Revenue during the quarter dropped 4.49 percent to $3.46 million from $3.62 million in the previous year period. Gross margin for the quarter contracted 935 basis points over the previous year period to 53.89 percent. Total expenses were 64.01 percent of quarterly revenues, up from 53.21 percent for the same period last year. That has resulted in a contraction of 1079 basis points in operating margin to 35.99 percent.

Operating income for the quarter was $1.24 million, compared with $1.69 million in the previous year period.

Ken Globus, United-Guardian’s President, stated, “I am pleased to report that our net income for the third quarter of 2016 alone was equal on a per share basis ($0.20 per share) to the total combined net income for the first two quarters of this year. While our sales for the year are still lagging behind last year’s nine-month sales due to an overstock situation in China that significantly impacted sales of our personal care products intended for the Chinese market during the first 8 months of this year, that situation has now been rectified, and shipments of the impacted product for sale in China resumed in September. Those renewed shipments, along with strong sales of the new single-dose form of Renacidin that we introduced in April, resulted in significantly stronger sales in the third quarter of this year compared with this year’s first and second quarters. We expect the resumption of sales into China to continue, and anticipate that sales of Renacidin will also increase as we implement a new internet marketing campaign to increase awareness of the new product on the part of patients, pharmacists, and physicians. We believe that our fourth quarter sales will continue to be strong, and that we will end the year well positioned to have an even more profitable year in 2017.”