FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
Results of Operations
The revenues for the nine months ended September 30, 2006 were $75,551,200 which represented an increase of 4,225% over the $1,788,000 of the same period of 2005.
Revenue growth is primarily attributable the strong organic sales growth. The third quarter 2006 was a continuation of the transition process for us. Our two manufacturing subsidiaries began tooling for our new products and began first production at the end third quarter of this year.
Our gross profit for the six months ended September 30, 2006 was $6,419,900, representing an increase of 753% over the $852,500 of the same period of 2005. A portion of our revenue growth consisted of product with a lower gross margin than we are normally accustomed to. Gross profit percentage is expected to return to our accustomed level as the we begin focusing on sales of our new products manufactured in our own plants increase and the new channels these products will be sold through. We began shipping Cynalynx in Asia in October 2006, and expect to begin shipments of the US version in November 2006.
Our operating expenses for the nine months ended September 30, 2006 were $5,407,000, which represented an increase of 286% over the $1,889,200 of the same quarter of 2005. The increase over 2005, is principally attributable to the addition of our three new subsidiaries as well as expenses related to bringing Cynalynx and Trimar to market.
Our operating profit for the nine months ended September 30, 2006, was $1,012,900, representing an reversal over the loss of $1,036,700 for the same period of 2005. Our operating profit growth is principally attributable to our revenue growth passing our breakeven point.
Our net profit for the nine months ended September 30, 2006 was $544,600, representing a 150% reversal over the loss of $1,007,100 for the same period of 2005. Our net profit growth is principally attributable to our revenue growth passing our breakeven point.
FOR THE THREE MONTHS ENDED JUNE 30, 2006 AND 2005
Results of Operations
The revenues for the three months ended September 30, 2006, were $27,079,600, an increase of 5,700% over the $475,000 of the same quarter of 2005, and 6.6% over the $25,409,700 of the second quarter of 2006.
Revenue growth is primarily attributable the strong organic sales growth. The third quarter 2006 was a continuation of the transition process for us. Our two manufacturing subsidiaries began tooling for our new products and began first production at the end third quarter of this year.
Our gross profit for the three months ended September 30, 2006, was $1,828,200, an increase of 691% over the $264,500 of the same quarter of 2005. A portion of our revenue growth consisted of product with a lower gross margin than we are normally accustomed to. Gross profit percentage is expected to return to our accustomed level as the we begin focusing on sales of our new products manufactured in our own plants increase and the new channels these products will be sold through. We began shipping Cynalynx in Asia in the October 2006, and expect to begin shipments of the US version in November 2006.
Our operating expenses for the three months ended September 30, 2006, were $1,678,700, representing an increase of 347% over the $483,300 of the same quarter of 2005, and 14% under the second quarter of 2006, $1,952,500. The increase over the second quarter 2005, is principally attributable to the addition of our three new subsidiaries.
Our operating profit for the three months ended September 30, 2006, was $142,500, an 200% turnaround over the loss of $193,000 for the same quarter of 2005, and 25% of the $577,400 of the first quarter of 2006. Our operating profit growth is principally attributable to our revenue growth passing our breakeven point.
Our net profit for the three months ended September 30, 2006, was $81,500, a 150% turnaround over the $193,000 loss of the same quarter of 2005. Our net profit growth is principally attributable to our revenue growth passing our breakeven point.