Gross profit increased 11% to $4.43m or 30.8% of sales in the quarter, compared with $3.99m or 31.1% of sales in the first quarter of 2010.

Operating expenses were $4.88m, compared with $4.3m in the first quarter of 2010, with the increase due to investment in sales and marketing associated with the expansion of the advanced wound care sales force.

The net loss for the first quarter of 2011 was $547,032, or $0.08 per share, compared with a net loss of $578,689, or $0.10 per share in the prior year’s first quarter.

Derma Sciences chairman and CEO Edward Quilty said sales of advanced wound care products, which increased 57% in the quarter, now represent 25% of total net sales, compared with 18% a year ago.

"Building upon the UK office we opened in May 2010, we brought on new distributors in additional countries within the European Union and Middle East, and we are starting to see sales growth related to this expansion," Quilty said.

"We also recently signed new exclusive distributor agreements providing coverage in South Korea, Australia, and key countries within Latin America. We expect accelerating growth outside the US as we launch ALGICELL Ag and our XTRASORB line of products in the third quarter of this year."

"Although gross margins were down slightly due to product mix and higher product costs, we have mitigated the impact through improved inventory management and manufacturing efficiencies."