Full Press Release Details
LITTLE ELM, Texas – Retractable Technologies, Inc. (NYSE American: RVP) reports that it has reduced its workforce by approximately 16%. The reduction is expected to save an estimated $2.2 million in annual wages and employment benefits, or approximately 13% of total estimated workforce costs. The expected savings are offset by estimated one-time separation payments of approximately $122 thousand to the affected workers. Approximately 58% of the targeted payroll reduction affects manufacturing or manufacturing support positions and the remainder of the reductions affects sales and sales support roles.
The move comes as the Company continues to strengthen its domestic production capabilities and increase manufacturing efficiencies, reducing its reliance on importing products from its contract manufacturers in China. While contract manufacturers in China have historically produced most of the products the Company sells, the financial impact of tariffs on imports from China has caused the Company to increase its domestic production where practical in order to mitigate the cost of importing. While the increase in domestic manufacturing lessens the negative financial impact of tariffs, the Company is still reliant on Chinese imports for products we are unable to produce with our current manufacturing equipment.
ABOUT RETRACTABLE
Retractable manufactures and markets VanishPoint ® and Patient Safe ® safety medical products and the EasyPoint ® needle. The VanishPoint ® syringe, blood collection, and IV catheter products are designed to prevent needlestick injuries and product reuse by retracting the needle directly from the patient, effectively reducing exposure to the contaminated needle. Patient Safe ® syringes are uniquely designed to reduce the risk of bloodstream infections resulting from catheter hub contamination. The EasyPoint ® is a retractable needle that can be used with luer lock syringes, luer slip syringes, and prefilled syringes to give injections. The EasyPoint ® needle also can be used to aspirate fluids and for blood collection. Retractable’s products are distributed by various specialty and general line distributors.
For more information on Retractable, visit its website at www.retractable.com .
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 Retractable’s current views with respect to future events. Retractable believes that the expectations reflected in such forward-looking statements are accurate. However, Retractable cannot assure you that such expectations will materialize. Actual future performance could differ materially from such statements.
Factors that could cause or contribute to such differences include, but are not limited to: tariffs; material changes in demand; Retractable’s ability to maintain liquidity; Retractable’s maintenance of patent protection; Retractable’s ability to maintain favorable third party manufacturing and supplier arrangements and relationships; foreign trade risk; Retractable’s ability to access the market; production costs; the impact of larger market players in providing devices to the safety market; and other risks and uncertainties that are detailed from time to time in Retractable’s periodic reports filed with the U.S. Securities and Exchange Commission.