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Thu, May 31, 2012
Wed, May 30, 2012 Pyng Medical Corp. Reports Second Quarter Fiscal 2012 Results
May 30, 2012 19:14 ET
Pyng Medical Corp. Reports Second Quarter Fiscal 2012 Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 30, 2012) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the three and six months ended March 31, 2012. All amounts are in Canadian dollars unless stated otherwise.
During the three months ended March 31, 2012, the Company reported total sales of $810,391, down $478,879 or 37% from $1,289,270 reported a year ago, primarily due to sales reductions from the U.S.A. military market. Reduced U.S.A. military sales have impacted the Company since the fourth quarter of FY2011. On a year to date basis, total sales of $2,137,581 were recorded for the first two quarters of 2012, a decrease of $1,193,426 or 36% compared to sales of $3,331,007 for the same period last year. As a result, gross margin decreased to $492,751 and $1,311,242 respectively, for the three and six months ending March 31, 2012, compared to $809,803 and $2,208,152 reported for the same periods of last year. Overall operating expenses were reduced 33% and 25% to $678,802 and $1,005,875 respectively for the three and six months periods, due to cost saving efforts that the Company has taken.
The Company also reported a reduced net loss of $186,051 for this quarter, equal to loss of $0.01 per share, compared to a net loss of $195,982 or $0.01 per share one year earlier. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were a loss of $17,184, which decreased 72% from a loss of $61,182 reported for the second quarter of fiscal 2011.
During the quarter ended March 31, 2012, the Company paid back its bank term loan in full and secured a short-term loan of US$220,000 from its largest shareholder. As at March 31, 2012, the Company had a cash balance of $43,137 and working capital deficiency of $264,895. The Company has seen U.S.A. military sales increase in the third quarter of fiscal 2012, and thus an improvement in working capital position is expected for Q3 FY12.
Meantime, the Company will continue to pursue debt and/or equity financing to fund its product development and working capital needs. Management hopes to secure the necessary financing through the combination of new credit facilities and issuance of new equity or convertible debt instruments.
Full audited financial results for fiscal year ended September 30, 2011 are available on SEDAR at [ www.sedar.com ].
About Pyng Medical Corp.
Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide.
Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.
Neither the TSX Venture Exchange nor its Regulatory Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
