New York -- SpongeTech Delivery Systems Inc. announced 15 Sept that it had achieved un-audited revenue for the first quarter of 2009 (ending 31 Aug 2008) of about $5 million, a rise of more than $1 million from the fourth quarter of its last fiscal year.
The maker of car care products -- which are based on soap-impregnated hydrophilic polyurethane foam sponges -- said that the company has confirmed orders for the next nine months of over $32 million, and is experiencing strong demand in the US and "very strong demand" internationally.
In production, SpongeTech has independent sub-contractors using its patented technology and brand names to make products in the US and said it will be able to fulfil demands through organic growth as well as "through new strategic relationships."
The company plans to have five operating divisions as new products are introduced:
* Auto Care Products;
* Pet Care Products (Uncle Norman's Pet Sponge);
* Health Care and Beauty Products (Puddle Pals);
* Household Cleaning Products; and
* Bio Pharma Products.
The group said it continues to search for new automotive customers, and has formally introduced 'Uncle Norman's Pet Sponge,' where it is optimistic about new retail accounts.
"We continue to increase our production capacity, purchase fabrication moulds, and increase our sales and support team to handle our increased growth," said Michael Metter, SpongeTech ceo, in the statement.
The group said it is negotiating with additional major retailers who are evaluating and test marketing its products. It is also in discussions with a major supplier of branded household cleaning products about using SpongeTech's patented technology. Other avenues being explored include making children's sponges based on some popular children's characters, and using the patented technology in products such as suntan lotion, topical medical uses, beauty aids, and other hardware and houseware solutions.
Metter also commented that the company believes its stock has recently been influenced by the illegal practice of "naked short selling," to undermine shareholder confidence and induce sales of stock, to create stock price erosion. SpongeTech instituted a stock buyback programme of over 25 million shares, and "expects to take action to rectify the situation," he added.