ALACHUA, Fla., Feb. 9 /PRNewswire-FirstCall/ -- Tutogen Medical, Inc. , a leading manufacturer of sterile biological implant products made from human (allograft) and animal (xenograft) tissue, today announced financial results for the first quarter of fiscal year 2006 ended December 31, 2005.
The Company reported a 14% increase in revenues of $8.0 million compared to $7.1 million in the comparable quarter last year. Net loss for the quarter was $0.4 million, or $(0.02) per share on a fully diluted basis, compared to a net loss of $1.4 million, or $(0.09) per fully diluted share, in the first fiscal quarter last year.
Guy L. Mayer, chief executive officer of Tutogen Medical, said, “The quarter was characterized by significant progress on a number of fronts. Sales on the dental side of the business although affected by the BTS recall continued to grow at a strong double-digit rate. Margins on that business were improved by virtue of the manufacturing efficiencies in our Alachua facility and the restructuring of the marketing fees with our distribution partner last year. In the spine business, revenues continue to lag, however, as previously indicated, our expectation is that spine sales will begin to increase sometime in the second half of the fiscal year. We are particularly pleased that our overall gross margin for the quarter increased to 53 percent compared to 47 percent in the comparable quarter last year, reflective of the manufacturing efficiencies that have been achieved in the past year at our Florida facility. All of that has translated into a narrowing of the net loss for the quarter both sequentially and year-over-year.”
Mr. Mayer continued, “Another important highlight of the quarter was the completion of our partnership with Davol (a subsidiary of C.R. Bard) to distribute our new dermal hernia repair product. While the agreement features upfront payments of $3.3 million to be recognized over the four-year life of the agreement; more importantly, we are gratified to be partnering with an industry leader of Davol’s caliber. We believe this represents a great opportunity for Tutogen Medical in the coming years and we look forward to working with them to develop this market to the fullest extent possible. With regards to our international business, sales increased by 22 percent during the quarter reflecting the resolution of certain regulatory issues in Europe and improved efficiencies in our German manufacturing operations. We believe that there are other international markets that represent significant opportunities and we will continue to work with all of our distribution partners to leverage our respective strengths in order to expand our markets worldwide.”
Tutogen Medical will conduct a conference call on Thursday, February 9, 2006 at 4:15 pm ET to review the results of the quarter. Interested parties can access the call by dialing (877) 407-9205 or (201) 689-8054 or by accessing the web cast at http://www.tutogen.com/investor.asp. A replay of the call will be available at (877) 660-6853 or (201) 612-7415, account number 286 and access number 189201 for 7 days following the call, and the web cast can be accessed at http://www.tutogen.com/investor.asp for 30 days.
About Tutogen Medical, Inc.
Tutogen Medical, Inc. manufactures sterile biological implant products made from human (allograft) and animal (xenograft) tissue. Tutogen utilizes its Tutoplast Process(R) of tissue preservation and viral inactivation to manufacture and deliver sterile bio-implants used in spinal/trauma, urology, dental, ophthalmology, and general surgery procedures. The Company’s Tutoplast(R) products are sold and distributed worldwide by Zimmer Spine and Zimmer Dental, subsidiaries of Zimmer Holdings, Inc. the Mentor Corporation, IOP, Inc. and through independent distributors and subsidiaries in the U.S. and Germany. For more information, visit the Company’s Web site at http://www.tutogen.com.
Forward-Looking Statement Disclaimer: Certain statements in this news release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may differ materially from those set forth in these statements. In addition, the economic, competitive, governmental, technological and other factors identified in the Company’s filings with the Securities and Exchange Commission could affect such results.
Financial Tables to Follow TUTOGEN MEDICAL, INC. and SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL SUMMARY (in thousands except per share data) (unaudited) Three Months Ended December 31, 2005 2004 REVENUE $8,034 $7,073 GROSS PROFIT 4,237 3,313 OPERATING EXPENSES 4,778 4,243 OPERATING LOSS (541) (930) FOREIGN EXCHANGE GAIN (LOSS) 119 (579) OTHER INCOME (EXPENSE) 15 (4) INTEREST EXPENSE (78) (17) INCOME TAX BENEFIT (106) (148) NET LOSS $(379) $(1,382) BASIC AND DILUTED LOSS PER SHARE $(0.02) $(0.09) CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) Dec. 31, Sept. 30, 2005 2005 CURRENT ASSETS $18,352 $18,911 FIXED ASSETS, NET 6,904 6,612 DEFERRED INCOME TAXES 1,703 1,619 TOTAL ASSETS $26,959 $27,142 CURRENT LIABILITIES $10,304 $9,859 LONG TERM DEBT 584 630 DEFERRED DISTRIBUTION FEES 1,784 1,925 SHAREHOLDERS’ EQUITY 14,287 14,728 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $26,959 $27,142 Contacts: George Lombardi, Chief Financial Officer Lytham Partners Tutogen Medical, Inc. Institutional: Joe Diaz 973-785-0004, ext. 101 Retail: Joe Dorame glombardi@tutogen.com 602-889-9700
Tutogen Medical, Inc.
CONTACT: George Lombardi, Chief Financial Officer of Tutogen Medical,Inc., +1-973-785-0004, ext. 101, glombardi@tutogen.com; or Institutional,Joe Diaz, or Retail, Joe Dorame, both of Lytham Partners, LLC,+1-602-889-9700, for Tutogen Medical, Inc.
