12.01.08
Pacific Sands, Inc., which manufactures environmentally friendly, non-toxic liquid and powder cleaning, laundry, and water treatment products, reported net sales of $352,806 fiscal quarter ended September 30, 2008 compared with net sales of $179,807 in fiscal first quarter 2008. The company had a net loss of $64,912 or $0.002 on 39.2 million weighted average shares compared with a net loss of $53,829 or $0.002 in fiscal first quarter 2008 on 34 million weighted average shares.
These changes were primarily due to products from Natural Choices, which Pacific Sands acquired in February 2008. Prior to the acquisition, Natural Choices manufactured the bulk of their liquid and powder cleaning and laundry products through contract manufacturers, which added significantly to their cost of manufacturing those products. Pacific Sands has made significant capital expenditures, including building an in-house powder filling facility.
"We are very encouraged with the increasing market enthusiasm for the Natural Choices 'home safe' cleaning and laundry products, as well as our 'low chem' ecoone pool and spa water management systems," said Michael Wynhoff, president. "Direct consumer response is growing, and we have numerous retailers, distributors and marketing companies in the pipeline interested in selling our products as private label brands."
The company completed its expansion of its in-house manufacturing capabilities to accommodate production requirements for its products. This investment, said Wynhoff, eliminates the need to outsource to contract manufacturers and will result in lower manufacturing costs. For the three months ended September 30, 2008, cost of goods sold was $161,950 compared to $62,863 for the same period in the previous fiscal year, while gross margin decreased from 65% for the three months ended September 30, 2007 to 54% for the current fiscal quarter.
These changes were primarily due to products from Natural Choices, which Pacific Sands acquired in February 2008. Prior to the acquisition, Natural Choices manufactured the bulk of their liquid and powder cleaning and laundry products through contract manufacturers, which added significantly to their cost of manufacturing those products. Pacific Sands has made significant capital expenditures, including building an in-house powder filling facility.