SOURCE: Leatt Corporation

November 13, 2009 11:39 ET

Leatt Corporation Announces Third Quarter FY2009 Results

CAPE TOWN, SOUTH AFRICA--(Marketwire - November 13, 2009) - Leatt Corporation, a Nevada corporation and the developer of the Leatt-Brace®, a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck) (PINKSHEETS: LEAT) (Company), today announced financial results for its fiscal 2009 third quarter ended September 30, 2009. The Company posted revenue of $3,044,940 and a net quarterly loss of $369,714. These results compare to revenue of $3,760,856 and net quarterly profit of $361,339, in the year-ago quarter. Gross margin was 64%, up from 58% in the year-ago quarter.

"The troubled world economy continues to dampen sales, but we are adjusting by increasing our marketing and sales efforts, as well as seeking new geographic markets," said Chief Executive Officer Dr. Chris Leatt. "We are also seeking to increase market awareness and penetration in the U.S. recreational rider segment through an aggressive public relations campaign and marketing effort. This effort includes a campaign for enhanced media coverage of our product as well as traditional targeted marketing efforts," added Dr. Leatt.

The Company sold 18,635 braces in the third quarter of 2009 with the U.S. accounting for 34% of sales revenues and International sales accounting for 66% of sales revenues. This represents a 41% decline in U.S. sales and a 0.4% increase in International sales when compared to the year-ago-quarter.

A financial summary of the Q3 FY2009 results appears below, which summary is qualified in its entirety by reference to the Q3 FY2009 financial results posted on http://www.leatt-corp.com.

Leatt Corporation: The Company produces and sells the Leatt-Brace®, a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck).

The Summarized Consolidated Statements of Operations (unaudited) for the period ending September 30, 2009 are:

                  CONSOLIDATED STATEMENTS OF OPERATIONS


                        Three Months Ended          Nine Months Ended
                        September 30, 2009          September 30, 2009
                        2009          2008          2009          2008
                      Unaudited     Unaudited     Unaudited     Unaudited

Revenues            $  3,044,940  $  3,760,856  $ 10,496,463  $ 15,000,008
Cost of Revenues       1,083,357     1,590,842     3,782,925     5,187,371
                    ------------  ------------  ------------  ------------
Gross Profit           1,961,583     2,170,014     6,713,538     9,812,637
Operating expenses     2,647,457     1,799,168     7,010,105     6,435,186
                    ------------  ------------  ------------  ------------
Income / (Loss)
 from Operations        (685,874)      370,846      (296,567)    3,377,451
Other Income
 (Expense)                 7,656         2,091        35,576      (211,610)
                    ------------  ------------  ------------  ------------
Income / (Loss)
 Before Income
 Taxes                  (678,218)      372,937      (260,991)    3,165,841
Income Taxes             308,504       (11,598)            -      (721,098)
                    ------------  ------------  ------------  ------------
Net Income / (Loss)
 Available to
 Common
 Shareholders       $   (369,714) $    361,339  $   (260,991) $  2,444,743
                    ============  ============  ============  ============

NOTICE: This press release may contain forward-looking statements. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; the ability of the Company to deliver to the marketplace and stimulate customer demand for products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the inventory risk associated with the Company's need from time to time to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; product quality control issues; the absence of a strong e-commerce website for products; the continued service and availability of key executives and employees; unfavorable results of legal proceedings, especially personal injury or product liability lawsuits or intellectual property rights lawsuits; and the Company's dependency on the performance of distributors and other resellers of the Company's products. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public disclosures at http://www.leatt-corp.com. The Company's common stock quotes on The Pink Sheets, LLC and said stock is a "penny stock" under SEC rules. As such, any investment in the common stock is highly risky. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. URL's referenced herein are not incorporated herein or made a part of this press release.

Contact Information