PRINCETON, N.J., April 1, 2008 /PRNewswire-FirstCall/ -- Derma Sciences Inc (OTC Bulletin Board: DSCI), a provider of advanced wound care products, reported that sales for 2007 were $34.1 million, an increase of 22 percent over the $27.9 million reported for 2006. Gross margins held steady at 34 percent, but due primarily to the costs of bringing in new products for the pipeline, and expanding the Company's marketing and sales staffs, the Company reported a loss of $2.3 million or $0.09 loss per share, versus a year-earlier profit or $668,739 or $0.03 per share.
Chairman and CEO Ed Quilty commented, "We believe it is important to note that sales increased significantly even though we did not launch the expanded sales force until late in the year. With world-class manufacturing in North America and China, a strong reputation for quality, some of the largest hospital suppliers in the world as customers, and proprietary wound care technologies that are unarguably the most distinctive in the industry -- Derma Sciences is in the right place at the right time."
The Company's 2007 loss included $653,012 of non-cash equity based compensation as compared to $211,756 in 2006, and $256,628 in connection with the early payoff of a credit facility during 2007. It also included $993,069 in research and development expenses, including a license fee charge of $868,069 for DSC127, a novel wound care product under development, versus none in 2006. The sales force was increased from two salespersons to nine; a national sales director was hired, as was a director of clinical affairs. Overall, general and administrative expenses increased from $4.8 million in 2006 to $6.2 million in 2007.
On March 31, 2008, the Company entered into securities purchase
agreements with several accredited existing and new investors in connection
with a private placement of common stock and warrants. Under the terms of
the agreement, Derma will receive $6.
|SOURCE Derma Sciences Inc|
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