Net income for the first quarter ended January 31, 2008 was $1.3 million including $3 million in other income. This compares with a net loss of approximately $210,000, including other expenses of approximately $37,000, for the same period in 2007.
Net income on an earnings per share basis for the first fiscal quarter of 2008 was $0.04, compared with a net loss per share of $0.01 for the same period in 2007. Cost of revenues for the quarter ended January 31, 2008 were $10 million, an increase of 586% from $1.5 million in the same quarter in 2007, and were generally in line with the sales increase and proportional to the increase in raw material prices, which increased by 7% compared with the same period in 2007.
Gross profit was approximately $443,000, or 4.3% of revenues, for the first fiscal quarter of 2008, compared with gross profit of $130,000, or 8.2% of revenues, for the same fiscal quarter in 2007. The lower gross profit margin was reportedly due to the impact of plant relocation, which generates higher fixed production costs until the facility fully scales, as well as increases in the price of raw materials.
