IDAHO FALLS, Idaho, Aug. 15, 2013 /PRNewswire/ -- International Isotopes Inc. (OTC Bulletin Board: INIS) announces financial results for the second quarter and six-months ended June 30, 2013.
Revenue for the three months ended June 30, 2013 was $1,800,049, as compared to $2,042,949 for the same period in 2012, an overall decrease of $242,900, or approximately 12%. Revenue for the six-month period ended June 30, 2013, was $3,472,838, as compared to $3,992,292 for the same period in 2012, a decrease of $519,454, or approximately 13%.
Revenue from the sale of radiochemical products for the three months ended June 30, 2013 was $426,605, compared to $405,118 for the same period in 2012. This represents an increase in revenue of $21,487, or approximately 5%. Revenue from the sale of radiochemical products for the six-month period ended June 30, 2013, was $866,624, compared to $787,033 for the same period in 2012. This is an increase in revenue of $79,591, or approximately 10%. Sales of radiochemical products decreased throughout 2011 and 2012, as the result of customers shifting away from the use of radiochemical grade product and towards the use of pharmaceutical grade product. That negative trend stabilized near the end of 2012 and it appears this segment is resuming its historical percentage growth rate.
Revenue from the sale of cobalt products for the three months ended June 30, 2013 was $253,862, compared to $484,098 for the same period in 2012. This represents a decrease in revenue of $230,236, or approximately 48%. Revenue from the sale of cobalt products for the six-month period ended June 30, 2013 was $445,129, compared to $833,430 for the same period in 2012. This represents a decrease in revenue of $388,301, or approximately 47%. Our sealed source manufacturing generates the majority of our revenue in this segment. These sealed source sales depend on our ability to produce cobalt target material in the U.S. Department of Energy's (DOE) Advanced Test Reactor and we have not been able to obtain high specific activity material from the reactor to meet customer's pending orders due to circumstances primarily outside of our control. We are working with the DOE and its operating subcontractor to resolve technical issues that would enable us to resume cobalt production during the fourth quarter of 2013.
Revenue from nuclear medicine products for the three months ended June 30, 2013 was $811,483, compared to $1,074,124 for the same period in 2012. This represents a decrease in revenue of $262,641, or approximately 24%. Revenue from nuclear medicine products for the six-month period ended June 30, 2013 was $1,719,749 compared to $2,202,129 for the same period in 2012. This represents a decrease in revenue of $482,380, or approximately 22%. The decline in revenue in this segment for the three and six month period is largely attributable to the decrease in sales reported by our joint venture, TI Services, LLC, which is largely attributable to a drop in sales of paper products used in nuclear medicine imaging which is the result of clinics shifting towards maintaining electronic records.
Revenue from radiological services for the three months ended June 30, 2013 was $254,499, compared to $40,593 for the same period in 2012, an increase of $213,906, or approximately 527%. The radiological services segment reported revenue of $341,036 for the six-month period ended June 30, 2013 and $65,883 for the same period in 2012. This is an increase of $275,153, or approximately 418%. Revenue from field service work performed in connection with the DOE's Orphan Source Recovery Program has accounted for the majority of the revenue change within this segment.
Gross profit for the three months ended June 30, 2013 was $788,112, compared to $656,953 for the same period in 2012. This represents an increase of $131,159, or approximately 20%, and is the result of a decrease in cost of sales in four of our six business segments. Gross profit for the six-month period ended June 30, 2013 was $1,367,632, compared to $1,327,693, for the same period in 2012. This represents an increase of $39,939, or approximately 3%.
Operating expenses decreased to $1,081,655 for the three months ended June 30, 2013, from $1,194,329 for the same period in 2012. This decrease of $112,674, or approximately 9%, is the result of overall operating expense reductions as a result of management's continued efforts to reduce discretionary costs where possible and secure beneficial pricing on general operating purchases. Operating expenses were $2,248,456 for the six-month period ended June 30, 2013, compared to $2,471,264 for the same period in 2012. This represents a decrease of $222,808 or approximately 9%. This decrease is largely attributable to reduced spending on research and development costs for the planning and construction of the de-conversion facility we plan to construct in New Mexico.
