Retractable Technologies, Inc. Announces Results as of September 30, 2017
November 14 2017 - 3:00PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) reports the
following results of operations for the three and nine months ended
September 30, 2017 as compared to results for the same period in
the prior year.
Comparison of Three Months Ended September 30,
2017 and September 30, 2016
Domestic sales accounted for 80.3% and 82.6% of the revenues for
the three months ended September 30, 2017 and 2016, respectively.
Domestic revenues increased 14.5% principally due to higher volumes
mitigated by lower average prices. Domestic unit sales increased
23.9%. Domestic unit sales were 71.8% of total unit sales for the
three months ended September 30, 2017. International revenue and
unit sales increased 33.6% and 29.8%, respectively, due to the
timing of significant international sales. Our international orders
may be subject to significant fluctuation over time. Overall unit
sales increased 25.5%.
The Cost of manufactured product increased by 28.7% due to
higher volumes and higher manufacturing costs. 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 mix. Royalty expense increased
24.6% due to higher gross sales.
Gross profit was flat primarily due to higher manufacturing
costs.
Operating expenses decreased 1.4% or $48.0 thousand. The
decrease was principally due to lower legal cost, and reduced bad
debt expense in General and administrative expense, offset by an
increase in Sales and marketing personnel.
Our operating loss was $32.9 thousand compared to an operating
loss for the same period last year of $81 thousand due primarily to
lower operating expenses.
Comparison of Nine Months Ended September 30,
2017 and September 30, 2016
Domestic sales accounted for 81.5% and 88.4% of the revenues for
the nine months ended September 30, 2017 and 2016, respectively.
Domestic revenues increased 3.1% principally due to higher volume.
Domestic unit sales increased 5.1%. Domestic unit sales were 73.8%
of total unit sales for the nine months ended September 30, 2017.
International revenue and unit sales increased 78.6% and 82.5%,
respectively, due to the timing of significant international sales.
Our international orders may be subject to significant fluctuation
over time. Overall unit sales increased 18.3%.
The Cost of manufactured product increased 21.9% due to higher
volumes and higher manufacturing costs. 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 mix. Royalty expense increased
10.8% due to higher gross sales.
Gross profit decreased 3.4% primarily due to lower average price
and higher manufacturing costs.
Operating expenses increased 6.6% or $635 thousand. The increase
was due to stock option expense, an increase in Sales and marketing
personnel, travel expenses for Sales and marketing, higher payroll
costs in Research and development, and bonuses paid to two
officers. These increased expenses were offset by lower legal costs
and reduced bad debt expense.
Our operating loss was $2.5 million compared to an operating
loss for the same period last year of $1.6 million due primarily to
lower gross profit and higher operating expenses.
Further details concerning the results of operations as well as
other matters are available in Retractable’s 10-Q filed on November
14, 2017 with the U.S. Securities and Exchange Commission.
Retractable manufactures and markets VanishPoint® and Patient
Safe® safety medical products and the EasyPoint® needle. 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. The
EasyPoint® is a retractable needle that can be used with luer lock
syringes, luer slip syringes, and prefilled syringes to give
injections. The EasyPoint® needle also can be used to aspirate
fluids and for blood collection. Retractable's products are
distributed by various specialty and general line distributors.
For more information on Retractable, visit its website at
www.retractable.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 Retractable's current
views with respect to future events. Retractable believes that the
expectations reflected in such forward-looking statements are
accurate. However, Retractable cannot assure you that such
expectations will materialize. Actual future performance could
differ materially from such statements.
Factors that could cause or contribute to such differences
include, but are not limited to: Retractable's ability to maintain
liquidity; Retractable's maintenance of patent protection; the
impact of current and future Court decisions regarding current
litigation; Retractable's ability to maintain favorable third party
manufacturing and supplier arrangements and relationships; foreign
trade risk; Retractable's ability to quickly increase capacity in
response to an increase in demand; Retractable's ability to access
the market; Retractable's ability to maintain or lower production
costs; Retractable's ability to continue to finance research and
development as well as operations and expansion of production; the
impact 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 U.S. Securities and
Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20171114006553/en/
Retractable Technologies, Inc.Douglas W. Cowan, 888-806-2626 or
972-294-1010Vice President and Chief Financial Officer
Retractable Technologies (AMEX:RVP)
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