Repro Med Systems Inc (REPR)

[Potse]

REPR...a few items.....

"Because you know I'm a nitpicker that actually believe Tax Benefits should not be added into the earnings number, and what we get is a sequential decline in Net Income, with a rise in sequential revenues, which I'm not that estatic about."

1) I'm actually quite encouraged by what I saw in the fourth quarter, especially when placed in context with what the company is attempting to do. Both revenues and gross margin experienced sequential increases.

The tiny sequential decline in net income is primarily attributed to a $80k or so sequential increase in SG&A expenses. That expense increase doesn't really bother me because I'm assuming that most of that money was spent on items the company believes will contribute to growth in future quarters (I'm guessing things like trade shows, training distributors, standard marketing plans, the 510(k) application and perhaps developing marketing materials/plans for the expected introduction of the new needle set, etc.).

It may be worth noting that REPR was advertising for a national sales manager in November 2008 (late third quarter). Based on the employee section of the annual report (compared to last year's report), it appears that REPR did in fact hire such a person. So it is possible that the hiring took place sometime during the fourth quarter and that could account for some additional expenses.

2) It will be interesting to see if the 510(k) application for the new enhanced Freedom60 (with the Daisy Set) generates any kind of investor interest in REPR, on either a pre or post FDA approval basis. Once in awhile you can see some pretty interesting moves on a stock around the time the FDA makes some decision on a particular product. From looking over the the 510(k) database, this will be the first 510(k) approval that REPR will have received in about 11 years (type Repro-Med in the applicant box)......

http://www.accessdata.fda.gov/scrIpts/cdrh/cfdocs/cfPMN/pmn.cfm

3) Many people may not have noticed this but on Tuesday May 26 REPR placed another ad for assemblers. During fiscal 2009, REPR increased its workforce from 22 to 33 employees. Of the 11 people added, 10 of them were for the manufacturing operations.

This is now the second consecutive month that REPR has placed this ad......

Growing Company Needs Help
Assembler

RMS Medical Products is an innovative company needing to fill key assembly, positions. We are a leading manufacturer of medical products that are designed to save or improve the quality of life.Our modern facility is located in (Chester NY) a small town in the Hudson Valley. We offer flexable hours and a great working environment, which is based on openess, trust and mutual accountability. If you would like to be considered for a team member position, apply in person or fax your resume. No prior assembly experience necessary but good dexterity skills are required.

Company Name: REPRO-MED SYSTEMS INC.
Location: Chester
Available: Immediately. Full Time. 1st and 2nd shifts.
Posted: 5/26/09

http://regionalhelpwanted.com/Search/detail.cfm?SN=1&ID=21444675