Retractable Technologies, Inc. (NYSE AMEX: RVP), a leading maker of safety medical devices, reported net sales of $8.5 million for the three months ended March 31, 2010, a 61% increase over net sales for the three months ended March 31, 2009. Domestic sales accounted for 88.2% and 78.8% of the revenues for the three months ended March 31, 2010 and 2009, respectively. International sales accounted for the remaining revenues. Domestic revenues increased 80.1% principally due to higher average prices and higher volumes. Most of the increase in domestic revenues is attributable to sales of the 1mL and 3mL syringes. International revenues decreased 10.1% due primarily to lower volumes mitigated by higher prices. Overall, unit sales increased 27.6%. Domestic unit sales increased 47.9% due to increased sales to our major domestic distributors and filling orders from the Department of Health and Human Services from 2009. International unit sales decreased 14.3%. Domestic unit sales were 78.1% of total unit sales for the three months ended March 31, 2010. Gross profit increased 181% primarily due to higher revenues and lower unit costs. The average cost of manufactured product sold per unit decreased by 3.9% due to higher volumes. Profit margins can fluctuate depending upon, among other things, the cost of product manufactured and the capitalized cost of product recorded in inventory, as well as product sales mix. Royalty expense increased 39.5% due to higher gross sales. Operating expenses increased 6.9%. The increase was mitigated by the effect of cost cutting measures taken in 2009. Compensation costs declined $270,000 and 401(k) matching expense declined $26,000. Other related costs such as travel and entertainment, marketing expense, and consulting declined $176,000. General and administrative costs increased due primarily to stock options and litigation expense. The decrease in expense for Sales and marketing was attributable primarily to lower compensation costs. Research and development costs increased $163,000 due to impairment charges mitigated by lower compensation costs.