HALIFAX, Dec. 28, 2012 /CNW/ - MedMira Inc., (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, reported today on its financial results for the three month period ending October 31, 2012. The Company's revenues were up by $309,728 over the same quarter last year.
"Adding to our top line growth in the first quarter was revenue recognized as a result of our ongoing product development and commercialization contract with the US Army," said Daniel Frid, CFO, MedMira Inc. "The first quarter also brought the conclusion of our debt restructuring initiative, including re-negotiated debt holder arrangements, decreased interest rates, and more favorable payment terms through this fiscal year. This initiative strengthened the Company's operating base and now allows it to focus on strategic business development and product commercialization initiatives."
Frid added, "Working together with strategic partners, our sales, marketing and business development activities are advancing well in a number of key areas including the military sector, technology platform development, and sales in international markets, such as Latin America where we saw an increase this quarter with a strong and growing interest in the Multiplo line."
First Quarter Financial Highlights
- The Company completed debt settlement arrangements with its debt holders and is no longer in a default position on any of its loans. Building on a debt reduction of $11,834,592 completed in June 2012, the Company paid an additional $312,992 to eliminate a further $1,021,503 in debt. The interest rates on all remaining loans are at or below 3%.
- The Company recorded revenue in the quarter ended October 31, 2012 of $544,501 as compared to $234,773 for the same quarter last year. The increase in revenue is due to the recognition of service revenue related to the US Army contract of $342,814. Product revenue for the quarter was $201,687 as compared to $234,773 for the same period last year. Due to a delay in product shipment, anticipated sales revenue from China was not recognized in the first quarter. This shipment was made in early November and revenue from these sales, as well as additional sales in China, will be recognized in subsequent quarters.
- Gross profit for the quarter was $167,038 compared to $146,479 in the same period in 2011, an increase of 14%. Gross profit percentage decreased to 31% from 62% resulting from lower margins on the US Army service revenue than margins on product sales.
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics. The company's tests provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The company's tests are sold under the Reveal®, Multiplo™ and Miriad brands in global markets. MedMira's rapid flow-through HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit MedMira's website at www.medmira.com.
This news release contains forward-looking statements, which involve risk and uncertainties and reflect the Company's current expectation regarding future events including statements regarding possible future growth and new business opportunities. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
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: MEDMIRA INC.
For further information:
Andrea Young, Corporate Communications