Research and development expense incurred, with regard to the planning and construction of the proposed de-conversion facility we plan to build in New Mexico, decreased by approximately 24%, to $210,850 for the three months ended June 30, 2013, from $279,073, for the same period in 2012. This $68,223 reduction in expenditures is the result of current limited funding available to invest in the project; however, if and when funds do become available, we expect to increase our investment in this area.
Our net loss for the three months ended June 30, 2013 was $399,210, compared to $515,132 for the same period in 2012. This is a decrease in net loss of $115,922, or approximately 23%, and is primarily the result of the increase in gross profit discussed previously, as well as a reduction of overall operating costs and expenses. Our net loss for the six-month period ended June 30, 2013, was $1,068,102 as compared to $1,105,379 for the same period in 2012. This is a decrease in net loss of $37,277, or approximately 3%. This small decrease in net loss was the result of our increased gross profit coupled with decreased operating expenses.
Steve T. Laflin, President and CEO of the Company said, "While we continue to see a small decline in revenue for the first six-months compared to 2012 it appears that most of our business segments are beginning to improve. Radiochemical sales have again returned to their historical growth rate and nuclear medicine products are beginning to improve. While the sealed source business continues to reflect the adverse impact of the interruption to our cobalt production activities in the DOE's Idaho reactor, we are making progress in the resolution of technical issues that we believe will allow us to resume shipment of raw material cobalt and source fabrication in the fourth quarter this year. We believe that we are also making progress on identifying alternative sources of cobalt supply and will continue to take steps to restore revenue performance in this business segment."
"Certainly the best performing business segment for the Company this year is our Radiological Services segment. The significant growth in revenue in this segment is driven by increased contract field service activity. This is primarily source recovery work for the DOE. Additional field service contract opportunities are expected for the remainder of the year and we are also working to improve our field equipment capabilities that we expect will expand the field service business opportunities."
"In April 2013, we made a joint announcement with Advanced Process Technology Systems, LLC (APTS) that we submitted a response to the DOE's request for an Expression of Interest (EOI) for the operation of the Paducah Gaseous Diffusion Plant (PGDP) facilities and utilization of the DOE's depleted uranium hexafluoride. The proposal was provided in response to the DOE's February 7, 2013 issuance of a request for an EOI from the industry for the PGDP facilities and uranium hexafluoride inventories. In July 2013, the DOE ended the EOI process without a decision but issued a formal Request For Offers (RFO) for the use of the DOE stockpile of depleted uranium and for the use of PGDP facilities. Together with APTS, we have again submitted a response to DOE similar to the EOI proposal. There is no indication that the DOE will accept or respond favorably to this most recent proposal but DOE expects to announce a decision sometime later in 2013. An additional benefit to us from this proposal is that the secondary depleted uranium tails that would result from the operation of the PGDP could be sent to the planned, 'green technology' New Mexico de-conversion and fluorine extraction process facility. The anticipated volume of secondary tails from the PGDP would utilize 100% of the New Mexico facility capacity for more than fifteen years. While pursuing this opportunity and continuing formal design work on the New Mexico de-conversion facility we will continue to manage expenditures until such time that we obtain funding for the project."
International Isotopes Inc.
Three Months Ended June 30,
Six Months Ended June 30,
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About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, high purity fluoride gases, and a variety of cobalt-60 products such as teletherapy sources. The Company also provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, life sciences, and industrial applications and provides a host of analytical, measurement, recycling, and processing services on a contract basis to clients. The Company exclusively owns the patents for the fluorine extraction process and is planning to construct the first commercial depleted uranium de-conversion and fluorine extraction processing facility in the U.S.
International Isotopes Inc. Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements with respect to expectations for improving the strength of sales, the impact of general economic conditions upon the Company, the ability of the Company to reduce cost, future revenue producing capability, the ability of the Company to reach profitability, the Company's ability to raise funds to construct the depleted uranium de-conversion facility, the ability to obtain cobalt target material, and the revenue potential of the PGDP opportunity and Hobbs depleted uranium project. Information contained in such forward-looking statements is based on current expectations and is subject to change. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of International Isotopes, Inc. to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Other factors, which could materially affect such forward-looking statements, can be found in International Isotopes, Inc.'s filings with the Securities and Exchange Commission at www.sec.gov, including our Annual Report on Form 10-K for the year ended December 31, 2012. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
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SOURCE International Isotopes Inc.