SAN JOSE, Calif., March 31, 2008 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the three months and the year ended December 31, 2007. For the three months ended December 31, 2007, net revenue was $389,000, representing a 6% decrease from revenues of $412,000 in the prior year period, and resulted in net income of $38,000 ($.01 per share) as compared with a net income of $66,000 ($.02 per share) for the same period of 2006. For the full year, net revenues of $1,291,000, were 5% higher than revenues of $1,227,000 generated in the prior year. The net loss in the current year of $16,000 ($.00 per share) was a reduction from the $111,000 loss ($.03 per share) recorded for the full year of 2006.
"In the third and fourth quarters of 2006, we had very large orders from our largest purchaser of pheromones that were not replicated in the current year quarters. As such, for the full year, revenue from pheromone sales were $207,000 (24%) lower than in 2007, while revenues attributable to licensing activities rose by $344,000 (188%) from the prior year. The growth in total revenues in the current year is attributable to the licensing activities. Lower operating expenses, coupled with the revenue growth, gave rise to the improved bottom line in the current year," a spokesperson indicated.
"These cyclical pheromone purchases are unpredictable and, as such, we developed a set of strategic imperatives to grow our licensing revenues, to formulate a program to maximize revenues from our proprietary Natural Attractions(R) brand and to complete human testing on additional novel compounds that can contribute to the expansion of our business through the scientific validation of additional technologies that will enhance the value of our Company," a spokesman noted. "While we are not pleased by the financial results for the current year fourth quarter as compared with the prior year three month period, we believe that focus on these three strategic imperatives will lessen our dependence on the purchasing pattern of one large customer, and ensure balanced growth in revenue and an expanded technology and customer base, without major capital investment," the spokesman further noted.
Human Pheromone Sciences, Inc. is a technology-based company, whose proof-of-concept products included prestige-priced fragrances and toiletries and environmental products sold under the REALM(R), innerREALM(R) and EROX(R) trademarks. These products, and its Natural Attraction(R) product line, contain mood-enhancing synthesized human pheromones covered under U.S. and foreign patents. The Company also licenses its proprietary technology to other companies for inclusion in their products for direct sale to the consumer. Scientific and consumer studies have shown that the Company's human pheromones positively impact on the moods, attitudes and emotions of wearers. Further information is available on line at http://www.erox.com.
The statements in this news release may contain forward-looking
statements that involve risks and uncertainties that could cause results to
differ from predicted results. Further information on factors that could
affect the Company's results is detailed in the Company's annual report to
shareholders on Form 10-KSB for the year ended December 31, 2007 as filed
with the Securities and Exchange Commission. The Company undertakes no
obligation to publicly release the result of any revisions to these
HUMAN PHEROMONE SCIENCES, INC.
Condensed Balance Sheets
(Dollars in thousands)
December 31, December 31,
Cash and cash equivalents $1,437 $1,941
Accounts receivable 194 39
Inventories, net 25 75
Other current assets 40 18
Property and equipment, net 3 2
Total $1,699 $2,075
Liabilities and Shareholders' Equity
Accounts payable $28 $30
Other current liabilities 141 114
Deferred income - current 518 846
Deferred income - non-current 566 721
Common stock 20,963 20,865
Accumulated deficit (20,517) (20,501)
Total $1,699 $2,075
HUMAN PHEROMONE SCIENCES, INC.
Condensed Statements of Operations
(Dollars in thousands, except per-share data)
Three months Year
ended December 31, ended December 31,
2007 2006 2007 2006
Net revenues $389 $412 $1,291 $1,227
Cost of goods sold 99 108 376 287
Research and development 11 14 49 102
Selling, general and
administrative 256 235 942 969
Income (loss) from operations 23 55 (76) (131)
Other income 15 18 65 27
Income (loss) before provision
for income taxes 38 73 (11) (104)
Provision for Income taxes - 7 5 7
Net income (loss) $38 $66 $(16) $(111)
Net income (loss)
per share -
Basic $0.01 $0.02 $(0.00) $(0.03)
Fully diluted $0.01 $0.01 $(0.00) $(0.03)
Weighted average number
of shares -
Basic 4,152 4,152 4,152 4,152
Fully diluted 4,852 4,782 4,152 4,152
Net income (loss) per share is based on the weighted average number of common shares and common equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti-dilutive.
|SOURCE Human Pheromone Sciences, Inc.|
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