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Biotech / Medical : SAFESKIN -- Ignore unavailable to you. Want to Upgrade?

To: Madpinto who wrote (588)	2/14/1999 6:58:00 PM
From: Beltropolis Boy	Respond to of 828

nothing you're probably not already aware of. just thought you might like the local take (i.e., san diego union-tribune). ----- Safeskin posts loss with charge Company, however, reports record revenue that grew 27% 11-Feb-1999 Thursday The San Diego medical glove maker Safeskin yesterday reported a fourth quarter loss of $123,000, including a $16 million charge primarily to relocate production to lower-cost facilities. Without the charge, Safeskin would have reported net income of $15.5 million, or 27 cents a share, on record revenue that grew 27 percent to $63.6 million. Sales growth, however, slowed slightly from the previous three quarters. The company, which has seen sales grow more than 30 percent on average in recent years, was hammered on Wall Street in October after inventories and accounts receivables increased dramatically in the third quarter. Some saw the figures as a warning sign that growth could slow. Safeskin chairman Richard Jaffe said the company was still ahead of its target, which calls for continued 25 percent sales growth. While inventories remained well above last year's level, Jaffe said they had been reduced last year by capacity constraints in the company's manufacturing. "Thirty percent growth is huge, and I think earlier in the year some of the expectations got out of line," Jaffe said. The company's one-time charge included $15 million to close a plant in Vista and move work from there and Malaysia to a new, lower-cost site in Thailand. The company eliminated 35 jobs in Vista. For the year, Safeskin reported net income of $44.3 million, or 74 cents a share, as sales grew 30 percent to $237.1 million. Without the charge, net income would have grown 60 percent to $60.0 million, or $1.00 a share. Safeskin shares climbed 31 1/4 cents to close at $23.56 1/4.