DiaSys Corporation Announces Quarterly Results for the Period Ended March 31, 2004.Health/Medical Writers WATERBURY, Conn.--(BUSINESS WIRE)--May 14, 2004 DiaSys Corporation (AMEX AMEX See: American Stock Exchange :DYX DYX Dyslexia ) a global healthcare products company today reported results of operations for its third fiscal quarter ended March 31, 2004. Mr. Gregory Witchel, Chief Executive Officer of DiaSys, announced that the Company had reported a net loss for the quarter of $734,579, or $.06 per share, on sales of $453,088. Mr. Witchel noted that such results were consistent with the Company's recent operating history. Other (interest) expense for the period was $228,127, the result of a non-cash charge 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. to earnings due to the amortization of common stock purchase warrants and interest on a note that was held by a former executive. The loss from operations for the period was $493,130 or $(.04) per share. Results of operations for the quarter were as follows:
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31, March 31,
2004 2003 2004 2003
-------------------------------------------------
NET SALES $453,088 $425,032 $1,280,867 $1,776,144
COST OF GOODS SOLD 232,798 324,658 573,683 820,259
-------------------------------------------------
GROSS PROFIT 220,290 100,374 707,184 955,885
-------------------------------------------------
OPERATING EXPENSES
Selling 159,620 267,660 496,703 910,277
General &
administrative 463,289 608,381 1,630,832 1,438,002
Research &
development 90,511 86,965 201,772 318,737
-------------------------------------------------
713,420 963,006 2,329,307 2,667,016
-------------------------------------------------
LOSS FROM OPERATIONS (493,130) (862,632) (1,622,123) (1,711,131)
OTHER INCOME:
Interest income 1,574 60,714 6,304 74,174
Interest expense (228,127) - (286,390) -
-------------------------------------------------
LOSS BEFORE INCOME
TAXES (722,831) (923,346) (1,902,209) (1,785,305)
INCOME TAXES (11,748) 5,220 (11,748) -
-------------------------------------------------
NET LOSS $(734,579) $(918,126)$(1,913,957)$(1,785,305)
=================================================
WEIGHTED AVERAGE
COMMON
SHARES OUTSTANDING 12,484,575 10,674,971 12,484,575 10,674,971
=================================================
BASIC AND DILUTED
LOSS PER
COMMON SHARE $(0.06) $(0.09) $(0.15) $(0.17)
=================================================
Net Sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight : The Company's net sales for the nine-month period ended March 31, 2004 decreased $495,277 to $1,280,867 or 27.9%, compared to the same period of the prior year. The decrease in net sales was primarily due to the following factors: (i) the Severe Acute Respiratory Syndrome Severe Acute Respiratory Syndrome (SARS) Definition Severe acute respiratory syndrome (SARS) is the first emergent and highly transmissible viral disease to appear during the twenty-first century. ("SARS") outbreak in Asia, curtailed business to South East Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. , where the Company's largest distributor is located; (ii) various tenders for the Company's products were delayed by a number of prospective European Community European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. new-member countries in accordance with European Community law, these delays are expected to continue through May 2004; and (iii) the Company terminated its domestic sales force on April 1, 2003, due to an unprofitable domestic sales model which re-organization extended through the quarter ended March 31, 2004. (iv) during the quarter there was a delay in receiving parasep tubes from the Company's U.K. supplier which adversely effected sales in the period. This has now been rectified. (v) During the quarter the Company introduced a new proprietary disposable product Disposable products are items that are not intended by the manufacturer to be reused more than once or a few times as compared to more permanent serviceable and reusable items. Some products that have disposable versions are:
 r'ənăl`ĭsĭs), clinical examination of urine for the purpose of medical diagnosis. market. Initial orders for the period were 500,000 units,
of which 181,680 were shipped during the quarter. The Company's
partner in South East Asia has subsequently indicated that it will
resume orders to DiaSys Corporation at an increased level from last
year's sales on an annualized annualizedOf or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. Gross Profit and Gross Profit Margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. : Gross profit for the three-month period ended March 31, 2004 increased 119.5% from $100,374 to $220,290. Gross profit margins for the three-month period increased from the prior year from 23.6% to 48.6% for the three-month period. This was, in part, due to a $141,000 write off of inventory during the third quarter 2003. Gross profit for the nine-month period ended March 31, 2004 decreased 26.0% from $955,885 to $707,184. Gross profit margins for the nine-month period increased from the prior year from 53.8% to 55.2% for the nine-month period. The Company's gross profit was adversely impacted by the decrease in sales for the quarter ended March 31, 2004. The Company expects its gross profits and gross profit margins to increase as sales