Remedent, Inc. Reports Fiscal Fourth Quarter and Record Fiscal 2009 Results

DEURLE, BELGIUM and LOS ANGELES, CA--(Marketwire - June 29, 2009) - Remedent, Inc. (OTCBB: REMI), an international company specializing in the research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the fiscal fourth quarter and year ended March 31, 2009 (in U.S. dollars).

Net sales in the fourth quarter totaled $3.4 million, an increase of 12% from $3.0 million in the same year-ago quarter. Net sales for the fiscal year 2009 totaled a record $14.6 million, an increase of 96% from $7.5 million in fiscal 2008.

The increase in net sales was primarily due to the increased sales by the company’s GlamSmile Product Group. In fiscal 2009, sales of GlamSmile™, the company’s leading dental veneer product, increased year-over-year by $6.7 million or 564% to $7.9 million, compared to sales of $1.2 million in fiscal 2008.

Loss from operations in the fourth quarter was $468,000, an improvement from a loss of $550,000 in the same year-ago quarter. Loss from operations for fiscal 2009 was $946,000, an improvement from a loss of $3.1 million in fiscal 2008. The narrowing of the loss from operations is attributed to the increase in sales, as well as reorganization of the company’s production process and more in-house manufacturing that resulted in lower costs than the previously outsourced third party manufacturing.

Net loss for the fourth quarter totaled $1.1 million or $(0.05) per share (after minority interest and based on 20.0 million weighted average shares outstanding), as compared to a loss of $623,000 or $(0.03) per share (based on 17.8 million weighted average shares outstanding) in the same year-ago quarter.

Net loss for fiscal 2009 totaled $3.0 million or $(0.15) per share (after minority interest and based on 19.6 million weighted average shares outstanding), as compared to a loss of $3.1 million or $(0.17) per share (based on 17.8 million weighted average shares outstanding) in fiscal 2008. The net loss in fiscal 2009 included $4.3 million in warrants issued to Den-Mat Holdings, partially offset by a gain of $2.8 million from the sale of a portion of the company’s over-the-counter retail product business.

Net comprehensive loss in the fourth quarter after foreign currency translation adjustment was $1.3 million or $(0.07) per share, compared to a net loss of $572,000 or $(0.03) per share in the same year-ago quarter. Net comprehensive loss in fiscal 2009 after foreign currency translation adjustment was $3.6 million or $(0.19) per share, compared to a net loss of $3.1 million or $(0.17) per share in fiscal 2008.

Cash and cash equivalents totaled $1.8 million at March 31, 2009, an increase of 5% from $1.7 million at March 31, 2008.

Management Commentary

“Fiscal 2009 represented strong progress for Remedent across the board -- operationally, in product development, and in record sales for the year,” said Guy De Vreese, CEO of Remedent. “The year was highlighted by dramatically increased sales of our flagship GlamSmile product, which is being adopted increasingly by dentists around the world. The year also represented a period of restructuring and realigning our efforts through the divesture of our OTC business, as well as advancing the development of our revolutionary, patent-pending FirstFit™ system for crowns and bridges.

“Our FirstFit development effort culminated with the recent expansion of our distribution agreement with Den-Mat Holdings to include FirstFit. As the world’s largest producer of dental veneers, Den-Mat’s complete adoption of our GlamSmile technology in August of 2008 has solidified our position as a world leader in the dental veneer space. Den-Mat will now champion the market introduction of FirstFit in the United States through their network of more than 10,000 dentists.

“We are now beginning to emerge from a pivotal stage in our development, with a new operational structure designed to leverage the tremendous potential of our unique veneer technology. In addition to Den-Mat in the United States, we are also realizing increasing success in China and Australia. Meanwhile, we are finding ways to reduce our costs, including doing more in-house production. We believe our wide-ranging progress in fiscal 2009 has put us on course for continued growth and market expansion in fiscal 2010.”

Teleconference Information

Remedent will host a conference call on Wednesday, July 1, 2009 at 11:00 a.m. Eastern time to discuss these results. A question and answer session will follow management’s presentation. To participate in the call, dial the appropriate number 5-10 minutes prior to the start time, request the Remedent conference call and provide the conference ID.

Date: Wednesday, July 1, 2009 Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time) Dial-In Number: 1-800-894-5910 International: 1-785-424-1052 Conference ID#: 7REMEDENT 

A simultaneous webcast and replay of the call will be accessible via this link: http://viavid.net/dce.aspx?sid=0000666B.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call, please contact the Liolios Group at 1-949-574-3860.

A telephone replay of the call will be available from 2:00 p.m. Eastern time on the same day until August 1, 2009:

Toll-free replay number: 1-800-695-0395 International replay number: 1-402-220-1388 (No passcode required) 

About Remedent

Remedent, Inc. specializes in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products. The company serves professional dental industry with breakthrough technology for dental veneers, bridges and crowns that are recognized worldwide for their technological superiority and ease-of-application. These products are supported by a line of professional veneer whitening and teeth sensitivity solutions. Headquartered in Belgium, Remedent distributes its products to more than 35 countries worldwide. For more information, go to www.remedent.com.

Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause Remedent’s actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as “believes,” “belief,” “expects,” “expect,” “intends,” “intend,” “anticipate,” “anticipates,” “plans,” “plan,” “projects,” “project,” to be uncertain and forward-looking. Actual results could differ materially because of factors such as Remedent’s ability to achieve the synergies and value creation contemplated by the proposed transaction. For further information regarding risks and uncertainties associated with Remedent’s business, please refer to the risk factors described in Remedent’s filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q.

 REMEDENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended Year ended March 31, March 31, 2009 2008 2009 2008 ------------ ------------ ------------ ------------ Net sales $ 3,390,355 $ 3,028,362 $ 14,639,541 $ 7,482,261 Cost of sales 1,650,315 1,352,271 6,614,723 3,975,777 ------------ ------------ ------------ ------------ Gross profit 1,740,040 1,676,091 8,024,818 3,506,484 Operating Expenses Research and development 24,273 85,293 248,652 332,958 Sales and marketing 370,042 889,452 2,793,970 1,886,389 General and administrative 1,639,656 1,165,842 5,312,192 4,057,007 Depreciation and amortization 173,903 85,319 615,674 301,260 ------------ ------------ ------------ ------------ TOTAL OPERATING EXPENSES 2,207,874 2,225,906 8,970,488 6,577,614 ------------ ------------ ------------ ------------ OPERATING LOSS (467,834) (549,815) (945,670) (3,071,130) NON-OPERATING (EXPENSE) INCOME Warrants issued pursuant to Distribution Agreement - - (4,323,207) - Gain on disposition of OTC - - 2,830,953 - IMDS provision (300,000) - (300,000) - Interest expense/other deductions (166,972) (66,366) (417,147) (138,168) Interest income/other income 1,884 20,367 348,997 - Other income - - - 121,032 ------------ ------------ ------------ ------------ TOTAL OTHER INCOME (EXPENSES) (465,088) (45,999) (1,860,404) (17,136) ------------ ------------ ------------ ------------ LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND MINORITY INTEREST (932,922) (595,814) (2,806,074) (3,088,266) Income tax expense (32,633) (27,247) (32,633) (27,247) ------------ ------------ ------------ ------------ NET LOSS FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST (965,555) (623,061) (2,838,707) (3,115,513) MINORITY INTEREST (114,208) - (114,208) - ------------ ------------ ------------ ------------ NET LOSS FROM CONTINUING OPERATIONS $ (1,079,763) $ (623,061) $ (2,952,915) $ (3,115,513) ============ ============ ============ ============ LOSS PER SHARE Basic and fully diluted $ (0.05) $ (0.03) $ (0.15) $ (0.17) ============ ============ ============ ============ WEIGHTED AVERAGE SHARES OUTSTANDING Basic and fully diluted 19,995,969 17,823,012 19,559,653 17,823,012 ============ ============ ============ ============ OTHER COMPREHENSIVE INCOME (LOSS): Foreign currency translation adjustment (259,045) 50,608 (668,245) 60,953 ------------ ------------ ------------ ------------ Comprehensive income (loss) $ (1,338,808) $ (572,453) $ (3,621,160) $ (3,054,560) ============ ============ ============ ============ Comprehensive loss per share $ (0.07) $ (0.03) $ (0.19) $ (0.17) ============ ============ ============ ============ REMEDENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2009 March 31, 2008 -------------- -------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,807,271 $ 1,728,281 Accounts receivable, net of allowance for doubtful accounts of $33,966 at March 31, 2009 and $32,181 at March 31, 2008 3,208,120 1,902,920 Inventories, net 1,937,946 1,360,709 Prepaid expense 1,310,900 970,173 -------------- -------------- Total current assets 8,264,237 5,962,083 -------------- -------------- PROPERTY AND EQUIPMENT, NET 1,024,999 692,609 OTHER ASSETS Long term investments and advances 750,000 675,000 Patents, net 163,106 115,827 -------------- -------------- Total assets $ 10,202,342 $ 7,445,519 ============== ============== LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) CURRENT LIABILITIES: Current portion, long term debt $ 78,798 $ 58,583 Line of Credit 660,200 779,718 Accounts payable 1,398,420 2,002,439 Accrued liabilities 1,590,360 781,737 Income taxes payable 39,339 15,121 -------------- -------------- Total current liabilities 3,767,117 3,637,598 Long term debt less current portion 100,542 94,754 Minority interest 896,705 -- Total liabilities 4,764,364 3,732,352 -------------- -------------- STOCKHOLDERS’ EQUITY: Preferred Stock $0.001 par value (10,000,000 shares authorized, none issued and outstanding) -- -- Common stock, $0.001 par value; (50,000,000 shares authorized, 19,995,969 shares issued and outstanding at March 31, 2009 and 18,637,803 shares issued and outstanding at March 31, 2008) 19,996 18,638 Treasury stock, at cost; 723,000 and 0 shares at March 31, 2009 and March 31, 2008 respectively (831,450) -- -------------- Additional paid-in capital 24,106,055 17,929,992 Accumulated deficit (17,216,028) (14,263,113) Accumulated other comprehensive income (loss) (foreign currency translation adjustment) (640,595) 27,650 -------------- -------------- Total stockholders’ equity 5,437,978 3,713,167 -------------- -------------- Total liabilities and stockholders’ equity $ 10,202,342 $ 7,445,519 ============== ==============