OREANDA-NEWS. United-Guardian, Inc. (NASDAQ:UG) reported today that, as expected, net sales for the first quarter of 2016 were down compared with last year’s first quarter, decreasing from $4,372,393 in 2015 to $2,262,576 in the first quarter of 2016. As a result, net income decreased from $1,460,510 ($0.32 per share) in the first quarter of 2015 to $525,091 ($0.11 per share) for the first quarter of 2016.

Ken Globus, President of United-Guardian, stated, “While we certainly are disappointed with the decline in sales and earnings in the first quarter of 2016, it was not unexpected based on the information we have been receiving from our marketing partner in China. As we reported previously, towards the end of 2015 we had been informed that there would be no significant purchases of one of our Lubrajel products for shipment to China until the third quarter 2016. This was due to (a) a regulatory issue in China unrelated to Lubrajel but which affected some retail products in which Lubrajel was an ingredient, and (b) overly optimistic sales projections by some of our customers in China, which resulted in excess inventory that had to be worked off. We are hopeful that the resumption of purchases for the Chinese market, along with the additional revenue we hope will be generated by the recent introduction our new single-dose form of Renacidin®, our most important pharmaceutical product, will result in stronger sales and increased earnings in the second half of the year.”

United-Guardian is a manufacturer of cosmetic ingredients, personal and health care products, pharmaceuticals, and specialty industrial products.

 
RESULTS FOR THE QUARTERS ENDED
MARCH 31, 2016 and MARCH 31, 2015*
 
STATEMENTS OF INCOME
(UNAUDITED)
    THREE MONTHS ENDED
MARCH 31,
      2016     2015  
               
Net sales   $ 2,262,576   $ 4,372,393  
               
Costs and expenses:              
Cost of sales     897,725     1,679,202  
Operating expenses     467,556     460,927  
Research and development       177,566       166,308  
Total costs and expenses     1,542,847      2,306,437  
               
Income from operations     719,729     2,065,956  
               
Other income:              
Investment income        43,312        53,454  
               
Income before provision for income taxes     763,041     2,119,410  
               
Provision for income taxes       237,950       658,900  
               
Net income   $   525,091   $ 1,460,510  
               
Earnings per common share (Basic and Diluted)   $ 0.11   $ 0.32  
               
Weighted average shares – basic and diluted     4,594,319     4,596,439