OTCQ-listed and South Africa based Leatt Corporation, which develops and markets protective equipment, especially extreme high-velocity sports managed to massively reduce its loss in the second quarter ending June 2104.
In the April to June 2014 quarter, net loss at Leatt fell massively to US $29, 834, lower by 95%, compared to net loss of US $636,264 in the corresponding quarter of 2013.OTCQ-listed and South Africa based Leatt Corporation, which develops and markets protective equipment, especially extreme high-velocity sports managed#
Revenue growth accelerated by 15% to US $4.2 million, during the second quarter of 2014 compared to US $3.6 million in the second quarter of 2013.
Gross profit margin increased year-to-year by 600 basis points to 55%. On a per-share basis, the net loss was US $0.01 versus the prior-year loss of US $0.12.
Leatt said the improvement in numbers during the period under review, is attributable to careful management of its financial resources, as well as higher sales in the neck brace product line, particularly with respect to the 2013 debut of two new products.
It said the improvement follows a strengthening trend that emerged last autumn, and continued in the fourth quarter of 2013 and through the first quarter of this year.
Research and development (R&D) expense was up by 20% during the 2014 period, partly due to its work on tailoring its new knee brace to a wider range of sports and uses.
Additionally, its development team continued to focus on widening its innovative product offering to include new product categories for Leatt, including the technologically advanced helmet range.
The increase in R&D expense during the period was balanced by decreases in selling, general and administrative (“SG&A”), consulting, professional fees and advertising/marketing expense. Overall, SG&A expense declined to $2.4 million, from $2.6 million in the second quarter of 2013.
CEO at Leatt Corp, Sean Macdonald said, “The rise in sales for the neck brace product line was largely attributable to the successful market acceptance of the Fusion 2.0 Junior and 5.5 Neck Brace products, both introduced in the fourth quarter of 2013.
“We keep an eagle eye on expense and we are proud that our SG&A decreased in the second quarter year-over-year, while we accelerated our R&D and product development activities and added new senior staff in that area and in our US sales and distribution team.
On its future outlook, Macdonald said, “We are optimistic that our knee braces will gain market acceptance but we will not be able to assess its performance in the marketplace until the critical fourth quarter holiday shopping season.”
Fibre2fashion News Desk - India
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