LAKE OSWEGO, Ore., Nov. 6 /PRNewswire-FirstCall/ -- Calypte Biomedical Corporation , medical diagnostic tests manufacturer for the detection of antibodies to the human immunodeficiency virus (HIV) for the professional point of care (PRO) and over the counter (OTC) segments of the market announced today its financial results for the third quarter and nine month period ended September 30, 2006.
For the quarter ended September 30, 2006, Calypte recorded revenues of $68,000, compared with revenue from continuing operations of $166,000 in the third quarter of 2005. The net loss for the third quarter of 2006 was $4.3 million or $0.020 per common share compared with a net loss of $3.0 million or $0.017 per common share. Net loss for the quarter includes non-cash interest expense of $3.0 million in 2006 and $1.1 million in 2005.
For the nine-month period ended September 30, 2006, revenues totaled $208,000 versus revenues from continuing operations of $294,000 for the same period in 2005. The net loss was $11.4 million or $0.058 per common share for the nine months ended September 30, 2006, compared to a net loss of $8.0 million or $0.046 per common share for the same period in 2005. The net loss for the nine-month period ended September 30, 2006 includes non-cash interest expense of $7.1 million in 2006 compared to non-cash interest income of $0.8 million in 2005.
Calypte’s urine EIA, serum Western Blot and urine Western Blot HIV-1 in vitro diagnostic test business (the “Legacy Business”) has been treated as a “discontinued operation” for financial reporting purposes. The 2005 revenues reported above exclude the sales from the Legacy Business of $0.5 million and $1.8 million for the three and nine months ended September 30, 2005, respectively. The 2005 net losses reported above, however, includes losses of $0.4 million and $2.3 million attributable to the Legacy Business for the quarter and nine-month periods ended September 30, 2005, respectively. There were no revenues or costs associated with the Legacy Business in 2006.
Calypte’s management will host a conference call on Wednesday November 15, 2006 at 4:30 PM Eastern Time to discuss the Company’s third quarter financial results and current operations.
Mr. Roger I. Gale, Calypte’s Chairman and Chief Executive Officer stated, “We are pleased with the results -- costs are under control with monthly spending down to approximately $400,000 - $450,000. Further, we continue to look for opportunities to reduce costs while making substantial progress in important areas. While we continue to work to raise sufficient funds to execute on our plans, with our recent progress and our expectations for significant improvements in the first half of 2007 -- both in terms of sales and key country approvals -- we have significantly reduced our expected financing requirement. We now believe that we will only require funds necessary to maintain operations at approximately current levels pending the achievement of important milestones over the next 6 to 8 months.”
In the conference call, the Company will be providing updates on several of its key initiatives, including the following:
* Beijing Marr Bio-Pharmaceutical Co., Ltd. (“Beijing Marr”) manufacturing plans; * Update on the review of our submission of our Aware(TM) HIV-1/2 oral fluid (OMT) rapid test for approval by the Chinese State Food and Drug Administration (“SFDA”); * Our on-going efforts to commercialize our HIV-1/2 rapid tests, with focus on our Aware(TM) HIV-1/2 OMT (oral fluid) test in South Africa, providing opportunities for humanitarian organizations to sponsor our product in their testing programs; and specifically on progress with The MineSeeker Foundation’s announced program to test at least one million persons over the next twelve months and related developments; and * The latest sales opportunities for our Aware(TM) HIV-1/2 OTC (over-the-counter) rapid test for markets in both the Middle East and in the Russian Federation. The Russian Federation is now the second market, following the UAE, to approve the use of an HIV-1/2 test in OTC settings
The call can be accessed in the U.S. by dialing 866-713-8395 and outside of the U.S. by dialing 617-597-5309. The participant pass code is 72951534. The conference call will also be Web cast live at http://www.calypte.com. An audio replay of the call will be available through December 15, 2006, beginning approximately 1 hour after the conference call ends, by dialing 888-286-8010 in the U.S., or 617-801-6888 from outside of the U.S. The account code for the playback is 37941955. The Web cast will also be available for replay on the company’s website.
About Calypte Biomedical:
Calypte Biomedical Corporation is a U.S.-based healthcare company focused on the development and commercialization of diagnostic testing products for the detection of sexually transmitted diseases such as the HIV-1 BED Incidence EIA and new diagnostic test products for the rapid detection of HIV and other sexually transmitted diseases, several of which do not require blood samples. Calypte believes there is a significant need for rapid detection of such diseases globally to control their proliferation, particularly in developing countries, which lack the medical infrastructure to support laboratory-based testing. Calypte believes that testing for HIV and other sexually transmitted infectious diseases may make important contributions to public health, and could increase the likelihood of treating those with undetected HIV and other sexually transmitted diseases.
Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management’s current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the Company’s ability to obtain additional financing, if and as needed, and access funds from its existing financing arrangements that will allow it to continue its current and future operations and whether demand for its test products in domestic and international markets will generate sufficient revenues to achieve positive cash flow and profitability. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company’s expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company’s success are more fully disclosed in the Company’s most recent public filings with the U.S. Securities and Exchange Commission (“SEC”), including its annual report on Form 10-KSB for the year ended December 31, 2005 and its subsequent filings with the SEC.
Company Contact: Investor Relations Contact: Theodore R Gwin, Chief Financial Officer Tim Clemensen, (971) 204-0282 Rubenstein Investor Relations email:tgwin@calypte.com Phone: (212) 843-9337 email:tclemensen@rubensteinir.com CALYPTE BIOMEDICAL CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 Revenues: Product sales 68 166 208 294 Total revenues 68 166 208 294 Cost of product sales 59 62 197 95 Gross Margin 9 104 11 199 13% 63% 5% 68% Other operating expenses: Research and development costs 353 405 1,252 1,877 Selling, general and administrative costs 949 1,095 3,193 4,555 Total other operating expenses 1,302 1,500 4,445 6,432 Loss from operations (1,293) (1,396) (4,434) (6,233) Interest income (expense), net (3,076) (1,067) (7,364) 751 Minority interest in losses of consolidated joint ventures 91 - 331 - Other income (expense), net 22 (116) 85 (207) Loss from continuing operations before income taxes (4,256) (2,579) (11,382) (5,689) Income taxes - - (2) (2) Net loss from continuing operations $(4,256) $(2,579) $(11,384) $(5,691) Discontinued operations Loss from operations of legacy business, net of income taxes - (395) - (2,318) Net Loss $(4,256) $(2,974) $(11,384) $(8,009) Net loss per share from continuing operations $(0.020) $(0.014) $(0.058) $(0.033) Net loss per share (basic and diluted) $(0.020) $(0.017) $(0.058) $(0.046) Weighted average shares used to compute net loss per share (basic and diluted) 213,567 179,557 196,628 174,101 CONSOLIDATED BALANCE SHEET DATA (in thousands) Unaudited September 30, December 31, 2006 2005 Cash and cash equivalents $366 $492 Working capital (10,731) (6,530) Total Assets 8,457 5,590 Convertible notes and debentures, net of discount 2,828 2,056 Notes payable to and advances from related parties 4,928 1,500 Long-term liabilities, including mandatorily redeemable Series A preferred stock 3,701 4,661 Total stockholders’ deficit (7,167) (7,151)
Calypte Biomedical Corporation
CONTACT: Theodore R Gwin, Chief Financial Officer of Calypte,+1-971-204-0282, tgwin@calypte.com; or Investor Relations: Tim Clemensen,Rubenstein Investor Relations, +1-212-843-9337, tclemensen@rubensteinir.com
Web site: http://www.calypte.com/
