Citing higher sales of Play-N-Squeak cat toys and Cosmic Catnip products, OurPet’s Co. of Fairport Harbor, Ohio, reported record revenues for its third quarter and nine month periods ended Sept. 30.
Despite increases in revenues of 6 percent for the quarter and 17 percent year-to-date when compared with the year-ago periods, the company posted a third quarter net loss due to a $450,000 inventory reserve adjustment attributed to a change in sales and marketing strategy.
“While we are disappointed with our reported results, the actions we took during the third quarter sharpen our market focus and better position the company to achieve its growth and profitability goals,” said Steven Tsengas, president and CEO. “During the 2011 third quarter we implemented plans to strengthen our sales and marketing strategy by deploying resources to areas which offer the best growth opportunities. This resulted in an update of the Cosmic Catnip product line and the introduction of new products. We also increased our emphasis of the recent re-launch of SmartScoop, a patented, automated self-cleaning cat litterbox. Our SmartScoop product is quickly gaining market penetration in all market channels. The first large overseas order of SmartScoop was shipped to Australia during the third quarter. ”
Overall, OurPet’s posted a net loss of $285,055 on revenues of $4.5 million for its third quarter, compared with net income of $34,837 on revenues of $4.3 million in the year-ago period.
Year-to-date, the company posted net income of $273,329 on revenues of $14.5 million, compared with net income of $589,995 on revenues of $12.4 million in the year-ago period.