DENVER--(BUSINESS WIRE)-- Corgenix Medical Corporation (OTC BB: CONX.OB), a worldwide developer and marketer of diagnostic test kits, today filed its fiscal quarter Form 10-Q and reported financial results. The report disclosed that the company’s operating results have advanced for the quarter ended September 30, 2011.
Financial Highlights for the Quarter ended September 30, 2011
•Total revenues for the quarter ended September 30, 2011, (first fiscal quarter) increased 10.1% to $2.18 million from $1.98 million in the same period of 2010. •North American revenues increased 28.9% to $1.88 million from $1.46 million in the prior year; international sales decreased in the period 44.1% to $302,311 due to the transfer of the international distribution responsibilities to the ELITech Group in October 2010. •The most significant increases in revenue compared to the same period in the prior year were contract manufacturing (increasing 641%), AspirinWorks® (increasing 116%) and contract R&D and grant revenue (increasing 48%). •The total cost of revenues for the quarter increased from 46.3% to 51.9%. The increase is largely due to the conversion of the international distribution business to a master distributor relationship, resulting in lower margins, plus the higher costs of revenues related to contract R&D and grants. •Total operating expenses for the quarter ended September 30, 2011, decreased 20% to $1.04 million from $1.30 million in the prior year. Most of the reduction was related to the one-time costs in the prior year of closing the company’s U.K. subsidiary, which decreased from $366,639 in 2010 to $17,202 in 2011. In addition, general and administrative expenses decreased 16%, selling and marketing expenses increased 38% due to the expansion of the U.S. sales force, and research and development expenses remained nearly constant. •Interest expense decreased 45% to $60,222 in the current quarter from $108,662 in the prior year due to reduced borrowings tied to termination of two financing agreements with overall restructuring under more favorable terms. •In the current quarter compared to prior year, operating income increased to $5,692 from an operating loss of $239,791, and the net loss improved significantly to $50,234 from $348,230. “The double-digit revenue growth in the first quarter is a first step toward reaching our fiscal 2012 financial goals,” said Douglass Simpson, Corgenix President and CEO. “We continue to expect to see progressive strengthening leading to a record year, with sales approaching or exceeding $10 million and with increased EBITDA and net earnings.
“Our U.S. customer base is continuing to broaden with new accounts, the ELITech organization is expanding our international footprint, and we are on track to overcome the planned drop-off from closing our international subsidiary. We are also adding new strategic alliances that will lead to new contract manufacturing and contract R&D programs, and we have a strong pipeline of new products in development, which will contribute to our long-term growth,” Simpson continued.
Business Development Highlights for the Quarter ended September 30, 2011
•The Joint Product Development Agreement (JPDA) with the ELITech Group was amended, extending the collaboration through 2014 and increasing Corgenix’ long-term manufacturing and distribution rights for products developed under the program. •ELITech completed the third tranche investment in Corgenix of $500,000, tied to successful development of the first two products called for in the JPDA. •The final studies for the CE Marking requirements for the first two JPDA products were completed, and the products are expected to be launched in Europe in the 2nd quarter. •The company made progress in the development of a wide range of additional products under the JPDA, the first of which should be completed later in fiscal 2012. •The company expanded and strengthened its U.S. selling and marketing organization to maintain significant revenue growth. •The company enhanced its systems capability by securing U.S. distribution rights for the AXA Diagnostics SkyLAB 752™, a new, high-throughput automated microplate processing instrument that will be marketed in conjunction with Corgenix kits, delivering higher throughput and labor-saving advantages to large U.S. customers. •The company made substantial progress on the addition of several new contract manufacturing partners.
First Quarter Conference Call Details
Corgenix invites all those interested in hearing management’s discussion of the first quarter results to join a shareholders conference call today, Monday, November 14, 2011, at 4:00 p.m. EST (2:00 p.m. MST). Interested parties can join the call by dialing (800) 894-5910. International participants may access the call by dialing +1 785-424-1052. The conference code is “CORGENIX”. A replay will be available for 30 days following the call by dialing (800) 677-7320 for U.S. participants and +1 402-220-0666 for international participants.
About Corgenix Medical Corporation
Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world’s only non-blood-based test for aspirin effect. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience advancing products through the FDA process. More information is available at www.corgenix.com.
Statements in this press release that are not strictly historical facts are “forward-looking” statements (identified by the words “believe”, “estimate”, “project”, “expect” or similar expressions) within the meaning of the Private Securities Litigation Reform Act of 1995. These statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the Company does not undertake any obligation to publicly update or revise any forward-looking statements.
Contact:. Corgenix Medical Corporation Company Contact: William Critchfield, 303-453-8903 Senior VP Operations and Finance and CFO wcritchfield@corgenix.com or Armada Medical Marketing Media Contact: Dan Snyders, 303-623-1190 x 230 Vice President, Public Relations Supervisor dan@armadamedical.com.
