Variflex’s Income Rises in Fiscal ’99 as Sales Decline

Variflex in Moorpark, a provider of recreational products, reported net income of $803,000 or 14 cents per share on revenues of $37.3 million for the 12 months ended July 31.

This compares with a loss of $3.4 million or 58 cents per share on revenues of $43.1 million for the fiscal year ended July 31, 1998.

The company reported net income of $246,000 or 4 cents per share on revenues of $7.4 million for the three months ended July 31, compared with a loss of $699,000 or 12 cents per share on revenues of $8.2 million for the same three-month period a year ago.

“While we are pleased that the company returned to profitability in fiscal 1999, we are disappointed in the company’s decline in sales,” said board Chairman Mark S. Siegel.

Jay Losi, Variflex’s chief executive, said products such as the Quik Shade instant canopy have helped to diversify the company’s product mix and lessen its reliance on its traditional product lines.

Variflex is a wholesaler and distributor of in-line skates, skateboards, recreational safety helmets, athletic protective equipment and yo-yos. The company also sells snowboards and related accessories, and the Airzone springless trampoline. The company designs and develops these products, which are manufactured by independent contractors.