2001 1st Quarter Report
To Our Stockholders,
The first quarter of 2001 marked Chromaline’s return to healthy growth. Sales of $2,858,012 set a first quarter record, posting an 18% increase over the same quarter of 2000. Profits were $88,402 or $0.07 per basic and diluted share compared to $0.04 per basic and diluted share for the first quarter of 2000. The 2000 earnings were affected by a severance expense related to the departure of the former CEO.
Sales were robust across most markets and regions. Europe was particularly strong, as we have been very successful in picking up the pieces after the bankruptcy of our European master distributor in October 2000. The Nichols Chemical line, which we acquired in June 2000, and the distribution agreement with Slee Corporation for it glass and crystal products, which began in February of this year, have both added new revenues to the company. Although these products carry lower margins than most of our products, we expect them to represent about one million dollars in new sales with modest corresponding increases in manpower.
As earlier communicated, in January we settled our long running suit with the Aicello Corporation concerning patent rights to some of our PhotoBrasive films. This has allowed us to reintroduce products we had withdrawn from the market because of the suit. The reintroduction began in February and we are making good progress. We expect to introduce improved products in the second quarter and anticipate a positive impact for the year.
In February we entered into an agreement with Apprise Technologies for the distribution of an integrating radiometer developed by Apprise. This hand-held device measures the intensity and dosage of ultraviolet light, which is essential to the proper exposure and development of our photochemical products. The radiometer is designed to incorporate the features needed by our customers at a competitive price, allowing more people to be technically proficient in using our products. We expect to introduce the radiometer to the market in July.
We are in the process of growing by adding complementary product lines, expanding our technologies and improving our marketing capabilities. Although we may be affected by the turbulent national and world economies, I am optimistic that we are setting the stage to achieve new levels of growth and profits.
For the Board of Directors,
William C. Ulland Chairman, President & CEO