Sharps Compliance Reports Prelim Q2 Revs $6.2M vs $5.03M Est

Sharps Compliance Corp. (Nasdaq: SMED) announced it expects to report revenue of $6.2 million for its fiscal 2012 second quarter which ended December 31, 2011. This would be a 35% increase over the prior year period. Also, it anticipates that from margin expansion on higher volume, it will report break-even to slightly positive net income.

David P. Tusa, President and CEO, commented, "This quarter's results demonstrate the excellent progress we are making in our key targeted markets. While we are disappointed that the U.S. Government's maintenance contract will not be renewed for the third option year, beginning February 1, 2012, we expect that we will be able to replace the revenue through our sales and marketing efforts to the retail, professional and pharmaceutical markets. Excluding the government maintenance contract, billings in the second quarter were up 43%."

Sharps Compliance was providing maintenance services, including inventory warehousing and rotation, as well as training and other medical waste-related services for the Medical Waste Management System™ acquired from the Company by the U.S. Center for Disease Control ("CDC") via the Department of Veterans Affairs under a contract awarded in February 2009. The Company has been providing the maintenance services to the CDC at a rate of about $0.7 million per quarter.