OMRX Orthometrix Inc (CE)

ORTHOMETRIX, INC. (OTCBB: OMRX) announced today its financial results for the third quarter ended September 30, 2006. Revenue for the third quarter ended September 30, 2006 increased by 67% to $507,368, compared with $302,981 for the third quarter ended September 30, 2005. Gross Margin for the third quarter ended September 30, 2006 increased to 64%, compared with 55% for the third quarter ended September 30, 2005. The net loss for the third quarter of 2006 decreased to $393,335, compared with a 2005 third quarter net loss of $564,649. Revenue for the nine month period ended September 30, 2006 increased by 69% to $1,967,390, compared with $1,165,445 for the nine month period ended September 30, 2005. Gross Margin for the nine month period ended September 30, 2006 increased to 65% compared with 59% for the nine month period ended September 30, 2005. The net loss for the first nine months of 2006 decreased to $1,042,579 compared with a net loss of $1,523,248 for the first nine months of 2005. The Company also announced that it has launched the VibraFlex� Home Edition, its first Whole Body Vibration model designed specifically for the home market. The VibraFlex� is a patented motorized exercise system used to facilitate exercise by individuals with conditions affecting muscle, tendons and ligaments; poor muscle strength and coordination; and poor blood circulation (spinal cord injuries, Osteoarthritis, Incontinence, Diabetes, and Parkinson�s disease). In 2001, the Company received from the U.S. Food & Drug Administration (FDA) a written acknowledgement that devices using this technology may be marketed as Class I devices intended for exercise in connection with such conditions. After being used primarily in rehabilitation and physical therapy, the VibraFlex� started to penetrate the sports and the fitness markets. Today, units are used by star athletes and major professional teams (NBA, MLB, NFL, etc�), as well as fitness clubs (New York Sports Clubs, Gold�s Gym, etc�). Earlier this year, the VibraFlex� 500 was named one of three overall best new product winners out of over 300 new products as voted by Professional Golf Association (PGA) members and buyers at the 2006 PGA Merchandise Show in Orlando, Florida. Reynald Bonmati, Chairman and Chief Executive Officer of Orthometrix, commented, �We continue to be pleased with our sales for the first nine month of 2006 which already amount to 130% of the sales we booked for the entire year 2005. Our VibraFlex� line of patented exercise equipment for fitness and wellness has been the main driver of such sales increase as Whole Body Vibration is getting better known worldwide. As VibraFlex� commercial models started to be purchased for their home gym by customers who can afford their relatively high prices, we have developed the VibraFlex� Home Edition, a new version specially designed for the home market and priced at 1/3 of the commercial models. Our goal is to make the powerful VibraFlex� technology accessible to the public which is becoming increasingly fitness conscious.� 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.vibraflex.com and www.orbasone.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 VibraFlex 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. Orthometrix, Inc. Consolidated Statement of Operations (unaudited) Nine months ended September 30, Three months ended September 30, 2006� 2005� 2006� 2005� � Revenue $1,967,390� $1,165,445� $507,368� $302,981� Cost of revenue 689,956� 479,744� 180,907� 135,762� Gross profit $1,277,436� $685,701� $326,461� $167,219� � Sales and marketing expense 1,236,818� 889,712� 372,205� 343,938� General and administrative expense 877,858� 969,436� 208,681� 303,226� Research and development expense 104,664� 313,109� 37,135� 84,905� � Operating loss ($941,904) ($1,486,556) ($291,560) ($564,850) � Interest expense (218,093) (40,340) (121,954) (11) Interest income 2,187� 3,648� 179� 212� Other income (expense) 115,231� -� 20,000� -� � Loss before income taxes ($1,042,579) ($1,523,248) ($393,335) ($564,649) � Income tax -� -� --� -� � Net loss ($1,042,579) ($1,523,248) ($393,335) ($564,649) � Basic and diluted weighted average shares 44,366,457� 41,472,122� 44,355,303� 43,470,248� � Basic and diluted loss per share ($0.02) ($0.04) ($0.01) ($0.01) � Selected Balance Sheet Data: (unaudited) September 30, December 31, 2006� 2005� � Cash and cash equivalents $33,077� $22,861� Other current assets 956,312� 454,167� Long term assets 101,892� 53,694� � Total assets $1,091,211� $530,722� � Bank Borrowings $350,000� $330,000� Other current liabilities 1,234,666� 816,449� Note payable - net 918,226� 183,069� Total stockholders' equity (deficit) (1,411,681) (798,796) � Total liabilities and equity $1,091,211� $530,722� ORTHOMETRIX, INC. (OTCBB: OMRX) announced today its financial results for the third quarter ended September 30, 2006. Revenue for the third quarter ended September 30, 2006 increased by 67% to $507,368, compared with $302,981 for the third quarter ended