MIAMI--(BUSINESS WIRE)--IVAX Diagnostics, Inc. (AMEX:IVD) reported net revenues of $5,121,000 for the second quarter of 2007, a decrease of $242,000, or 4.5%, from the second quarter of 2006. Net loss for the second quarter of 2007 was $463,000, compared to net loss of $118,000 for the second quarter of 2006. Net loss for the second quarter of 2007 increased compared to the second quarter of 2006 primarily due to an increase in operating expenses of $372,000. This increase in operating expenses was principally due to increases in general and administrative expenses resulting from increases in Italian bad debt expenses and research and development costs. Despite a decline in total net revenues of $242,000 caused by lower Italian net revenues, total gross profit remained relatively unchanged due to improved gross margin on domestic sales of reagent kits, allowing gross profit as a percentage of net revenues to increase to 58.2% of net revenues in the second quarter of 2007 from 55.4% of net revenues in the second quarter of 2006. Net revenues for the six months ended June 30, 2007 were $10,067,000, a decrease of $14,000, or 0.1%, from the same period of 2006. Net loss for the six months ended June 30, 2007 was $701,000 compared to net loss of $915,000 for the same period of 2006. Net loss in the six months ended June 30, 2006 included the $201,000 cumulative effect of a change in accounting principle as a result of IVAX Diagnostics’ adoption of SFAS 123(R) as of January 1, 2006. Net loss decreased in the six months ended June 30, 2007 compared to the same period of 2006 due to an improvement in gross profit partially offset by an increase in operating expenses. Despite no significant variation in total net revenues, gross profit increased $264,000 to $5,968,000 in the six months ended June 30, 2007, or 59.3% of net revenues in the six months ended June 30, 2007, from 56.6% of net revenues in the six months ended June 30, 2006, due to an improvement in domestic gross profit percentage.
