Human Pheromone Sciences Announces Quarterly and Full Year Results
March 31 2006 - 2:09PM
PR Newswire (US)
SAN JOSE, Calif., March 31 /PRNewswire-FirstCall/ -- Human
Pheromone Sciences, Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS"
or "the Company") today announced results for the three months and
the year ended December 31, 2005. For the three months ended
December 31, 2005, net revenue was $66,000, representing a decrease
from sales of $432,000 in the prior year period, and resulted in a
loss from on-going operations of $207,000 ($.05 per share) as
compared with a loss from on-going operations of $76,000 ($.02 per
share) for the same period of 2004. For the full year, net revenue
of $414,000, represented a decrease from the net revenue of
$1,140,000 in the prior year, and resulted in a loss from
continuing operations of $934,000 ($.22 per share) as compared with
a loss from continuing operations of $570,000 ($.14 per share) for
the same period of 2004. The decrease in revenue for both the
quarter and the full year from the 2004 periods reflects an
unprecedented level of purchases in the fourth quarter of 2004 by
our largest customer, and a corresponding reduction in purchases
during the entire year of 2005, including the fourth quarter of the
current year. This cyclical purchasing pattern has been evidenced
by the purchases in the first quarter of 2006, ending March 31,
2006, which has shown an increase in revenue from this customer of
246% as compared to the prior year quarter. This pattern evidences
the cyclical nature of this customer's purchasing pattern. Selling,
general and administrative expenses decreased by $140,000 (38%) in
the fourth quarter of 2005, as a result of reduced personnel levels
and lower overhead spending in response to the reduced revenues.
For the full year these expenses decreased by $306,000 or 22% for
the same reasons. For the full year, research and development
expenses grew by 76%, a result of the Company's decision to devote
its limited funds in promising new technologies in human testing.
The Company believes that this was a sound decision based upon its
identification of the first new compound in 12 years that has shown
significant promise in human trials. Human Pheromone Sciences, Inc.
is a technology-based company, whose proof- of concept products
included prestige-priced fragrances and toiletries and
environmental products sold under the Natural Attraction(R),
REALM(R), innerREALM(R) and EROX(R) trademarks. These products
contain mood-enhancing synthesized human pheromones covered under
U.S. and foreign patents. The Company also licenses its proprietary
technology to other companies for inclusion in their products for
direct sale to the consumer. Scientific and consumer studies have
shown that the Company's human pheromones positively impact on the
moods, attitudes and emotions of wearers. Further information is
available on line at http://www.erox.com/. The statements in this
news release may contain forward-looking statements that involve
risks and uncertainties that could cause results to differ from
predicted results. Further information on factors that could affect
the Company's results is detailed in the Company's annual report to
shareholders on Form 10-KSB for the year ended December 31, 2005 as
filed with the Securities and Exchange Commission. The Company
undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements. HUMAN PHEROMONE
SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands)
December 31, December 31, 2005 2004 Assets Cash and cash
equivalents $452 $1,201 Accounts receivable, net 11 259 Inventories
70 63 Other current assets 18 8 Property and equipment, net 8 17
Total $559 $1,548 Liabilities, convertible redeemable preferred
stock and shareholders' equity Accounts payable $21 $41 Other
current liabilities 119 154 Common stock 20,809 20,809 Accumulated
deficit (20,390) (19,456) Total $559 $1,548 HUMAN PHEROMONE
SCIENCES, INC. Condensed Statements of Operations (Dollars in
thousands, except per-share data) Three months Year ended ended
December 31, December 31, 2005 2004 2005 2004 Net sales and
revenues $66 $432 $414 $1,140 Cost of goods sold 18 98 88 215
Research and development 32 50 164 93 Selling, general and
administrative 226 366 1,113 1,419 Loss from operations (210) (82)
(951) (587) Other income 3 6 17 17 Loss from on-going operations
(207) (76) (934) (570) Net gain on sale of assets -- 6 -- 28 Net
loss $(207) $(70) $(934) $(542) Basic and fully diluted earnings
(loss) per share: From on-going operations $(0.05) $(0.02) $(0.22)
$(0.14) From disposed operations $(0.00) $0.00 $0.00 $0.00 From
assets sold $(0.00) $(0.00) $0.00 $0.01 Net income (loss) $(0.05)
$(0.02) $(0.22) $(0.13) Weighted average number of shares
outstanding - Basic and fully diluted 4,152 4,152 4,152 4,129 Net
income (loss) per share is based on the weighted average number of
common shares and common equivalents outstanding during each
period. Certain common stock equivalents are excluded when their
effect would be anti-dilutive. DATASOURCE: Human Pheromone
Sciences, Inc. CONTACT: William P. Horgan, Chairman, CEO of Human
Pheromone Sciences, Inc., +1-408-938-3030 Web site:
http://www.erox.com/
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