HALIFAX, Dec. 19 /PRNewswire-FirstCall/ - MedMira Inc. (“MedMira”) the global market leader in premium rapid diagnostic solutions, today announced its financial results for the three month period ending October 31, 2005. Product sales in the first quarter were $444 thousand, compared to $906 thousand in the same quarter last year. The net loss for the quarter was $1.8 million or $0.04 per share compared with $1.2 million or $0.03 per share in the same period last year.
“During this first quarter we made significant progress on activities that will have a positive impact on results in 2006. Completion of the facilities inspection, one of the final steps in CE Mark approval in Europe, advancing our international tendering opportunities, and growing and strengthening our distribution network are important to growing revenue in our second quarter and beyond. The Company remains confident that the steps we are taking will be effective in generating growth in 2006,” said Stephen Sham, chairman and CEO of MedMira.
Overall gross margin for the quarter was 46%, compared to 43% last year. The gross margin level is in line with management’s expectations for the mix of markets that we are operating in.
Operating expenses for the fourth quarter were $2.0 million compared to $1.6 million in the same period last year. This increase is mainly driven by increased interest costs related to the issuance of convertible debentures in 2005, and increased research and development activities related to new technologies.
At October 31, 2005 the Company had total assets of $1.7 million compared with $1.4 million in total assets at July 31, 2005. Subsequent to quarter end the Company filed its final prospectus and received all necessary regulatory approvals related to an equity line of credit with Cornell Capital Partners, LP.
Financial Information
The following is a brief summary of financial information expressed in thousands of Canadian dollars except per share amounts:
For the For the three months three months ended ended October 31, 2005 October 31, 2004 (000’s) (unaudited) (unaudited) Product Sales $ 444 $ 906 Cost of goods sold 238 519 ---------------- ---------------- Gross margin 206 387 ---------------- ---------------- ---------------- ---------------- Operating expenses 1,961 1,561 ---------------- ---------------- ---------------- ---------------- Loss for the period $ (1,755) $ (1,172) ---------------- ---------------- ---------------- ---------------- Loss per share $ (0.04) $ (0.03) ---------------- ---------------- ---------------- ---------------- As at As at October 31, 2005 July 31, 2005 (unaudited) Cash and cash equivalents $ - $ 29 ---------------- ---------------- ---------------- ---------------- Total assets $ 1,732 $ 1,428 ---------------- ---------------- ---------------- ---------------- Shareholders deficiency $ (11,496) $ (9,805) ---------------- ---------------- ---------------- ---------------- About MedMira
MedMira is the leading global manufacturer and marketer of in vitro flow-through rapid diagnostic tests. MedMira’s tests provide reliable, rapid diagnosis in just 3 minutes for the detection of human antibodies in human serum, plasma or whole blood for diseases such as HIV and hepatitis C. The United States FDA and the SFDA in the People’s Republic of China have approved MedMira’s Reveal(R) G2 and MiraWell(R) rapid HIV tests, respectively.
MedMira’s Reveal(R) G2 and MiraWell(R) rapid HIV tests are currently used in clinical laboratories, hospitals, and clinics where professional counselling and patient treatment are immediately available.
The MiraCare(TM) Rapid HIV Antibody Test, MedMira’s over-the-counter (OTC) product, is available in pharmacies throughout Hong Kong and Macao Special Administrative Regions, in the People’s Republic of China.
MedMira delivers rapid diagnostic solutions to healthcare communities around the globe. Its corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada with a representative office in Guilin, China.
This news release contains forward-looking statements, which involve risk and uncertainties and reflect the company’s current expectation regarding future events. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this statement.
MedMira Inc.
CONTACT: visit MedMira’s website at www.medmira.com; Dr. James Smith,Investor Relations, Tel: (902) 450-1588; Andrea Young, CorporateCommunications, Tel. (902) 450-1588
