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Thursday, August 30, 2007
Biomerica Announces Record Year
Thursday August 30, 8:19 am ET
Diagnostic Sales up Over 34%; Diagnostic Income up Over 133%
NEWPORT BEACH, CA--(MARKET WIRE)--Aug 30, 2007—Biomerica, Inc. (OTC BB:BMRA.OB - News), a global provider of advanced diagnostic products for the early detection of medical conditions, today reported stand-alone results of diagnostic net sales of $5,748,319 for the fiscal year 2007 ended May 31, 2007, compared to stand-alone results of diagnostic net sales of $4,259,954 in fiscal 2006, an increase of $1,488,365 or 34.9%.
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Biomerica announced consolidated net income (including stock option expenses) for the fiscal year 2007 ended May 31, 2007, of $536,879, versus consolidated net income of $230,273 in fiscal 2006, an increase of 133.1%. Consolidated basic earnings per common share were $.09 for fiscal 2007 as compared to $.04 for fiscal 2006. Consolidated basic earnings per common share for continuing operations were $.09 for fiscal 2007 as compared to $.03 for fiscal 2006. Prior to recording the expense of $100,000 for employee bonuses according to the Biomerica Incentive Plan, consolidated net income was $636,879. Prior to recording employee stock option expenses of $123,584 and the above incentive plan, consolidated net income was $760,463.
Stand-alone income from diagnostic operations before interest in net loss or income of consolidated subsidiaries and income taxes was $525,779 in fiscal 2007 as compared to $222,041 in fiscal 2006. This represents an increase of $303,738, or 136.8%.
“We are pleased with the continuing progress in our financial performance in both sales and especially income,” stated Zackary Irani, Biomerica CEO. “This was the first year that the Company adopted the expensing of employee stock options (SFAS #123R) yet we were still able to achieve financial results above our plan. As we expand our marketing efforts to increase distribution and move forward with planned new product introductions, we expect that fiscal 2008 will continue to show improvements in our performance.”
About Biomerica (OTC BB:BMRA.OB - News)
Biomerica, Inc. (http://www.biomerica.com) is a global medical technology company, based in Newport Beach, CA. The Company manufactures and markets advanced diagnostic products used at home, in hospitals, and in physicians’ offices for the early detection of medical conditions and diseases.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Biomerica) contains statements that are forward-looking; such as statements relating to intended launch dates, expected improvements in performance, planned product introductions, sales potential, market size, growth of business, favorable positions, expansion, expected orders, leading market positions, anticipated future revenues or production volume of the Company, success of product and new product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. The potential risks and uncertainties include, among others, fluctuations in the Company’s operating results due to its business model and expansion plans, downturns in international and or national economies, the Company’s ability to raise additional capital, the competitive environment in which the Company will be competing, and the Company’s dependence on strategic relationships. The Company is under no obligation to update any forward-looking statements after the date of this release.
The following financial statements reflect the operating results of Biomerica as reported in the Company’s Form 10-KSB filed on August 29, 2007. The full financial statements and management’s discussion and analysis are available in the above mentioned Form 10-KSB.
The deconsolidation of Lancer Orthodontics from Biomerica occurred December 1, 2005. Therefore, the year ended May 31, 2007 includes ONLY the results of operations for Biomerica. The year ended May 31, 2006 includes operations of Biomerica for the full year and only six months of Lancer Orthodontics.
BIOMERICA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
YEARS ENDED MAY 31,
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2007 2006
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Net Sales $ 5,748,319 $ 7,184,992
Cost of sales 3,502,607 4,779,615
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GROSS PROFIT 2,245,712 2,405,377
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OPERATING EXPENSES
Selling, general and administrative 1,468,821 2,263,463
Research and development 256,101 239,004
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Total operating expenses 1,724,922 2,502,467
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OPERATING INCOME (LOSS) FROM
CONTINUING OPERATIONS 520,790 (97,090)
OTHER INCOME (EXPENSE)
Interest expense, net of interest income (35,051) (44,790)
Other income, net 40,040 45,575
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INCOME (LOSS) FROM CONTINUING OPERATIONS,
before minority interest in net loss of
consolidated subsidiary and income taxes 525,779 (96,305)
MINORITY INTEREST IN NET LOSS OF
CONSOLIDATED SUBSIDIARY — 251,670
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INCOME FROM CONTINUING OPERATIONS, before
income taxes 525,779 155,365
INCOME TAX EXPENSE 16,769 1,600
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INCOME FROM CONTINUING OPERATIONS 509,010 153,765
DISCONTINUED OPERATIONS
Income from discontinued operations, net 27,869 76,508
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NET INCOME 536,879 230,273
OTHER COMPREHENSIVE LOSS, net of tax
Unrealized loss on available-for-sale
securities (2,746) (227,497)
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COMPREHENSIVE INCOME $ 534,133 $ 2,776
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BASIC NET INCOME PER COMMON SHARE:
Income from continuing operations $ .09 $ .03
Income from discontinued operations .00 .01
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Basic net income per common share $ .09 $ .04
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DILUTED NET INCOME PER COMMON SHARE:
Income from continuing operations $ .08 $ .02
Income from discontinued operations .00 .01
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Diluted net income per common share $ .08 $ .03
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WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES
Basic 5,929,445 5,759,082
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Diluted 6,513,477 6,220,335
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Pro Forma Statement of Operations by Company for the year ended
May 31, 2006
Intercompany Pro-forma Biomerica
Actual Eliminations adjustments Stand-alone
------------ ------------ ------------ ------------
Net sales $ 7,184,992 $(2,925,038) $ 4,259,954
Cost of sales 4,779,615 $ 15,780(1) (2,190,495) 2,604,900
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Gross profit 2,405,377 $ (15,780) (734,543) 1,655,054
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Operating expenses:
Selling, general
and admin 2,263,463 (1,029,059) 1,234,404
Research and
development 239,004 (42,470) 196,534
------------ ------------ ------------ ------------
Total operating
expenses 2,502,467 (1,071,529) 1,430,938
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Operating income
(loss) (97,090) (15,780) 336,986 224,116
Other (income) expense
Interest expense 44,790 (14,456) 30,334
Other expense (income) (45,575) (15,780)(2) 33,096 (28,259)
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(785) (15,780)(2) 18,640 2,075
Income (loss) from
operations before
interest in net
income (loss) of
consolidated
subsidiary and
income taxes (96,305) 318,346 222,041
Minority interest in
net loss (income)
of Lancer 251,670 (319,146)(3) — --
67,476 (4)
------------ ------------ ------------ ------------
Income (loss) from
operations before
income taxes 155,365 (251,670) 318,346 222,041
Income tax expense 1,600 (800) 800
------------ ------------ ------------ ------------
Discontinued operation (76,508) (76,508)
------------ ------------ ------------ ------------
Net income (loss) $ 230,273 $ (251,670) $ 319,146 $ 297,749
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(1) To record the charge for rent by Lancer at the manufacturing facility
in Mexico, which was eliminated in consolidation.
(2) To record the income from Biomerica received by Lancer for rent at
the Mexico facility, which was eliminated in consolidation.
(3) To de-consolidate Lancer’s loss.
(4) Elimination of Biomerica’s portion of Lancer’s operations as if the
termination of the voting agreement occurred May 31, 2005.
Contact:
Contact:
Zackary Irani
949-645-2111
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Source: Biomerica