Business
Flame Seal Products, Inc. Releases March 31, 2017 Results
Flame Seal Products, Inc. Releases March 31, 2017 Results.
About this update from Flame Seal Products Inc
[{"type":"text","content":"\n \n \n Flame Seal Products, Inc. Releases March 31, 2017 Results\n \n \nFlame Seal Products, Inc. Releases March 31, 2017 Results\n \n HOUSTON, TX--(Marketwired - May 12, 2017) - FLAME SEAL PRODUCTS, INC. (OTC PINK: FLMP)\n FLAME SEAL PRODUCTS, INC. (OTC PINK: FLMP), a leading provider of Specialty Chemicals for the Passive Fire Protection Market, today issues the following update to its Stockholders.\n From: Craig Keyser, CEO\n Subject: March 31, 2017 First Quarter Results and Corporate Update \n Revenues for the quarter ended March 31, 2017 were $599,880, a $92,379 decrease or 13% compared to the March 31, 2016 quarter and sequentially 25% lower than the December 31, 2016 quarter.\n Craig Keyser comments, \"The first quarter of 2017 unfolded with a confluence of unexpected events which negatively impacted our results. Flame Seal's (FSP) largest customer in 2016 was recently divested by its parent. The acquiring company is in the process of working off inventory and assessing how to proceed which is disrupting our order flow from this customer. Another customer also temporarily suspended orders in the first quarter. New competition which emerged in the second half of 2016 has resulted in somewhat reduced margins and affected profitability. Management and the Board of Directors are acutely aware of rapidly-changing industry conditions and proactively evaluating appropriate steps to restore FSP's momentum. In the meantime, FSP's Research and Development efforts continue as we focus on the products and technologies that will dramatically increase sales and profits.\"\n Operating Results\n For the quarter ending March 31, 2017 FSP's net loss was $80,507. As noted previously, the majority of all technical resources are focused on the development and testing of new competitive products. The importance of these programs to the successful implementation of our strategic plans cannot be overstated. Two (2%) higher SG&A expenses over the comparable 2016 comparable quarter, in the presence of the revenue and gross profit decline, contributed to the expanded loss. FSP continues to invest in qualified personnel to improve future prospects. \n Operations\n During the first quarter of 2017 gross operating margins held steady at 52%, but at an unsatisfactory level as ratio of sales. FSP continues to operate with limit...