Corgenix Announces First Quarter Results and Merger Update
DENVER, Nov. 15 /PRNewswire-FirstCall/ -- Corgenix Medical Corporation
(OTC:CONX) (BULLETIN BOARD: CONX) today announced financial results for the
quarter ended September 30, 2004.
Sales for the first quarter of fiscal 2004 increased 8.4% to $1,303,071
compared with $1,202,330 for the first quarter in the prior fiscal year. The
first quarter increase in sales growth was primarily due to increased
international and domestic sales of the Company's coagulation medical
diagnostic products. Overall, international sales increased almost 21% while
domestic sales increased almost 5%. Net loss for the current period was
$190,199 or ($.04) per share compared to a net loss of $65,380 or ($.02) per
share in the prior year's first quarter.
Douglass Simpson, President of Corgenix, stated: "Even though our sales
increased for the quarter as compared to the prior year's same quarter, we were
not satisfied with our overall financial performance as reflected in the
increased net loss reported for the quarter. The two major reasons for the
increased loss involved a modification to our manufacturing format which
increased our cost of goods sold, in addition to the accretion of the discount
on the note payable to Genesis Bioventures, which accounting treatment
significantly increased interest expense for the quarter. On the positive
side, our cost controls which we enacted last year are helping us keep
operating expenses in line and are getting us ever closer to renewed
profitability. We believe that the continued strength of our principal
portfolio of diagnostic products, in addition to our pending merger with
Genesis, discussed below, bodes well for the continued growth and success of
our company." As stated in earlier press releases, the potential merger with Genesis
Bioventures, Inc. (AMEX:GBI) is proceeding with the intent to complete the
proposed merger in early calendar 2005. In addition, a private financing
relating to the proposed merger is also in progress.
About Corgenix Medical Corporation Corgenix is a leader in the development and manufacture of anti-Phospholipid
test kits and other unique diagnostic products for cardiovascular disease and
thrombotic risk, being the first on the market with an FDA cleared assay for
anti-Cardiolipin (aCL). The company is based in metropolitan Denver and is
focused on the development of specialized diagnostic kits for immunology
disorders, vascular diseases and bone and joint diseases. Corgenix diagnostic
products are commercialized for use in clinical laboratories throughout the
world. More information is available at http://www.corgenixonline.com/.
About Genesis Bioventures Genesis Bioventures, Inc. (AMEX:GBI) is a biomedical development corporation
focusing on the development and marketing of novel diagnostics and
therapeutics. The Company's wholly owned subsidiary, Biomedical Diagnostics,
LLC, specializes in the development of cancer diagnostics. The first product
commercially available is the MSA as a screen for breast cancer risk. In
addition, the Company has equity interest in Prion Developmental Laboratories,
Inc., which specializes in the development of diagnostic tests to detect prion
disease in cattle, deer, sheep and elk as well as in human blood.
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. These statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the 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 report 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 to publicly update or revise any forward-looking statements.
SUMMARY OF FINANCIAL HIGHLIGHTS
($000 of U.S. dollars except shares outstanding and per share amounts) CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES
OPERATIONAL DATA Quarter Ended September 30,
2004 2003 Net sales $1,303 $1,202 Gross profit 746 731 Operating loss (86) (41) Net loss (190) (65) Accretion of discount on redeemable
common stock 22 22 Accretion of discount on note payable 84 -- Net loss available to common
stockholders (212) (87) Basic and diluted earnings per share $(0.04) $(0.02) Diluted shares outstanding 5,324,818 5,294,477
BALANCE SHEET DATA September 30, 2004 September 30, 2003 Cash $427 $207 Working capital 542 278 Total assets 2,846 2,553 Long-term debt 241 380 Total stockholders' equity 381 211 Complete copies of the Corgenix Medical Corporation Forms 10-KSB and
10-QSB are available at http://www.sec.gov/. Copies and additional
information
can be obtained by contacting William Critchfield, Chief Financial
Officer: phone (303) 453-8903, or e-mail at . DATASOURCE: Corgenix Medical Corporation CONTACT: William Critchfield, Chief Financial Officer of Corgenix Medical Corporation, +1-303-453-8903, Web site: http://www.corgenixonline.com/
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