Corgenix Announces 2nd Quarter Results
11 Februar 2004 - 11:00PM
PR Newswire (US)
Corgenix Announces 2nd Quarter Results DENVER, Feb. 11
/PRNewswire-FirstCall/ -- Corgenix Medical Corporation (BULLETIN
BOARD: CONX) today announced financial results for the second
quarter ended December 31, 2003. Sales for the second quarter
offiscal 2004 decreased 10.3% to $1,186,738 compared with
$1,323,529 for the same period in the prior fiscal year. Sales for
the six-month period decreased 12.6% to $2,389,068 from $2,733,569
for the comparable prior year period. The second quarter andsix
month reduction in sales was primarily due to reduced sales in
Japan. The Company reported a loss of $75,520 or $ 0.02 per share
for the quarter compared to a loss of $98,635 or $0.03 per share
for fiscal 2003's second quarter. For the comparablesix-month
periods, the net loss was $140,900, or $0.03 per share for the
current six month period compared to net income of $50,110 or less
than $0.01 per share in the prior year. Douglass Simpson, President
of Corgenix, stated, "Even though our salesdeclined for the quarter
and six months as compared to the prior year, we are encouraged
with our improved financial performance in the second quarter
compared to this fiscal year's first quarter. When we factor out of
both current periods a discontinued contract manufacturing
agreement with a significant customer in Japan, we continue to
demonstrate sales growth in most of our product areas. Equally
important, our recently enacted cost controls are helping us keep
operating expenses in line and are getting us ever closer to
renewed profitability. We believe that the continued strength of
our principal portfolio of diagnostic products, in addition to our
pending merger with Genesis Bioventures bodes well for the
continued growth and success of our company." Merger Update On
August 5, 2003, Corgenix entered into a letter of intent to merge
with Genesis Bioventures, Inc. ("Genesis" or "GBI") a biomedical
development company listed on the American Stock Exchange and
focused primarily on the development of a novel breast cancer risk
assessment diagnostic test. Under the terms of the letter of
intent, Genesis will issue 14,000,000 Genesis shares in exchange
for 100% of Corgenix's outstanding shares at the time of the
merger. The terms of the letter of intent also provide that
Corgenix's current management team will assume the responsibility
of managing the combined entity, which will continue to be known as
Genesis Bioventures, Inc. The letter of intent was amended on
October 21, 2003 and as a result, Corgenix and GBI sought to
complete a definitive merger agreement on or about December 15,
2003 and planned to consummate the merger on or about March 31,
2004. The Company has waived the above timelines and we recently
announced that the initial merger-related fund raising effort, led
by a full service investment bank specializing in the biotech
industry, is in progress, and both Corgenix and GBI are confident
that the fund raising will be successfully completed by no later
than the end of this month and, as a result, both companies are
continuing to proceed with the intent to complete the merger during
the summer of 2004. About Corgenix Medical Corporation Corgenix is
a leader in the development and manufacturing of anti-Phospholipid
test kits, being the first on the market with an FDA cleared assay
for anti-Cardiolipin (aCL), and is still the only manufacturer of
an FDA cleared anti-phosphatidylserine (aPS) and an
anti-Prothrombin (aPT) test kit. The company is based in
metropolitan Denver and is focused on the development of
specialized diagnostic kits for immunology disorders, vascular
diseases and bone and joint diseases. Corgenix diagnostic products
are commercialized for use in clinical laboratories throughout the
world. About Genesis Bioventures Genesis Bioventures, Inc. (GBI) is
a biomedical development corporation focusing on the development
and marketing of novel diagnostics and therapeutics. The Company's
wholly owned subsidiary, Biomedical Diagnostics, LLC, specializes
in the development of cancer diagnostics. The first product
commercially available is the MSA as a screen for breast cancer
risk. In addition, the Company has equity interest in Prion
Developmental Laboratories, Inc., which specializes in
thedevelopment of diagnostic tests to detect prion disease in
cattle, deer, sheep and elk as well as in human blood. Statements
in this press release that are not strictly historical facts are
"forward looking" statements (identified by the words "believe,"
"estimate," "project," "expect" or similar expressions) within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements inherently involve risks and uncertainties that
could cause actual results to differ materially from the
forward-looking statements. Factors that would cause or contribute
to such differences include, but are not limited to, continued
acceptance of the Company's products and services in the
marketplace, competitive factors, changes in the
regulatoryenvironment, and other risks detailed in the Company's
periodic report filings with the Securities and Exchange
Commission. The statements in this press release are made as of
today, based upon information currently known to management, and
the company does not undertake any obligation to publicly update or
revise any forward-looking statements. Condensed Statements of
Operations (in thousands, except per share amounts) Three Months
EndedSix Months Ended December 31, December 31, December 31,
December 31, 2003 2002 2003 2002 (unaudited) (unaudited)
(unaudited) (unaudited) Net sales $1,187 1,324 2,389 2,734 Gross
profit 741 859 1,471 1,857 Operating income (loss) (53) (75) (93)
103 Net income (loss) (76)(99) (141) 50 Accretion of discount on
redeemable common stock 22 23 43 43 Net (loss) income to common
shareholders (97) (121) (184) 7 Basic and diluted earnings per
share $(0.02) (0.03) (0.03) * Diluted shares outstanding 5,299,163
5,223,197 5,296,820 5,234,804 * Less than $0.01 per share SUMMARY
BALANCE SHEET DATA (in thousands) December 31, June 30, 2003 2003
(unaudited) Cash $ 255 342 Working capital 192 350 Total assets
2,362 2,556 Long-term debt 334 435 Total stockholders' equity 105
293 Complete copies of the Corgenix Medical Corporation Forms
10-KSB and 10-QSB are available at http://www.sec.gov/ . Copies and
additional information can be obtained by contacting William
Critchfield, Chief Financial Officer: phone (303) 453-8903, or
e-mail at . DATASOURCE: Corgenix Medical Corporation CONTACT:
William Critchfield, Chief Financial Officer of Corgenix Medical
Corporation, +1-303-453-8903,
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