WIXOM, Mich., May 10 /PRNewswire-FirstCall/ -- Rockwell Medical Technologies, Inc. , a leading, innovative manufacturer of hemodialysis products and developer of specialty pharmaceuticals focused on the end-stage-renal-disease (ESRD) market, reported first quarter results today. Rockwell reported record quarterly sales of $9.4 million, up 54% over the first quarter of 2006. Rockwell also increased spending on product development and drug approval costs for soluble ferric pyrophosphate (SFP). SFP product development and approval costs were $822,000 an increase of $374,000 over last year’s first quarter. First quarter loss per share was ($.14) compared to ($.03) per share last year.
First Quarter Highlights: -- Sales increased 54% compared to first quarter 2006. -- Sequential revenue growth of 2.7% over the fourth quarter. -- Substantial domestic market share gains in the first quarter. -- Domestic sales increased 27.6% in the first quarter compared to the fourth quarter. -- Successfully increased domestic customers serviced by over 50% in a four month period. -- Invested significantly to provide superior supply chain conversion performance. -- Gross profit (deficit) for the quarter was ($82,719) which included $500,000 of start-up and transition costs. -- Continued progress on SFP clinical development plan. -- Released favorable SFP pre-clinical trial safety-study results. -- Upgraded to the Nasdaq Global Market Exchange. -- Net loss was ($.14) per share and included $.07 per share of SFP development costs.
Mr. Robert L. Chioini, Chairman and Chief Executive Officer of Rockwell Medical Technologies, Inc. stated, “We gained substantial market share during the quarter increasing our overall customer base by more than 50%. Our gross profit margins suffered but only on a short-term basis as we invested approximately $500,000 in start-up and transition costs to ensure uninterrupted supply chain performance. As we guided on our last conference call, we continue to expect our margins to improve in the second half of this year and beyond resulting from increased pricing and actions to improve operational efficiencies.”
He also said, “While this strategic business development activity dominated our business operations in the first quarter, we also continued to prepare for our upcoming dose ranging study for SFP. The FDA recently has requested review of our final nine month pre-clinical safety study report prior to commencing our nine month dose ranging study. As a result of this recent communication, we intend to provide FDA with the final study report in July and we expect to start the dose ranging study immediately following completion of their review.”
Rockwell will be hosting a conference call to review its first quarter results on Thursday, May 10, 2007 at 11:00 am EST. Investors are encouraged to call in five minutes in advance of the call at 800-289-0468 or may listen on the web at the following link:
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Rockwell Medical Technologies, Inc. is a leading, innovative manufacturer and developer of concentrates and specialty pharmaceuticals focused on improving the quality of care for dialysis patients. Dialysis is a process that duplicates kidney function for those patients whose kidneys have failed to work properly and who suffer from chronic kidney failure, a condition also known as end-stage-renal-disease (ESRD). There are an estimated 360,000 dialysis patients in the United States and the incidence of ESRD has increased approximately 3-5% on average each year over the last five years, and over 1.5 million world-wide. Rockwell manufactures, markets and delivers high-quality dialysis solutions, powders and ancillary products that are used to cleanse the ESRD patient’s blood and replace nutrients in the bloodstream. Rockwell’s proprietary formulations for iron-delivery and vitamin/carnitine-delivery, utilizing its dialysate as the delivery mechanism are designed to provide renal therapy with unprecedented patient safety and efficacy while eliminating nursing time and supply cost. Rockwell offers the proprietary Dri-Sate(R) Dry Acid Concentrate Mixing System, RenalPure(R) Liquid Acid Concentrate, SteriLyte(R) Liquid Bicarbonate Concentrate, RenalPure(R) Powder Bicarbonate Concentrate, Blood Tubing Sets, Fistula Needles and a wide range of ancillary dialysis items. Visit Rockwell’s website at www.rockwellmed.com for more information.
Certain statements in this press release with respect to Rockwell’s business and operations, including statements regarding FDA approval, the potential of Rockwell’s proprietary Soluble Ferric Pyrophosphate (SFP) to capture market share, the timing of FDA approval, etc. constitute “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management’s expectations and are based upon currently available information. Management of Rockwell believes the expectations reflected in the forward-looking statements made in this press release are based upon reasonable assumptions. However, certain factors could occur that might cause actual results to vary. These include, but are not limited to, delays or failure to obtain FDA approval of SFP, failure to obtain Medicare or private insurance reimbursement approval, general economic conditions, economic conditions in the hemodialysis industry, modified regulatory requirements, competitive factors, and other factors discussed in Rockwell’s reports filed with the Securities and Exchange Commission. These forward-looking statements should be considered in light of these risks and uncertainties.
Rockwell Medical Technologies, Inc. and Subsidiary Consolidated Income Statements For the three months ended March 31, 2007 and March 31, 2006 (Whole dollars) (Unaudited) Three Months Three Months Ended Ended March 31, 2007 March 31, 2006 Sales $9,474,382 $6,161,903 Cost of Sales 9,557,101 5,378,594 Gross Profit (Deficit) (82,719) 783,309 Selling, General and Administrative 726,227 625,842 Research and Product Development 822,520 448,737 Operating (Loss) (1,631,466) (291,270) Interest Expense (Income), net 15,049 (2,052) Net (Loss) $(1,646,515) $(289,218) Basic Earnings (Loss) per Share ($ .14) ($ .03) Diluted Earnings (Loss) per Share ($ .14) ($ .03) ROCKWELL MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS As of March 31, 2007 and December 31, 2006 (Whole Dollars) MARCH 31, DECEMBER 31 2007 2006 ASSETS Cash and Cash Equivalents $ - $2,662,873 Accounts Receivable, net of a reserve of $72,500 in 2007 and $72,500 in 2006 4,544,708 3,474,402 Inventory 2,657,043 2,660,098 Other Current Assets 327,904 261,473 Total Current Assets 7,529,655 9,058,846 Property and Equipment, net 2,889,000 2,587,771 Intangible Assets 446,123 457,846 Goodwill 920,745 920,745 Other Non-current Assets 125,667 127,625 Total Assets $11,911,190 $13,152,833 LIABILITIES AND SHAREHOLDERS’ EQUITY Short Term Borrowings $ 500,000 $ - Notes Payable & Capitalized Lease Obligations 311,243 369,551 Accounts Payable 3,363,425 2,920,258 Accrued Liabilities 629,260 1,114,592 Customer Deposits 85,834 48,274 Total Current Liabilities 4,889,762 4,452,675 Long Term Notes Payable & Capitalized Lease Obligations 315,748 326,045 Shareholders’ Equity: Common Shares, no par value, 11,501,849 and 11,500,349 shares issued and outstanding 23,125,791 23,147,709 Accumulated Deficit (16,420,111) (14,773,596) Total Shareholders’ Equity 6,705,680 8,374,113 Total Liabilities And Shareholders’ Equity $11,911,190 $13,152,833
Rockwell Medical Technologies, Inc.
CONTACT: Thomas Klema, CFO, +1-248-960-9009; or Ronald J. Aubrey, InvestorRelations, +1-866-565-6139, both of Rockwell Medical Technologies, Inc.
Web site: http://rockwellmed.com/
