IVAX Diagnostics, Inc. (NYSE Amex: IVD), a fully integrated in
vitro diagnostics company, reports its financial results for the
quarter and nine months ended September 30, 2011.
Kevin D. Clark, Chief Executive Officer, Chief Operating Officer
and President of IVAX Diagnostics, said, “Our initiatives to reduce
expenses while positioning ourselves for expected growth continued
during the third quarter of 2011. Our operating expenses for the
third quarter of 2011 decreased 5.3% compared to the same period of
2010. During the third quarter of 2011. we continued our strategy
of expanding our suite of high-quality, reliable products as well
as increasing our global footprint.”
Mr. Clark concluded, “For the remainder of this year, we intend
to continue our focus on cost control as we position IVAX
Diagnostics for growth in 2012.”
Financial Highlights for the Quarter and Nine Months Ended
September 30, 2011
Net revenues for the quarter ended September 30, 2011 were
$4,060,000 compared with $3,953,000 in the quarter ended September
30, 2010, an increase of $107,000, or 2.7%. The increase in net
revenues during the quarter ended September 30, 2011 compared to
the same period of 2010 resulted from an increase of $272,000 in
revenue from European operations, offset by a decrease of $165,000
in domestic revenue. European revenues benefited by $118,000 from
changes in currency exchange rates. Net revenues for the nine
months ended September 30, 2011 were $12,569,000, compared with
$13,002,000 in the same period of 2010, a decline of $433,000, or
3.3%. Net revenue results for the nine months ended September 30,
2011 benefited by $275,000 from currency exchange rates.
Gross profit in the quarter ended September 30, 2011 decreased
by $45,000, or 2.1%, from the comparable period in 2010. Gross
profit as a percentage of net revenues decreased to 51.4% in the
quarter ended September 30, 2011 from 53.9% in the same period of
2010 primarily due to higher instrument sales by our European
subsidiary, which have a lower gross margin percentage than reagent
sales. Gross profit in the nine months ended September 30, 2011
decreased by $393,000, or 5.7%, from the comparable period in 2010.
Gross profit as a percentage of net revenues decreased to 52.2% in
the nine months ended September 30, 2011 from 53.5% in the same
period of 2010 primarily due to lower margins at our European
operations.
Operating expenses for the quarter ended September 30, 2011
decreased 5.3% to $3,083,000 from $3,255,000 for the same period of
2010. The decrease in operating expenses was primarily the result
of a $444,000, or 24.7%, decrease in general and administrative
expenses, partially offset by an increase of $222,000, or 20.2%, in
selling and administrative expenses and an increase of $50,000, or
13.8%, in research and development expenses. The decrease in
general and administrative expenses for the quarter ended September
30, 2011 was primarily due to severance costs included in the same
period of 2010 and a decrease in the number of executive officers
in the 2011 period. Selling and administrative expenses for the
quarter ending September 30, 2011 increased due to the addition of
sales force personnel. Research and development expenses for the
quarter ended September 30, 2011 increased due to the increase in
new product development, including additional staff allocated to
research and development activities. For the nine months ended
September, 30 2011, operating expenses were $9,726,000 compared
with $10,204,000 in the same period of 2010, a reduction of
4.7%.
Loss from operations for the quarter ended September 30, 2011
was $997,000 compared with $1,124,000 in the same period of 2010.
Net loss for the quarter ended September 30, 2011 was $1,234,000,
or $0.04 loss per share, compared with net loss of $1,177,000, or
$0.04 loss per share, in the same period of 2010. Loss from
operations for the nine months ended September 30, 2011 was
$3,166,000 compared with $3,250,000 in the same period of 2010. For
the nine months ended September 30, 2011, net loss was $3,021,000,
or $0.10 loss per share, compared with net loss of $3,445,000, or
$0.12 loss per share, in the same period of 2010.
About IVAX Diagnostics, Inc.
IVAX Diagnostics, Inc. (www.ivaxdiagnostics.com), headquartered
in Miami, Florida, is a fully integrated in vitro diagnostics
company that develops, manufactures and distributes in the United
States and internationally, proprietary diagnostic reagents, test
kits and instrumentation, primarily for autoimmune and infectious
diseases, through its three subsidiaries: Diamedix Corporation
(U.S.), Delta Biologicals S.r.l. (Europe) and ImmunoVision, Inc.
(U.S.).
