% in the three months ended
The average cost of manufactured products sold per unit decreased by 6.4% due to variations in production levels. Profit margins can fluctuate depending upon, among other things, the cost of manufactured product and the capitalized cost of product recorded in inventory, as well as product sales mix. The cost of manufactured products as a percentage of net sales was 59.6% in the three months ended
Operating expenses decreased 14.7% or
Our operating loss was
Our effective tax rate on the net loss before income taxes was (0.1)% and (0.1)% for the three months ended
Comparison of Six Months Ended
Domestic sales accounted for 78.3% and 74.6% of the revenues for the six months ended
Gross profit decreased 13.6% primarily due to lower revenues. Gross profit as a percentage of net sales was 30.2% in the six months ended
The average cost of manufactured products sold per unit increased by 6.7% due to variations in the production schedule. Profit margins can fluctuate depending upon, among other things, the cost of manufactured product and the capitalized cost of product recorded in inventory, as well as product sales mix. The cost of manufactured products as a percentage of net sales was 61.3% in the six months ended
Operating expenses decreased 12.5% or
Our operating loss was
Our effective tax rate on the net loss before income taxes was (0.1)% and (0.1)% for the six months ended
Discussion of Balance Sheet and Statement of Cash Flow Items
Our balance sheet remains strong with cash making up 50.1% of total assets. Working capital was
Further details concerning the results of operations as well as other matters are available in the Company’s Form 10-Q filed on
Retractable manufactures and markets VanishPoint® and Patient Safe® safety medical products. The VanishPoint® syringe, blood collection, and IV catheter products are designed to prevent needlestick injuries and product reuse by retracting the needle directly from the patient, effectively reducing exposure to the contaminated needle. Patient Safe® syringes are uniquely designed to reduce the risk of bloodstream infections resulting from catheter hub contamination. Retractable's products are distributed by various specialty and general line distributors.
For more information on Retractable, visit our website at www.vanishpoint.com.
Forward-looking statements in this press release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and reflect our current views with respect to future events. We believe that the expectations reflected in such forward-looking statements are accurate. However, we cannot assure you that such expectations will materialize. Our actual future performance could differ materially from such statements.
Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain liquidity; our maintenance of patent protection; the impact of current litigation; our ability to maintain favorable third party manufacturing and supplier arrangements and relationships; our ability to quickly increase capacity in response to an increase in demand; our ability to access the market; our ability to maintain or lower production costs; our ability to continue to finance research and development as well as operations and expansion of production; the continuing interest of larger market players, specifically Becton, Dickinson and Company, in providing devices to the safety market; and other risks and uncertainties that are detailed from time to time in Retractable's periodic reports filed with the
Vice President and Chief Financial Officer