SNDY News .0058 Solos Endoscopy Reduces Inventory Cost and Improves Gross Profit Margin for Second Quarter 2012

2012-06-13 09:48 ET - News Release

BOSTON, June13, 2012 /PRNewswire/ -- Solos Endoscopy, Inc. (OTCPK: SNDY) is pleased to announce that the Company has been able to successfully reduce its inventory costs for the 2nd Quarter which has resulted in an increased profit margin for its endoscopic instruments.

Solos Endoscopy's inventory sales for the month of April 2012 was $29,622.00 which is similar to the prior year, however, the Company was able to reduce its Cost of Goods Sold to just $6,430.54.  This reduction of costs gives Solos Endoscopy a Gross Profit Margin of 78% an increase from 68% from the year prior, a trend that management expects to continue.

According to the Company, Solos Endoscopy was able to take advantage of better exchange rates and negotiate with suppliers due to an increase in cash on hand.  The fact that the Company is no longer diverting its funds to pay antecedent debt has allowed Solos to deliver its instruments to hospitals on a timelier basis which in the long term will result in increased sales of its disposable product line.

Solos Endoscopy posted a Net Profit for the first quarter 2012 as a result of a dramatic decrease in operating expenses combined with the forgiveness of more than $200,000 in debt.  The Solos debt reduction efforts has reduced Solos Endocopy's Total Liabilities from $855,295 for period ending March 31, 2011 to just $360,054 for period ending March 31, 2012.