Advanced Medical Institute Inc. Announces Results for the First Quarter Ended September 30, 2005.SYDNEY Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. -- Advanced Medical Institute Inc. (Pink Sheets:AVMD AVMD Adult-Onset Vitelliform Macular Dystrophy ), a leading provider of treatment for erectile dysfunction Erectile Dysfunction Definition Erectile dysfunction (ED), formerly known as impotence, is the inability to achieve or maintain an erection long enough to engage in sexual intercourse. (ED) and premature ejaculation Premature Ejaculation Definition Premature ejaculation occurs when male sexual climax (orgasm) occurs before a man wishes it or too quickly during intercourse to satisfy his partner. (PE) treatment in Australia, announced results for the first quarter for fiscal year 2006, ended September September: see month. 30, 2005. All figures are in U.S. dollars. Revenues for the quarter ended September 30, 2005 were $5.1 million compared with revenues of $2.8 million in the first quarter of fiscal 2005, an increase of 79%. Forward sales forward sales npl → ventas fpl a término or unearned revenues Unearned Revenue When an individual or company receives money for a service or product that has yet to be fulfilled. Notes: For example, prepayment on a lease contract - the revenue is a liability until it has been earned. See also: Earned Income, Passive Income were an additional $3.0 million for the first quarter of the fiscal year compared with forward sales of $1.8 million in the prior year period, an increase of 114.6% percent. Forward or unearned sales are reported as deferred income when sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. are executed and those sales contracts exceed three months. Costs associated with these contracts, including the delivery of three months medication medication /med·i·ca·tion/ (med?i-ka´shun) 1. medicine (1). 2. impregnation with a medicine. 3. administration of a medicine or other remedy. to patients on signing, are expensed as they occur. Deferred income from these contracts is amortized on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over the term of the contracts, often one year. Costs of revenues rose to $1.9 million for the first quarter of fiscal year 2006 compared with costs of revenues of $850,000 in the prior year period. SG&A, including advertising, rose primarily as a result of increased advertising to the premature ejaculation market and increased costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc increasing revenues, to $3,558,000 for the quarter ended September 30, 2005 compared with SG&A of $1,780,000 for the quarter ended September 30, 2004. Gross profit was $3,184,000, or 62.5%, for the quarter ended September 30, 2005 compared with gross profit of $1,983,000, or 70.0%, in the prior year period. The decrease in the percentage of gross profit is primarily due to the increase in medical consultation fees resulting from an increasing number of patients served. Net loss after tax was ($391,000) or ($.02) per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of common stock compared with net profit after tax of $288,000 or $.01 per fully diluted share of common stock in the first quarter of fiscal 2005. AVMD recognizes all expenses on the date they are incurred regardless of whether they relate to recognized or unearned revenue whereas unearned revenue (which is generated by current expenses) is unable to be recognized in the current period. "We are very pleased with the strong growth in revenues in the first quarter of fiscal 2006 and the month on month revenue growth resulting from our additional focus on the PE market," said Dr. Jack Vaisman, Chief Executive Officer, President and Chairman of the Board of Directors of AVMD. "In the quarter ended September 30, 2005, the number of ED patients increased 32% and the number of PE patients increased 231% compared to the same period during fiscal 2005. As a significant percentage of the costs associated with this patient growth was reported in Q1, we look forward to returning to profitability as we expect that the deferred revenue from these patient contracts is reported in the second and subsequent quarters this year," he added. "We are also pleased with the initial results of our program outreach Outreach is an effort by an organization or group to connect its ideas or practices to the efforts of other organizations, groups, specific audiences or the general public. in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and the results of our R & D efforts to deliver better and more effective treatment delivery systems. We look forward to continuing to report our progress in upcoming quarters," stated Dr. Vaisman. About the Company Advanced Medical Institute Inc., (AVMD.PK), headquartered in Sydney, Australia, is a leading provider of treatment programs for erectile dysfunction and premature ejaculation in Australia. The Company operates 17 treatment clinics in Australia, has more than 140 employees, including 25 medical personnel and, since its inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. , has provided treatment to more than 250,000 patients. Advanced Medical Institute and its predecessor companies began treating PE and ED patients successfully in 1993, 6 years prior to the Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. launch of Viagra Viagra First oral drug for male impotence, generic name sildenafil. Before the FDA approved Viagra in 1998, impotence was treated with surgical implants, suppositories, pumps, and drugs injected into the penis. in 1999. For more information, visit the company's website at: http://www.avmd.com.au. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; changes in consumer preferences and tastes or perceptions of health-related issues; effectiveness of advertising or market-spending programs; changes in laws and regulations; fluctuations in costs of production, foreign exchange and interest rates; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.
STATEMENTS OF INCOME
September 30, September 30,
2005 2004
TOTAL REVENUE $5,094,700 $2,832,816
COST OF REVENUE (1,910,514) (849,784)
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GROSS PROFIT 3,184,186 1,983,032
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SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES
Employee benefits (406,641) (132,585)
Depreciation (21,764) (19,066)
Advertising (1,563,385) (812,856)
Consultancy Fees (178,825) (127,610)
Contract Work (10,127) (45,933)
Rent (284,771) (162,022)
Call Centre Charges (176,651) (62,765)
Legal expenses (207,812) (57,767)
Research and development expenses (31,286) -
Telephone expenses (108,564) (136,192)
Commissions (176,098) (28,220)
Traveling expenses (53,025) (19,983)
Other expenses from ordinary activities (339,053) (175,168)
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TOTAL SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES (3,558,002) (1,780,167)
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OTHER INCOME AND EXPENSE
Rental income 12,933 5,540
Bank interest 2,691 1,704
Sundry income 379 -
Provision for doubtful debt written back - 211,845
Borrowing costs (1,246) (10,118)
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TOTAL OTHER INCOME AND EXPENSE 14,757 208,971
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NET INCOME (before income tax expense) (359,059) 411,836
INCOME TAX EXPENSE (32,207) (123,550)
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NET INCOME (391,266) 288,286
NET INCOME ATTRIBUTABLE TO OUTSIDE EQUITY
INTERESTS 4,527 -
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NET INCOME ATTRIBUTABLE TO THE MEMBERS OF
THE PARENT ENTITY (386,739) 288,286
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Net income per share, basic ($0.02) $0.01
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Weighted average number of shares 25,034,014 25,000,000
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