Leatt Corporation, which is eager to diversify from motorsports into other protective gear markets, reported revenue for the second quarter ended June 30 was $5.2 million, up 25 percent compared to revenue of $4.2 million in the same period a year ago.
Net income reached $423,937 or $0.08 per share, compared with a net loss of $29,834 or $0.01 loss per share for the second quarter of 2014.
“The second quarter was very strong for Leatt Corp., partly due to our shipment of additional new products and the continued growth of our body armor sales,” said CEO Sean Macdonald. “We saw a rewarding uptake on our new Airflex protective glove range, which we began shipping during the second quarter. Although neck brace sales were slightly down during the period, this decrease was more than offset by the continued growth of our body armor sales, which grew by 75 percent year-to-year.”
Despite this increase in revenue, operating expenditures decreased by $134,035 year-to-year. Research and development and G&A expense were both down, as were professional fees.”
Based in South Africa, Leatt derives most its revenues from developing and marketing
protective equipment and ancillary products for motorcycle racers, but is
targeting mountain biking and other high velocity sports.
“The strategy to broaden our product lines, add new categories, and appeal to new sports seems to be working as we hoped it would,” said Macdonald. ” The next step for us will be shipping of the first Leatt helmets, which we expect will happen during the second half of 2015. We are looking forward to this first shipment as the helmet market is the largest segment of the worldwide market for protective sporting gear, and extends from high-velocity sports through a variety of team sports, amateur and professional. Worldwide concern for the long term implications of concussions and blows to the head have made the helmet market even more prominent for parents, educators and athletes. We believe that our reputation for excellence and the broad recognition of our brand as the protective gear technological leader should stand us in good stead with helmets. Our first helmet shipments will be our full face motocross and bicycling helmets.”
