ChemTrak Reports Results for First Quarter 1998.SUNNYVALE, Calif.--(BUSINESS WIRE)--April 20, 1998--ChemTrak Inc. (Nasdaq:CMTR CMTR Certified Material Test Report CMTR Combined Marginal Tax Rate ), Monday reported product revenues for the first quarter 1998 were $1,054,000, an increase of 73.4 percent, or $446,000 from the $608,000 reported in first quarter a year ago. Total revenues were $1,054,000, down from $1,441,000 in the first quarter 1997. Net loss from operations for the first quarter 1998 was $1,662,000, compared with a net loss from operations of $1,295,000 in the first quarter 1997. The increased loss for the first quarter and reduction in total revenues is due primarily to the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of revenues from funded research which represented revenues of $833,000 in the first quarter 1997. Net loss for the first quarter 1998 was $2,100,000, or 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , after allowing for the effect of an accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of $438,000 related to the issuance of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , compared with a net loss of $1,295,000, or 11 cents per share, in the first quarter of 1997. The rise in product revenues reflects increased sales of CholesTrak Home Cholesterol Test Cholesterol Test Definition The cholesterol test is a quantitative analysis of the cholesterol levels in a sample of the patient's blood. Total serum cholesterol (TC) is the measurement routinely taken. and the introduction of new products to ChemTrak's line of consumer-diagnostic products during 1997, including ColoCARE Home Test to Detect the Early Warning Signs of Colorectal co·lo·rec·tal adj. Relating to the colon and the rectum, or to the entire large bowel. colorectal pertaining to or of the nature of the colon and the rectum. Disease and initial sales of Parent's Alert Home Drug Test Service. Cost of products sold rose to $941,000 in first quarter 1998 from $704,000 in first quarter 1997, primarily as a result of increased production levels. Increased advertising expenses associated with the rollout of new consumer products and supporting existing products resulted in an increase in marketing expenses to $975,000 in first quarter 1998, compared with $816,000 in the same period last year. Research and development expenses continued to be reduced reflecting completion of the company's two product platforms and the lower cost of extending these platforms into a full line of consumer- diagnostic tests. "We are pleased to report that first quarter product revenues were a record since the reorientation Noun 1. reorientation - a fresh orientation; a changed set of attitudes and beliefs orientation - an integrated set of attitudes and beliefs 2. reorientation - the act of changing the direction in which something is oriented of the company and our decision in 1996 to convert from an R&D-focused company to a market-driven consumer-medical-products company," said Edward F. Covell, president and chief executive officer. "First-quarter revenues were enhanced by our broader product line. We reported solid sales for each product reflecting the growing strength of CholesTrak and ColoCARE and increased stocking order sales of Parent's Alert. CholesTrak sales were also assisted by the start of our 1998 radio advertising campaign and the withdrawal from the market of a competing product," he continued. "Also during the quarter, another major chain, RiteAid, began stocking Parent's Alert, increasing the number of chain drug stores stocking Parent's Alert to more than 10,000," Covell said. "We began testing direct response television advertising for Parent's Alert during the first quarter and plan to roll out our national direct response advertising later this summer. Taken together, we believe these marketing efforts will continue to have a positive effect on revenues later this year," he added. ChemTrak's products for home use are available at all major chain drug and mass merchant outlets, and include Parent's Alert Home Drug Test Service, a counselor-supported home-drug-test service committed to helping parents prevent and eliminate drug use by their children; the CholesTrak Home Cholesterol Test; and the ColoCARE Home Test to Detect the Early Warning Signs of Colorectal Disease. ChemTrak is in the process of evaluating several potential distributors to the physicians office laboratory market for AccuMeter H. Pylori Noun 1. H. pylori - the type species of genus Heliobacter; produces urease and is associated with several gastroduodenal diseases (including gastritis and gastric ulcers and duodenal ulcers and other peptic ulcers) Heliobacter pylori Test to determine the presence of bacterium bacterium /bac·te·ri·um/ (bak-ter´e-um) pl. bacte´ria [L.] in general, any of the unicellular prokaryotic microorganisms that commonly multiply by cell division, lack a nucleus or membrane-bound organelles, and possess a cell associated with duodenal duodenal /du·o·de·nal/ (doo?o-de´n'l) (doo-od´ah-n'l) of or pertaining to the duodenum. Duodenal Refers to the duodenum, or the first part of the small intestine. and peptic ulcers Peptic ulcers Wounds in the stomach and duodenum caused by stomach acid and the bacterium Helicobacter pylori. Mentioned in: Tube Compression of the Esophagus and Stomach and the ChemTrak AccuMeter Theophylline theophylline /the·oph·yl·line/ (the-of´i-lin) a xanthine derivative found in tea leaves and prepared synthetically; its salts and derivatives act as smooth muscle relaxants, central nervous system and cardiac muscle stimulants, and Test, a point-of-care quantitative assay for theophylline, a drug commonly used for the treatment of asthma asthma (ăz`mə, ăs`–), chronic inflammatory respiratory disease characterized by periodic attacks of wheezing, shortness of breath, and a tight feeling in the chest. A cough producing sticky mucus is symptomatic. . Located in Sunnyvale, ChemTrak is a medical-diagnostics company offering reliable and easy-to-use medical-testing systems for in-home use and use in doctors' offices. ChemTrak medical tests are designed to screen and diagnose diagnose /di·ag·nose/ (di´ag-nos) to identify or recognize a disease. di·ag·nose v. 1. To distinguish or identify a disease by diagnosis. 2. health conditions with accuracy comparable to laboratory tests. -0- The statements in this release regarding future growth and market opportunities are forward-looking and subject to risk and uncertainty, and future results could differ materially from past performance. For a detailed discussion of factors that may affect the company's operating results, interested parties should review the company's Securities and Exchange Commission reports, including the ChemTrak Inc. Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1998, as well as the Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 1997, filed with the SEC. -0-
CHEMTRAK INC.
Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended
March 31,
1998 1997
Net revenue:
Product revenue $ 1,054 $ 608
Initial license fee -- 333
Funded research and other revenue -- 500
Total net revenue 1,054 1,441
Cost and expenses:
Cost of product revenue 941 704
Research and development 193 453
Marketing, general and administrative 1,606 1,623
Total costs and expenses 2,740 2,780
Operating (loss) (1,686) (1,339)
Interest and other income, net 24 44
Net loss (1,662) (1,295)
Accretion related to preferred stock (438) --
Net loss attributable to common
shareholders $ (2,100) $ (1,295)
Net loss per common share and per
common share -- assuming dilution (15 cents) (11 cents)
Shares used in calculating net loss
per common share and per common
share -- assuming dilution 14,061 12,085
-0-
CHEMTRAK INC.
Balance Sheet Data
(In thousands)
March 31, 1998 Dec. 31, 1997
Cash and cash equivalents $ 509 $ 1,114
Working capital 1,258 1,104
Property and equipment, net 1,464 1,616
Total assets 4,338 4,285
Total stockholders' equity 2,118 2,208
CONTACT: ChemTrak Inc., Sunnyvale Donald V. Fluken, 408/773-8156 or Self & Associates, Calabasas Trudy M. Self, 818/880-5437 |
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