Revenue during the year dropped 23.06 percent to $10.78 million from $14.01 million in the previous year. Gross margin for the year contracted 817 basis points over the previous year to 54.69 percent. Total expenses were 68.55 percent of annual revenues, up from 55.07 percent for the last year. That has resulted in a contraction of 1348 basis points in operating margin to 31.45 percent.

Operating income for the year was $3.39 million, compared with $6.29 million in the previous year.

Ken Globus, President of United-Guardian, stated, “Our revenue for the first eight months of 2016 was negatively impacted by a regulatory issue in China that was unrelated to our product but caused a significant overstock situation for one of our products in China. That regulatory issue and overstock situation have been resolved, and shipments to China resumed in September. As a result, we are anticipating an increase in China sales in 2017. We began selling our new single-dose form of Renacidin® Irrigation, our most important pharmaceutical product, in April 2016, and we believe that sales of that product will increase as the year progresses. We are also very excited about our latest cosmetic ingredient, Lubrajel® Marine, which is being launched globally by ASI, our largest marketing partner, at the international In-Cosmetics conference in London in April. We are hopeful that this product will begin to contribute to our sales by the end of 2017, and that this new addition to our product line, along with the resumption of sales into China and the anticipated increase in Renacidin sales, will result in a stronger and more profitable year for us in 2017.”