ADDISON, Texas, Nov. 15, 2011 /PRNewswire/ -- ULURU Inc. (NYSE AMEX: ULU) today announced its financial results for the third quarter ended September 30, 2011.
For the third quarter of 2011, the Company reported a net loss of $1.0 million, or $0.18 per share, compared with a net loss of $1.2 million, or $0.22 per share, for the same period last year. For the nine months ended September 30, 2011, the Company reported a net loss of $3.2 million, or $0.55 per share, compared with a net loss of $4.7 million, or $0.87 per share, for the same period last year.
Commenting on the financialresults Kerry P. Gray, President and CEO, stated, “Revenue was lower than projected as a major distributor order of approximately $200,000 was not billed until October due to a production delay. Revenues in the fourth quarter will expand significantly as we fill distributor orders, receive licensing payments, and increase our Altrazeal® business. Expense continued to be contained and are in line with our financial plan.”
Operating Results
Revenues
Revenue for the third quarter of 2011 was $74,000, compared to $62,000 for the third quarter of 2010.
Revenue for the nine months ended September 30, 2011 was $229,000, compared to $528,000 for the nine months ended September 30, 2010. The decrease of $299,000 in revenue was due primarily to a decrease of $138,000 in Aphthasol® product sales as we did not sell any Aphthasol® during the first nine months of 2011 and a decrease of $174,000 in Zindaclin® related licensing and royalty fees due to our divestiture of this product in June 2010.
Research and Development
Research and development expenses for the third quarter of 2011 were $233,000, including $17,000 in share-based compensation, compared to $296,000, including $32,000 in share-based compensation, for the third quarter of 2010. The decrease of approximately $63,000 in research and development expenses was primarily due to lower costs for regulatory fees of $42,000 and share-based compensation of $15,000.
Research and development expenses for the nine months ended September 30, 2011 were $749,000, including $52,000 in share-based compensation, compared to $949,000, including $104,000 in share-based compensation, for the nine months ended September 30, 2010. The decrease of approximately $200,000 in research and development expenses was primarily due to lower costs for regulatory fees of $133,000, clinical testing costs of $43,000 and scientific compensation costs of $19,000.
Selling, General and Administrative
Selling, general and administrative expenses for the third quarter of 2011 were $566,000, including $25,000 in share-based compensation, compared to $666,000, including $26,000 in share-based compensation, for the third quarter of 2010. The decrease of approximately $100,000 in selling, general and administrative expenses was primarily due to lower costs for sales & marketing of $135,000 as a result of lower head count, reduced share-based compensation, and decreased marketing expenses. These expense decreases were partially offset by an increase in shareholder expenses relating to investor relations consulting of $61,000.
Selling, general and administrative expenses for the nine months ended September 30, 2011 were $1.8 million, including $77,000 in share-based compensation, compared to $2.4 million, including $195,000 in share-based compensation, for the nine months ended September 30, 2010. The decrease of approximately $626,000 in selling, general and administrative expenses was primarily due to lower costs for compensation of $162,000 as a result of lower head count and reduced share-based compensation, sales & marketing costs of $284,000, legal costs relating to our patents of $88,000, commission expense of $30,000 and legal fees of $30,000. These expense decreases were partially offset by an increase in shareholder expenses of $56,000 relating to investor relations consulting.
Mr. Gray continued, “Significant progress was reported in the third quarter, including financing, a strategic partnership, and clinical data. We achieved an important milestone in the third quarter with the signing of a binding letter of intent for the marketing of Altrazeal® in Europe. Positive clinical data has been produced in Europe in a number of hospitals and key opinion leaders’ support is being generated. Plans for producing the initial launch quantities are being developed. This agreement has significant economic benefits to the Company both in the short and longer term. Additionally, further clinical data supporting the use of Altrazeal® in accelerating healing of diabetic foot ulcers was presented at a wound care conference; this is important data as it was in combination with a removable off-loading device which is the major segment of this market. We have also continued our efforts and made advancements towards completing additional partnerships to execute our business plan.”
About ULURU Inc.:
ULURU Inc. is a specialty pharmaceutical company focused on the development of a portfolio of wound management and oral care products to provide patients and consumers improved clinical outcomes through controlled delivery utilizing its innovative Nanoflex® Aggregate technology and OraDisc transmucosal delivery system. For further information about ULURU Inc., please visit our website at www.uluruinc.com. For further information about Altrazeal®, please visit our website at www.altrazeal.com.
