Sharps Compliance Corp. Announces 20% Growth in Customer Billings for Second Quarter of Fiscal...(ross profit 1605334 1361977 ...),Health

profit 1,605,334 1,361,977 17.9% 3,038,711 2,659,273 14.3%

Gross

margin 42.8% 42.8% 0.0% 42.5% 43.1% (1.2%)

S G & A 1,185,046 924,122 28.2% 2,340,427 1,878,545 24.6%

Depreciation

and

amortization 65,920 45,477 45.0% 123,617 89,689 37.8%

Operating

income 354,368 392,378 (9.7%) 574,667 691,039 (16.8%)

Operating

margin 9.4% 12.3% (23.4%) 8.0% 11.2% (28.1%)

Other income 26,094 38,150 52,396 39,792

Net income

before income

taxes $380,462 $430,528 (11.6%) $627,063 $730,831 (14.2%)

Income taxes (558) (9,332) (5,555) (18,046)

Net income $379,904 $421,196 (9.8%) $621,508 $712,785 (12.8%)

Net income

per share

Basic $0.03 $0.04 $0.05 $0.07

Diluted $0.03 $0.04 $0.05 $0.06

Weighted

Average

Shares

Outstanding

Basic 12,157,441 10,664,557 12,109,845 10,608,314

Diluted 13,494,251 11,576,162 13,514,774 11,275,236

SHARPS COMPLIANCE CORP. AND SUBSIDIARIES

Condensed Consolidated Balance Sheet

12/31/2007 6/30/2007

(Unaudited)

ASSETS:

Current assets:

Cash and cash equivalents $2,673,970 $2,134,152

Restricted cash 10,010 10,010

Accounts receivable, net 1,395,943 1,330,731

Inventory 538,283 364,005

Prepaid and other assets
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