Dear Partners/Shareholders,

Sales for the fiscal year ending March 31, 2015 were $9,891,554 compared to $12,577,127 for the same period last year. The Company reported a net loss of $3,704,985 or $1.60 per basic and diluted share, versus a net loss of $4,450,244 or $1.94 per basic and diluted share for the same period last year. The lower sales were caused by the delay in obtaining certifications for our new line of sealed smoke, carbon monoxide and combination alarms. We are now pleased to state that we have received approvals for our complete line of sealed ionization smoke and combination alarms, as well as our sealed carbon monoxide alarms. Deliveries for all of these products have started in the June quarter for five models, and we expect the final two models will start shipping in the September quarter. The balance of the Company’s four new sealed photoelectric products should be ready for delivery later this fiscal year.

Since we have completed the ionization part of our new sealed product line, we expect the results for the fiscal year to be improved as we anticipate higher sales and margins. We previewed our new line of sealed products at the International Hardware Show in Las Vegas during May 2015 and have since received purchase commitments for our new sealed products. Universal is offering the only 10 Year Smoke and Carbon Monoxide Alarms powered by AA Alkaline batteries, which do not require any special handling or disposal.

Our Joint Venture continues to experience numerous challenges caused by lower sales to its European customers and margin pressure due to higher labor and material costs. We anticipate that increased purchase of sealed products by Universal should help improve the results of our Joint Venture.

We continue to pursue new marketing opportunities for both private label products and new customers which should further increase our sales this fiscal year.

We thank our loyal employees and sales agents for their effort and support, and we thank you, our shareholders, for your continued support.

Respectfully,

Harvey B. Grossblatt, President and CEO
Ron Lazarus, President, USI Electric

August 26, 2015



 

Statements contained in this document that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Although UNIVERSAL SECURITY INSTRUMENTS, INC. believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projections.

 

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