IVAX Diagnostics, Inc. (NYSE Amex: IVD), a fully integrated in
vitro diagnostics company, reports its financial results for the
quarter ended March 31, 2012.
Kevin D. Clark, Chief Executive Officer, Chief Operating Officer
and President of IVAX Diagnostics, said, “I am pleased to report a
continuation in the first quarter of 2012 of the turnaround we
experienced in the fourth quarter of 2011, with a significant year
over year reduction in operating loss to almost break-even,
resulting from a significant reduction in operating expenses. Our
expenses remained under control in the first quarter of 2012 while
we prepare our efforts for sales growth. Our cash position has also
stabilized with a much lower amount of cash used in operations.
Looking ahead into the remainder of 2012, now that we have become
much more streamlined, we are continuing to focus on implementing a
number of new initiatives in an effort to grow sales and product
range, organically as well as inorganically through acquisitions,
both in the United States and internationally. These efforts are
backed by our previously reported stock purchase agreement and
warrant with our principal stockholder, ERBA Diagnostics Mannheim
GmbH, which has already provided us with $5.45 million of equity
funding and which has agreed to provide us with another $10.0
million pursuant to the stock purchase agreement and which has the
right to provide us with an additional $14.55 million pursuant to
the warrant.”
Financial Highlights for the Quarter Ended March 31,
2012
In the first quarter of 2012, revenues and gross profit
increased and the operating result was almost break-even for the
second consecutive quarter.
Net revenues for the first quarter of 2012 were $4,273,000
compared with $4,134,000 in the first quarter of 2011, an increase
of $139,000 or 3.4%. The increase in revenue was primarily the
result of an increase in reagent and instrument sales in the United
States and contract R&D revenue in Italy.
Gross profit for the first quarter of 2012 was $2,122,000, or
49.7% of net revenue, compared with $2,115,000, or 51.2% of net
revenue for the first quarter of 2011. The decrease in gross profit
margin percentage was principally as a result of an increase in the
sale of instruments and contract R&D, which have a lower
average margin than reagent sales.
Operating expenses for the first quarter of 2012 decreased to
$2,242,000 from $3,123,000 for the first quarter of 2011. Selling
expenses decreased mainly due to reduction in workforce and lower
selling expenses. General and administrative expenses decreased as
a result of reduction in workforce, reduction in leased office
space and reduction in provision for doubtful accounts. Research
and development expenses decreased due to reduction of research and
development activities in the United States and funding of research
and development in Italy.
Loss from operations for the first quarter of 2012 was $119,000
compared with the loss from operations of $1,007,000 in the first
quarter of 2011. Net loss for the first quarter of 2012 was
$79,000, or $0.00 loss per share, compared with a net loss of
$1,020,000, or $0.04 loss per share, in the first quarter of 2011.
Comprehensive income was $43,000 for the first quarter of 2012
compared with comprehensive loss of $796,000 in the first quarter
of 2011.
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: the risks and uncertainties related to the
transactions contemplated by IVAX Diagnostics’ stock purchase
agreement with ERBA Diagnostics Mannheim GmbH, including that the
transactions contemplated to be consummated at the future closings
under the stock purchase agreement may not be consummated on the
contemplated terms, in the time frame anticipated, or at all, that
the warrants may not be exercised, in whole or in part, by ERBA
Diagnostics Mannheim, that ERBA Diagnostics Mannheim has the sole
discretion regarding its decision of whether or not, and if so
when, to exercise the warrants, in whole or in part, and such
decision will be based upon considerations ERBA Diagnostics
Mannheim deems to be appropriate, which may include, among other
things, the future market price of IVAX Diagnostics’ common stock,
which is subject to volatility and a number of other factors, many
of which may be beyond IVAX Diagnostics’ control, and that, when
deciding whether or not, and if so when, to exercise the warrants,
in whole or in part, ERBA Diagnostics Mannheim’s interest may
conflict with IVAX Diagnostics’ interests; IVAX Diagnostics’
