Corgenix Reports First Quarter Fiscal 2014 Financial Results

Revenues Realized at Record Pace

Business Wire

DENVER--(BUSINESS WIRE)--

Corgenix Medical Corporation (OTCBB:CONX.OB), a worldwide developer and marketer of diagnostic test kits, today filed its fiscal quarter Form 10-Q and reported financial results. The report disclosed that the company achieved record operating results for the quarter ended September 30, 2013.

  • Revenue for the quarter increased 2.0% to a record $2.88 million from $2.82 million in the same period of the prior year. Most of the growth was in AspirinWorks® product sales (up 72.5%) and contract manufacturing (up 46.2%).
  • Total gross profit for the quarter increased 10.7% to a record of $1.33 million from $1.20 million in the previous year.
  • With operating expenses increasing $231,903 or 23.1%, operating income decreased to $101,700 in the first quarter of 2014 from $204,600 in the first quarter of 2013.
  • The company’s net income for the current quarter totaled $84,000 versus $195,200 in the prior year.
           

Unaudited Financials at a Glance (in thousands, except percentages)

 
      Q1 - FY2014     Q1 - FY2013     Percent Change
Revenue $2,878 $2,821 2.0 %
Gross Profit $1,331 $1,202 10.7 %
Operating Expenses $1,229 $997 23.3 %
Operating Income $102 $205 (50.3 %)
Net Income $84 $198 (57.6 %)
EBITDA     $187     $305     (38.6 %)
 

“We are pleased to report another profitable quarter with increased revenue over the prior year, taking us to an all-time high level,” said Douglass Simpson, Corgenix President and CEO. “The Company concluded the first fiscal quarter with a strong balance sheet and meaningful growth trends in our AspirinWorks business and Contract Manufacturing sectors, all positive indicators of another solid year for the Company.”

Mr. Simpson went on to say, “First quarter results would have been even more favorable if not for the planned increase in operating expenses related to advancing our proprietary AtherOx® oxidized LDL technology. While earnings were impacted, we have enhanced our competitive strengths, enabling us to capitalize on opportunities to profitably expand our market presence in cardiovascular disease testing.”

Corgenix management continues to expect that fiscal 2014 will be another record year, with meaningful improvements in total revenues, net income and EBITDA.

Business Development Highlights for the Quarter ended September 30, 2013

  • Successfully resolved business issues related to proprietary AtherOx technology, and negotiated new license and cooperation agreement.
  • Entered into Diagnostic Test Development Partnership with HDL, Inc. for oxidized lipid technology.
  • Entered into contract manufacturing agreement with EDP Biotech for their proprietary cancer marker.
  • Completed product development project with Eli Lilly and Company (LLY), preparing product for launch by end of calendar year.

First Quarter Conference Call Details

Corgenix invites all those interested in hearing management’s discussion of the first quarter results to join a shareholders conference call today, Thursday, November 14, 2013, at 4:00 p.m. EST (2:00 p.m. MST). Interested parties can join the call by dialing (800) 862-9098. International participants may access the call by dialing +1 785-424-1051. The conference code is “CORGENIX.” A replay will be available for 30 days following the call by dialing (800) 677-6124 for U.S. participants and +1 402-220-0664 for international participants.

About Corgenix Medical Corporation

Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases (including the world’s only non-blood-based test for aspirin effect), bone and joint disorders and a line of unique detection products for viral hemorrhagic disease. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience in product submissions to the FDA and other worldwide regulatory authorities. Additionally, Corgenix contract develops and manufactures products for key medical and life science companies in state-of-the-art facilities in Colorado. The company operates under a Quality Management System that is ISO 13485:2012 certified and compliant with FDA regulations. More information is available at www.corgenix.com.

Statements in this press release that are not strictly historical facts are “forward-looking” statements (identified by the words “believe”, “estimate”, “project”, “expect” or similar expressions) within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which are inherently uncertain, are based on management’s current expectations and are subject to various factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company’s periodic reports filed with the Securities and Exchange Commission, and in the Company’s subsequent filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the Company does not undertake any obligation or intend to publicly update or revise any forward-looking statements.

       

UNAUDITED SUMMARY BALANCE SHEET DATA

(in thousands)

 
September 30, 2013 June 30, 2013
Cash $ 2,144 $ 1,957
Working capital 4,512 4,554
Total assets 6,861 6,733
Long-term debt 325 346
Total stockholders’ equity 5,584 5,421

Contact:
Corgenix Medical Corp
William Critchfield, 303-453-8903
Senior VP Operations and Finance and CFO
wcritchfield@corgenix.com
or
Media Contact:
Armada Medical Marketing
Dan Snyders, 303-623-1190 x 230
Vice President, Public Relations Supervisor
dan@armadamedical.com

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