Despite the recent economic challenges, Wiscraft, Inc. has been able to grow as well as thrive because of the dedication of our employees, the respect of our customers and the generous spirit of our donors. Net sales revenue grew to $4,175,000 for fiscal year 09/10 vs. $2,814,000 in fiscal 07/08 being utilized as a base year for comparisons. That is a 48% increase over the two-year period. Fiscal 10/11 is budgeted for net sales of $5,085,000, a 22% increase over fiscal 09/10. Gross margin increased $723,000 for fiscal 09/10 vs. fiscal 07/08. Fiscal 10/11 is budgeted for additional $184,000 margin growth to $866,000. Bottom line income increased $550,000 for fiscal 09/10 vs. fiscal 07/08. Fiscal 10/11 is budgeted for additional $72,000 margin growth to $588,000. Interim financial statements show net sales, gross margin, and bottom line income at or exceeding budgeted amounts.
Wiscraft achieved this success by following strategies developed during planning in fiscal 2008. Wiscraft targeted customer segment diversity, increased sales for new products with current customers, and brought new Wiscraft proprietary products and business lines to market.
Under customer segment diversity, Wiscraft targeted expanding the federal and state government sales to balance business cycles within our commercial customer portfolio. In fiscal 2008, government sales accounted for $651,000 or 23% of company sales. Fiscal 2011 budgeted government sales are $1,930,000 for 38% of sales. That is growth of 196% during a three-year period vs. 37% growth for commercial sales for the same time period.
To increase sales for new products with current customers, Wiscraft capitalized on downsizing and outsourcing. As customers optimized their production footprint, Wiscraft was strategically positioned as an existing qualified vendor that could absorb their outsourcing needs. For example, Briggs & Stratton, a long time business partner accounted for $917,000 in fiscal 07/08 and is budgeted to be at $1,460,000 in fiscal 10/11, a 59% increase in a three year period. Another example is Pentair. Fiscal 07/08 had actual sales of $270,000, and fiscal 10/11 budget is $355,000, a 31% increase. This strategy is effective for increasing sales, and it also has increased Wiscraft’s standing as a preferred vendor within our commercial customer portfolio.
The final main sales strategy was to increase net sales by bringing new Wiscraft proprietary products and business lines to market. Wiscraft primarily develops or co-brands products for government customer sales through the AbilityOne program. Some of these products also have commercial sales potential. In July 2008 introduced a new privacy shield line. Sales in fiscal 08/09 were $248,000; in 10/11 Wiscraft anticipates sales of $954,000.
Our next major product addition, entrance and anti-fatigue mats, occurred late in fiscal 09/10. Fiscal 10/11 budgeted sales for the mats are $195,000. More product line additions and expansions are in development. In addition to products, in fiscal 10/11 Wiscraft opened its newest business unit, a full service Communication Center. The addition of this business line provides product diversity and white-collar employment opportunities for visually impaired employees who might not be suited to a traditional production environment. The Communication Center can also be utilized to market our own products to commercial customers.
In addition to growing top line sales through the strategies discussed above, Wiscraft is committed financially to supporting and growing the business though capital investments. There were significant capital projects undertaken in the past few years, notably the addition of an Okuma machining center at a cost of approximately $130,000 in July 2009. In addition, Wiscraft went “live” with an enterprise-wide business system on July 1, 2009 which cost approximately $70,000. The new roof mentioned earlier was a $225,000 investment, and we are beginning to replace our antiquated windows and lighted that will ultimately cost more than $200,000.
Wiscraft’s steadfast concentration on product and new business development, and an eye on product mix have fueled substantial growth during difficult times. All indicators suggest these strategic decisions will provide sustained prosperity and growth into the foreseeable future.