HALIFAX, Feb. 16 /PRNewswire-FirstCall/ - MedMira Inc. (“MedMira”) the global market leader in premium rapid diagnostic solutions, today announced its financial results for the three and six month periods ending January 31, 2006. Product sales in the second quarter were $1.1 million, compared to $768 thousand in the same quarter last year, an increase of 47%. The net loss for the quarter was $1.2 million or $0.03 per share compared with $1.4 million or $0.03 per share in the same period last year, an improvement of 16%. When compared to the first quarter of this year, product revenue increased 155% and the net loss decreased 33%.
For the six months ended January 31, 2006 product sales were $1.6 million, down from $1.7 million for the same period last year. The net loss of the six month period was $2.9 million or $0.07 per share compared to $2.6 million or $0.06 per share for the same period last year.
“We are pleased with the Company’s financial results for the second quarter, a quarter where we have recorded a record level of revenue,” said Stephen Sham, chairman and CEO of MedMira. “Our revenue was driven from the United States and Asia this quarter. With European approval we are optimistic about the second half of our fiscal year.”
Overall gross margin in the third quarter was 57%, and was 54% for the six months ended January 31, 2006. 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 second quarter remained constant at $1.8 million. For the six months ended January 31, 2006 operating expenses increased to $3.8 million from $3.4 million for the same period in the previous year. These increases are driven by increased interest costs related to the issuance of convertible debentures in 2005 and stock based compensation costs recorded in the current year.
At January 31, 2006 the Company had total assets of $2.0 million compared with $1.4 million in total assets at July 31, 2005. Subsequent to the end of the quarter the Company has raised approximately $150 thousand through the collection of outstanding receivables and the issue of debt.
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 For the For the three months three months six months nine months ended ended ended ended January 31, January 31, January 31, January 31, 2006 2005 2006 2005 (000’s) (unaudited) (unaudited) (unaudited) (unaudited) ----------- ----------- ----------- ----------- Product Sales $ 1,132 $ 768 $ 1,575 $ 1,674 Cost of goods sold 490 364 728 883 ------------ ------------ ------------ ------------ Gross margin 642 403 848 791 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Operating expenses 1,810 1,791 3,771 3,352 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Loss for the period $ (1,168) $ (1,388) $ (2,923) $ (2,560) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Loss per share $ (0.03) $ (0.03) $ (0.07) $ (0.06) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ As at As at January 31, July 31, 2006 2005 (unaudited) Cash and cash equivalents $ - $ 29 ------------ ------------ ------------ ------------ Total assets $ 1,973 $ 1,428 ------------ ------------ ------------ ------------ Shareholders deficiency $ (12,555) $ (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 is available over-the-counter (OTC) in pharmacies throughout Hong Kong and Macao Special Administrative Regions, in the People’s Republic of China. MiraCare(TM) is sold through MedMira’s distributor network to pharmacies, hospitals and laboratories in the European Union.
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. For more information visit MedMira’s website at www.medmira.com.
MedMira Inc.
CONTACT: Dr. James Smith, Investor Relations, Tel: (902) 450-1588, E-mail:ir@medmira.com; Andrea Young, Corporate Communications, Tel. (902)450-1588, Email: ayoung@medmira.com
