Corgenix Reports Record Sales for Fiscal 2005; Performance of Core Diagnostic Business Combined with Lucrative Strategic Partnerships Provide Boost in 2005 Sales.DENVER -- Corgenix Medical Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CONX), a worldwide marketer of diagnostic test kits, reported sales of $5,564,835 for the fiscal year ended June 30, 2005 compared to $5,270,553 million in the year ended June 30, 2004, an increase of 5.6 %. Fiscal 2005 represents the second consecutive year of operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , with $123,830 reported for the year ended June 30, 2005 compared to operating income of $43,325 for the year ended June 30, 2004. Corgenix reported a net loss of $582,458 or (0.12) per share for the year ended June 30, 2005 compared to a net loss of $124,915 or (0.04) per share for the year ended June 30, 2004. The net loss is primarily attributed to significant non-operating and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. attributable to the recent convertible debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , which resulted in a significant loss on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt and substantially increased interest expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the beneficial conversion features of the notes. During fiscal 2005, Corgenix announced its collaboration with McMaster University McMaster University, at Hamilton, Ont., Canada; nondenominational; founded 1887. It has faculties of humanities, science, social sciences, business, engineering, and health sciences, as well as a school of graduate studies and a divinity college. and Creative Clinical Concepts, Inc. for the licensing of exclusive rights to technology for the development, manufacturing, and marketing of diagnostic tests that measure an individual's degree of aspirin resistance when taken to prevent heart attack and stroke. In addition to cultivating this strategic relationship, the Company announced the commercial launch of its AtherOX (TM) product group, a next generation predictive cardiovascular diagnostic line. This line represents the next step in the Company's strategic expansion within the significant market of individuals at risk for cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease , including those with diabetes and autoimmune diseases Autoimmune diseases A group of diseases, like rheumatoid arthritis and systemic lupus erythematosus, in which immune cells turn on the body, attacking various tissues and organs. Mentioned in: Complement Deficiencies, Premature Menopause . "We are pleased with the results of fiscal 2005," commented Douglass Simpson, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Corgenix. "Our core diagnostic business in niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. , and expanded strategic partnerships continued to drive sales in 2005. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our ongoing product development will continue to compliment our existing product portfolio and drive future growth." In June, 2005 Corgenix also successfully completed a private placement financing, resulting in initial proceeds to the company of $2.7 million. With this funding, the Company refinanced approximately $1,023,000 of existing debt and is applying the balance of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to strategic initiatives. Simpson continued, "We welcome the recent financial commitment to Corgenix from two highly regarded funds. Their support is a validation of our current product pipeline, business progress, and long-term prospects." About Corgenix Medical Corporation Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases vascular diseases, n.pl diseases of the peripheral circulatory system. and bone and joint disorders. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network and has significant experience advancing products through the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. process. More information is available at www.corgenix.com.
Condensed Statements of Operations
(in thousands, except per share amounts)
Fiscal Year Ended
June 30, June 30,
2005 2004
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(audited) (audited)
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Net sales $ 5,565 $ 5,271
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Gross profit 3,520 3,397
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Operating income (loss) 124 43
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Net loss $ (582) $ (125)
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Accretion of discount on
redeemable common stock 65 87
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Net loss attributable to common
Shareholders $ (647) $ (211)
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Basic and diluted (loss)
per share $ (0.12) $ (0.04)
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Diluted shares outstanding 5,537,242 5,305,425
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SUMMARY BALANCE SHEET DATA
(in thousands)
June 30, June 30,
2005 2004
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Cash $ 1,282 $ 469
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Working capital 2,407 739
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Total assets 4,992 2,848
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Total liabilities 2,033 1,824
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Total stockholders' equity 2,459 588
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