Safe Harbor Statement
Except for the historical matters contained herein, statements
in this press release are forward-looking and are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that forward-looking
statements involve risks and uncertainties that may affect the
business and prospects of IVAX Diagnostics, Inc., including,
without limitation: IVAX Diagnostics’ ability to successfully
improve its financial condition, results of operations and cash
flows; IVAX Diagnostics’ ability to successfully implement cost
containment efforts and achieve a reduction in its expenses; IVAX
Diagnostics’ ability to successfully grow its business, whether
during the anticipated time frame or at all; IVAX Diagnostics’
ability to successfully expand its suite of products; IVAX
Diagnostics’ ability to successfully increase its global footprint,
whether by increasing sales in the U.S. and other markets or
otherwise; economic, competitive, political, governmental and other
factors affecting IVAX Diagnostics and its operations, markets and
products; the success of IVAX Diagnostics’ technological, strategic
and business initiatives; IVAX Diagnostics’ ability to achieve cost
advantages from its own manufacture of instrument systems, reagents
and test kits; and other risks and uncertainties that may cause
results to differ materially from those set forth in the
forward-looking statements. In addition to the risks and
uncertainties set forth above, investors should consider the
economic, competitive, governmental, technological and other risks
and uncertainties discussed in IVAX Diagnostics’ filings with the
Securities and Exchange Commission, including, without limitation,
the risks and uncertainties discussed under the heading “Risk
Factors” in such filings.
IVAX DIAGNOSTICS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Period Ended September 30, Three months
Nine months 2011
2010 2011
2010 Net revenues $ 4,059,598 $
3,952,606 $ 12,568,953 $ 13,001,930 Cost of sales
1,973,863 1,821,597
6,008,085 6,048,179 Gross profit
2,085,735 2,131,009
6,560,868 6,953,751
Operating expenses: Selling and marketing 1,320,244 1,097,877
4,054,260 3,655,070 General and administrative 1,350,734 1,794,444
4,274,806 5,337,478 Research and development
412,231 362,251
1,397,333 1,211,541 Total
operating expenses
3,083,209
3,254,572 9,726,399
10,204,089 (Loss) from operations (997,474 )
(1,123,563 ) (3,165,531 ) (3,250,338 ) Other income
(expense): Interest income (expense) (1,892 ) 2,352 (9,112 ) 3,249
Other income (expense), net
(205,699
) (28,044 )
(166,762 ) (115,197
) Total other income (expense), net
(207,591 ) (25,692
) (175,874 )
(111,948 ) Loss before income
taxes (1,205,065 ) (1,149,254 ) (3,341,405 ) (3,362,286 )
Provision (credit) for income taxes
28,614
27,503 (320,224
) 83,189 Net loss
$ (1,233,679 )
$ (1,176,758 )
$ (3,021,181 )
$ (3,445,475 )
Net loss per share Basic and diluted
$
(0.04 ) $ (0.04
) $ (0.10 )
$ (0.12 )
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic
34,391,554 27,649,887
29,943,392 27,649,887
Diluted
34,391,554
27,649,887 29,943,392
27,649,887
IVAX DIAGNOSTICS, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2011 2010
ASSETS Current assets: Cash and cash
equivalents $ 3,939,189 $ 1,826,228 Accounts receivable, net of
allowances for doubtful accounts of $648,251 in 2011 and $399,376
in 2010 5,775,146 5,344,205 Inventories, net 4,293,854 4,077,896
Other current assets
262,836
146,366 Total current assets 14,271,025
11,394,695 Property, plant and equipment, net 1,532,155
1,618,136 Equipment on lease to customers, net 693,683 679,438
Product license 282,936 282,936 Goodwill 870,290 870,290 Restricted
deposits 107,066 228,680 Other assets
45,815
26,847 Total assets
$ 17,802,970 $
15,101,022 LIABILITIES AND
SHAREHOLDERS’ EQUITY Current liabilities:
Accounts payable $ 2,235,539 $ 1,597,555 Accrued license payable
135,970 132,521 Revolving line of credit 379,661 - Accrued expenses
and other current liabilities 2,333,343 2,511,698 Capital lease
obligation, current
76,795
71,826 Total current liabilities
5,161,308 4,313,600
Other long-term liabilities: Capital lease obligation,
long-term 42,378 100,612 Deferred tax liabilities 412,803 365,184
Other long-term liabilities
1,036,163
955,056 Total other long-term
liabilities
1,491,344
1,420,852 Commitments and contingencies
Shareholders’ equity: Common stock, $0.01 par value,
authorized 50,000,000 shares, issued and outstanding 27,649,887 in
2010 and 2009 343,915 276,498 Stock subscription receivable
(10,000,000 ) - Capital in excess of par value 56,035,037
41,389,404 Accumulated deficit (34,707,653 ) (31,686,472 )
Accumulated other comprehensive loss
(520,981
) (612,860 ) Total shareholders’
equity
11,150,318
9,366,570 Total liabilities and shareholders’
equity
$ 17,802,970 $
15,101,022
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