VANCOUVER, BRITISH COLUMBIA--(Marketwire - December 01, 2009) - Urodynamix Technologies Ltd. (TSX VENTURE: URO) today reported its financial results for its fiscal third quarter ended September 30, 2009. The Company reported a loss of $638,287 or $0.01 per share basic and diluted compared to a loss of $737,341or $0.01, basic and diluted, for the comparative quarter of the prior year. Revenue for the quarter ended September 30, 2009 at $15,285, decreased 55% over the same quarter of the prior year. The Company's order backlog at September 30, 2009 was $84,845 compared to nil at the end of the comparative quarter September 30, 2008.
The Company continues to experience higher than expected resistance to the adoption of its new technology by urologists related to the uncertainty surrounding healthcare reform and physician reimbursement across all sectors of the healthcare system including urology. As a result revenue for the current quarter and the year to date is significantly below plan. The Company continues to strategically market its devices in the US and expand its distribution resources to offset this ongoing challenge. "While we are disappointed with the results we remain confident in the value and opportunity for the NIRS technology. We continue to adapt and review our sales and marketing strategy in light of this challenging environment and we are optimistic that our efforts in international markets will bear fruit in the near term." said Barry Allen, President and Chief Executive Officer of Urodynamix Technologies Ltd.
Gross margin at 83.3% of revenue increased from 68.3% of revenue for the comparative quarter ended September 30, 2008 due to the recognition of license revenue that has no corresponding cost of sales. Expenses for the three months ended September 30, 2009 were $643,866 compared to $725,602 for the comparative quarter of the prior year, a decrease of $81,736. The decrease in research and development expenses, due to the narrowing of the Company's research and development focus, was offset by an increase in sales and marketing expenses to support the introduction of the uroNIRS 2000. Administrative expenses at $324,154 increased $62,166 due to expenses associated with investor relations and the non-brokered private placement that closed September 25, 2009. The Company also recorded $20,909 in bad debt expense in the quarter resulting from a pricing concession provided to its distributor Medical Measurement Systems B.V. The Company will continue to take steps to lower its monthly cash burn including the reduction of additional headcount. The Company's research and development focus will continue to be the uroNIRS 2000 product and the transurethral microwave treatment (TUMT) project.
As of September 30, 2009, the Company had cash and cash equivalents of $1,333,014 compared to $2,262,794 at December 31, 2008. Working capital at September 30, 2009 was $1,358,402 and the Company remains debt free. The Company will continue to take steps to reduce its monthly cash burn.
About Urodynamix Technologies Ltd.
Urodynamix Technologies Ltd. is a Canadian medical device company developing and commercializing non-invasive medical technology based on proprietary applications of near-infrared spectroscopy (NIRS). The Company is currently focused on products that aid in the diagnosis and treatment of urinary incontinence, lower urinary tract symptoms, prostate cancer, benign prostatic hyperplasia, and traumatic increases in intra-abdominal pressure that cause abdominal compartment syndrome. Urodynamix's breakthrough medical technology has the potential to beneficially affect more than 200 million people worldwide.
Certain information contained in this press release may be forward-looking and is subject to unknown risks, which could cause actual results to differ materially from those set forth or implied herein. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.