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Dogness InvestorRoom Dogness Reports First Half Fiscal Year 2021 Financial Results • Revenue Increases 6.7 % YoY to $ 12.2 Million • 60.3 % YoY Increase in Sales of Intelligent Pet Products • U.S. Sales Increase 41.7 % YoY • China Sales Increase 4.8 % YoY • Gross Margin Improves to 39.1 % • Comprehensive Income Increases to $ 5.0 million from a Loss of $ 1.2 million a Year Ago • EPS Grows to $ 0.03 per Basic and Diluted Share from a Loss of $ 0.01 per Basic and Diluted Share a Year Ago PLANO , Texas , June 4 , 2021 / PRNewswire / -- Dogness ( International ) Corporation ( " Dogness " or the " Company " ) ( NASDAQ : DOGZ ) , a developer and manufacturer of a comprehensive line of Dogness - branded , OEM and private label pet products , today announced its unaudited financial results for the six months ended December 31 , 2020 . Silong Chen , Chairman and Chief Executive Officer of Dogness , commented , " We made excellent progress as we continue to drive our growth strategy and help customers adjust to COVID - 19's challenges . Our supply chain initiatives gave us a competitive advantage as we were able to get the products customers needed to their favorite retailers to buy , while other suppliers were stuck on ships or in overseas ports . This is a testament to our operations team , which quickly adjusted to the changing supply chain conditions and logistics hurdles . During this period , we maintained extra close engagements with our customers , as we worked to understand their multi - quarter demand forecasts in order to have adequate inventory on hand of the right products . " Mr. Chen continued , " We continue to do a great job expanding our distribution footprint in all key markets and all channels . For example , we recently announced agreements with Petco , Costco and Chewy , to name a few . In December , we also announced an OEM order for harnesses , leashes and other pet products , expected to be valued at $ 4 million . Our business is building momentum , which we expect will continue as we move through 2021. Over the coming quarters , we expect to further diversify our product offerings and increase our use of online shopping platforms to gain even broader access to potential customers , especially customers interested in our fast - growing smart pet products . We believe that through continuous product innovation , further sales success and a shift to our higher margin smart tech products , we will achieve expanded profitability and an even greater return on investment for our stockholders . " Financial Results for the Six Months Ended December 31 , 2020 Revenue for the six months ended December 31 , 2020 increased 6.7 % to $ 12.2 million from approximately $ 11.5 million for same period last year . The increase in revenue was primarily attributable to higher sales of the Company's smart pet products . Sales of smart pet products increased 60.3 % year over year , accounting for 27.6 % of total revenue for the six months ended December 31 , 2020 , compared to 18.4 % of total revenue in the year ago period . The Company expects sales of its smart pet products , which typically have higher selling prices than other traditional pet products , will continue to increase based on its order backlog and discussions with customers worldwide . During the six months ended December 31 , 2020 , Dogness ' products were sold in 25 countries . Export sales accounted for 47.5 % and 46.5 % of total sales for the six months ended December 31 , 2020 and 2019 , respectively , while China domestic sales accounted for 52.5 %% and 53.5 % for the six months ended December 31 , 2020 and 2019 , respectively . The Company's major customers include , Anyi Trading , Petco , Trendspark , PetSmart , Pet Value , Walmart , Target , IKEA , SimplyShe , Pets at Home , PETZL , and Petmate . To mitigate the impact caused by COVID - 19 , Dogness expanded it sales channels to more online shopping platforms , such as Amazon , Chewy , JD , Tmall and Taobao , as well as live streaming sales platforms hosted by influencers . These ecommerce sales normally have higher profit margin than traditional sales channels . Cost of revenues was approximately $ 7.5 million and $ 7.7 million for six months ended December 31 2020 and 2019 , respectively . As a percentage of revenues , the cost of goods sold decreased by approximately 6.2 percentage points to 60.9 % for the six months ended December 31 , 2020 from 67.1 % for the six months ended December 31 , 2019. This mainly reflects the benefit of continued upgrades to the Company's production lines for both traditional and smart pet products to improve productivity and lower production costs . Gross profit increased by approximately $ 1.0 million or 26.7 % , to approximately $ 4.8 million for the six months ended December 31 , 2020 from approximately $ 3.8 million for the six months ended December 31. 2019. Overall gross profit margin was 39.1 % , an increase of 6.2 percentage points , as compared to 32.9 % for the six months ended December 31 , 2019 . Comprehensive income was approximately $ 5.0 million or $ 0.03 per basic and diluted share for the six months ended December 31 , 2020 , compared to a loss of $ 1.2 million or a loss of $ 0.01 per basic and diluted share for the six months ended December 31 , 2019 . The Company had a $ 2.3 million balance of cash and short - term investments as of December 31 , 2020. This does not include approximately $ 7.4 million in gross proceeds from the Company's offering with institutional investors , which closed on January 20 , 2021 .