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Derma Sciences Reports First Quarter 2009 Results
Date:5/18/2009

PRINCETON, N.J., May 18 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (OTC Bulletin Board: DSCI), a provider of advanced wound care products, announced results today for the first quarter ended March 31, 2009. For the quarter, the Company reported net sales of $10.4 million versus $11.7 million in the first quarter 2008. The sales decrease of $1.3 million was principally attributable to foreign exchange associated with a significant weakening in the Canadian dollar and inventory rationalization on the part of several customers due to current economic conditions. The Company's advanced wound care line continued with its positive growth trend in the quarter, led by MEDIHONEY(R) which recorded sales of $500,000 versus $320,000 in the first quarter 2008. Gross profit margins increased to 32.1% from 26.8% in the first quarter 2008 due to a favorable sales mix towards higher margined products and improved manufacturing performance (mainly in connection with the discontinuation of domestic manufacturing in the fourth quarter 2008 of our First Aid Division).

Selling, general and administrative costs decreased 10.6% in response to cost savings initiatives implemented in the fourth quarter 2008. The overall effect of all these changes significantly reduced the Company's quarterly net loss to $0.8 million or $0.02 per share in 2009, from a net loss of $1.4 million or $0.04 per share in 2008.

CEO Ed Quilty commented, "We are continuing to drive our results toward profitability and positive cash flow. The positive trends we have achieved are obvious, as margins improved, expenses decreased, and higher-margined proprietary products grew more quickly than our core products. In times like these, cash is king, and valuable products like MEDIHONEY, BIOGUARD(TM), ALGICELL(TM) Ag, XTRASORB(TM), and MOBILITY1(TM) can be the keys to better margins. A
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SOURCE Derma Sciences, Inc.
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