PRINCETON, N.J., Aug. 17 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (OTC Bulletin Board: DSCI), a provider of advanced wound care products, reports results today for the second quarter and six months ended June 30, 2009.
Highlights for second quarter and six months ended June 30, 2009:
For the three months ended June 30, 2009, the Company reported net sales of $11.6 million versus $13.1 million in the second quarter 2008. For the six months ended June 30, 2009, net sales were $22 million versus $24.8 million for the six months ended June 30, 2008. The decrease of $1.5 million in sales for the quarter and $2.8 million for the six months in 2009 versus 2008, was principally driven by lower sales from the First Aid Division, attributed to a weakening of the economy. In addition there was a decrease in Canadian net sales attributable to unfavorable exchange and inventory rationalization on the part of the Company's exclusive Canadian distributor.
Ed Quilty, Chief Executive Officer of Derma Sciences, commented, "A steady performance from our core business during the second quarter generated improvement in operating results and cash flow, allowing us to continue to focus on driving revenue for some of our newer products such as MEDIHONEY and BIOGUARD. As our results indicate, our Advanced Wound Care Line is gaining traction through the efforts of our sales team. The decrease in year over year sales is mostly related to our First Aid Division, which has experienced recession-related challenges. Though sales decreased, our gross margins on the First Aid Division products have improved, putting Derma in a favorable position to see strong growth from this division in the future."
Mr. Quilty continued, "We expect the positive Advanced Wound Care revenue growth to continue going forward, and we plan to expand our sales force to leverage this opportunity. Additionally, we will look for development and partnership opportunities in markets where the company does not currently have coverage. With regard to R&D, we continue to move forward with the clinical trial of DSC127, our novel pharmaceutical in development. DSC127 has the potential to be only the second approved drug on the market for accelerated healing. We are well on our way to completing enrollment in the Phase II trial and are very excited about the prospect of this product, which addresses a large unmet need. In summary, we are pleased with our progress this quarter and believe our new advanced wound care products will continue to gain momentum."
Today at 11:00am EDT (8:00am PDT), a conference line will be held to review the DSCI results; interested parties should call 866-383-8108 (domestic) or 617-597-5343 (international), with passcode 38260746 to access the call. You may also access this call via the Internet at:
For those who are unavailable to listen to the live broadcast, a replay will be available through September 17, 2009 and can be accessed by dialing 888-286-8010 (domestic), and 617-801-6888 (international). The passcode is 10578911.
For more news and information on Derma Sciences, Inc., please visit www.IRGnews.com/coi/DSCI where you can find the CEO's video, a fact sheet on the company, investor presentations, and more.
About Derma Sciences, Inc.
Derma Sciences is a global manufacturer and marketer of advanced wound care products. Its key product, MEDIHONEY(R), is sold throughout the world by Derma Sciences and Comvita New Zealand -- the licensor of the patented honey-based technology -- and is the leading brand of honey-based dressings for the management of wounds and burns. The product has been shown to be effective in a variety of wounds and burns, and was the focus of a positive large-scale randomized controlled trial on leg ulcers. Derma's recently FDA cleared BIOGUARD(TM) Barrier Dressing is the Company's latest new product entrant into the $14 billion global wound care market. The barrier technology was licensed from Quick-Med Technologies, Inc. in Q1 of 2007. Derma also has in development DSC127, a novel angiotensin analog for accelerated wound healing and scar reduction. DSC127 was licensed from the University of Southern California in Q4 of 2007. Patient enrollment for a Phase II study began in Q4 of 2008. Results from this study are expected to be submitted to the FDA in Q2 of 2010.
For more information about Derma Sciences, Inc., visit www.dermasciences.com.
Statements contained in this release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements which may be made in this release or which are otherwise made by or on behalf of the Company. Factors which may affect the Company's results include, but are not limited to, product demand, market acceptance, impact of competitive products and prices, product development, completion of an acquisition, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include but are not limited to, those discussed in the Company's fillings with the Securities and Exchange Commission.
