Annidis Corporation Reports 2017 First Quarter Results

OTTAWA, May 25, 2017 /CNW/ - Annidis Corporation (TSX Venture: RHA) ("Annidis" or the Company"). The audited consolidated financial statements for the three months ended March 31, 2017, and the related Management's Discussion and Analysis are available at www.sedar.com.

Highlights

The Company shipped 10 units to Mistarunited Technology Co., Limited ("Mingda"), its Chinese distribution partner and major shareholder, in the first quarter of 2017 and expects to ship a significant number of additional units throughout the year. Production activity has increased in order to meet this higher demand. The Company has received prepayments in 2016 and 2017 on the units to be shipped throughout 2017.

The Company's sales efforts remain focused on:

  • growing the installed base in the Chinese market,

  • repairing and building relationships with key opinion leaders ("KOL's") and large US buying groups, thus providing a forum to present the Annidis product to large audiences and leverage the sales effort, and

  • increasing customer service, education and support through a best-practices benchmarking program to ensure the installed units achieve superior image quality and maximum utilization.

Key Financial Metrics





Three months ended March 31


2017

2016

% Change




%

As at March 31




Installed Base (units in clinics)

127

111

12.6%






$

$


Revenue

565,258

372,382

51.8





Net loss

(880,553)

(1,206,405)

27.0





Net loss per share

(0.01)

(0.01)

19.9

 

Financial Highlights

  • Revenue increased by 52% from $372,382 in the first quarter of 2016 to $565,258 in the first quarter of 2017 as the Company sold 10 units in 2017 compared to five units in 2016.

  • The gross margin percentage was lower in 2017 than 2016 – 13% of revenue compared to 60%. All the units sold in 2017 were sold to China at the lower distributor price. In addition, certain changes in the procurement process resulted in higher component costs. The Company is working on reducing the overall costs and expects unit costs to decline throughout the year.

  • Operating expenses declined by 18% from the prior year - $1,035,885 in 2016 to $853,448 in 2017. This decrease resulted from a reduction in sales and marketing expense in the current year of $146,886, largely attributable to the restructuring of the Company's US sales department that occurred in the third quarter of 2015 and continued up until the end of the first half of 2016.

  • For the three month period ended March 31, 2017, the Company incurred a net loss of $880,553, or ($0.01) per share, compared to a loss of $1,206,405, or ($0.01) per share, for the same period in 2016.

About Annidis Corporation

Annidis (TSX-V: RHA) has developed and manufactures and sells a new patented imaging platform technology based on Multi-Spectral Imaging ("MSI"). This new technology is opening a new frontier in disease identification and its management. The Annidis MSI technology allows eye-care professionals to view non-invasively the deepest areas of the eye aiding eye care professionals in the early identification and treatment of debilitating eye diseases. The Company's existing RHA Gold, used by eye care professionals as a broad based tool for detecting early-onset of eye related diseases such as Dry AMD, has a potential market of over 20,000 clinics in North America and further opportunities in China working with its distribution partner, Yimai Technology International Company. The RHA Platinum MD will further strengthen the value proposition allowing doctors to visualize choroidal and retinal vasculature non-invasively. The RHA Platinum MD has global market potential of more than 100,000 Ophthalmologists.

This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation.  Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties.  The words "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective", "hope", and "continue" (or the negative thereof), and words and expressions of similar import are intended to identify forward-looking statements.  Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include those identified in the Corporation's filings with Canadian securities regulatory authorities, as well as the applicability of patents and proprietary technology; the outcome of pending corporate transactions; possible patent ligation; regulatory approval of products in development; changes in government regulation or regulatory approval processes; government and third party reimbursement; dependence on strategic partnerships; intensifying competition; rapid technological change in the industry; anticipated future losses; the ability to access capital; and the ability to attract and retain key personnel.  All forward-looking information presented herein should be considered in conjunction with such filings.  Except as required by Canadian securities laws, the Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.               

SOURCE Annidis Corporation

For further information: Gerald Slemko, Chairman, Annidis Corporation, 613 596 1800, gslemko@annidis.com

RELATED LINKS
www.annidis.com

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