TUCSON, AZ--(Marketwire - June 15, 2011) -
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"During the first half of the year we made tremendous progress strengthening our distribution pipeline and reinforcing our financial position in the market. We continued to focus on building market awareness for our ValiMed system by attending the Amerinet Niche Technology and Supplier Fair. We shipped our first Pocket ID2™ devices and signed additional distribution agreements with key channel partners. Recently we attained CE Certification for the ID2 line, gaining clearance for sales and distribution in European Union countries," stated Jeff Brumfield, chairman and chief executive officer of CDEX. "We believe CDEX is well positioned to support increased demand for our ID2 product line and the full launch of the new ValiMed™ G4 Medication Validation System later this year. The G4 will be used as an end-of-line defense to increase patient protection while providing a safety net for the ever increasing problem of narcotics diversion in the clinical and hospital environments. We are very pleased with our progress year to date. Our recent developments coupled with the continued support of our shareholders should allow us to execute business plan and growth strategy for the foreseeable future."
Second Quarter 2011 Financial Results
- Total revenues for the second quarter ended April 30, 2011 were approximately $96,000 a 47% increase compared to $65,000 for the second quarter of 2010. The $31,000 increase was primarily attributable to the oncology exclusive distribution agreement, increases in pay per use revenue and an increase in the sales of ID2 Meth Scanner partially offset by a reduction of revenues from installation and training as well as ValiMed maintenance.
- Total operating expenses for the quarter ended April 30, 2011 were approximately $202,000 an 11% decrease compared with $229,000 for the same period 2010. The $27,000 decrease was primarily attributable to decreases in consulting, professional and legal expenses, travel, marketing and general operating expenses partially offset by increases in non-cash share-based expenses, research and development employee compensation. The increase in research and development is primarily based on the increased focus on the further advancement of the Pocket ID2 detection device and ValiMed G4 Medication Validation system.
- Net loss for the quarter ended April 30, 2011 was approximately $366,000, or $(0.01) per share, compared with a net loss of $403,000, or $(0.01) per share, for the same period in 2010.
- The Company's cash position decreased by $196,000 during the first half of fiscal 2011 to approximately $117,000 compared with $313,000 for the year ended October 31, 2010. At April 30, 2011, the Company had $491,000 in total assets compared to $717,000 at year end October 31, 2010.
Recent Developments
- The ID2 Product Line Gained CE Certification: The Company's ID2 product line successfully passed independent testing to verify conformance to the protection requirements of the European Economic Area (EEA) gaining full CE certification. The CE approval opens the European market for the company to commercially distribute the ID2 Meth Scanner and Pocket ID2 Illicit Drug Scanner.
- Debenture Holders Support Company by Convert Debt to Equity: CDEX debenture holders converted approximately $1.9 million of notes for 22.2 million shares of common stock in the company to support future growth opportunities and market initiatives.
- Signed New Distribution Agreement with Decatur Electronics: In May the company signed a new Master Distribution Agreement (MDA) with Decatur Electronics, Inc. to market and distribute its Pocket ID2 drug detection scanner. The new MDA provides non-exclusive marketing and distribution rights to Decatur in the U.S. and worldwide markets for the Pocket ID2.
- Participated and Presented at the Amerinet Niche Technology & Supplier Diversity Fair: CDEX was one of only 15 companies invited to participate at the Amerinet Niche Technology & Supplier Diversity Fair held May 12, 2011 in Orlando, Fla. CDEX demonstrated the improved capabilities of the new ValiMed G4 Medication Validation System to the Amerinet members and staff.
- Shipped First Order of Pocket ID2 Device: In January, the company shipped the initial orders of its new Pocket ID2 Scanner to Lifeloc Technologies. The Pocket ID2 Scanner detects the illegal drug Methamphetamine (Meth).
- Signed a Distribution Agreement With HealthContrax LLC for its ValiMed Validation System: In January, CDEX signed a new distribution agreement with HealthContrax LLC, a national accounts sales agency. The agreement provides CDEX with access to Group Purchasing Organizations (GPOs) that contract for thousands of hospitals, labs and clinics across the United States.
About CDEX
CDEX develops, manufactures and globally distributes products to the healthcare and security markets. The ValiMed™ product line provides life-saving validation of high-risk medications and pharmacy returned narcotics. The ID2™ product line detects trace amounts of illegal drugs, such as methamphetamine. CDEX expects to advance its patented technologies to serve additional markets in the future where its proprietary products can be launched. To learn more about CDEX please visit: www.cdex-inc.com.
Safe Harbor Statement
Non-historical statements are forward-looking, as defined in federal securities laws, and generally can be identified by words such as "expects," "plans," "may," "believes," "should," "intends," and similar words. These statements pose risks that cannot be accurately predicted. Consequently, results may differ materially from those expressed or implied. Such risks and uncertainties include, without limitation, the effectiveness, profitability and marketability of products, the protection of intellectual property and proprietary information, and other risks detailed periodically in filings with the SEC. There is no obligation to update any forward-looking statements.
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