DAC Technologies today announced its financial results for the second quarter ending June 30, 2009. Net income for the quarter was $128,566 compared to $8,090 for the same period in 2008, an increase of $120,476 or 1,489%. Net sales were $3,143,041 versus $2,724,258 during the same quarter in 2008, an increase of $418,783 or 15%.
David A. Collins, Chairman and CEO, stated, “The Company continues to benefit from a positive trend in firearm accessories and concentrating on its core business of gun cleaning kits, gun locks and firearm accessories. The Company also continued to increase its gross margins, from 25% in the second quarter of 2008 to 30.2% for the second quarter of 2009, an increase of 5.2%. Gross margins also increased in the first quarter by 3.5% over 2008. The Company is also benefiting from lower shipping costs, elimination of low gross margin products such as fireplace equipment and game processing items, and lower commodity prices. We expect this trend to continue through 2009 into 2010, even as commodity prices go to average levels.”
Collins also stated, “Net sales were $6,676,498 for the first six months of 2009, an increase of 23% over 2008. Net income for the first six months of 2009 was $312,865, almost equal to the full year’s net income of $356,694 for 2008. It will be difficult to maintain the large sales increases we have enjoyed in the first six months, mainly due to the fact that most of the low gross margin products we have eliminated were fall sales items. We do expect to maintain large sales increases in our core business of gun accessories, both through existing customers and increased market share. Due to these facts, the Company is raising guidance on EPS from 12 to 14 cents per share to 14 to 16 cents per share.”