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
"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
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