Total revenues for the quarter decrease approximately 3% vs. prior year
DENVER, May 15 /PRNewswire-FirstCall/ -- Corgenix Medical Corporation
(OTC Bulletin Board: CONX), a worldwide developer and marketer of
diagnostic test kits, today filed its third quarter Form 10-QSB and
reported financial results. The report disclosed that the company's sales
and operating results have advanced during the quarter and nine months
ended March 31, 2008, and further confirmed that the initiatives the
company put in place several months earlier are continuing to prove
effective. Some of the results highlighted by the report are as follows:
-- Total revenues for the quarter decreased $61,166 or 3.1% vs. the prior
year's comparable quarter.
-- Revenues, excluding contract manufacturing, increased $186,686 or 10.6%
vs. the prior year's comparable quarter.
-- Total operating expenses decreased $30,009 or 2.4% vs. the prior year's
-- Operating loss for the quarter was $62,912 vs. an operating loss of
$37,423 in the prior year's comparable quarter.
-- Net loss for the quarter was $352,102 vs. $329,370 in the prior year's
"While much was accomplished in the quarter, including product sales growth and reduction in operating expenses, the overall financial results in the third quarter were less than we had expected, reflecting to some extent, the timing of our sales orders, but to a greater extent, softer sales in the contract manufacturing aspect of our business, which was a direct result of the new business strategy of our largest contract manufacturing customer," said Douglass Simpson, President and CEO of Corgenix. "Excluding contract manufacturing, our sales increased 10.6% over the same period in the prior year. It's important to recognize that Corgenix is still growing well ahead of industry averages -- our sales are up almost 20% for the nine months year-to-date even with the third quarter decline in contract manufacturing."
Mr. Simpson continued, "The initiatives which we implemented beginning in the final quarter of fiscal 2007 to increase sales and decrease operating expenses continue to move the Company in a positive direction. We are still committed to doing what is necessary to achieve our financial goals including maintaining the initiatives to reduce our operating expenses, improve our customer and sales experience and continue to lay the groundwork to accelerate future revenue and earnings growth."
Regarding the hurdles faced in establishing markets for our new products, Mr. Simpson stated, "We are continuing to put forth a significant effort worldwide to build a solid and sustainable foundation for our AspirinWorks(R) product and we are seeing results of those efforts. Even though we have seen a number of studies on the importance of aspirin effectiveness testing published in the last year, and further expect there will be several more over the next 12-18 months, it is clear that the development of this market will take longer than we had originally anticipated. Our experience is that this is typical when bringing cutting-edge products into the market. Current fiscal year sales of AspirinWorks, although not yet material, will be greater than first-year sales of any of our other 52 Corgenix products, but will still be lower than we had originally expected. We believe that our efforts today will bear fruit in the years to come as this market further develops. AspirinWorks is now available worldwide."
The Company also indicated that it expects total fourth quarter sales to be approximately the same as or slightly lower than sales in the third quarter, which would still result in another record year for revenues.
Third Quarter 2008 Conference Call Details
Corgenix invites all those interested in hearing management's discussion of third quarter results to join a shareholders conference call on Thursday, May 15, 2008 at 4:00 PM EDT (2:00 PM MDT). Interested parties can join the call by dialing 800-894-5910. International participants may access the call by dialing 1 785-424-1052. The conference code is "CORGENIX". A replay will be available for 30 days following the call by dialing (800) 723-0394 for domestic participants and 1 402-220 2649 for international participants.
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience advancing products through the FDA process. More information is available at http://www.corgenix.com.
Statements in this press release that are not strictly historical facts
are "forward looking" statements (identified by the words "believe",
"estimate", "project", "expect" or similar expressions) within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements
inherently involve risks and uncertainties that could cause actual results
to differ materially from the forward-looking statements. Factors that
would cause or contribute to such differences include, but are not limited
to, continued acceptance of the Company's products and services in the
marketplace, competitive factors, changes in the regulatory environment,
and other risks detailed in the Company's periodic report filings with the
Securities and Exchange Commission. The statements in this press release
are made as of today, based upon information currently known to management,
and the company does not undertake any obligation to publicly update or
revise any forward-looking statements.
SUMMARY OF FINANCIAL HIGHLIGHTS
($000 of U.S. dollars except shares outstanding and per share amounts)
CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES
Three Months Ended Nine Months Ended
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $1,951 $2,012 $6,455 $5,391
Gross profit 1,140 1,196 3,627 2,134
Total operating expenses 1,203 1,233 3,464 3,998
Operating income (loss) (63) (37) 163 (740)
Net loss (352) (329) (1,101) (2,081)
Basic and diluted loss
per share $(0.01) $(0.03) $(0.05) $(0.17)
Weighted average shares
outstanding 26,462,150 13,079,649 23,601,550 12,047,554
SUMMARY BALANCE SHEET DATA
March 31, 2008 June 30, 2007
Cash $1,652 $1,324
Working capital 3,254 2,070
Total assets 8,657 8,889
Long-term debt 1,469 $2,508
Total stockholders' equity 4,401 2,993
|SOURCE Corgenix Medical Corporation|
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