Medis El issues 1996 year-end results.NEW YORK--(BUSINESS WIRE)--March 31, 1997--Medis El Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MDSLF) today issued its financial results for the year ended December 31, 1996. Reductions in operating costs operating costs npl → gastos mpl operacionales reflecting consolidation of operations in the Company's Jerusalem facility helped bring about a significant reduction in the Company's loss during 1996, as compared to 1995. The Company sustained an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1,981,000 during the year compared to $2,374,000 the previous year, an improvement of 17 percent. After net financial income and other expense, the Company recorded a net loss of $1,962,000 during 1996 compared to $2,240,000 in 1995. In 1996, the Company had sales of $32,000 compared to $198,000 during 1995. Selling, general and administrative (SG&A) expenses for 1996 and 1995 were $1,187,000 and $1,368,000 respectively. Cost-cutting measures included a reduction in staff as well as combining of the Company's operations in its Jerusalem facility. Research and development costs, net of government grants, were $815,000 in 1996 compared to $1,023,000 in 1995. The Company continues to work with renowned scientists throughout Israel in its activities to develop new applications for the CellScan System. Commenting on the results, Robert K. Lifton, Chairman of Medis El, stated: "This last year has seen a number of positive developments at Medis El, particularly in the results of diagnostic tests for prostate and breast cancer with the CellScan System. From a financial perspective, we are pleased that we were able to reduce the 'burn rate' without neglecting important developmental activities. "In 1996, the Company completed a series of financings by selling 675,000 restricted shares in a private placement to foreign investors pursuant to the Regulation S Exemption of the Securities and Exchange Act of 1933 for total 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). of $3,130,000. The purchasers of these shares include affiliates of Company distributors in Asia and Argentina and funds managed by Swiss banks. The prices paid for the shares ranged from $4.50 to $6.00 per share, increasing as the market price of the shares increased. "The proceeds of the sale of the shares along with our previously existing cash resources provide a solid base of funding to carry out our plans. These plans focus on advancing the state of technologies in our pipeline to the point where we can realize significant values by entering into strategic relationships with leading international corporations. Thus, we are progressing on tests of the CellScan System for diagnosis of prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. , breast cancer and gynecological gynecological /gy·ne·co·log·i·cal/ (-kah-loj´i-k'l) gynecologic. cancers, as well as research on the use of the CellScan for diagnosis of 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 and for individualized in·di·vid·u·al·ize tr.v. in·di·vid·u·al·ized, in·di·vid·u·al·iz·ing, in·di·vid·u·al·iz·es 1. To give individuality to. 2. To consider or treat individually; particularize. 3. chemotherapy. "Work is moving forward on the breast cancer vaccine The term cancer vaccine is often used to describe a process whereby a person's immune system is coaxed into recognizing and destroying malignant cells without harming normal cells. in our Tel-Aviv University laboratory under the direction of a team of world renown scientists. "Also, we have been granted an exclusive license for the use of a patent that advances the design of our own high-efficiency linear compressor, for which we filed a patent earlier in the year. The Sterling Cycle Linear Compressor, which uses helium as its working gas which does not deplete de·plete v. 1. To use up something, such as a nutrient. 2. To empty something out, as the body of electrolytes. the ozone layer, would be advantageous in many applications including: air-conditioning, refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. , cryosurgery cryosurgery (krī`ōsr'jərē), bloodless surgical technique using a supercooled probe to destroy diseased or superfluous tissue. and dermatology. We are presently developing working models of a refrigerator and an automobile air-conditioner to demonstrate its high efficiency and cooling capacity." Medis El, founded in 1992, is an Israeli corporation involved in the research, development, manufacturing and marketing of electronic diagnostics products for the medical and scientific communities. The Company's products include the CellScan, a unique proprietary laser-based cytometer that repeatedly monitors the fluorescent intensity and polarization of individual living cells, the Sterling Cycle Linear Compressor, and the Neuritor, a small, lightweight EEG EEG: see electroencephalography. and EKG EKG: see electrocardiography. device that offers flexibility and quality at a cost significantly lower than currently marketed EEG equipment. -0-
MEDIS El LTD.
Summary of Results
(in 000s except per share amounts)
Statement of Operations Data Year ended December 31,
1994 1995 1996
Sales $ 75 $ 198 $ 32
Cost of sales 28 181 11
Gross profit 47 17 21
R&D costs, net 1,296 1,023 815
SG&A expenses 1,722 1,388 1,187
Operating loss (2,971) (2,374) (1,981)
Financial income, net 112 135 20
(2,859) (2,239) (1,961)
Other income 49 (1) (1)
Net loss $(2,810) $(2,240) $(1,962)
Net loss per share $ (0.33) $ (0.26) $ (0.22)
Weighted Average
Number of shares outstanding 8,642 8,850 8,790
Balance Sheet Data
Cash and cash equivalents $1,935 $2,968
Securities and short-term deposits -- 501
Working capital 2,324 3,939
Property & equipment, net 468 434
Total assets 3,651 4,943
Long-term liabilities 697 504
Shareholders' equity $2,093 $3,869
NOTE: Financial information included in the Summary of Results has
been derived from the company's December 31, 1996 financial
statements. The company presents its financial statements in
accordance with generally accepted accounting principles ("GAAP") in
Israel. Such Israeli accounting principles, as applicable to the
company's financial statements, are, in all material respects, the
same as accounting principles generally accepted in the United
States. The company presents its financial statements in U.S.
dollars. Transactions and balances denominated in dollars are
presented at their dollar amounts. Non-dollar transactions and
balances are remeasured into dollars in accordance with the
principles set forth in Statement of Financial Accounting Standards
("FAS") No. 52, "Foreign Currency Translation," of the Financial
Accounting Standards Board of the United States.
CONTACT: Medis El LTD. Zvi Rehavi (Israel) 2-587-0452 Robert K. Lifton 212/935-8484 or KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Joseph A. Mansi/Adam I. Friedman 212/682-6300, ext. 205/215 |
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