RETRACTABLE TECHNOLOGIES, INC. ANNOUNCES 25.8% REVENUE INCREASE FOR 2002
LITTLE ELM, Texas, April 2, 2003— Retractable Technologies, Inc. (AMEX: RVP) (“Retractable”) a leading maker of safety needle devices, today reported record sales for the twelve months ended December 31, 2002.
Net revenues for the year ended December 31, 2002 were $20,316,299, an increase of 25.8% over the $16,145,635 reported in 2001.
The growth in sales for the full year was accompanied by significant gains in operating efficiency. In 2002, gross margins increased 71.6% over the year-earlier period. As a percentage of revenues, gross margins in 2002 increased to 23.8% from 17.5% in 2001. The improvement in gross margins resulted from increased revenues and reduced unit costs achieved through higher production, although the improvement was mitigated by a product recall and recovery expense of $481,637.
Operating expenses (excluding a one-time charge of debt conversion expense of $2,319,073 in 2002 and IPO costs of $563,912 in 2001) remained steady for the twelve months ended December 31, 2002 compared with 2001. However, operating expenses (excluding debt conversion and IPO costs) as a percentage of net revenues decreased to 44% from 56% in 2002 and 2001, respectively.
For a detailed discussion of financial performance for the twelve months ended December 31, 2002, see Management’s Discussion and Analysis in the Form 10-KSB filed March 31, 2003, with the Securities and Exchange Commission.
Retractable Technologies, Inc. manufactures and markets VanishPoint® automated retraction safety syringes and blood collection devices, which virtually eliminate health care worker exposure to accidental needlestick injuries. These revolutionary devices use a patented friction ring mechanism that causes the contaminated needle to retract automatically from the patient into the barrel of the device. VanishPoint® safety needle devices are distributed to the acute care hospital market by Abbott Laboratories (NYSE:ABT – news) and to the alternate care market by various specialty and general line distributors. For more information on Retractable, visit our Web site 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 the company’s current views with respect to future events. The company believes that the expectations reflected in such forward-looking statements are accurate. However, the company cannot assure you that such expectations will occur. The company’s actual future performance could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of dramatic increases in demand, the company’s ability to quickly increase its production capacity in the event of a dramatic increase in demand, the company’s ability to access the market, the company’s ability to successfully resolve our litigation with BD among others, the company’s ability to continue to finance research and development as well as operations and expansion of production through equity and debt financing, as well as sales, the increased interest of larger market players in providing safety needle devices and other risks and uncertainties that are detailed from time to time in the company’s periodic reports filed with the Securities and Exchange Commission.
Net revenues for the year ended December 31, 2002 were $20,316,299, an increase of 25.8% over the $16,145,635 reported in 2001.
The growth in sales for the full year was accompanied by significant gains in operating efficiency. In 2002, gross margins increased 71.6% over the year-earlier period. As a percentage of revenues, gross margins in 2002 increased to 23.8% from 17.5% in 2001. The improvement in gross margins resulted from increased revenues and reduced unit costs achieved through higher production, although the improvement was mitigated by a product recall and recovery expense of $481,637.
Operating expenses (excluding a one-time charge of debt conversion expense of $2,319,073 in 2002 and IPO costs of $563,912 in 2001) remained steady for the twelve months ended December 31, 2002 compared with 2001. However, operating expenses (excluding debt conversion and IPO costs) as a percentage of net revenues decreased to 44% from 56% in 2002 and 2001, respectively.
For a detailed discussion of financial performance for the twelve months ended December 31, 2002, see Management’s Discussion and Analysis in the Form 10-KSB filed March 31, 2003, with the Securities and Exchange Commission.
Retractable Technologies, Inc. manufactures and markets VanishPoint® automated retraction safety syringes and blood collection devices, which virtually eliminate health care worker exposure to accidental needlestick injuries. These revolutionary devices use a patented friction ring mechanism that causes the contaminated needle to retract automatically from the patient into the barrel of the device. VanishPoint® safety needle devices are distributed to the acute care hospital market by Abbott Laboratories (NYSE:ABT – news) and to the alternate care market by various specialty and general line distributors. For more information on Retractable, visit our Web site 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 the company’s current views with respect to future events. The company believes that the expectations reflected in such forward-looking statements are accurate. However, the company cannot assure you that such expectations will occur. The company’s actual future performance could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of dramatic increases in demand, the company’s ability to quickly increase its production capacity in the event of a dramatic increase in demand, the company’s ability to access the market, the company’s ability to successfully resolve our litigation with BD among others, the company’s ability to continue to finance research and development as well as operations and expansion of production through equity and debt financing, as well as sales, the increased interest of larger market players in providing safety needle devices and other risks and uncertainties that are detailed from time to time in the company’s periodic reports filed with the Securities and Exchange Commission.