IDAHO FALLS, Idaho, March 28 /PRNewswire-FirstCall/ -- International Isotopes Inc. announces financial results for the twelve months ended December 31, 2006.
International Isotopes Inc. Year Ended Dec. 31 2006 2005 Change $'s Change % Sales of Products $4,469,538 $2,985,434 $1,484,104 50% Gross Profit $2,006,823 $1,384,073 $622,750 45% Total Operating Expense $2,871,295 $2,201,933 $669,362 30% Operating Loss Before Other Expense ($864,472) ($817,860) $46,612 (6%) Other Expense ($172,840) (165,093) $7,747 (5%) Net Loss ($1,037,312) ($982,953) ($54,359) (6%) Net (Loss) Per Common Share ($0.00) ($0.01) Weighted Ave. Sh. Outstanding 211,984,394 186,630,510
REVENUE: Total revenue for the Company in 2006 was $4,469,538 for the twelve months ended December 31, 2006 compared to $2,985,434 in 2005, which represents an increase of $1,484,104 or 50%. Revenue generated by our largest segment, Nuclear Medicine, increased by $142,833 or 9% to $1,684,727 in 2006 from $1,541,894 in 2005. Revenue generated by the Radiochemical Segment increased $136,152 or 19% to $844,014 in 2006 from $707,862 in 2005. The Radiological Services segment increased $231,925 or 57% to $641,411 in 2006 compared to $409,486 in 2005. Revenue generated by the cobalt product segment increased $865,832 or 265% to $1,192,024 in 2006 from $326,192 in 2005. Revenue generated by Company’s new transportation segment was $107,362.
Because of the significant impact of the timing of cobalt product sales, management believes that excluding sales of cobalt products from the year-to-year comparison of revenue provides useful information to investors. Excluding cobalt product sales, revenue for the year ended December 31, 2006, was $3,277,514 as compared to $2,659,242 for the year ended December 31, 2005, which represents an increase of $618,272 or 23%. Please refer to the table below for a further analysis of this measure.
Percent Business Segment Area 2006 2005 Change Nuclear Medicine Products $1,684,727 $1,541,894 7% Radiochemical Products $844,014 $707,862 19% Cobalt Products $1,192,024 $326,192 265% Radiological Services $641,411 $409,486 57% Total Revenue $4,469,538 $2,985,434 50% Total Revenue Excluding Cobalt Products $3,277,514 $2,659,242 23%
Cost of revenue for 2006, was $2,462,715 compared to $1,601,361 in 2005, an increase of $861,354 or 54%, however, the gross profit percentage was relatively unchanged at 45% and 46% respectively for 2006 and 2005.
OPERATING COST: Total operating costs and expenses for 2006, were $2,871,295 as compared to $2,201,933 in 2005, an increase of $669,362 or 30%. The increase was equally attributable to three contributing factors: (1.) FEP production supplies and equipment depreciation, (2.) wages attributable to the cost of stock options and (3.) the costs associated with our new transportation subsidiary (IITS). We anticipate no further significant increases in these operational expenses during 2007 and should, in fact, begin to see a portion of these operational expenses shift into cost of goods sold for fluorine products manufactured and sold by the subsidiary.
NET LOSS: Net Loss was $1,037,312 in 2006 compared to a loss of $982,953 in 2005. The $54,359 increase in net loss was equally attributable to three contributing factors: (1.) FEP production supplies and equipment depreciation, (2.) wages attributable to the cost of stock options, and (3.) costs associated with our new transportation subsidiary, International Isotopes Transportation Services (IITS).
Steve Laflin, President and CEO said, “In 2006, we continued to build our various business segments, make investments into facilities and infrastructure, launching new products, and improving production costs.”
The following is a list of some of the more significant accomplishments identified by the Company for 2006.
* We made significant increases in sales in all business segments and earned an approximate 50% increase in revenue. * New products and services, such as our transportation services, were added in 2006 and have diversified the radiological services segment by contributing more than 30% of the revenue to that segment. * Cobalt source capsule fabrication demand has grown and several different types of capsules as well as new customers were added in 2006. * We were awarded several contracts by the Department of Energy to assist with efforts related to the Orphan Source Recovery Project. * We received a grant from the National Science Foundation of phase I research into use of germanium tetrafluoride as a fluorinating agent for production of hydro fluorocarbon. Successful completion of phase I could lead to full scale commercial development of this promising technology under a phase II program in 2008.
Laflin also identified the following goals and objectives for the Company in 2007 based upon the investments made in the Company’s production facilities and the expanded products developed during 2006:
* To begin commercial production and sale of germanium tetrafluoride using the FEP gas production plant. * To complete phase I research activities for the development of germanium tetrafluoride as a fluorinating agent for production of hydrofluorcarbon and, if successful, complete a Phase II application to continue with commercialization of this technology with the National Science Foundation. * To pursue additional opportunities for various source recovery and recycle programs expected to be funded through the federal government and to which we are uniquely suited to provide services. * Continue to advertise and promote the use of International Isotopes Transportation Services (IITS) revenues for the Company’s products and other commercial customers. * To continue to expand our customer base, increase revenues in every business segment, continue to reduce production and operating costs, and achieve profitability. About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, high purity fluoride gases, and a variety of cobalt-60 products such as teletherapy sources. The Company also provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, life sciences, and industrial applications and provides a host of analytical, measurement, recycling, and processing services on a contract basis to clients
International Isotopes Inc. Safe Harbor Statement
Forward-looking statements in this press release are made pursuant to the safe harbor provision of the federal securities laws and include statements relating to improving our financial performance and profitability; increasing our revenues; decreasing and shifting our operating expenses; commercial development of certain technologies; reducing production and operating costs; the pursuit of source recovery and recycling opportunities; the use of advertising and promotion plans; and expanding our customer base. Information contained in forward-looking statements is based on current expectations and is subject to change. Actual results may differ materially from the forward- looking statements. Many factors could cause actual results to differ materially from the forward-looking statements. Readers are directed to read the risk factors detailed from time to time in our filings with the Securities and Exchange Commission, including our annual report on Form 10-KSB for the year ending December 31, 2006. We do not intend to update any such factors or to publicly announce developments or events relating to the matters described herein.
For More Information, Contact:
Steve Laflin, President and CEO
(208) 524-5300
International Isotopes Inc.
CONTACT: Steve Laflin, President and CEO of International Isotopes Inc.,+1-208-524-5300
Web site: http://www.intisoid.com/
