Financial Reports: Schein, RedEnvelope

Healthy 2Q Gains for Henry Schein
Melville, NY-based medical, dental, and veterinary marketer Henry Schein (Nasdaq NM: HSIC) posted a 22% gain in second-quarter net sales, to $945.7 million for the three months ended June 26—a company record. This increase includes 20% local currency growth (12% internally generated and 8% from acquisitions net of a divestiture) and 1.5% related to foreign currency exchange. Net income jumped 18%, to $38.7 million from $32.9 million last year.

Breaking it down by segment, dental sales increased 17%. Medical sales increased 24%. Technology and value-added services sales grew 10%, while international sales improved 30%. Schein says it benefited from a favorable currency exchange in combination with growth from strategic acquisitions.

RedEnvelope Lessens Loss
San Francisco-based RedEnvelope (Nasdaq: REDE) narrowed its fiscal first-quarter loss to $952,000 for the three months ended June 27. Last year it lost $1.2 million during the comparable quarter. Net revenue, meanwhile, increased 19% ,to $21.1 million from $17.7 million last year.

Gross margins improved to 53% for the quarter compared with 48.9% last year. At the end of the quarter, RedEnvelope's customer file totaled about 1.9 million names. In the quarter, RedEnvelope shipped approximately 295,000 orders. Product revenues from customers who receive catalogs increased 29%, and revenue attributed to online marketing channels grew 21%.

RedEnvelope anticipates net revenue for fiscal 2005 of $94 million-$97 million. The net loss for the year is projected to be $2.0 million-$3.0 million.