Retractable Technologies (NYSEMKT:RVP), maker of safety needles, including the Vanish Point syringe, reported revenues of $5.3 million in its most recent quarter, down slightly from the $5.7 million reported in the same quarter last year.
Overall, sales of syringes decreased about 20%, even as domestic unit sales increased 7.5%. International revenues decreased 58% due primarily to an absence of PATH shipments. PATH is an international, nonprofit organization focused primarily on finding solutions for emerging and epidemic diseases like AIDS, tuberculosis, and malaria. Previously, PATH had placed orders for upwards of 1.5 million units.
The average cost of manufactured product sold per unit increased by 11.2%. Operating expenses increased 9.1%. In 2007, Retractable recorded an operating loss of $9.9 million.
Despite stagnation, the company’s balance sheet remains robust, with working capital of $40.3 million. In July, 2004, Retractable received approximately $65.1 million (on a pre-tax basis) from the $100 million cash settlement of its federal antitrust lawsuit against Becton Dickinson.
It's time for the company to make some moves, before it burns through the rest of the cash.
VanishPoint products are designed to prevent needlestick injuries and to prevent reuse. The VanishPoint blood collection tube holder uses the same mechanism to retract the needle after blood has been drawn from the patient. Advantages of the company’s products include protection from needlestick injuries, prevention of cross contamination through reuse, and reduction of disposal and other associated costs.