OMRX Orthometrix Inc (CE)

ORTHOMETRIX, INC. (OTCBB: OMRX) announced today its financial results for the first quarter ended March 31, 2006. Revenue for the first quarter ended March 31, 2006 increased by 59% to $748,066 compared with $470,980 for the first quarter ended March 31, 2005. Gross Margin for the first quarter ended March 31, 2006 increased to 70% compared with 63% for the first quarter ended March 31, 2005. The net loss for the first quarter of 2006 decreased by 59% to $253,167 compared with a 2005 first-quarter net loss of $616,865. Sequentially, revenue for the first quarter ended March 31, 2006 increased by 114% to $748,066, compared with $349,080 for the quarter ended December 31, 2005. The net loss for the first quarter of 2006 decreased by 71% to $253,167 compared with a net loss of $864,884 for the quarter ended December 31, 2005. Reynald Bonmati, Chairman and Chief Executive Officer of Orthometrix, commented, "We are very pleased with the financial results of our last quarter which started to show the impact of the sale of our new Orbasone(TM) ESWT Pain Management System recently approved by the FDA for the treatment of chronic plantar fasciitis (foot pain). The recruitment and training of our Orbasone direct sales team has been completed and we are now building Orbasone inventory to respond to the expected demand for our ESWT system. Sales of our patented Whole Body Vibration exercise and conditioning systems to professional sports teams have also been increasing and I am quite bullish about the future of our Company." Orthometrix, Inc. markets, sells and services several musculoskeletal product lines used in pharmaceutical research, diagnostic and monitoring of bone and muscle disorders, sports medicine, rehabilitative medicine, physical therapy and pain management. Our Web addresses are www.orthometrix.net, www.orbasone.com and www.vibraflex.com. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this release are forward looking statements that involve risk and uncertainties, including, but not limited to, any effect on future financial results from efforts to broaden the Company's position in the rehabilitation, physical therapy and musculoskeletal markets, any potential impact on sales of the Orbasone in North America, and other risks detailed in the documents periodically filed with the Securities and Exchange Commission, specifically the most recent reports on Forms 10-KSB and 10-QSB. These risks and uncertainties could cause actual results to differ materially from those expected and/or contained in the forward-looking statements. Any forward-looking statement made in this release is made as of the date of this release and the Company assumes no obligation, subject to applicable law, to update such forward-looking statement. (Tables to follow) -0- *T Orthometrix, Inc. Consolidated Statement of Operations ------------------------------------ (unaudited) Three months ended March 31, ----------------------------- 2006 2005 ------------- --------------- Revenue $748,066 $470,980 Cost of revenue 223,798 174,330 ------------- --------------- Gross profit 524,268 296,650 Sales and marketing expense 443,559 350,633 General and administrative expense 335,498 388,555 Research and development expense 42,031 135,242 ------------- --------------- Operating loss (296,820) (577,780) Interest expense (31,645) (40,329) Interest income 67 1,244 Other income 75,231 - ------------- --------------- Loss before income taxes (253,167) (616,865) Income tax - - ------------- --------------- Net loss ($253,167) ($616,865) ============= =============== Basic and diluted weighted average shares 44,288,618 37,935,677 ============= =============== Basic and diluted loss per share ($0.01) ($0.02) ============= =============== Selected Balance Sheet Data: ---------------------------- March 31, December 31, 2006 2005 ------------- --------------- Cash and cash equivalents $210,379 $22,861 Other current assets 608,108 454,167 Long term assets 112,279 53,694 ------------- --------------- Total assets $930,766 $530,722 ============= =============== Bank Borrowings $340,000 $330,000 Other current liabilities 1,090,190 816,449 Note payable - net 410,716 183,069 Total stockholders' equity (deficit) (910,140) (798,796) ------------- --------------- Total liabilities and equity $930,766 $530,722 ============= =============== *T