Sharps Compliance Corp., a leading full-service provider of cost-effective management solutions for medical waste and unused dispensed medications generated outside the hospital and large healthcare facility setting, today posted its financial results for the third quarter of fiscal 2011 for the three months ended March 31, 2011.
Revenue in the third quarter of fiscal year 2011 increased 24.2 percent to $4.5 million from $3.6 million reported in the third quarter of 2010. The company attributes the increase to growth in its three targeted markets: Professional, Retail and Core Government.
“Our strong revenue growth in the quarter is clear evidence that our many initiatives to realign our resources – and intensify and more strategically target our marketing activities – are beginning to generate tangible results. We believe we have properly positioned the company to more fully capitalize on the vast and largely untapped potential of the medical waste and unused dispensed medication disposal market,” David P. Tusa, president and CEO of Sharps Compliance, stated in the press release.
Net loss for the fiscal 2011 third quarter was $659,000, or $0.04 per diluted share, compared with net loss of $975,000, or $0.07 per diluted share, in the prior-year period. Higher sales volumes were the primary contributor to the increase.
Gross margin improved to 31.2 percent in the third quarter of fiscal 2011, up from 24.3 percent in the third quarter of fiscal 2010.
The company reported cash and cash equivalents of $16.8 million at March 31, 2011, compared with $18.1 million at June 30, 2010; working capital was $20.8 million at March 31, 2011, compared with the fiscal 2010 year-end level of $21.6 million.
Tusa outlined the company’s business strategy and how its steps to achieve growth are paying off.
“Our efforts to refocus our sales and marketing resources are beginning to be realized through growth in billings. Our TakeAway Environmental Return System™ has been extremely well received by retail pharmacies across the country. Revenue from this product bolstered results during a quarter which has historically been our weakest due to the gap between flu shot seasons. In addition, our broadened awareness campaign is beginning to generate improved sales through our inside sales and e-commerce efforts,” Tusa stated. “We reached $304,000 in sales through these two channels, more than double the prior-year period and a 28 percent improvement over the trailing second quarter. On average, the number of weekly orders by inside and online sales has grown from 56 in the third quarter of fiscal 2010, to 99 in the trailing second quarter, to 127 in this fiscal year’s third quarter…”
For more information visit www.sharpsinc.com