RETRACTABLE TECHNOLOGIES, INC. ANNOUNCES RECORD REVENUES
LITTLE ELM, Texas, August 15, 2001— Retractable Technologies, Inc. (AMEX: RVP) a leading maker of safety needle devices, today reported record sales for the three and six month periods ending June 30, 2001.
Net revenues for the quarter ending June 30, 2001 were $4,788,930, more than triple the $1,528,488 level posted in the comparable year-earlier period. For the first half of 2001, the company reported net revenues of $8,219,945, compared with $2,356,307 in the same period last year.
The sharp growth in sales was accompanied by major gains in operating efficiency. Gross margins for the second quarter surged to 34.2% of gross revenues, from a negative 10.7% a year ago. In addition, operating expenses as a percentage of revenues plunged in this year’s second quarter to 52.5% from 142.9% in the same period last year.
Because of operating improvements, net losses for the second quarter declined to $984,744, or ($0.08) per share, from $2,294,514, or ($0.23) per share, in the comparable year-earlier period. Of the $0.15 decline in second quarter net loss per share, $0.09 resulted from operating improvements, $0.03 from lower preferred dividend requirements, and $0.03 from an increase in average common shares outstanding. In the first half of this year, net losses declined to $3,097,598, or ($0.21) per share, from $4,076,242, or ($0.42) per share, in same period last year. Of this $0.21 improvement, $0.07 was due to operating improvements, $0.06 to reduced preferred dividend requirements, and $0.08 to an increase in average common shares outstanding.
For a detailed discussion of second quarter and first half 2001 financial performance, see Management’s Discussion and Analysis in Form 10-QSB filed August 14, 2001 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 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.
INSERT FINANCIAL TABLE
Investor Contact:
Douglas W. Cowan
Chief Financial Officer
(888) 806-2626 or (972) 294-1010
rtifinancial@vanishpoint.com
Media Contact:
Phillip L. Zweig
Communications Director
(212) 490-0811
plzweig@aol.com
Net revenues for the quarter ending June 30, 2001 were $4,788,930, more than triple the $1,528,488 level posted in the comparable year-earlier period. For the first half of 2001, the company reported net revenues of $8,219,945, compared with $2,356,307 in the same period last year.
The sharp growth in sales was accompanied by major gains in operating efficiency. Gross margins for the second quarter surged to 34.2% of gross revenues, from a negative 10.7% a year ago. In addition, operating expenses as a percentage of revenues plunged in this year’s second quarter to 52.5% from 142.9% in the same period last year.
Because of operating improvements, net losses for the second quarter declined to $984,744, or ($0.08) per share, from $2,294,514, or ($0.23) per share, in the comparable year-earlier period. Of the $0.15 decline in second quarter net loss per share, $0.09 resulted from operating improvements, $0.03 from lower preferred dividend requirements, and $0.03 from an increase in average common shares outstanding. In the first half of this year, net losses declined to $3,097,598, or ($0.21) per share, from $4,076,242, or ($0.42) per share, in same period last year. Of this $0.21 improvement, $0.07 was due to operating improvements, $0.06 to reduced preferred dividend requirements, and $0.08 to an increase in average common shares outstanding.
For a detailed discussion of second quarter and first half 2001 financial performance, see Management’s Discussion and Analysis in Form 10-QSB filed August 14, 2001 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 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.
INSERT FINANCIAL TABLE
Investor Contact:
Douglas W. Cowan
Chief Financial Officer
(888) 806-2626 or (972) 294-1010
rtifinancial@vanishpoint.com
Media Contact:
Phillip L. Zweig
Communications Director
(212) 490-0811
plzweig@aol.com