DrugMax.com Attains Positive Cash Flow in 3Q

DrugMax.com Attains Positive Cash Flow in 3Q

LARGO, Fla.--DrugMax.com (NASDAQ:DMAX) reported huge revenue gains and a widened loss for its third quarter ended Dec. 31, but the company achieved positive cash flow during the quarter. Net sales for the quarter soared to a record $54.7 million from $7.2 million sold in the same period the previous year. Gross margin improved to three percent of sales from less than one percent of sales logged for the comparable quarter last year. Operating expenses fell two percent of sales, settling at $2 million. Net loss dropped further to $.61 million or $.09 per share from $.43 million or $.10 per share lost a year ago, but earnings improved to negative one percent of sales compared to negative six percent of sales posted for the year prior.

"We are very pleased that we achieved positive cash flow for consecutive quarters and that our net revenue surpassed our initial projections," said Ron Patrick, chief financial officer. He noted that DrugMax has increased sales growth through the Internet and also through other traditional channels.