September 30, 2005. Gross Margin for the third quarter ended September 30, 2006 increased to 64%, compared with 55% for the third quarter ended September 30, 2005. The net loss for the third quarter of 2006 decreased to $393,335, compared with a 2005 third quarter net loss of $564,649. Revenue for the nine month period ended September 30, 2006 increased by 69% to $1,967,390, compared with $1,165,445 for the nine month period ended September 30, 2005. Gross Margin for the nine month period ended September 30, 2006 increased to 65% compared with 59% for the nine month period ended September 30, 2005. The net loss for the first nine months of 2006 decreased to $1,042,579 compared with a net loss of $1,523,248 for the first nine months of 2005. The Company also announced that it has launched the VibraFlex(R) Home Edition, its first Whole Body Vibration model designed specifically for the home market. The VibraFlex(R) is a patented motorized exercise system used to facilitate exercise by individuals with conditions affecting muscle, tendons and ligaments; poor muscle strength and coordination; and poor blood circulation (spinal cord injuries, Osteoarthritis, Incontinence, Diabetes, and Parkinson's disease). In 2001, the Company received from the U.S. Food & Drug Administration (FDA) a written acknowledgement that devices using this technology may be marketed as Class I devices intended for exercise in connection with such conditions. After being used primarily in rehabilitation and physical therapy, the VibraFlex(R) started to penetrate the sports and the fitness markets. Today, units are used by star athletes and major professional teams (NBA, MLB, NFL, etc...), as well as fitness clubs (New York Sports Clubs, Gold's Gym, etc...). Earlier this year, the VibraFlex(R) 500 was named one of three overall best new product winners out of over 300 new products as voted by Professional Golf Association (PGA) members and buyers at the 2006 PGA Merchandise Show in Orlando, Florida. Reynald Bonmati, Chairman and Chief Executive Officer of Orthometrix, commented, "We continue to be pleased with our sales for the first nine month of 2006 which already amount to 130% of the sales we booked for the entire year 2005. Our VibraFlex(R) line of patented exercise equipment for fitness and wellness has been the main driver of such sales increase as Whole Body Vibration is getting better known worldwide. As VibraFlex(R) commercial models started to be purchased for their home gym by customers who can afford their relatively high prices, we have developed the VibraFlex(R) Home Edition, a new version specially designed for the home market and priced at 1/3 of the commercial models. Our goal is to make the powerful VibraFlex(R) technology accessible to the public which is becoming increasingly fitness conscious." 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.vibraflex.com and www.orbasone.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 VibraFlex 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. -0- *T Orthometrix, Inc. Consolidated Statement of Operations ---------------------------------------------- (unaudited) Nine months ended Three months ended September 30, September 30, ------------------------- ----------------------- 2006 2005 2006 2005 ------------ ------------ ----------- ----------- Revenue $1,967,390 $1,165,445 $507,368 $302,981 Cost of revenue 689,956 479,744 180,907 135,762 ------------ ------------ ----------- ----------- Gross profit $1,277,436 $685,701 $326,461 $167,219 Sales and marketing expense 1,236,818 889,712 372,205 343,938 General and administrative expense 877,858 969,436 208,681 303,226 Research and development expense 104,664 313,109 37,135 84,905 Operating loss ($941,904) ($1,486,556) ($291,560) ($564,850) Interest expense (218,093) (40,340) (121,954) (11) Interest income 2,187 3,648 179 212 Other income (expense) 115,231 - 20,000 - ------------ ------------ ----------- ----------- Loss before income taxes ($1,042,579) ($1,523,248) ($393,335) ($564,649) Income tax - - -- - ------------ ------------ ----------- ----------- Net loss ($1,042,579) ($1,523,248) ($393,335) ($564,649) ============ ============ =========== =========== Basic and diluted weighted average shares 44,366,457 41,472,122 44,355,303 43,470,248 ============ ============ =========== =========== Basic and diluted loss per share ($0.02) ($0.04) ($0.01) ($0.01) ============ ============ =========== =========== Selected Balance Sheet Data: ------------------- (unaudited) September December 30, 31, 2006 2005 ------------ ------------ Cash and cash equivalents $33,077 $22,861 Other current assets 956,312 454,167 Long term assets 101,892 53,694 ------------ ------------ Total assets $1,091,211 $530,722 ============ ============ Bank Borrowings $350,000 $330,000 Other current liabilities 1,234,666 816,449 Note payable - net 918,226 183,069 Total stockholders' equity (deficit) (1,411,681) (798,796) ------------ ------------ Total liabilities and equity $1,091,211 $530,722 ============ ============ *T