Carrington Back in the Black

Carrington Back in the Black

IRVING, Texas--For its fiscal year (FY01), Carrington Laboratories Inc. (NASDAQ:CARN) reported March 7 that, due to restructuring certain areas of the company, it was pleased with the profits made in FY01, ended Dec. 31. Sales were $17.6 million for the year, down 33.8 percent from $23.1 million registered in FY00. However, income made from royalties rose drastically from $.3 million to $2.5 million; this was due to Medline Industries assuming all selling, marketing and distribution activities for the company's wound and skin care products in exchange for paying royalties to Carrington. Gross margin held steady around 44 percent of sales, and operating costs decreased to $7.5 million from $13.8 million, largely due to cutting research and development expenses in half. Net income for the year was $.4 million, or $.04 per share earned, a marked improvement over FY00's net loss of $3.5 million, or $.36 per share lost.

A large proportion of sales came from Caraloe Inc., a subsidiary that produces Manapol®, a complex carbohydrate raw material. Of total 2001 sales, $5.4 million (31 percent) was of Manapol powder, $5.2 million of which was to one customer. Also, contract manufacturing of gels, creams, lotions and drinks rose from $.8 million to $1.1 million. For the future, Carrington plans to create a subsidiary, DelSite Biotechnolgies Inc., to oversee the development of a drug delivery technology for proteins.

For more information, visit www.carringtonlabs.com or Booth #1305 at SupplySide East.

click here for chart