Full Press Release Details
Retractable Technologies, Inc.
Acts to Reduce Annual Operating Expenses by $6 Million
LITTLE ELM, Texas June 30, 2009 Retractable Technologies, Inc.
(AMEX: RVP), a leading maker of safety needle devices, continues to experience
significant barriers against our efforts to establish access for sales of our
products. With limited access to capital
markets, we have determined that in the interest of the long-term survival of
the Company, we would reorganize some of the Company s functions, and implement
staff reductions, all in order to minimize our cash expenditures and conserve
our resources. We are announcing today a
number of cost-cutting measures that we are implementing with the intent to
reduce our cash outlays by $6,000,000 over the next twelve months.
Our President and CEO, Thomas J. Shaw, has waived $1,000,000 in future
royalty payments. The five percent
royalty that Retractable pays for the exclusive right to manufacture and sell
the VanishPoint products was granted for patents that Mr. Shaw developed.
Retractable reluctantly reduced its workforce by 16 percent late last
We will reduce the compensation of employees above a certain salary
level by 10 percent effective the beginning of August.
The Company is discontinuing its matching of employees 401 (k) contributions
effective August 1st. Matching
contributions were $120,000 last year.
As circumstances change, these decisions will be reviewed.
The Company also plans to reduce inventory levels and to cut other
expenses. Retractable has several new
products in the pipeline that it plans to introduce in the coming year.
Retractable Technologies, Inc. manufacturers and markets safety
medical products, principally VanishPoint automated retraction safety syringes
and blood collection devices, that virtually eliminate healthcare worker
exposure to accidental needlestick injuries.
These revolutionary devices use a patented friction ring mechanism that
causes the contaminated needle to retract automatically, a feature that is designed
to prevent both accidental needlestick injury and device reuse. Retractable also manufactures and markets
Patient Safe syringes that are uniquely designed to reduce the risk of
bloodstream infections resulting from catheter hub contamination. Our products are distributed by various
specialty and general line distributors.
For more information on Retractable, visit our website at
Forward-looking statements in this press release are made pursuant to
the safe harbor provision of the Private Securities Litigation Reform Act of
1995 and reflect our current views with respect to future events. We believe that the expectations reflected in
forward-looking statements are accurate. However, we cannot assure you that such expectations
will materialize. Our actual future
performance could differ materially from such statements.
Factors that could cause or contribute to such differences include, but
are not limited to: our ability to maintain liquidity; our maintenance of patent
protection; the impact of current litigation (as it affects our costs as well
as market access and the viability of our patents); our ability to maintain
favorable supplier arrangements and relationships; our ability to successfully
receive royalties from Baiyin Tonsun Medical Device Co., Ltd.; the impact of
dramatic increases in demand; our ability to quickly increase capacity in the
event of a dramatic increase in demand; our ability to access the market; our
ability to maintain or lower production costs; our ability to continue to
finance research and development as well as operations and expansion of
production; the increased interest of larger market players, specifically
Becton Dickinson & Company, in providing devices to the safety market;
and other risks and uncertainties that are detailed from time to time in the
Company s periodic reports filed with the U.S. Securities and Exchange
Vice President and Chief Financial Officer
(888) 806-2626 or (972) 294-1010