Ossen Innovation announced its financial results for the second quarter ended June 30, 2015. Revenues decreased by $10.1 million, or 28%, to $25.9 million from $35.9 million for the same period of last year.
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This comes with weakness in both zinc coated products and plain surface PC strands and others. The sales of coated PC steel materials, including both rare earth and zinc coated products, decreased by $7.4 million, or 25%, to $22.3 million and accounted for 86% of total sales for the three months ended June 30, 2015.
The sales of rare earth and zinc coated products were $19.8 million and $2.5 million, respectively, for the three months ended June 30, 2015, compared to $20.6 million and $9 million, respectively, for the same period of last year.
The sales of plain surface PC strands and others decreased by approximately $2.6 million, or 42.4%, to $3.6 million and accounted for 14% of total sales for the three months ended June 30, 2015 mainly due to decreased sales volume of plain surface PC strands as well as sales of other products.
Gross profit decreased by approximately $0.4 million, or 11.7%, to $3.3 million for the three months ended June 30, 2015 from $3.7 million for the same period of last year. Gross margin was 12.7% for the three months ended June 30, 2015, compared to 10.4% for the same period of last year.
The increase in overall gross margin was mainly due to lower raw material costs. Gross margins for rare earth and zinc coated products were 9.7% and 20.3%, respectively, for the three months ended June 30, 2015, compared to 6.2% and 22.1%, respectively, for the same period of last year.
Gross margin for plain surface PC Strands and others was 24.3% for the three months ended June 30, 2015, compared to 7.2% for the same period of last year.
Selling expenses increased by $0.2 million, or 135.1%, to approximately $0.4 million for the three months ended June 30, 2015. General and administrative expenses decreased by $0.5 million, or 38.4%, to $0.9 million for the three months ended June 30, 2015 mainly due to the $0.2 million decrease in R&D and the $0.2 million decrease in the provision for bad debts.
As a result, total operating expenses decreased by $0.3 million, or 20.5%, to approximately $1.3 million for the three months ended June 30, 2015 from $1.6 million for the same period of last year.
Operating income was $2 million, or 7.8% of total revenues, for the three months ended June 30, 2015, compared to $2.1 million, or 5.9% of total revenues, for the same period of last year.
Net income decreased by approximately $0.2 million, or 13.4%, to $1.4 million for the three months ended June 30, 2015 from $1.6 million for the same period of last year.
After deducting net income attributable to non-controlling interest, net income attributable to Ossen Innovation decreased by $0.2 million, or 12.7%, to $1.3 million for the three months ended June 30, 2015 from $1.5 million for the same period of last year.
Earnings per share, both basic and diluted, were $0.07 for the three months ended June 30, 2015, essentially unchanged from the same period of last year. ■