Sharps Compliance Corp. announced record revenues for the first quarter of fiscal 2009. Revenues jumped 26%, to $4.3 million, from the same quarter last year. Sharps also reported record customer billings of $4.7 million for the quarter, a 30% increase over the same period the year before.
The increase in billings came partly from contracts and patent renewals with pharmaceutical manufacturers, which are expected to continue contributing to billings and revenue growth in fiscal 2009. In addition, customer billings to retail markets increased 23% as a result of strong flu-season demand for the Sharps Disposal By Mail Systems®. There were also higher billings to the professional, commercial, and agricultural markets. The only billing declines were in the healthcare and hospitality markets.
Gross profit was $1.8 million, up 29% over the prior year period. Gross margin was 43.3% in the first quarter of fiscal 2009, a 100 basis point increase compared with 42.3% in the same period the prior fiscal year.
Chairman, CEO, and President of Sharps, Dr. Burton J. Kunik, commented, “The investment in the expansion and enhancement of our operational infrastructure over the past year in anticipation of this rapid growth in demand has allowed us to quickly and easily ramp-up our production and fulfillment capabilities. As our level of sales accelerates, we are now beginning to realize operational leverage and greater earnings power.”
Sharps Compliance is a developer of cost effective solutions for the disposal of small quantity medical waste by industry and consumers. It is best known for the Sharps Disposal By Mail Systems, which allows safe and inexpensive disposal of hypodermic needles, lancets, and similar devices referred to as “sharps”. The company also offers products for the safe disposal of pharmaceuticals.
Sharps focuses on targeted growth markets, such as the pharmaceutical, retail, commercial, and hospitality markets, but also serves the home healthcare and other markets. The company considers its solid business model, with strong margins and operating leverage, together with early penetration into emerging markets, as uniquely positioning itself for strong future growth.
Let us hear your thoughts below: