IVAX Diagnostics Reports Third Quarter 2005 Results; YTD Revenue Increases 6.8% over Prior Year.MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. -- IVAX IVAX Industrial Vax (Dec Computer) Diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler , Inc. (AMEX AMEX See: American Stock Exchange :IVD (Interactive VideoDisc) See interactive video. ) reported net revenues for the third quarter of 2005 of $4,669,000, a 1.9% increase over net revenues of $4,583,000 for the same period of 2004. IVAX Diagnostics reported a net loss of $1,100,000 for the third quarter of 2005 compared to a net loss of $94,000 for the third quarter of 2004. Net revenues for the nine months ended September September: see month. 30, 2005 totaled $15,296,000, an increase of $975,000, or 6.8%, from the $14,321,000 reported in the prior year comparable period. The net loss for the nine months ended September 30, 2005 was $106,000 compared with net income of $130,000 during the comparable period of the prior year. Net losses for the three and nine months ended September 30, 2005 include the effect of the previously disclosed employment compensation expense and related payroll taxes Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. of approximately $580,000 resulting from the July July: see month. 22, 2005 cancellation of certain stock options. Giorgio Giorgio is an male Italian given name (and sometimes a surname) and may refer to: Surname
 r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). during the traditional summer
vacation Summer vacation (also called summer holidays or summer break) is a vacation in the summertime between school years in which students are off for 3 months, depending on the country and district. months. Nevertheless, our increase in research and development
spending and our investments to improve our technical and quality
systems reflect our optimism about future operating results once our
PARSEC(TM) System is fully launched 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 Europe. We
have obtained purchase orders from a number of premier customers and
expect this new automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. system to be highly successful. We anticipate making deliveries in the United States by the end of this year. We are also on track with our previously announced technology transfer agreement, pursuant to which we expect to be able to manufacture a full line of hepatitis hepatitis (hĕp'ətī`tĭs), inflammation of the liver. There are many types of hepatitis. Causes include viruses, toxic chemicals, alcohol consumption, parasites and bacteria, and certain drugs. products and related raw materials at our facility in Europe. We expect this hepatitis panel hepatitis panel Lab medicine A standard battery of lab tests that are the most cost-effective in evaluating the clinical and immune status of a person with possible hepatitis. Cf Organ panels. of assays to be launched in the second quarter of 2006 and to be available to all of the markets we serve outside the United States. Industry analysts estimate the worldwide market for hepatitis testing to be more than $2 billion. We believe that the ability to produce and distribute our own internally-produced kits will be a growth initiative for IVAX Diagnostics." Phillip Frost, M.D., IVAX Diagnostics' Chairman, said, "We are excited about making our first deliveries of PARSEC(TM) System instruments in the United States later this quarter and believe this new automated system can be of major importance." About IVAX Diagnostics, Inc. IVAX Diagnostics, Inc., headquartered in Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. , develops, manufactures and markets proprietary diagnostic reagents, instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. and software in the United States and Italy through its three subsidiaries: Diamedix Corporation, Delta Biologicals Biologicals Biological products used to induce immunity to various infectious diseases or noxious substances of biological origin. The term is usually limited to immune serums, antitoxins, vaccines, and toxoids that have the effect of providing protective S.r.l. and ImmunoVision, Inc. IVAX Corporation IVAX Corporation was a United States public corporation focused on manufacturing and distributing generic pharmaceutical products. Ivax was acquired by the Israeli company Teva Pharmaceutical Industries in January 2006. External links
Except for the historical matters contained herein, statements in this press release are forward-looking and are 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. Investors are cautioned that 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. involve risks and uncertainties that may affect the business and prospects of IVAX Diagnostics, Inc., including, without limitation: risks and uncertainties regarding the PARSEC(TM) System, including, without limitation, that the PARSEC(TM) System may not be available when or perform as expected, that IVAX Diagnostics may not be successful in its marketing of the PARSEC(TM) System, that customers may not integrate the PARSEC(TM) System into their operations as readily as expected, that IVAX Diagnostics may not achieve improved operating results once the PARSEC(TM) System is fully launched in the United States and Europe, and that the PARSEC(TM) System may not be of major importance to IVAX Diagnostics or its customers; risks and uncertainties regarding hepatitis products and raw materials, including, without limitation, that IVAX Diagnostics may not be able to manufacture a full line of its own hepatitis products or related raw materials, that IVAX Diagnostics may not be able to sell hepatitis products when or where expected, and that IVAX Diagnostics may not experience growth or expansion as a result of producing and distributing its own internally-produced hepatitis kits; that there can be no assurance that research and development spending or investments to improve technical and quality systems will yield successful results; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. In addition to the risk factors set forth above, investors should consider the economic, competitive, governmental, technological and other factors discussed in IVAX Diagnostics' filings with the Securities and Exchange Commission.
