Paradigm Medical Industries Sees Improvement in Second-Half and Full-Year 2006 Financial Results.
"Our cost reduction program continues to bear fruit and our streamlined, high-tech, proprietary product portfolio is gaining global customer acceptance, helping to drive revenues higher," said Paradigm Medical's Chief Executive Officer, Raymond Cannefax. "The Company's internal and external efforts should enable us to surpass last year's second-half results, when revenues totaled $788,000 and operating losses approached $1.4 million."
Paradigm Medical recently reported second-quarter 2006 sales of $718,000 and an operating loss of $202,000. The operating loss in the second quarter of 2005 was $421,000. First-half 2006 revenues were $1.2 million versus $1.4 million in the year-ago period. However, the first-half 2006 operating loss was $413,000, compared with an operating loss of $755,000 a year earlier. For 2005, the Company reported revenues of $2.2 million and an operating loss of $2.2 million.
"Our 'Continuous Improvement' corporate slogan has been translated into a steadily improving performance, Mr. Cannefax noted. "Our accomplishments this year have been dramatic. Specifically:
--We downsized our physical space, but enhanced our efficiencies, resulting in a 25% reduction in costs.
--We received Canadian approval for our Ultrasound BioMicroscope (UBM) P60 device, which followed last year's regulatory approvals in the United States, Western Europe and parts of Asia. We are the only company currently supplying a complete line of ultrasound devices for ophthalmology, including four different UBMs.
--We completed $1.5 million in financing through the sale of convertible notes, providing us with adequate funds to expand our global presence.
--We strengthened our senior management and marketing structure.
--We signed a definitive agreement with MEDA Co. Ltd. of Tianjin, China, to jointly develop Paradigm Medical's next generation of ultrasound and other medical products. This collaboration has already resulted in orders in Europe."
Mr. Cannefax added that the Company's rising quarterly revenue "run rate" and stabilized level of quarterly operating expenses have substantially narrowed the "threshold" level of profitability. "We will need to incur additional expenses for sales and marketing to meet our projected revenue goals, but believe we have the proper discipline to continue to control our costs and grow the enterprise."
Paradigm Medical Industries, Inc. (Salt Lake City, UT), currently develops, manufactures and markets high-tech, proprietary diagnostic equipment and consumable products for the medical industry. The Company is a leading developer of Ultrasound devices, and has been dubbed "The UBM Company" (Ultrasound BioMicroscope). Contact us at 801-977-8970 or visit us at www.paradigm-medical.com
This press release contains statements that, if not verifiable historic fact, may be viewed as forward-looking statements that could predict future events and outcomes with respect to Paradigm and its business. The predictions embodied in these statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.