MedMira Reports First Quarter Results with an Increase in Revenues Over Last
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
-- 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
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
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.
MedMira Contact: Andrea Young, Corporate Communications Tel: 902-450-1588
SOURCE: MEDMIRA INC.
To view this news release in HTML formatting, please use the following URL:
CO: MEDMIRA INC.
ST: Nova Scotia
NI: BTC ERN ORDER
-0- Dec/29/2012 02:33 GMT
Press spacebar to pause and continue. Press esc to stop.