Medical Action Industries Inc. (NASDAQ:MDCI)

“Our financial results for the fourth quarter and fiscal year reflect the benefit of lower raw material costs and our success in resolving many of the operational difficulties which affected our results of operations during fiscal 2009,” said Chief Executive Officer and President Paul D. Meringolo. “We have successfully remedied the underlying causes of production inefficiencies that existed in our Gallaway, Tennessee manufacturing facility and, as a result, have eliminated the backorders that have challenged us for most of last year. The cost of products sourced from China have been relatively stable during the fiscal year. While we have seen an increase in resin prices throughout the fiscal year, advance resin purchases have provided protection from these rising costs and have generated year over year cost reductions. We have taken the opportunity to significantly pay down our outstanding debt during the year while continuing to invest in capital equipment to increase efficiencies in our production facilities.”