Retractable Technologies, Inc. (NYSE AMEX: RVP), a leading maker of safety medical devices, reported an overall unit sales increase of 38.0% for the second quarter of 2011, compared to the second quarter of 2010. Comparison of Three Months Ended June 30, 2011 and June 30, 2010 Domestic sales accounted for 73.5% and 97.3% of the revenues for the three months ended June 30, 2011 and 2010, respectively. Domestic revenues decreased 19.1% principally due to lower volumes and somewhat lower average prices. International revenues and unit sales increased significantly due to South American sales. Sales in South America comprised more than 90% of international sales. Domestic unit sales decreased 15.3%. Domestic unit sales were 59.0% of total unit sales for the three months ended June 30, 2011. Gross profit increased 11.0% primarily due to higher sales and improved margins. The average cost of manufactured product sold per unit decreased by 25.2%. Profit margins can fluctuate depending upon, among other things, the cost of manufactured product and the capitalized cost of product recorded in inventory, as well as product sales mix. Royalty expense increased 15.3% due to higher gross sales. Operating expenses decreased 29.6% or $1.7 million. The decrease in General and administrative expense was the most significant. The decrease of $1.5 million in General and administrative expense was due mainly to lower litigation costs and decreased stock option expense. Patent maintenance fees increased. Sales and marketing expense decreased $165 thousand due principally to lower Group Purchasing Organization (“GPO”) fee expense. There were no impairment charges in 2011. Research and development costs were slightly lower. Our operating loss was $988 thousand compared to an operating loss for the same period last year of $3.0 million. Litigation settlements, net reflects cash proceeds of $2.0 million from Hospira less royalty expense of $100,000 for the three months ended June 30, 2011.