SOURCE: Pacific Sands, Inc.

Pacific Sands, Inc.

March 16, 2010 09:15 ET

Pacific Sands Releases FY 2010 Second Quarter Results -- Quarterly Sales up 50% Over Same Quarter Last Year

Company Increases Gross Profits and Reduces Overhead

RACINE, WI--(Marketwire - March 16, 2010) -  Pacific Sands, Inc. (OTCBB: PFSD), a manufacturer of a broad range of environmentally friendly cleaning products, announced today that the company has released its fiscal year 2010 second quarter results.

3 Month Highlights:
Sales: up 50%
Gross Profits: 52% up from 32%
Company books non-cash 'Impairment Charge' against Natural Choices acquisition.

RESULTS OF OPERATIONS

Results for the three months ending December 31, 2009 compared to the three months ending December 31, 2008:

For the three months ended December 31, 2009, net sales were $265,878, an increase of 50% from net sales of $176,999 for the same period in fiscal 2008. The increase is due to better economic conditions and an increase in private label sales.

For the three months ended December 31, 2009, cost of goods sold was $127,187 compared to $120,411 for the same period in the previous fiscal year. The Company's gross margin increased from 32% for the three months ended December 31, 2008 to 52% for the current fiscal quarter. This large increase is due to the fact that the Company has begun to recognize significant cost savings from efficiencies of manufacturing certain products in-house that were previously manufactured by a third party contract manufacturer. Additionally, the Company discontinued a few of their lower margin products.

For the three months ended December 31, 2009 and 2008, selling and general administrative expenses were $161,806 and $216,105 respectively. The decrease in operating expenses is explained in large part by a significant decrease in salaries and wage expense resulting from layoffs and salary reductions. Salaries and wage expense for the three months ended December 31, 2009 approximated $69,000 compared to $125,000 for the three months ended December 31, 2008.

On December 31, 2009, the Company recorded an impairment charge of $877,854 representing the entire amount of the intangible asset recorded for the acquisition of Natural Choices Home Safe Products in February 2008. Applying the guidance for Goodwill and Other Intangible Assets, the Company determined that the carrying amount of the intangible asset exceeded the fair value, and further determined that the entire value of the intangible asset should be written off.

The Company recorded a net loss of $918,323 or $0.021 per share for the three months ended December 31, 2009 as compared to a net loss of $181,039 or $0.005 per share for the three months ended December 31, 2008. 

For the full report visit: www.pinksheets.com and enter stock ticker PFSD. For more information about Pacific Sands, visit www.PacificSands.BIZ.

About Pacific Sands, Inc.
Pacific Sands, Inc. is an environmental products company that develops, manufactures and sells a wide variety of eco-friendly products for cleaning and water maintenance applications. The company's broad portfolio of products are sold world under numerous private label brands as well as its house brands, ecoone® and Natural Choices™.

Safe Harbor Statement
The statements contained in this release and statements that the company may make orally in connection with this release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements, since these forward-looking statements involve risks and uncertainties that could significantly and adversely impact the company's business. Therefore, actual outcomes and results may differ materially from those made in forward-looking statements.

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