SpongeTech(R) Delivery Systems, Inc. Releases 10QSB for First Quarter 2009, Highlights Rapidly Expanding Sales Growth
SpongeTech(R) Reports Sales of $5,544,619 from First Quarter Ended August 31, 2008
Oct 16, 2008 1:12:00 PM
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NEW YORK, Oct. 16 /PRNewswire-FirstCall/ -- SpongeTech(R) Delivery Systems, Inc. (OTC Bulletin Board: SPNG) released its 10QSB for First Quarter 2009, prior to the market opening yesterday, Wednesday, October 15, 2008. The 10QSB reported that the Company's business is "on track."
Revenues: During the three months ending August 31, 2008, SpongeTech(R) had sales of $5,544,619, as compared to sales of $64,076 for the same period in 2007, an increase of $5,480,543. Shipments have commenced to domestic retail outlets and distributors. Some of the domestic shipments were to Bashas', Kroger, and Price Chopper. The Company's Three-Pack Car Sponge Kit is available in these stores. Management attributes this sales increase to the demand for the Company's quality products introduced through its powerful media campaigns. Uncle Norman's(TM) Pet Sponges are selling very well due to a recently implemented national advertising campaign for the holiday season. Because of this strong demand, the Company recently launched a new website, www.spongetech.com. The Company's old website, which is still operational, can now be found under www.sponget.com.
Net Income: Net income for the three months ended August 31, 2008, was $1,076,053, as compared to a net loss of $10,261 for the three months ended August 31, 2007, an increase of $1,086,314.
Liquidity and Capital Resources: The Company's balance sheet is strong with no debt. Shareholder equity is close to $10 million. The Company will continue to build inventory and prepay for products to keep our flow of merchandise timely to meet delivery dates as we proceed through the year.
As of August 31, 2008, the Company had cash in the amount of $165,919, as compared to $2,549 at August 31, 2007. The increase was due primarily to cash generated by operating activities.
New Product Update: SpongeTech(R) continues to design and create new products using its hydrophilic technology and other technologies for kitchen and bath, health and beauty, auto, and medical use that the Company intends to market and sell as part of its product offerings. The Company will soon be introducing additional children's products to enhance its Puddle Pal line, which is expected to start shipping in time for the holiday season.
Over the next few days, SpongeTech(R) will be making a forward-looking statement on second quarter revenue projections.
About SpongeTech(R) Delivery Systems, Inc.
SpongeTech(R) Delivery Systems is a development stage company, which designs, produces, and markets a unique line of reusable cleaning products for household use. These sponge-based products utilize SpongeTech(R)'s proprietary, patent (and patent-pending) technologies involving hydrophilic (liquid absorbing) foam and polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, the latter of which comes pre-loaded with specially formulated soaps and wax that are released when the sponge is wetted and applied to a surface with minimal pressure. The Company's current product line is designed for Car Care and Pet Care, however, SpongeTech(R) is currently exploring additional applications for its technology including an anti-bacterial, kitchen and bath cleaner, as well as a unique 'foaming' bath sponge for children.
"Safe Harbor Statement" Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005, the Company's Quarterly Report on Form 10-QSB for the first quarter ended March 31, 2006. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.
Contact:
SpongeTech(R) Delivery Systems, Inc.
Investor Relations:
Bill Young, 1-877-776-6438
wayoung55@aol.com or info@spongetech.com
The Investor Relations Group
212-825-3210
Investor Relations: Rachel Colgate or Michael Crawford
Media Relations: Steven Melfi / Lynn Granito
SOURCE SpongeTech(R) Delivery Systems, Inc.
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Investor Relations: Bill Young of SpongeTech(R) Delivery Systems
Inc.
+1-877-776-6438
wayoung55@aol.com
info@spongetech.com; Investor Relations: Rachel Colgate or Michael Crawford
or Media Relations: Steven Melfi or Lynn Granito
all of The Investor Relations Group
+1-212-825-3210
