JACKSONVILLE, Fla., Nov. 20 /PRNewswire-FirstCall/ -- Phlo Corporation (the "Company") reported yesterday revenue of $116,560 in its fiscal quarter ended September 30, 2007, up from $13,624 in revenue for the prior quarter and up from $748 in revenue for the same quarter last year. The Company's gross profit margin was 76% for the quarter ended September 30, 2007. In addition, the Company began shipments last week to fill a $71,280 backlog of orders. The revenue resulting therefrom will be included in the operating results of the Company's fiscal quarter ending December 31, 2007. The report was made in the Company's Form 10-QSB filed with the Securities and Exchange Commission yesterday.
The Company's selling, general and administrative expenses were $547,303 for the quarter, as compared to $289,450 for the same quarter in the prior year, in part as a result of a significant increase in market entry and marketing expenses related to a product launch, many of such expenses being one-time charges. In addition, research and development costs for the quarter were $149,130, as compared with $30,000 for the same quarter last year. The Company's loss from operations during the quarter was $607,804 as compared with $318,870 for the same quarter in the prior year. However, a significant portion of the Company's loss from operations consisted of non-cash charges, and the net cash actually used in the Company's operating activities averaged $102,565 per month during the six-month period ended September 30, 2007.
"The proprietary biotechnology base of the Company enables the Company to achieve superior, sustainable gross profit margins," James B. Hovis, CEO of the Company, said. "This factor, coupled with significant increases in sales volume from the initiation of the sale of its products to major chain accounts should allow the Company to achieve superior positive operating results."
Phlo is a biotechnology company and a manufacturer and marketer of products (primarily liquids) containing patented and patent-pending biotechnologies. Phlo is focusing its technology generation and acquisition efforts on those technologies related to enhancing cognition and personal performance, reducing the effects of aging, and preventing or ameliorating cancer.
Certain statements made herein that are not historical constitute "forward-looking" statements within the meaning of the Private Litigation Reform Act of 1995 and may contain words such as "anticipate," "believe," "expect," "future," "may," "will," "should," "plan," "projected," "intend," and similar expressions to identify such forward-looking statements. Such statements are based on a number of assumptions and on information and estimates supplied to Phlo Corporation by sources currently available to it. Such assumptions and estimates are subject to uncertainties, contingencies, and other factors, many of which are beyond Phlo Corporation's control. Actual results may differ materially from the statements set forth above.
CONTACT: James B. Hovis, +1-904-505-3834, of Phlo Corporation
