Chantal Pharmaceutical Reports Second Quarter Results.LOS ANGELES--(BUSINESS WIRE)--Feb. 14, 1997-- Revenue More than Doubles Compared to First Quarter; Operating Losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. Significantly Reduced Chantal Pharmaceutical Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CHTL) today reported that for the second quarter of fiscal 1997, ending Dec. 31, 1996, the company more than doubled its net revenues from the first quarter. For the second quarter, the Company reported net revenues of $3,836,097, up 101 percent from the $1.9 million in net revenue recorded in the preceding quarter of the fiscal year. The company also significantly reduced its loss from operations in the second quarter of fiscal 1997 to $261,108 or $.01 per share from the first quarter loss from operations of $2,150,117 or $.12 per share. To comply with an SEC staff position taken in December 1996 with respect to debt convertible at a discount to market, the Company has recorded a non-cash interest expense of $1,045,000 to reflect the discount to market of the conversion option in the 8% convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. issued in October 1996. This non-cash interest expense of $1,045,000 resulted in a reporting of an increase in the net loss per share for the quarter of $.06, resulting in a loss for the quarter of $1,412,326 or $.08 per share. For the six months ending Dec. 31, 1996, the Company reported net revenues of $5,745,733 with a loss from operations of $2,411,225 or $.13 per share. The net loss for the six months, including the non-cash interest expense as described above, was $3,467,425 or $.19 per share. The majority of the revenue in the second quarter was generated by sales of the Company's products by its U.S. distributor, Stanson Medical Marketing, to retailers and through the Company's telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. sales. The company recorded its first significant international sales during this second quarter as an initial shipment of product that was sent in the quarter to Michilan International. Michilan International, headquartered in Taipai, announced in December that it will sell the Ethocyn-based Chantal Skin Care Products in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Taiwan, China and Macao. Revenue from this initial shipment accounted for less than 25 percent of the net revenue for the quarter. The company also announced today that it is not locating certain of its operations to Florida, as was previously contemplated. Chantal Pharmaceutical Corp. and its marketing subsidiary, Chantal Skin Care Corp., have executive offices, telemarketing and warehouse facilities in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , with a laboratory in Kaiserslautern, Germany. In addition to marketing the Chantal Ethocyn Skin Care line, the company is engaged in the research and development of products for androgen androgen (ăn`drəjən): see testosterone. androgen Any of a group of hormones that mainly influence the development of the male reproductive system. mediated me·di·ate v. me·di·at·ed, me·di·at·ing, me·di·ates v.tr. 1. To resolve or settle (differences) by working with all the conflicting parties: disorders such as acne acne, common inflammatory disease of the hair follicles and sebaceous glands characterized by blackheads, whiteheads, pustules, nodules and, in the more severe forms, by cysts and scarring. The lesions appear on the face, neck, back, chest, and arms. , hirsutism Hirsutism Definition Excessive growth of facial or body hair in women is called hirsutism. Description Hirsutism is not a disease. The condition usually develops during puberty and becomes more pronounced as the years go by. , male pattern baldness male pattern baldness n. A progressive, diffuse loss of scalp hair in men that begins in the twenties or early thirties, depends on the presence of the androgenic hormone testosterone, and is caused by a combination of genetic and hormonal factors. , benign prostate prostate /pros·tate/ (pros´tat) a gland surrounding the bladder neck and urethra in the male; it contributes a secretion to the semen.prostat´ic pros·tate n. The prostate gland. adj. hypertrophy hypertrophy (hīpûr`trəfē), enlargement of a tissue or organ of the body resulting from an increase in the size of its cells. Such growth accompanies an increase in the functioning of the tissue. and the treatment of certain cancers. Forward looking statements Information in this release contains forward looking statements that involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the company to be materially different from any future results, performance or achievements, expressed or implied by such 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. . Specifically with respect to statements regarding the marketing and distribution of Chantal Skin Care products, including new products being introduced, additional risks, uncertainties, and other factors include, among others, lower than expected consumer acceptance of the company's products; introduction of competitive products; market acceptance, including by retailers, of the company's advertising campaign and promotional activities; the availability of sale space within the ultimate retailer; and negative publicity which reflects on the company as a whole or its products. Certain kinds of promotional activity, including invitations to appear on national and regional talk shows, are not within the control of the company. With respect to statements regarding the marketing and distribution of Chantal Skin Care products in territories other than the U.S., additional risks, uncertainties and other factors include, among others, executing agreements with distributors, implementation by the company, or its distributor of marketing and distribution programs, compliance with applicable regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. of each country, lower than expected consumer acceptance of the company's products, and adverse changes in the economic or political conditions in the respective countries. -0-
Chantal Pharmaceutical Corporation
Financial Chart
For the quarter ending Dec. 31
1996 1995
Revenues $ 3,836,097 $ 1,168,090
Loss from operations $( 261,108) $(4,574,850)
Loss per share from operations $ (.01) $ (.26)
Non-cash interest expense
on convertible debentures $ 1,045,000(a) $ --
Net Loss $ (1,412,326) $(4,272,784)
Net Loss per share $ (.08) (.24)
Weighted average shares
outstanding 18,190,516 17,850,516
For the Six Months Ending Dec. 31
1996 1995
Revenues $ 5,745,733 $ 6,368,666
Loss from operations $ (2,411,225) $ (3,805,209)
Loss per share from operations $ (.13) $ (.22)
Non-cash interest expense
on convertible debentures $ 1,045,000(a) --
Net Loss $ (3,467,425) $(3,491,367)
Net Loss per share $ (.19) $ (.20)
Weighted average shares outstanding 18,190,516 17,683,849
(a) Represents net loss per share of $.06
CONTACT: Martin E. Janis & Company, Bev Jedynak, 312/943-1100 |
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