Retractable Technologies, Inc. Reports 2007 Sales of $26.3 Million, New Patent, and Recent Litigation Matters
LITTLE ELM, Texas–Retractable Technologies, Inc. (AMEX: RVP), a leading maker of safety needle devices, today reported revenues of $26.3 million for 2007.
RESULTS OF OPERATIONS
Revenues increased due principally to increased sales in the international market. Domestic sales were 81.6% of revenues with international sales comprising the remainder. Unit sales of the 1cc syringe increased 7.3% and 5cc unit sales increased 30.6%. Unit sales of all products increased 7.5%.
Cost of sales as a percentage of revenues decreased slightly due to higher volumes offset by the lower average selling price principally in the international sales. The increased volume of production resulted in a lower unit cost. Royalty expenses were flat.
As a result, gross profits increased and gross profit margins increased slightly from 29.8% in 2006 to 30.4% in 2007.
Operating expenses increased from the prior year primarily due to higher legal expenses associated with the pending litigation with Becton Dickinson and Company (“BD“). RTI‘s patent infringement suit against BD is currently set for trial in March 2009.
Cash flow from operations was negative for 2007 due principally to the net loss for the year. The effect of non-cash expenses and the change in working capital were a positive $2.7 million.
On April 1, 2008 we were issued a patent originally filed in July 2000 based on the automated technology incorporated in the VanishPoint® syringe products. The patent is a continuation in part of an application dating back to May 1995.
RTI filed suit against Occupational & Medical Innovations, Ltd., an Australian company, on April 1, 2008 in the United States District Court for the Eastern District of Texas, Tyler Division. The complaint alleges infringement by OMI of a newly issued patent together with unfair competition and related causes of action.
RTI also sued BD for infringement of the newly issued patent on April 1, 2008, and anticipates that the suit will be consolidated with the related patent infringement case already pending in the Eastern District of Texas, Marshall Division, that is set for trial in 2009.
On March 14, 2008, MedSafe Technologies LLC filed a complaint against RTI and BD in the United States District Court for the District of South Carolina, Greenville Division. Plaintiffs allege that RTI‘s VanishPoint® syringe product line and BD‘s Integra™ product line infringe a patent that is nearing expiration. Plaintiffs seek unspecified damages, and no trial date has been set.
Further details concerning the results of operations as well as other matters are available in the Company‘s Form 10-K filed on March 31, 2008 with the U.S. Securities and Exchange Commission.
Retractable Technologies, Inc. manufactures and markets safety medical products, principally the 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, a feature that is designed to prevent accidental needlestick injury to healthcare workers and device reuse. Our products are distributed 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 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.
Douglas W. Cowan
Vice President and Chief Financial Officer
(888) 806-2626 or (972) 294-1010