ability to successfully improve its financial condition, results of
operations and cash flows; IVAX Diagnostics’ ability to
successfully maintain its cost containment efforts and reduced
expenses; IVAX Diagnostics’ ability to successfully achieve sales
growth; IVAX Diagnostics’ ability to successfully maintain
stability in its cash flows and liquidity position; IVAX
Diagnostics’ ability to successfully grow its business, sales and
product range in the United States and other markets, whether
organically or inorganically through acquisition, during the
anticipated time frame or at all; IVAX Diagnostics’ ongoing
initiatives to reduce manufacturing costs, manage operating
expenses, increase sales in the United States and other markets and
otherwise improve its operating results and performance may not be
successful or result in the positive financial impact expected,
whether in the time frame anticipated, or at all; IVAX Diagnostics
may not be successful in identifying or consummating acquisitions
or other strategic opportunities and any identified and consummated
acquisition or other strategic opportunity may not be successfully
integrated and may not result in synergies, operational
efficiencies or other benefits anticipated and may not otherwise
improve IVAX Diagnostics’ financial condition, operating results or
cash position; 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; voting
control of IVAX Diagnostics’ common stock by ERBA Diagnostics
Mannheim; conflicts of interest with ERBA Diagnostics Mannheim and
with IVAX Diagnostics’ officers, employees and other directors,
including, without limitation, directors that are also executive
officers of ERBA Diagnostics Mannheim; 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
COMPREHENSIVE INCOME
(unaudited)
For the Three Months Ended March 31,
2012 2011 Net
revenues $ 4,273,274 $ 4,134,357 Cost of sales
2,150,936 2,019,142
Gross profit
2,122,338
2,115,215 Operating expenses: Selling
970,893 1,225,489 General and administrative 1,075,387 1,347,001
Research and development
195,544
550,235 Total operating expenses
2,241,824 3,122,725
Loss from operations
(119,486
) (1,007,510 )
Other income (expense): Interest income (expense) (12,366 ) (3,391
) Other income (expense), net
81,366
19,192 Total other income (expense), net
68,700 15,801
Loss before income taxes (50,786 ) (991,709 )
Provision for income taxes
27,668
28,308 Net loss (78,454 ) (1,020,017 )
Other comprehensive income - foreign currency translation
adjustments
121,711
224,482 Comprehensive income (loss)
$ 43,257 $
(795,535 ) Net loss per share
Basic and diluted
$ (0.00 )
$ (0.04 )
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: Basic
34,391,554 27,649,887
Diluted
34,391,554
27,649,887
IVAX DIAGNOSTICS, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2012 2011 (unaudited)
ASSETS
Current assets: Cash and cash equivalents $ 3,511,167 $
3,653,244 Accounts receivable, net of allowances for doubtful
accounts of $685,315 in 2012 and $716,599 in 2011 6,043,004
5,950,621 Inventories, net 3,681,509 3,830,295 Other current assets
397,332 231,992
Total current assets 13,633,012 13,666,152 Property,
plant and equipment, net 1,384,684 1,456,940 Goodwill, net 870,290
870,290 Equipment on lease, net 622,526 674,504 Product license
282,936 282,936 Restricted deposits 118,527 127,859 Other assets
123,752 128,203
Total assets
$ 17,035,727
$ 17,206,884
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities: Accounts payable $ 2,029,978 $
2,345,838 Capital lease obligation, current 81,493 79,186 Accrued
license payable 133,000 129,490 Revolving line of credit 660,995
736,566 Accrued expenses and other current liabilities
1880,353 1,744,221
Total current liabilities
4,785,819
5,035,301 Other long-term
liabilities: Capital lease obligations, noncurrent - 21,287
Deferred tax liabilities 444,549 428,676 Other long-term
liabilities
1,034,830
994,348 Total other long-term liabilities
1,479,349 1,444,311
Commitments and contingencies Shareholders’
equity: Common stock, $0.01 par value, authorized 100,000,000
shares, issued and outstanding 34,391,554 in 2012 and 2011 343,915
343,915 Capital in excess of par value 46,035,037 46,035,037
Accumulated deficit (35,062,269 ) (34,983,815 ) Accumulated other
comprehensive loss
(546,154 )
(667,865 ) Total shareholders’
equity
10,770,529
10,727,272 Total liabilities and shareholders’
equity
$ 17,035,727 $
17,206,884
Ivax Diagnostics (AMEX:IVD)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Ivax Diagnostics (AMEX:IVD)
Historical Stock Chart
Von Jun 2023 bis Jun 2024