NEWPORT BEACH, Calif., Oct. 17 /PRNewswire-FirstCall/ -- Biomerica, Inc. today announced its financial results for its first fiscal quarter ended August 31, 2006. As disclosed in the Company's 8-K filed on December 5, 2005, the Company's subsidiary (Lancer Orthodontics) financial statements are no longer consolidated with Biomerica's financial statements, effective December 1, 2005.
Biomerica reported today consolidated net sales of $1,153,266 for the first fiscal quarter 2007 ended August 31, 2006, compared to consolidated net sales of $2,350,150 in the first fiscal quarter 2006. It should be noted that fiscal 2006 results include six months of Lancer Orthodontic sales, which has been deconsolidated and not included in fiscal 2007 results. Biomerica announced consolidated net income for the first fiscal quarter 2007 ended August 31, 2006, of $64,572 versus consolidated net income of $63,391 in fiscal 2006.
"We are pleased with our continuing growth in the diagnostic revenues," said Zackary Irani, Biomerica CEO, "and have hired additional personnel to meet anticipation of higher production volumes and growth."
About Biomerica
Biomerica, Inc. (http://www.biomerica.com) is a global medical technology company, based in Newport Beach, CA. The Company's diagnostics division manufactures and markets advanced diagnostic products used at home, in hospitals, and in physicians' offices for the early detection of significant medical conditions and serious diseases.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Biomerica) contains statements that are forward-looking; such as statements relating to intended launch dates, sales potential, significant benefits, market size, growth of business, favorable positions, expansion, expected orders, leading market positions, anticipated future revenues or production volume of the company, success of product and new product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. The potential risks and uncertainties include, among others, fluctuations in the Company's operating results due to its business model and expansion plans, downturns in international and or national economies, the Company's ability to raise additional capital, the competitive environment in which the Company will be competing, and the Company's dependence on strategic relationships. The Company is under no obligation to update any forward-looking statements after the date of this release.
The following financial statements reflect the operating results of Biomerica as reported in the Company's Form 10-QSB filed on October 16, 2006. The full financial statements and management's discussion and analysis are available in the above mentioned Form 10-QSB.
The following Consolidated Statement of Operations has been prepared on a prospective basis. The deconsolidation of Lancer Orthodontics from Biomerica occurred December 1, 2005. Therefore, the three months ended August 31, 2006 include ONLY the results of operations for Biomerica diagnostics and the three months ended August 31, 2005 include three months of operations of BOTH Biomerica diagnostics and Lancer Orthodontics.
BIOMERICA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE GAIN (UNAUDITED) Three Months Ended August 31, 2006 2005 ----------- ----------- Net sales ................................... $1,153,266 $ 2,350,150 Cost of sales .............................. (777,615) (1,607,942) ---------- ----------- Gross profit ............................... 375,651 742,208 ---------- ----------- Operating Expenses: Selling, general and administrative ........ 290,455 753,160 Research and development ................... 41,001 84,777 ---------- ----------- 331,456 837,937 ---------- ----------- Operating gain (loss) from continuing operations ...................... 44,195 (95,729) ---------- ----------- Other Expense (income): Interest expense ........................... 7,502 11,013 Other income, net .......................... (10) (37,897) ---------- ----------- 7,492 (26,884) ---------- ----------- Income (loss) from continuing operations, before minority interest in net loss of consolidated subsidiaries and income taxes .............................. 36,703 (68,845) Minority interest in net losses of consolidated subsidiaries .................. -- 132,236 ---------- ----------- Income from continuing operations, before income taxes ........................ 36,703 63,391 Income tax expense .......................... 0 0 ---------- ----------- Net income from continuing operations ....... $ 36,703 $ 63,391 ========== =========== Discontinued operations: Income from discontinued operations, net ... 27,869 -- ---------- ----------- Net income ................................. 64,572 63,391 Other comprehensive gain (loss), net of tax Unrealized gain (loss) on available-for-sale securities ................................ 165 (3,358) ---------- ----------- Comprehensive gain (loss) ................... $ 64,737 $ 60,033 ========== ============= Basic net income per common share: Net income from continuing operations ...... $ .01 $ .01 Net income from discontinued operations .... .00 .00 ---------- ------------- Basic net income per common share ........... $ .01 $ .01 ========== ============= Diluted net income per common share: Net income from continuing operations ...... $ .01 $ .01 Net income from discontinued operations .... .00 .00 ---------- ------------- Diluted net income per common share ......... $ .01 $ .01 ========== ============= Weighted average number of common and common equivalent shares: Basic ...................................... 5,922,681 5,753,686 ========== ============= Diluted .................................... 6,376,894 6,620,621 ========== ============= PRO FORMA STATEMENT OF OPERATIONS BY COMPANY (UNAUDITED) Three Months Ended August 31, 2005 Intercompany Pro-forma Actual Eliminations Lancer Biomerica ------------------------------------------------------------------------- NET SALES $2,350,150 $(1,377,098) $ 973,052 COST OF SALES 1,607,942 8,625 (1) (1,064,705) 551,862 ------------------------------------------------------------------------- GROSS PROFIT 742,208 (8,625)(1) (312,393) 421,190 ------------------------------------------------------------------------- OPERATING EXPENSES: SELLING, GENERAL AND ADMIN 753,160 (481,012) 272,148 RESEARCH AND DEVELOPMENT 84,777 (20,156) 64,621 ------------------------------------------------------------------------- TOTAL OPERATING EXPENSES 837,937 (501,168) 336,769 ------------------------------------------------------------------------- OPERATING INCOME (LOSS) (95,729) (8,625) 188,775 84,421 OTHER EXPENSE (INCOME) Interest 11,013 (2,891) 8,122 Other expense (income) (37,897) (8,625)(2) 19,011 (27,511) ------------------------------------------------------------------------- (26,884) (8,625)(2) 16,120 (19,389) INCOME (LOSS) FROM OPERATIONS BEFORE INTEREST IN NET INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES AND INCOME TAXES (68,845) 172,655 103,810 MINORITY INTEREST IN NET LOSS (INCOME) OF LANCER 132,236 (172,655)(3) 40,419 (4) -------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 63,391 (132,236) 172,655 103,810 -------------------------------------------------------------------------- INCOME TAX EXPENSE -- -- -- -- -------------------------------------------------------------------------- NET INCOME (LOSS) $63,391 $ (132,236) $ 172,655 $ 103,810 ========================================================================== (1) To record the charge for rent by Lancer at the manufacturing facility in Mexico which was eliminated in consolidation. (2) To record the income from Biomerica received by Lancer for rent at the Mexico facility, which was eliminated in consolidation. (3) To de-consolidate Lancer's loss. (4) Elimination of Biomerica's portion of Lancer's operations as if the termination of the voting agreement occurred May 31, 2005.
Biomerica, Inc.CONTACT: Zackary Irani of Biomerica, Inc., +1-949-645-2111
Web site: http://www.biomerica.com/
