NEWPORT BEACH, Calif., April 14 /PRNewswire-FirstCall/ -- Biomerica, Inc. today announced its financial results for the quarter ended February 28, 2006. As disclosed in the Company’s 8-K filed on December 5, 2005, Lancer Orthodontics’ financial statements will no longer be consolidated with Biomerica’s financial statements, effective December 1, 2005. Today’s announcement is for the first quarter that Biomerica has reported its financial statements on a stand-alone basis, unconsolidated from the financial statements of Lancer.
Biomerica reported today stand-alone-results of diagnostic net sales of $998,070 for the third quarter ended February 28, 2006, compared to stand-alone results of diagnostic net sales of $872,996 for the comparable quarter ended February 28, 2005. Stand-alone results of diagnostic net sales for the first nine months ended February 28, 2006 totaled $2.79 million compared to $2.33 million in the previous year, an increase of over 19%.
Biomerica announced stand-alone-results of diagnostic net income for the nine months ended February 28, 2006, of $162,285 versus a net loss of $3,590 in the previous fiscal year during the same period. The stand-alone results for the three months ended February 28, 2006 of diagnostic net income was $29,615, compared to stand-alone-results of diagnostic net income of $80,576 in the same quarter the previous fiscal year.
“We expect to continue improving both the top line and bottom line in our diagnostic business,” stated Zackary Irani, Biomerica CEO. “We have several new products that we plan to introduce in the upcoming months that should enhance our product line significantly.”
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.
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 improvements to the Company’s financial performance, launch dates, expansion, expected orders, leading market positions, anticipated future sales revenues 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 new business model and expansion plans, 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 April 14, 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 nine months ended February 28, 2006, include the operations for Biomerica diagnostics for nine months but ONLY six months of operations for Lancer Orthodontics. The nine months ended February 28, 2005, include nine months of operations of BOTH Biomerica diagnostics and Lancer Orthodontics. The three months ended February 28, 2006 include ONLY the results of operations for Biomerica diagnostics and the three months ended February 28, 2005 include three months of operations of BOTH Biomerica diagnostics and Lancer Orthodontics.
Contact: Zackary Irani 949-645-2111 BIOMERICA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) Nine Months Ended Three Months Ended February 28, February 28, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Net sales $5,717,260 $6,691,509 $998,070 $2,344,536 Cost of sales (3,820,715) (4,461,838) (649,468) (1,563,917) ----------- ----------- ----------- ----------- Gross profit 1,896,545 $2,229,671 $348,602 $780,619 ----------- ----------- ----------- ----------- Operating Expenses: Selling, general and administrative 1,866,470 2,195,439 272,890 659,421 Research and development 193,360 203,816 38,779 61,309 ----------- ----------- ----------- ----------- 2,059,830 2,399,255 311,669 720,730 ----------- ----------- ----------- ----------- Operating (loss) income from continuing operations (163,285) (169,584) 36,933 59,889 ----------- ----------- ----------- ----------- Other Expense (income): Interest expense 36,751 28,692 7,248 11,113 Other income, net (45,575) (19,501) (730) 3,472 ----------- ----------- ----------- ----------- (8,824) 9,191 6,518 14,585 ----------- ----------- ----------- ----------- (Loss) gain from continuing operations, before minority interest in net loss of consolidated subsidiaries and income taxes (154,461) (178,775) 30,415 45,304 Minority interest in net losses of consolidated subsidiary 251,670 127,270 -- 27,170 ----------- ----------- ----------- ----------- Income (loss) from continuing operations, before income taxes 97,209 (51,505) 30,415 72,474 Income tax expense 2,400 1,938 800 338 ----------- ----------- ----------- ----------- Net income (loss) from continuing operations 94,809 (53,443) 29,615 72,136 Discontinued operations: Income from discontinued operations, net -- 6,600 -- -- ----------- ----------- ----------- ----------- Net income (loss) 94,809 (46,843) 29,615 72,136 Other comprehensive (loss), net of tax Unrealized (loss) on available- for-sale securities (240,100) (12,904) (236,286) (5,462) ----------- ----------- ----------- ----------- Comprehensive income (loss) $(145,291) $(59,747) $(206,671) $66,674 =========== =========== =========== =========== Basic net income (loss) per common share: Net income (loss) from continuing operations $.01 $(.01) $.00 $.01 Net income (loss) from discontinued operations .00 .00 .00 .00 ----------- ----------- ----------- ----------- Basic net income (loss) per common share $.01 $(.01) $.00 $.01 =========== =========== =========== =========== Diluted net income (loss) per common share Net income (loss) from continuing operations $.01 $(.01) $.00 $.01 Net income (loss) from discontinued operations .00 .00 .00 .00 ----------- ----------- ----------- ----------- Diluted net income (loss) per common share $.01 $(.01) $.00 $.01 =========== =========== =========== =========== Weighted average number of common and common equivalent shares: Basic 5,753,831 5,752,431 5,753,912 5,752,431 =========== =========== =========== =========== Diluted 6,617,955 5,752,431 6,604,035 6,568,121 =========== =========== =========== =========== BIOMERICA, INC. STAND-ALONE STATEMENT OF OPERATIONS (UNAUDITED) Nine Months Ended Three Months Ended February 28, February 28, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Net sales $2,792,222 $2,329,117 $998,070 $872,996 Cost of sales (1,646,000) (1,398,084) (649,468) (525,115) ----------- ----------- ----------- ----------- Gross profit 1,146,222 931,033 348,602 347,881 ----------- ----------- ----------- ----------- Operating Expenses: Selling, general and administrative 837,411 797,983 272,890 220,377 Research and development 150,890 131,060 38,779 39,430 ----------- ----------- ----------- ----------- 988,301 929,043 311,669 259,807 ----------- ----------- ----------- ----------- Operating income from continuing operations 157,921 1,990 36,933 88,074 ----------- ----------- ----------- ----------- Other Expense (income): Interest expense 22,295 23,780 7,248 7,900 Other income, net (28,259) (12,400) (730) (402) ----------- ----------- ----------- ----------- (5,964) 11,380 6,518 7,498 ----------- ----------- ----------- ----------- (Loss) income from continuing operations before income taxes 163,885 (9,390) 30,415 80,576 Income tax expense 1,600 800 800 -- ----------- ----------- ----------- ----------- Net income (loss) from continuing operations 162,285 (10,190) 29,615 80,576 Income from discontinued operations, net -- 6,600 -- -- ----------- ----------- ----------- ----------- Net income (loss) $162,285 $(3,590) $29,615 $80,576 ==========================================================================
Biomerica, Inc.
CONTACT: Zackary Irani of Biomerica, Inc., +1-949-645-2111
Web site: http://www.biomerica.com/
