OraLabs Scores Solid FY99 Revenues

OraLabs Scores Solid FY99 Revenues

ENGLEWOOD,Colo.--Oral care and dietary supplement products manufacturer OraLabs Inc. (NASDAQ:OLB)reported solid sales results for its fiscal year ended Dec. 31, 1999. Revenuesincreased to $9.2 million from $7.1 million sold in 1998. While gross profitslid to 33 percent of sales from almost 46 percent logged the previous year,operating expenses held steady at around 27 percent of sales, compared to 1998.Net income fell to $.55 million or $.06 per share from $.82 million or $.09 pershare earned the previous year.

The company attributed its decreased 1999 earnings to $.9 million that itabsorbed as adjustments to fourth quarter. Almost $.5 million of the charge wasdesignated as a physical inventory adjustment, and the remainder was attributedto scrap, defective product, shrinkage, samples and obsolete inventory that werenot recorded. The company additionally made an adjustment of approximately $.2million for slow moving inventory, and it accrued about $.1 million incommission expenses related to revenue earned in 1999 but not paid as of yearend. OraLabs also decided to increase its allowance for returns in 1999 by morethan $.1 million.

"We saw a shift in our business to include more sales from major massretailers during the course of the year, which we believe is beneficial to thelong-term outlook for the company," said Gary Schlatter, president."We expect brand recognition for OraLabs products to increase into 2000, aswe continue to build brand name recognition with retailers and consumersworldwide."

For more information, contact Joan Gunderson at [email protected]or (303) 783-9499.