IVAX DIAGNOSTICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Period Ended September 30,
Three months Nine months
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net revenues $4,668,555 $4,582,855 $15,295,605 $14,320,744
Cost of sales 2,149,367 1,938,441 6,256,976 5,857,632
----------- ----------- ----------- -----------
Gross profit 2,519,188 2,644,414 9,038,629 8,463,112
----------- ----------- ----------- -----------
Operating expenses:
Selling 1,520,774 1,488,862 4,556,107 4,250,732
General and
administrative 1,787,793 1,080,540 2,408,050 3,345,257
Research and
development 395,355 327,039 1,259,157 961,869
----------- ----------- ----------- -----------
Total operating
expenses 3,703,922 2,896,441 8,223,314 8,557,858
----------- ----------- ----------- -----------
Income (loss) from
operations (1,184,734) (252,027) 815,315 (94,746)
Other income:
Interest income 86,854 53,433 249,142 137,566
Other income
(expense), net (6,772) 77,761 (106,141) 103,573
----------- ----------- ----------- -----------
Total other income,
net 80,082 131,194 143,001 241,139
----------- ----------- ----------- -----------
Income (loss) before
income taxes (1,104,652) (120,833) 958,316 146,393
Provision for (benefit
from) income taxes (4,853) (26,757) 1,064,674 16,792
----------- ----------- ----------- -----------
Net income (loss) $(1,099,799) $ (94,076) $ (106,358) $ 129,601
=========== =========== =========== ===========
Basic earnings (loss)
per common share $ (.04) $ 0.00 $ 0.00 $ 0.00
=========== =========== =========== ===========
Diluted earnings
(loss) per common
share $ (.04) $ 0.00 $ 0.00 $ 0.00
=========== =========== =========== ===========
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING:
Basic 27,487,983 27,019,829 27,188,687 27,448,896
=========== =========== =========== ===========
Diluted 27,487,983 27,019,829 27,188,687 28,253,534
=========== =========== =========== ===========
IVAX DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2005 2004
------------ ------------
(Unaudited)
ASSETS
------
Current assets:
Cash, cash equivalents and marketable
securities $12,238,642 $12,142,885
Accounts receivable, net of allowances for
doubtful accounts of $1,058,635 in
2005 and $3,080,952 in 2004 6,617,365 7,739,548
Inventories 5,093,695 5,143,611
Other current assets 1,124,774 2,203,473
------------ ------------
Total current assets 25,074,476 27,229,517
Property, plant and equipment, net 2,105,566 2,258,818
Equipment on lease 610,904 719,277
Product license 1,278,190 -
Goodwill, net 6,713,409 6,632,986
Other assets 53,999 73,627
------------ ------------
Total assets $35,836,544 $36,914,225
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 952,921 $ 1,207,042
Accrued license payable 962,081 -
Accrued expenses and other current
liabilities 2,663,165 3,029,820
------------ ------------
Total current liabilities 4,578,167 4,236,862
------------ ------------
Other long-term liabilities 595,485 631,391
------------ ------------
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value, authorized
50,000,000 shares, issued and outstanding
27,601,976 in 2005 and 27,019,829 in 2004 276,019 270,198
Capital in excess of par value 40,546,166 41,010,041
Accumulated deficit (9,055,202) (8,948,844)
Accumulated other comprehensive loss (1,104,091) (285,423)
------------ ------------
Total shareholders' equity 30,662,892 32,045,972
------------ ------------
Total liabilities and shareholders'
equity $35,836,544 $36,914,225
============ ============
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