Full Press Release Details
NEWPORT BEACH, CA -- (MARKET WIRE) -- January 17, 2007 -- Biomerica, Inc. (OTCBB: BMRA) today
reported stand-alone results of diagnostic net sales of $1,332,176 for the
second quarter fiscal 2007 ended November 30, 2006, compared to stand-alone
results of diagnostic net sales of $875,984 in fiscal 2006, an increase of
$456,192 or 52.1%. Stand-alone results of diagnostic net sales for the
first six months of fiscal 2007 were $2,485,442 compared to stand-alone
results of diagnostic net sales of $1,849,036 for the first six months in
fiscal 2006, an increase of $636,406 or 34.4%.
Biomerica announced stand-alone results of diagnostic net income from
continuing operations for the second quarter fiscal 2007, of $106,448 or
$0.02 per share versus stand-alone results of diagnostic net income from
continuing operations of $28,861 or $0.00 per share in fiscal 2006.
As disclosed in the Company's 8-K filed on December 5, 2005, the Company's
subsidiary's (Lancer Orthodontics) financial statements are no longer
consolidated with Biomerica's financial statements, effective December 1,
2005. Therefore consolidated net sales for the second quarter and six
months of fiscal 2007 are lower (see attached financials).
"This is the eighth consecutive quarter of profitability for the Company.
The growth in our diagnostic products group continues to increase," stated
Zackary Irani, Biomerica CEO. "We are looking forward to accelerating the
growth in sales by introducing a number of new products during this fiscal
About Biomerica (OTCBB: BMRA)
Biomerica, Inc. (www.biomerica.com) is a global medical technology company,
based in Newport Beach, CA. The Company's diagnostics division
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, sales potential, significant benefits, 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-QSB filed on January 16,
2007. The full financial statements and management's discussion and
analysis are available in the above-mentioned Form 10-QSB.
The deconsolidation of Lancer Orthodontics from Biomerica occurred December
1, 2005. Therefore, the three and six months ended November 30, 2006
include ONLY the results of operations for Biomerica diagnostics and the
three and six months ended November 30, 2005 include operations of BOTH
Biomerica diagnostics and Lancer Orthodontics.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE GAIN (UNAUDITED)
Six Months Ended Three Months Ended
November 30, November 30,
---------- ---------- ---------- ----------
Net sales $2,485,442 $4,774,074 $1,332,176 $2,423,924
Cost of sales 1,591,373 3,226,131 813,758 1,618,189
---------- ---------- ---------- ----------
Gross profit 894,069 1,547,943 518,418 805,735
---------- ---------- ---------- ----------
Selling, general and
administrative 635,198 1,593,580 344,743 840,420
Research and development 99,513 154,581 58,512 69,804
---------- ---------- ---------- ----------
734,711 1,748,161 403,255 910,224
---------- ---------- ---------- ----------
Operating gain (loss) from
continuing operations 159,358 (200,218) 115,163 (104,489)
---------- ---------- ---------- ----------
Other Expense (income):
Interest expense 16,242 29,503 8,740 18,490
Other income, net (35) (44,845) (25) (6,948)
---------- ---------- ---------- ----------
16,207 (15,342) 8,715 11,542
---------- ---------- ---------- ----------
continuing operations,
interest in net loss
income taxes 143,151 (184,876) 106,448 (116,031)
Minority interest in net
losses of consolidated
subsidiaries -- 251,670 -- 119,434
---------- ---------- ---------- ----------
Income from continuing
operations, before income
taxes 143,151 66,794 106,448 3,403
Income tax expense -- 1,600 -- 1,600
---------- ---------- ---------- ----------
Net income from continuing
operations $ 143,151 $ 65,194 $ 106,448 $ 1,803
========== ========== ========== ==========
Discontinued operations:
Income from discontinued
operations, net 27,869 -- -- --
---------- ---------- ---------- ----------