LOS ANGELES, Aug. 3 /PRNewswire/ -- Lee Pharmaceuticals (OTC Bulletin Board: LPHM) reported results for the third quarter ended June 30, 2001. The Company reported net income of $15,000 for the three months ended June 30, 2001, as compared to a $11,000 profit for the three months ended June 30, 2000. Gross revenues for the three months ended June 30, 2001, were $2,074,000, an increase of approximately $11,000 or 1% from the comparable three months ended June 30, 2000. The increase in gross revenues was primarily due to the higher sales volume of the Lee(R) Lip-Ex(TM) line of products. In addition, the Company reported sales increases in depilatories, several brands in the personal care category, and the added sales of newly acquired brands. The above increases were offset by reduction in sales of Take-Off(R) and other over-the-counter items.
Net revenues increased approximately $151,000 or 8% for the three months ended June 30, 2001, as compared to the three months ended June 30, 2000. The change in net revenues was due to the same explanations discussed above along with a decline in sales returns of approximately $137,000 or 66% when comparing fiscal years 2001 and 2000. Most of these returns had been provided for by way of prior reserve. These sales returns relate to the discontinuance of one of the Company's SKU's (stock keeping unit) at the retail store level, and continued product returns of a brand containing phenylpropanolamine (PPA) which the Food & Drug Administration (FDA) ruled as a nonmonograph during early calendar year 2000.
The Company reported net income of $44,000 or 1 cent per share for the nine months ended June 30, 2001. This compared to net income of $39,000 or 1 cent per share for the nine months ended June 30, 2000. Gross revenues for the nine months ended June 30, 2001, were $7,157,000, a decrease of approximately $169,000 or 2% from the comparable nine months ended June 30, 2000. The decrease in gross revenues were due to reduction in sales of Take-Off(R), depilatories, and other over-the-counter items. The above decreases were primarily offset by a significant increase in sales volume of the Lee(R) Lip-Ex(TM) line of products. In addition, the Company reported sales volume increases in Nosebetter(R), along with several over-the-counter category of brands and the sales of the newly acquired brands.
The Company recognized $82,000 of other income which was the result of the settlement of an outstanding debt for less than the remaining balance. |
