Chantal Pharmaceutical reports third quarter results.LOS ANGELES--(BUSINESS WIRE)--May 15, 1997--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 third quarter of fiscal 1997, ending March 31, the company reported net revenue of $1,414,464 with a net loss of $3,034,579 or $.17 per share. This compares to third quarter revenue in fiscal 1996 of $2,023,546 and a net loss in that quarter of $3,417,010 or $.19 per share. For the nine months ended March 31, the company reported revenues of $7,160,197 with a net loss of $6,502,004 or $.36 per share. That net loss included a $1,045,000 non-cash interest expense, representing $.06 per share, in the second quarter to reflect the discount to market of the conversion option of the eight percent 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 compared to nine month revenues in fiscal 1996, ended March 31, of $8,392,212 and a net loss at that time of $6,908,337 or $.39 per share. Chantal Burnison, chairman and chief executive officer of Chantal Pharmaceutical said: "During the quarter the sales decrease can be primarily attributed to sales being down by the U.S. distributor. In addition, there are no foreign sales included in the third quarter results, as compared to last quarter when the first order from the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. was recorded. We understand that sales in the Far East are going well and we are expecting a reorder re·or·der v. re·or·dered, re·or·der·ing, re·or·ders v.tr. 1. To order (the same goods) again. 2. To straighten out or put in order again. 3. To rearrange. v. from our Pacific Rim distributor during the fourth quarter, against the minimums for the Far East. With respect to our European launch, we have received orders for test marketing the product in two European countries and are currently negotiating a program that will feature direct response marketing of the product in the U.K." Chantal Pharmaceutical Corp. and its marketing subsidiary, Chantal Skin Care Corp. have executive offices, telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. 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 disorders such as acne, 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 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. Information in this 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. 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. 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 United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , additional risks, uncertainties and other fators 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.
Chantal Pharmaceutical Corp.
Financial Chart
For the quarter ending March 31
1997 1996
Revenues $ 1,414,464 $ 2,023,546
Net loss $(3,034,579) $(3,417,010)
Net loss per share $ (.17) $ (.19)
Weighted average shares
outstanding 18,190,516 17,950,516
For the nine months ending March 31
1997 1996
Revenues $ 7,160,197 $ 8,392,212
Loss from operations $(5,476,443) $(7,361,353)
Loss per share
from operations $ (.30) $ (.41)
Non-cash interest expense
on convertible debentures $ 1,045,000 (1)
Net Loss $(6,502,004) $(6,908,377)
Net loss per share $ (.36) $ (.39)
Weighted average shares
outstanding 18,190,516 17,772,737
(1) Represents net loss per share of $.06
CONTACT: Martin E. Janis & Company Inc., Chicago Bev Jedynak, 312/943-1100 |
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