Contact: Derma Sciences, Inc. Edward J. Quilty Chairman and CEO email@example.com (609) 514- 4744 Contact: The Investor Relations Group 212-825-3210 Investor Relations: Rachel Olson or Michael Crawford Or Media Relations: Susan Morgenbesser
- Financial Tables Follow -
DERMA SCIENCES, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, 2009 2008 Net Sales $11,563,341 $13,083,966 Cost of sales 8,135,574 9,552,991 Gross Profit 3,427,767 3,530,975 Operating Expenses Selling, general and administrative 3,703,038 4,483,556 Research and development 87,580 106,200 Total operating expenses 3,790,618 4,589,756 Operating loss (362,851) (1,058,781) Other expense: Interest expense 239,600 232,572 Other income (42,252) (29,092) Total other expense 197,348 203,480 Loss before provision for income taxes (560,199) (1,262,261) Provision for income taxes 303 8,227 Net Loss $(560,502) $(1,270,488) Loss per common share- basic and diluted $(0.01) $(0.03) Shares used in computing loss per common share - basic and diluted 40,234,974 40,073,710 Six Months Ended June 30, 2009 2008 Net Sales $21,995,232 $24,808,788 Cost of sales 15,213,830 18,135,606 Gross Profit 6,781,402 6,673,182 Operating Expenses Selling, general and administrative 7,567,164 8,803,971 Research and development 217,926 154,308 Total operating expenses 7,785,090 8,958,279 Operating loss (1,003,688) (2,285,097) Other expense: Interest expense 411,070 497,487 Other income (43,789) (20,478) Total other expense 367,281 477,009 Loss before benefit for income taxes (1,370,969) (2,762,106) Benefit for income taxes (52,388) (81,830) Net Loss $(1,318,581) $(2,680,276) Loss per common share - basic and diluted $(0.03) $ (0.07) Shares used in computing loss per common share - basic and diluted 40,188,119 37,055,958 DERMA SCIENCES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS June 30, December 31, 2009 2008 (Unaudited) Current Assets Cash and cash equivalents $167,040 $391,038 Accounts receivable, net 3,171,963 3,892,523 Inventories 11,479,212 12,423,042 Prepaid expenses and other current assets 359,117 397,117 Total current assets 15,177,332 17,103,720 Cash - restricted 2,025,722 2,014,422 Equipment and improvements, net 3,789,741 3,977,853 Goodwill 7,119,726 7,119,726 Other intangible assets, net 4,651,249 5,310,129 Other assets, net 611,308 681,472 Total Assets $33,375,078 $36,207,322 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Line of credit borrowings 3,781,381 3,446,605 Current maturities of long-term debt 1,787,278 1,298,207 Accounts payable 2,596,861 3,614,764 Accrued expenses and other current liabilities 1,049,480 2,004,493 Total current liabilities 9,215,000 10,364,069 Long-term debt 2,923,009 4,065,036 Other long-term liabilities 91,661 44,848 Deferred tax liability 333,300 340,871 Total Liabilities 12,562,970 14,814,824 Shareholders' Equity Convertible preferred stock, $.01 par value; 11,750,000 shares authorized; issued and outstanding: 2,280,407 shares (liquidation preference of $4,210,231 at June 30, 2009) 22,804 22,804 Common stock, $.01 par value; 150,000,000 authorized; issued and outstanding: 40,315,743 at June 30, 2009; 40,140,743 at December 31, 2008 403,157 401,407 Additional paid-in capital 40,517,884 40,027,645 Accumulated other comprehensive income - cumulative translation adjustments 850,667 604,465 Accumulated deficit (20,982,404) (19,663,823) Total Shareholders' Equity 20,812,108 21,392,498 Total Liabilities and Shareholders' Equity $33,375,078 $36,207,322
|SOURCE Derma Sciences, Inc.|
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