TUCSON, AZ--(Marketwire - September 16, 2011) - CDEX Inc. (OTCBB: CEXI), a leading developer of chemical detection products, using its patented technologies, for use in healthcare and security markets, today reported financial results for the third quarter ended July 31, 2011.
"We continue to make strides toward launching our Valimed G4 Medication Validation system and expect to reach full commercialization over the next 60 days. Our target pipeline of hospitals and healthcare agencies continues to build as our marketing efforts drive interest nationwide. We are confident we will begin placing units over the remainder of this year, while building momentum to expand market penetration in 2012. We have been invited to present at several industry events over the next two quarters which should generate significant leads to expand our pipeline and position us for growth as we enter the 2012 calendar year," stated Jeff Brumfield, chairman and chief executive officer of CDEX. "Although our security division has not accelerated sales as expected, we believe CDEX is ideally situated to support increased demand for our ID2 product line when municipal and state government budgets recover over the next 12 months. Overall we are very pleased with our progress as a company, we continue to monitor or costs as evidenced by our significant reduction in spending and debt, while generating positive cash flow from operations. We believe our continued progress towards the launch of the Valimed G4 and increasing market interest in the ID2 product line positions CDEX for significant growth as we push towards 2012."
Third Quarter 2011 Financial Results
- Total revenues for the third quarter ended July 31, 2011 were approximately $232,000, a 15% increase compared to $202,000 for the third quarter of 2010. The $30,000 increase was primarily attributable to the increase in the sales of ID2 Meth Scanner.
- Total operating expenses for the quarter ended July 31, 2011 were approximately $240,000, a 55% decrease compared with $533,000 for the same period 2010. The $293,000 decrease was primarily attributable to decreases in consulting, professional and legal expenses, travel, marketing and general operating expenses partially offset by increases in non-cash share-based expenses, research and development, employee compensation. The increase in research and development is primarily based on the increased focus on the further advancement of the Pocket ID2 detection device and Valimed G4 Medication Validation system.
- Net loss for the quarter ended July 31, 2011 was approximately $258,000, or $(0.00) per share, based on 95,291,618 basic weighted common shares outstanding compared with a net loss of $537,000, or $(0.01) per share based on 65,239,634 basic weighted common shares outstanding, for the same period in 2010.
- The Company's cash position increased to approximately $130,000 for the period ending July 31, 2011 compared with $117,000 for the previous quarter ended April 30, 2011. At July 31, 2011, the Company had $524,000 in total assets compared to $491,000 from the previous quarter ended April 30, 2011. Total liabilities were reduced by $1.1 million to $2.7 million for the period ending July 31, 2011 compared with $3.8 million the previous quarter end April 30, 2011 and reduced by $1.4 million from $4.1 million for yearend October 31, 2010.
- The company generated positive cash flow from operation of $37,000 for the quarter ended July 31, 2011 vs negative cash flow of $68,000 for the same period the previous year.
- Announced the Sale and Shipment of Ten ID2 Meth Scanners: The Company sold and shipped 10 units of the ID2 Meth Scanners to the Northeastern Colorado Association of Governments and Healing Tree Addiction Treatment Solutions, Inc. The order represented the largest direct sale and shipment of ID2 Meth Scanners by CDEX to date.
- CDEX Presented the Pocket ID2 at the 2011 NHTSA Bi-Regional Law Enforcement Training Summit: Company representatives presented the Pocket ID2™ device at the 2011 NHTSA Bi-Regional Law Enforcement Training Summit. The training summit, which took place June 21-23, 2011 in Louisville, KY, brought together law enforcement divisions from the Southeast, Mid-Atlantic and Mid-West regions of the US.
- Company tapped Public Safety Industry Veteran as Director of Outside Sales: Public safety industry veteran John McConnell joined the CDEX team as Director of Outside Sales. Mr. McConnell's professional background spans more than 20 years as an advisor and senior executive with several leading security and technology companies.
CDEX develops, manufactures and globally distributes products to the healthcare and security markets. The ValiMed™ product line provides life-saving validation of high-risk medications and pharmacy returned narcotics. The ID2™ product line detects trace amounts of illegal drugs, such as methamphetamine. CDEX expects to advance its patented technologies to serve additional markets in the future where its proprietary products can be launched. To learn more about CDEX please visit: www.cdex-inc.com.
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