Reed’s, Inc. announces its financial results for the three and six months ended June 30, 2008.

Reed’s, Inc. today announced its financial results for the three and six months ended June 30, 2008.

Second Quarter 2008 Highlights:

* Net sales increased 32% to $4.6 million from $3.5 million in the same period last year
* Gross profit increased 87% to $1.3 million from $0.7 million in the same period last year
* Gross margin expanded 820 basis points to 27.8% from 19.6% in the second quarter of 2007
* Operating expenses decreased 110 basis points to 37.4% of net sales from 38.5% of net sales in the second quarter of 2007
* Net loss attributable to common stockholders decreased to $515,000 compared to loss of $721,000 in the prior year period
* Increased its available borrowing capacity up to $3.0 million. The amount available under the credit facility is based on accounts receivable and inventory levels.

“We are very pleased with our second quarter results which mark another quarter of strong revenue growth and demonstrate a measurable improvement in profitability,” commented Chris Reed, Founder and Chief Executive Officer. “During the second quarter, we achieved year-over-year sales growth of approximately 32%, continued to expand our presence and shelf space within mainstream grocery store accounts and continued to build international awareness of Reed’s brands. We are especially pleased to deliver this strong top-line growth, without compromising profitability. During the second quarter our 2008 strategic initiatives aimed at increasing our presence in national grocery chains, improving gross margins and rationalizing expenses began to take hold. This is evidenced by the expansion of our sales, the improvement in our gross margin to 27.8% and the sequential reduction in operating expenses by approximately $700,000 from the first quarter of 2008, the combination of which resulted in a large decrease in our net loss to approximately $0.5 million. We expect this trend to continue as we reduce operating expense by an additional $300,000 to $400,000 in the third quarter of 2008.” read more

Source: Reed's, Inc.