This seems to be a pretty good result for this ragtag company, unfortunitly they had to admitt that the increase in revenue was due to channel stuffing resulting in high inventories, so it seems the next quarter will not be as good. They will get this fixed, and, I think, the company is pulling out of its death spiral, this is a bottom fishers special. That is my story and I am sticking to it.
("Response" or "the Company") (TSX:RBM)(OTCQB:RPBIF) today reported financial results for its second quarter and six months ended June 30, 2015 including a 39% increase in total revenue, a 16% increase in product sales, positive Adjusted EBITDA of $631,000, and a GAAP net loss of $2,000.
"We are pleased to report both substantial revenue growth and positive Adjusted EBITDA for the second quarter," said Dr. Barbara Kinnaird, Chief Executive Officer of Response. "We continue to make progress in our collaboration with Joinstar, earning a US$360,000 milestone in the second quarter," noted Dr. Kinnaird. "Our national distribution partner met their minimum purchase targets for the first half of 2015, representing approximately 70% of our revenues in the period. However, they are still in the process of expanding into additional territories within China and determining their end-user buying patterns. They recently indicated to us that they have built up inventory at a higher rate than their current sales to end-users. They therefore may make significantly lower, or possibly no, purchases from us during the third quarter of 2015. As a result, we have executed several cost cutting and cash conservation initiatives while we work through this period.