Schein Net Income Down on Fluvirine
Third-quarter net income at Melville, NY-based Henry Schein (Nasdaq: HSIC) fell 29%, to $31.5 million from $44.3 million last year. The medical, dental, and veterinary supplier blamed the decline on this year’s lack of Fluvirin influenza vaccine, of which Schein is the primary distributor in the U.S. The maker of Fluvirin, Chiron Corp., said it would not supply Fluvirin influenza vaccine for the current influenza season.
On a positive note, for the first time in the firm’s history, Schein netted more than $1 billion in quarterly sales. Net sales increased 16%, to $1.03 billion for the three months ended Sept. 25, compared with $892.7 million a year ago. The increase includes 14% local currency growth and nearly 2% related to foreign currency exchange.
Loss Widens at RedEnvelope
San Francisco-based gifts cataloger RedEnvelope (Nasdaq: REDE) endured a case of good news/bad news during its fiscal second quarter ended Sept. 26. The bad news? The company’s net loss widened to $3.9 million, up from the $2.8 million net loss it suffered during the comparable quarter of last year.
An increase in operating expenses reflects costs associated with the proxy solicitation for its recent annual stockholders’ meeting, as well as additional training and staffing at its fulfillment center. The company is also implementing a new warehouse management and materials handling system.
The good news? Net revenue increased 27%, to $10.6 million from $8.3 million last year.
The company is pushing more private-label items, which carry higher margins. Revenue per order rose to $71 from $67 per order a year ago. The gross profit per order was $35, compared with $32 last year.