increase, thereby reducing excess capacity in the manufacturing area. DiaSys Corporation has now rectified inefficiencies in raw material purchasing practices and the scheduling of production by integrating comprehensive reporting between departments both in 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. and at DiaSys Europe, the Company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. in England. Effective January 2004, DiaSys Corporation has raised the list prices for its urinalysis by and parasitology Parasitology The scientific study of parasites and of parasitism. Parasitism is a subdivision of symbiosis and is defined as an intimate association between an organism (parasite) and another, larger species of organism (host) upon which the parasite is workstations by 38% and 18% respectively. The Company expects gross profit margins to strengthen as its higher margin consumable A material that is used up and needs continuous replenishment, such as paper and toner. "The low-tech end of the high-tech field!" products are fully integrated into the product line; it increases sales through new distributors and markets in countries that will formally join the European Community on May 1, 2004. Selling, General & Administrative (SG&A Expense): For the three-month period ended March 31, 2004, SG&A decreased $272,382 or 31.1% from $876,041 to $603,659 over the comparable prior period. The decrease in SG&A for the quarter was due to a reduction in legal fees that were associated with the filing of Form 13-D (a non-recurring event) during the second quarter of the fiscal year ending June 30, 2003 and the arbitration proceedings against Todd DeMatteo the company's former President and Chief executive Officer. Research and Development (R&D): R&D expenses for the three-month period ended March 31, 2004 increased 4.1% to $90,511 compared to $86,965 for the same period last year. The increase in research and development is due to the introduction and ongoing development of new products that integrate into the company's current product offerings. The Company will be increasing its research and development activities focusing on both improvements to its existing products and the introduction of new consumable products. Interest Expense: Interest expense increased $228,127 for the three-month period ended March 31, 2004 and $286,390 for the nine-month period ended March 31, 2004 from no interest expense in the comparable prior period. The increase was the result of the recording of additional interest and fees associated with the former CEO's promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. during the three-month period ended March 31, 2004, a beneficial conversion feature of a note payable during the previous six-month period as well as costs and warrants associated with the issuance of promissory notes and unsecured debentures. Net Loss: For the three-month period ended March 31, 2004, net loss decreased $183,547 to $734,579 down from $918,126 for the same period of the prior year. The decrease in net loss was due to lower cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold resulting from manufacturing and raw materials purchasing efficiencies, lower SG&A expenses including legal fees and lower selling costs due to the ongoing re-organization of the Company's domestic sales team.. The Company expects the net loss to decrease due to several other factors. The Company will start to fill production orders for South East Asia as indicated by Hua-Sin, the Company's trading partner, at a rate that exceeds last years sales figures sales figures npl → cifras fpl de ventas . DiaSys Corporation has introduced a new consumable product that will sell in conjunction with its urinalysis workstations. New member countries that have now joined the European Community will enable the Company to begin marketing its products there after May 1, 2004, when they formally join the European Community. Direct sales in the United States have been re-organized and the Company is now staffing its domestic sales department. DiaSys Corporation designs, develops, manufactures and distributes proprietary medical laboratory equipment, consumables and infectious disease Infectious disease A pathological condition spread among biological species. Infectious diseases, although varied in their effects, are always associated with viruses, bacteria, fungi, protozoa, multicellular parasites and aberrant proteins known as prions. test-kits to healthcare & veterinary laboratories worldwide. Headquartered in Waterbury, Connecticut USA, the Company operates in Europe through its wholly owned subsidiary based in Wokingham, England and in Pacific Asia through its strategic business partner located in Guangzhou, China. DiaSys, Parasep and Urisep are registered trademarks of DiaSys Corporation. This press 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. within the meaning of, and made pursuant to, the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or events, or timing of events, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company to materially differ from those expressed or implied by such forward looking statements. DiaSys refers interested parties to its most recent Annual Report on Form 10-KSB and other SEC filings for a complete description of, and discussions about, the Company. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion