In the premarket trading session, Retractable Technologies Inc. (RVP) stock surged by 12.58% to $10.20 in at last check. RVP stock previously closed the session at $9.06. The RVP stock volume traded 0.56 million shares. In the past year up to date, RVP shares have risen by 67.78% however in the past week, the stock shed by -4.43%. In the past three and six months, the RVP stock had shed -43.62% and -23.54% respectively. Furthermore, Retractable Technologies Inc. (RVP) is currently valued in the market at $319.64 million and has 33.97 million outstanding shares.
Here’s what you need to know about Retractable Technologies Inc.
Retractable Technologies Inc. is a Medical Instruments & Supplies company that manufactures and designs medical products like safety syringes. The company has set up its operations in the market of South and North America as well as internationally. It was established in 1994 and is based in Little Elm, Texas. Its product offerings include medical safety products like tuberculin, insulin, allergy antigen syringes, and other products that come under the VanishPoint safety portfolio. Retractable Technologies Inc. also provides blood transfusion-related medical products like retractable needles, syringes, dental syringes, IV catheters, and EasyPoint needles.
The company’s client base includes healthcare providers of all sorts and has a distribution channel consisting of specialty distributors and a general line through which it provides its products. For the international supply, the company has international distributors and a direct line of marketing network.
Retractable Technology’s operational performance in the first quarter of 2021
Retractable Technologies Inc. has released the financial result of the first quarter of 2021 in the form of a comparison of operations with the first quarter ended March 2020. The company announced that its operating income was uplifted from $481 thousand in 2020’s first three months to $23.4 million in 2021 same period.
Major boost due to domestic sales and government contract extension
A significant portion of boost to the balance-sheet has come from the acceleration in domestic sales and revenue which accounted for 97.3% in 2021 and 77.4% in 2020. Specifically, the US government was primarily responsible for increasing the domestic revenues of RVP stock by 484.7% principally due to its increased orders. The US Department of Health and Human Services (HHS) had extended its contract with Retractable Technologies, from July 14th, 2021 to 14th September 2021; through availing two of its seven one-month option periods under the contract. This was done in accordance with the company’s 30 day notice period on the 19th of April.
The international revenues’ performance contrasted that of domestic by $1.5 million approximately. However, the performance of the international market is still subject to pandemic uncertainty and fluctuations thus this may not reflect 2021’s full-year performance prediction.
The first quarter’s performance in 2021 does however reflect an expansion (40% compared to 2020 same period) in the domestic workforce as Retractable employed 210 full-time, part-time and temporary employees. This hiring entailed an operating expense increase as headcounts and employee-related expenses increased. Furthermore, RVP stock disclosed in its Form 10-Q filed on May 17, 2021, that it has been forgiven for the entire amount of $1,363,000 for its promissory note pursuant to the Paycheck Protection Program.