Cypros Pharmaceutical Reports Second Quarter and Six Month Results; Sales Increase by 56 Percent and 77 Percent Respectively.CARLSBAD, Calif.--(BUSINESS WIRE)--March 2, 1998--Cypros Pharmaceutical (AMEX AMEX See: American Stock Exchange :CYP CYP In currencies, this is the abbreviation for the Cyprus Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) reported sales for its second quarter and six months ended Jan. 31, 1998 of $916,045 and $1,687,461, respectively, compared with $587,665 and $954,796 recorded in the respective prior-year periods. The gross profit on sales for the quarter also increased to $708,347, a 56 percent increase over the $452,924 reported in the prior-year period. For the six-month period, the gross profit on sales increased to $1,311,819, an 83 percent increase over the $714,934 reported for the prior-year period. The company also reported a net loss of $1,168,562 (or $.08 per share) and $2,560,893 (or $.17 per share) for the quarter and six-month period, respectively, compared with a net loss of $2,167,699 (or $.19 per share) and $3,776,697 (or $.33 per share) for the prior-year periods. Commenting on the results, David W. Nassif, the company's chief financial officer, said, "We are very pleased with our continued strong sales growth, increased gross profit and continued high margins. It is important to note that a significant portion of the company's net loss for the past quarter and six month periods was non-cash and that the cash expenditures on operations for the past six months were $2.1 million. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a whole stayed relatively flat with the most notable increase occurring in sales and marketing, a necessity to driving continued sales growth. The lower net loss for the three and six month periods was also a result of the substantial non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) recorded in the prior-year periods for the amortization of the discount and costs on the company's mandatorily convertible notes. The company's balance sheet remains strong with cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $15.5 million at quarter end." Cypros Pharmaceutical is engaged in the development and marketing of drug products for the hospital market. The company is pursuing a diversified diversified (di·verˑ·s strategy of marketing approved drugs In the United States, the FDA approves drugs. Before a drug can be prescribed, it must undergo an extensive FDA approval process. This process involves first testing the drug on animals or in medical labs. and developing small molecule therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. that protect cells from ischemic Ischemic An inadequate supply of blood to a part of the body, caused by partial or total blockage of an artery. Mentioned in: Antiangiogenic Therapy, Subarachnoid Hemorrhage, Ventricular Fibrillation ischemic injury. The company currently has three products on the market, Glofil, Inulin inulin /in·u·lin/ (in´ul-in) a starch occurring in the rhizome of certain plants, yielding fructose on hydrolysis, and used in tests of renal function. in·u·lin n. and Ethamolin(R). The company is currently planning Phase In amphibious operations, the phase normally denoted by the period extending from the issuance of the order initiating the amphibious operation up to the embarkation phase. The planning phase may occur during movement or at any other time upon receipt of a new mission or change in the III clinical trials for its CPC-111 and Ceresine drugs, which it expects to commence in 1998. -0- This news release contains forward looking statements which involve risks and uncertainties. Such statements are subject to certain factors which may cause the company's plans to differ. Factors that may cause such differences include, but are not limited to, the risks discussed in the company's 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 fiscal year ended July 31, 1997 and the Risk Factors section of the company's Registration Statement No. 333-25661.
Cypros Pharmaceutical Corp.
Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
Jan. 31 Jan. 31 Jan. 31 Jan. 31
1998 1997 1998 1997
Net sales $ 916,045 $ 587,665 $ 1,687,461 $ 954,796
Cost of sales 207,698 134,741 375,642 239,862
Gross profit 708,347 452,924 1,311,819 714,934
Operating expenses:
Sales and marketing 321,137 257,182 677,833 419,638
General and
administrative 791,136 699,423 1,492,876 1,320,934
Clinical testing
and regulatory 552,476 561,299 1,009,378 900,433
Research and
development 197,659 270,688 450,632 486,090
Depreciation and
amortization 310,707 290,154 611,138 478,040
Total operating
expenses 2,173,115 2,078,746 4,241,857 3,605,135
Loss from operations (1,464,768) (1,625,822) (2,930,038) (2,890,201)
Research grant income 47,471 32,090 72,508 79,490
Interest and other
income, net 287,736 100,217 522,327 384,713
Amortization of
discount and costs
on mandatorily
convertible notes (39,001) (674,184) (225,690) (1,350,699)
Net loss $(1,168,562)$(2,167,699)$(2,560,893)$(3,776,697)
Net loss per share --
basic and diluted $ (0.08)$ (0.19)$ (0.17)$ (0.33)
Shares used in
computing net loss
per share -- basic
and diluted 15,412,010 11,613,748 14,718,360 11,613,748
CONTACT: Cypros Pharmaceutical Corporation David W. Nassif, 760/929-9500 |
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