Carrington Labs Curbs Expenses, Improves Bottom Line for 3Q01

January 14, 2002

1 Min Read
Carrington Labs Curbs Expenses, Improves Bottom Line for 3Q01


Carrington Labs Curbs Expenses, Improves Bottom Line for 3Q01

IRVING,Texas--Carrington Laboratories Inc. (NASDAQ:CARN) had lower sales forits third quarter ended, Sept. 30, but improved efficiencies led to a betterbottom line compared to the same period last year. The company reported $4.4million in revenue for its 3Q01, compared to $5.0 million received in thecomparable quarter last year. Gross margin increased from 35.2 percent logged in3Q00 to 46.6 percent, while operating expenses decreased to $2.0 million from$3.0 million spent in the same quarter previously. Income for the company camein at $77,000 (or $.01 per share earned), a significant improvement from 3Q00'snet loss of $1.2 million (or $.13 per share lost).

The company had anticipated a decline in sales, due in part to a marketingagreement signed with Medline Industries, which merged Carrington's sales forceinto its own for wound care products. "[This sales decrease] was more thanoffset by a reduction in selling, general and administrative expenses, primarilythe result of Medline's assumption of all marketing costs of our wound and skincare products," said Carlton Turner, president and chief executive officerat Carrington.

Carrington's consumer products subsidiary, Caroloe Inc., reported a salesdecrease of 23.9 percent to settle at $1.7 million. According to the company,Caroloe's primary customer spent $.6 million less this quarter for the company'sManapol powder compared to the same quarter last year. However, anincrease in consumer sales and contract purchasing helped to make up part of thesales loss.

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