Full Press Release Details
Reports Second Quarter 2007 Financial Results
Increase 15%, Net Loss is Reduced
2007 - Nephros, Inc. (AMEX: NEP) announced today
financial results for the three and six month periods ended June 30,
quarter ended June 30, 2007, Nephros reported net product revenues of $348,000,
attributable to sales of its OLp r
MD190 and MD220 products in Europe, compared with $302,000 in the corresponding
period of 2006, an increase of 15%.
Company's net loss was $1,630,000 or $0.13 per basic and diluted common share
for the second quarter of 2007 versus a net loss of $2,181,000 or $0.18 per
basic and diluted common share in the second quarter of 2006. The Company's net
loss was reduced in the current quarter as a result of higher gross profit
higher sales levels and lower operating costs, offset by the interest expense
related to the convertible notes issued by the Company in June
product revenues for the six months ended June 30, 2007 were $644,000 compared
to $476,000 in the corresponding period of 2006. The Company's net loss was
$3,201,000 or $0.26 per basic and diluted common share for the six months ended
June 30, 2007 compared with $3,853,000 or $0.31 per basic and diluted common
share for the corresponding period of 2006.
June 30, 2007, Nephros had cash, cash equivalents and short-term investments
$530,000. The Company will need to raise additional funds through
either the public or private offerings of its securities or licensing or sale
its technologies. The Company is currently investigating additional funding
opportunities, talking to various potential investors who could provide
financing and the Company believes that it will be able to secure financing
the near term. However, there can be no assurance that the Company will be
to obtain further financing, do so on reasonable terms, do so on terms that
satisfy the American Stock Exchange's continued listing standards or do so on
terms that would not substantially dilute the Company's shareholders' equity
interests in it. If the Company is unable to raise additional funds on a timely
basis, or at all, it will not be able to continue its operations and may be
de-listed from the American Stock Exchange.
Inc., headquartered in New York, is a medical device company developing and
marketing products designed to improve the quality of life for the End-Stage
Renal Disease (ESRD) patient, while addressing the critical financial and
clinical needs of the care provider. ESRD is a disease state characterized
the irreversible loss of kidney function. Nephros believes that its products,
particularly its Mid-Dilution Hemodiafiltration therapy, are designed to remove
a range of harmful substances more effectively, and more cost-effectively,
existing ESRD treatment methods; particularly with respect to substances known
collectively as "middle molecules," due to their molecular weight, that have
been found to contribute to such conditions as dialysis-related amyloidosis,
carpal tunnel syndrome, degenerative bone disease and, ultimately, mortality
the ESRD patient. Nephros products are currently being used in over fifty
clinics in Europe, and are distributed in Italy, France and
also markets a line of water filtration products, the Dual Stage Ultrafilter
(DSU). The Company's patented dual stage cold sterilization Ultrafilter has
capability to filter out bacteria and, due to its exceptional filtration levels,
filter out many viruses and parasites. The DSU proprietary design provides
dual-stage filtration reducing the risk of filtration failure. With initial
focus on health care, the DSU is in a pilot-use program at a major medical
center and has been selected for further development by the US Marine Corps.
Company considers the DSU a significant breakthrough in providing affordable
reliable water filtration. The DSU is based on Nephros' proprietary water
filtration technology originally designed for medical use in its H2H machine,
and is a complimentary product line to the Company's main focus, the ESRD
information on Nephros please visit the Company's website,
release contains certain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended. Such
statements include statements regarding the efficacy and intended use of the
Company's technologies under development, the timelines for bringing such
products to market and the availability of funding sources for continued
development of such products and other statements that are not historical facts,
including statements which may be preceded by the words "intends," "may,"
"will," "plans," "expects," "anticipates," "projects," "predicts," "estimates,"
"aims," "believes," "hopes," "potential" or similar words. For such statements,
the Company claims the protection of the Private Securities Litigation Reform
statements are not guarantees of future performance, are based on certain
assumptions and are subject to various known and unknown risks and
uncertainties, many of which are beyond the Company's control. Actual
results may differ materially from the expectations contained in the
forward-looking statements. Factors that may cause such differences include
risks that: (i) Nephros may not be able to satisfy its obligations when
they become due and payable and meet its anticipated cash needs and may not
able to obtain funding if and when needed or on terms favorable to it in order
to continue operations or fund its clinical trials; (ii) Nephros may not be
to continue as a going concern; (iii) Nephros may be unable to show progress
consistent with its plan of compliance to meet the American Stock Exchange's
continued listing standards or may be otherwise unable to timely regain
compliance with the AMEX listing standards; (iv) products that appeared
promising to Nephros in research or clinical trials may not demonstrate
anticipated efficacy, safety or cost savings in subsequent pre-clinical or
clinical trials; (v) Nephros may not obtain appropriate or necessary
governmental approvals to achieve its business plan or effectively market its
products; (vi) Nephros may encounter unanticipated internal control deficiencies
or weaknesses or ineffective disclosure controls and procedures; (vii) HDF
therapy may not be accepted in the United States and/or Nephros' technology and
products may not be accepted in current or future target markets, which could
lead to failure to achieve market penetration of Nephros' products; (viii)
Nephros may not be able to sell its ESRD therapy or water filtration products
competitive prices or profitably; (ix) Nephros may not be able to secure or
enforce adequate legal protection, including patent protection, for its
products; (x) FDA approval relating to Nephros' OLp r HD190 filter may not
facilitate or have any effect on the regulatory approval process for its other
products; and (xi) Nephros may not be able to achieve sales growth in Europe
expand into other key geographic markets. More detailed information about
Nephros and the risk factors that may affect the realization of forward-looking
statements is set forth in Nephros' filings with the Securities and Exchange
Commission, including Nephros' Annual Report on Form 10-KSB filed with the
for the fiscal year ended December 31, 2006 and Nephros' Quarterly Reports filed