SAN JOSE, Calif., March 31 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (“HPS” or “the Company”) today announced results for the three months and the year ended December 31, 2005. For the three months ended December 31, 2005, net revenue was $66,000, representing a decrease from sales of $432,000 in the prior year period, and resulted in a loss from on-going operations of $207,000 ($.05 per share) as compared with a loss from on-going operations of $76,000 ($.02 per share) for the same period of 2004. For the full year, net revenue of $414,000, represented a decrease from the net revenue of $1,140,000 in the prior year, and resulted in a loss from continuing operations of $934,000 ($.22 per share) as compared with a loss from continuing operations of $570,000 ($.14 per share) for the same period of 2004.
The decrease in revenue for both the quarter and the full year from the 2004 periods reflects an unprecedented level of purchases in the fourth quarter of 2004 by our largest customer, and a corresponding reduction in purchases during the entire year of 2005, including the fourth quarter of the current year. This cyclical purchasing pattern has been evidenced by the purchases in the first quarter of 2006, ending March 31, 2006, which has shown an increase in revenue from this customer of 246% as compared to the prior year quarter. This pattern evidences the cyclical nature of this customer’s purchasing pattern.
Selling, general and administrative expenses decreased by $140,000 (38%) in the fourth quarter of 2005, as a result of reduced personnel levels and lower overhead spending in response to the reduced revenues. For the full year these expenses decreased by $306,000 or 22% for the same reasons. For the full year, research and development expenses grew by 76%, a result of the Company’s decision to devote its limited funds in promising new technologies in human testing. The Company believes that this was a sound decision based upon its identification of the first new compound in 12 years that has shown significant promise in human trials.
Human Pheromone Sciences, Inc. is a technology-based company, whose proof- of concept products included prestige-priced fragrances and toiletries and environmental products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. These products contain mood-enhancing synthesized human pheromones covered under U.S. and foreign patents. The Company also licenses its proprietary technology to other companies for inclusion in their products for direct sale to the consumer. Scientific and consumer studies have shown that the Company’s human pheromones positively impact on the moods, attitudes and emotions of wearers. Further information is available on line at www.erox.com.
The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause results to differ from predicted results. Further information on factors that could affect the Company’s results is detailed in the Company’s annual report to shareholders on Form 10-KSB for the year ended December 31, 2005 as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements.
HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands) December 31, December 31, 2005 2004 Assets Cash and cash equivalents $452 $1,201 Accounts receivable, net 11 259 Inventories 70 63 Other current assets 18 8 Property and equipment, net 8 17 Total $559 $1,548 Liabilities, convertible redeemable preferred stock and shareholders’ equity Accounts payable $21 $41 Other current liabilities 119 154 Common stock 20,809 20,809 Accumulated deficit (20,390) (19,456) Total $559 $1,548 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Dollars in thousands, except per-share data) Three months Year ended ended December 31, December 31, 2005 2004 2005 2004 Net sales and revenues $66 $432 $414 $1,140 Cost of goods sold 18 98 88 215 Research and development 32 50 164 93 Selling, general and administrative 226 366 1,113 1,419 Loss from operations (210) (82) (951) (587) Other income 3 6 17 17 Loss from on-going operations (207) (76) (934) (570) Net gain on sale of assets -- 6 -- 28 Net loss $(207) $(70) $(934) $(542) Basic and fully diluted earnings (loss) per share: From on-going operations $(0.05) $(0.02) $(0.22) $(0.14) From disposed operations $(0.00) $0.00 $0.00 $0.00 From assets sold $(0.00) $(0.00) $0.00 $0.01 Net income (loss) $(0.05) $(0.02) $(0.22) $(0.13) Weighted average number of shares outstanding - Basic and fully diluted 4,152 4,152 4,152 4,129
Net income (loss) per share is based on the weighted average number of common shares and common equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti-dilutive.
Human Pheromone Sciences, Inc.
CONTACT: William P. Horgan, Chairman, CEO of Human Pheromone Sciences,Inc., +1-408-938-3030
Web site: http://www.erox.com/
