SINGAPORE, Aug. 10 /Xinhua-PRNewswire-FirstCall/ -- Biosensors International Group, Ltd. (“Biosensors” or the “Company"; Bloomberg: BIG SP) reported higher product revenue of US$7.9 million for the first fiscal quarter ended June 30, 2006 (“1Q FY07"), a 35 percent increase over US$5.9 million in the corresponding quarter last year (“1Q FY06"). This was also a slight increase over the US$7.7 million reported in the previous quarter (“4Q FY06"). Revenue from its drug-eluting stent (“DES”) systems grew to US$3.2 million in 1Q FY07 from US$457,000 in 1Q FY06 and remained unchanged from US$3.2 million reported in 4Q FY06, consistent with the Company’s expectations.
Product gross margin was also higher in 1Q FY07 at 47 percent compared to 43 percent in 1Q FY06. This reversed an earlier decline in 4Q FY06 where product gross margin was 33 percent, with some of the decrease in that quarter due to a one-time higher provision for material scrap relating to manufacturing ramp-up of the DES line.
Mr. Yoh-Chie Lu, Chairman and CEO of Biosensors said that the Company is pleased that the cost management strategies it implemented have shown some initial positive impact during the first fiscal quarter. He added, “We will continue to review and streamline our operational structure and requirements to further fine-tune our operations and enhance efficiencies.” In May of this year, Mr. Lu took on additional responsibilities for management of the Company’s operations. He has since implemented plans that include cost management and operations-related strategies to enhance the operational readiness of Biosensors in preparation for the launch of BioMatrix(R). The Company is currently awaiting CE Mark regulatory approval for its BioMatrix DES for commercialization in the European Union.
During 1Q FY07, R&D expenses, which include new product research & development, clinical trials, patent registration, and costs associated with regulatory approvals, increased to US$5.1 million from US$3.0 million in 1Q FY06. However, this was lower than the US$7.0 million reported in 4Q FY06. Similarly, sales and marketing expenses were US$2.4 million in 1Q FY07, compared to US$2.0 million in 1Q FY06 and US$3.0 million. General and administrative expenses were US$3.9 million in 1Q FY07, compared to US$3.2 million in 1Q FY06, and recorded a slight increase of US$0.3 million compared to US$3.6 million in 4Q FY06.
Prior comparative expenses have been adjusted to include share-based compensation expenses to be consistent with the current quarter’s presentation.
“While we remain mindful on the need to manage costs, we need to pace ourselves in our levels of spending and will continue to focus our spending particularly on maximizing the growth of the Company through prudent investments in R&D activities and enhancing the sales & marketing infrastructure. As such, when we begin our LEADERS and STEALTH II clinical trials, we will expect related expenses to increase, all of which are in line with our expense guidance provided recently”, said Ms. Chato Abad, Chief Financial Officer.
For 1Q FY07, the Company reported a net loss of US$6.7 million, or 0.74 US cent loss per basic and diluted share compared to a net profit of US$758,000, or 0.09 US cent earnings per basic and diluted share in 1Q FY06, due largely to considerably higher licensing revenue received in 1Q FY06. The net loss in 1Q FY07 was significantly lower than the net loss of US$9.7 million in 4Q FY06, or 1.08 US cent loss per share.
Mr. Lu commented: “Our industry is focused on longer term results. As a company, we will also focus our efforts on achieving long term success by continuing to challenge ourselves to further improve and enhance our organizational infrastructure while commercializing innovative, proprietary products to support our ultimate goal of becoming a leading DES player.”
About Biosensors International Group, Ltd.
Biosensors develops, manufactures and markets innovative medical devices used in interventional cardiology and critical care procedures. Biosensors is well-positioned to emerge as a leader in drug-eluting stents, an evolving therapy that is rapidly gaining market share from traditional therapies such as bare-metal stenting and open-heart surgery. Biosensors has internally developed technology to address each component of a drug-eluting stent system, including a stent, a stent delivery catheter, a biodegradable polymer and a proprietary anti-restenotic drug. It is pursuing two separate drug-eluting stent programs, BioMatrix(R) and Axxion(TM), and has licensed aspects of its drug-eluting stent technology to four companies.
Forward Looking Statements
Certain statements herein include forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project” or “continue” or the negative thereof or other similar words. All forward-looking statements involve risks and uncertainties, including, but not limited to, customer acceptance and market share gains, competition from companies that have greater financial resources; introduction of new products into the marketplace by competitors; successful product development; dependence on significant customers; the ability to recruit and retain quality employees as Biosensors grows; and economic and political conditions globally. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release and Biosensors assumes no duty to update them to reflect new, changing or unanticipated events or circumstances.
Media Contact Biosensors International Group Ms Tina Lim, Executive, Corporate Communications Tel: (65) 6213 5712 Email: media@biosensors.com Media Relations / Investor Relations Firm United States Allen & Caron Inc. Mr. Matt Clawson Executive Vice President, Investor Relations Tel: (1) 949 474 4300 Email: matt@allencaron.com
Biosensors International Group, Ltd.
CONTACT: Tina Lim of Biosensors International Group, (65) 6213 5712, ormedia@biosensors.com; or Matt Clawson of Allen & Caron Inc.for BiosensorsInternational Group, (1) 949 474 4300, or matt@allencaron.com
