Variflex Posts Net Income of $108,000 for Quarter

Variflex Inc. of Moorpark, a provider of in-line skates, skateboards and other recreational products, reported net income of $108,000 or 2 cents per share on revenues of $8.8 million for the three months that ended Oct. 31.

In the same quarter a year earlier, the company reported a net loss of $21,000, with no loss per share, on revenues of $13.6 million.

“The decrease in revenues reflects an industrywide decline in sales of in-line skates,” said Mark S. Siegel, Variflex board chairman.

While the sales of in-line skates declined, another company product, the Quik Shade instant canopy, saw a boost in sales, Siegel said. In the most recent quarter, canopy sales represented about 8% of revenues, compared with 1% a year earlier.

“One of our objectives has been to diversify the company’s product line to reduce our dependence on the sale of in-line skates,” Siegel said. “The introduction of the Quik Shade represents a key ingredient in this strategy, and [our new] licensing agreement [for a springless trampoline] also represents a continuation of our diversification effort.”