Variflex reported an $800,000 net loss for the fiscal second quarter, an increase of 14.3% from a net loss of $700,000 in the year-ago period. Net sales for Q2 were $8.5 million, down 14.2% from net sales of $9.9 million for Q2 last year. Net loss per diluted share increased 20% for the quarter to (18¢) compared to (15¢) per diluted share last year. Gross margins for Q2 rose 20 basis points to 11.7% from 11.5% last year.
Variflex reported a YTD net loss of $1.3 million, an increase of 85.7% compared to a net loss of $0.7 million for last year. Net sales were down 8.5% to $20.6 million versus net sales of $22.5 million for the comparable period last year. Net loss per diluted share was (28¢) compared to (14¢) last year. Gross margins fell 230 basis points from 13.3% to 11.0%.
Jay Losi, Variflex's Chief Executive Officer said the lack of performance was due to seasonality issues, and said that Q3 & Q4 are generally the busiest for Variflex. Another factor is that Variflex did not maintain the same volume with some “huge retailers” that the company enjoyed last year.
