Current Period Results Impacted by Downturn in Worldwide Beauty Markets
SAN JOSE, Calif., May 14 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or the "Company") today announced results for the first quarter ended March 31, 2009. Net revenues of $165,000 represented a 38% decrease from the revenues of $266,000 in the prior year period, and resulted in a net loss of $181,000 ($0.04 per share) as compared with net loss of $63,000 ($0.02 per share) for the same period of 2008. At March 31, 2009, the Company reflected cash balances of $664,000 compared with $907,000 in cash at December 31, 2008, a $243,000 reduction in the quarter. There was no bank indebtedness at either period.
According to a Company spokesperson, "the revenue and cash declines were in line with the Company's internal forecasts, reflecting the extremely difficult overall adverse economic climate and the significant downturn in the worldwide Fragrance and Beauty Markets. We had anticipated the reduction of revenues on sales to our once largest fragrance and beauty-based company, and, as such, embarked upon a program to expand other potential markets for the use of our patented technology in other consumer product arenas. Some of the shortfall in the basic beauty area was offset by supply and royalty revenues received under our licensing agreement with Schwarzkopf & Henkel in the worldwide hair care and personal product markets. Pheromone purchases by our two primary licensees, increased by 79%, in anticipation of a new product launch in May 2009 by one of these companies. While the selling price of the pheromones is quite low compared to that of prior licensees, our newer agreements provide for royalties on licensee sales of products containing our patented technology. As such, we would anticipate an increase in royalty income in subsequent periods this year."
"Generating additional revenues under new licensing agreements will not only grow our business, but will reduce the effect of erratic purchasing patterns by one major licensee. In addition, while the Company is focusing on reducing expenditures, we continue to invest in maintaining our current patents and seeking such protection for our newest technology on a worldwide basis," the spokesperson indicated.
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 Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. These products contain mood-enhancing compounds, whose efficacy has been validated at leading universities around the world, and whose use is covered under United States and foreign patents. The Company is also involved in research and product development efforts on new compounds that have been previously identified as stimulating the emotional centers of the human brain. Further information is available on line at 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-K for the year ended December 31, 2008, and Form 10-Q for the quarter ended March 31, 2009, as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements.
Tables follow HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands) March 31, December 31, 2009 2008 ---- ---- (Unaudited) Assets Cash and cash equivalents $664 $907 Accounts receivable 61 52 Inventories, net 51 39 Other current assets 34 58 Property and equipment, net 2 2 ----------- ----------- Total $812 $1,058 =========== =========== Liabilities and shareholders' deficit Accounts payable $54 $19 Other current liabilities 103 131 Deferred income - current 270 297 Deferred income - non-current 265 324 Common stock 21,056 21,043 Accumulated deficit (20,936) (20,756) ----------- ----------- Total $812 $1,058 =========== =========== HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months ended March 31, 2009 2008 ------ ------ Net revenues $165 $266 Cost of goods sold 65 81 Research and development 25 14 Selling, general and administrative 257 244 ------ ------ Income (loss) from operations (182) (73) Other income 1 11 Provision for income taxes - 1 ------ ------ Net income (loss) $(181) $(63) ====== ====== Income (loss) per share, basic $(0.04) $(0.02) ====== ====== Income (loss) per share, fully diluted $(0.04) $(0.02) ====== ====== Weighted average common shares Outstanding - Basic 4,152 4,152 ====== ====== Weighted average common shares Outstanding - Fully diluted 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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