Variflex Inc. of Moorpark, a provider of in-line skates, skateboards and other recreational products, reported net income for the three months ended April 30 of $20,000, with shares breaking even, on revenues of $10.5 million.
A year earlier, the company reported a net loss of $380,000 or 6 cents a share on revenues of $14.5 million for the same period.
"We are continuing to build upon Variflex's core strengths, especially in retail distribution and the company's ability to import and distribute high-quality, low-cost recreational products," said Variflex chairman Mark S. Siegel. "During the past quarter we further strengthened our retail distribution network by adding a major new outlet, the Home Depot, which has become a significant customer for our Quik Shade instant canopy."
During the quarter, Variflex terminated its retail distribution agreement for skates and skateboards with K mart.
Jay Losi, president and chief executive, said one company objective has been to reduce dependence on in-line skates.
"With the growing success of Quik Shade, as well as our safety helmets, skateboards and other recreational products, sales of in-line skates now represent less than 50% of revenues," Losi said. "We intend to continue to focus on the development of additional innovative recreational products that can flow into our distribution network."