VLI Corp. Confirms Plans to Enter Condom Market
VLI Corp., maker of the Today contraceptive sponge, confirmed on Tuesday that it will enter the estimated $100-million-per-year condom market, adding prophylactics to its product line within six months.
The Irvine-based company said it also will begin marketing an ovulation test kit during the second half of 1987.
The new products mesh with VLI’s current lines--which include a personal lubricant and an in-home pregnancy testing kit--and are aimed at improving the company’s sagging bottom line, said Thomas J. Berryman, vice president of finance.
VLI said in February that its 1986 losses more than tripled to $4.9 million from $1.4 million the prior year despite a slight rise in revenues to $17 million from $16.7 million in 1985.
On Tuesday, however, VLI saw an 18.2% gain for the day in over-the-counter trading, closing at $4.87 a share, up 75 cents. Berryman said the company “is positioning itself†for profitability in the first quarter and in 1987.
“We believe (the condom) product line addition will complement our existing business and further increase sales,†said Robert A. Elliott, president and chief executive officer.
The company hopes to sign a contract with a supplier within the next few weeks, Berryman said. VLI plans to market its line of condoms using the Today name and distribution network. The condom manufacturer--which VLI declined to name--will continue to sell prophylactics under its own label as well.
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