MedMira Reports First Quarter Results with an Increase in Revenues
Over Last Year
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.
About MedMira
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.