PharmaNetics Reports Second Quarter Results; Sale of Coeur Laboratories Increases Liquidity.RALEIGH, N.C.--(BW HealthWire)--July 23, 1999-- PharmaNetics, Inc. (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 NM: PHAR), the holding company of Cardiovascular Diagnostics, Inc. ("CVDI CVDI Certificado de Validación de Datos de Importadores (Argentina) CVDI Crime Victims with Disabilities Initiative (California) ") today announced its financial results for the three and six months ended June 30, 1999. Revenues for the CVDI subsidiary for the 1999 second quarter were $1,125,000, an increase of 18% compared to revenues of $952,000 for the same period in 1998. Total company revenues for the quarter decreased $429,000 to $1,763,000, as a direct result of lower revenue from Coeur's operations. With 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. for the quarter essentially flat with the same period in 1998, the 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. for the 1999 second quarter was $1,495,000 compared with a loss of $968,262 for the 1998 second quarter. The loss on the disposal of the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of Coeur, primarily related to the write-off of goodwill, amounted to $826,000 or $0.11 per basic share. After the loss on disposal, the net loss for the 1999 second quarter was $2,338,000, or $0.31 per basic share, compared with a net loss of $1,005,000, or $0.15 per basic share, for the 1998 second quarter. During the second quarter, sales by the Company's distribution partner, Bayer Diagnostics, began to increase as cards and analyzers were placed with new customers and the Company expects sales to continue to increase the remainder of the year. For the six months ended June 30, 1999, revenues for the CVDI subsidiary were $2,136,000, an increase of 5% compared to revenues of $2,033,000 for the same period last year. Due to decreased revenue from Coeur, total company revenue for the six months of 1999 was $3,937,000 compared to revenues of $4,596,000 for the same period in 1998. Year-to-date operating expenses increased 1% to $3,324,000, compared with $3,279,000 for the same period last year. This resulted in a six-month operating loss of $2,513,000, compared with the six-month 1998 operating loss of $1,832,000. After the loss on the disposal of the Coeur operations, the Company reported a net loss of $3,370,000, or $0.45 per basic share for the six months ended June 30, 1999, compared with a net loss of $1,524,000, or $0.23 per basic share, for the same period in 1998. Commenting on the quarter, John Funkhouser, President and Chief Executive Officer, stated, "With the sale of substantially all of the operating assets Operating Assets Another term for working capital. of the Coeur Laboratories subsidiary, we realize our future earnings will see additional pressure. However, as we continue to become fully focused on developing our routine and specialty diagnostic tests and adding additional collaborations, we should create additional momentum going forward." As previously reported during the second quarter, the Company entered into a definitive asset purchase agreement to transfer substantially all of the operating assets and liabilities of Coeur Laboratories, Inc., a 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. of CVDI, to Coeur Acquisition, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a private investment firm backed by Bison Investments of Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. for $1.7 million in cash, plus the Company retained Coeur's cash and receivables for total consideration of approximately $4.2 million. The transaction resulted in a loss of $826,000 primarily due to the write-off of goodwill related to Coeur. Funkhouser continued, "The Coeur transaction added to the Company's cash position which will help to fuel the future development of products that are key to the Company's growth. We believe our strategy of building the routine test business with our distribution partner, Bayer Diagnostics, and developing specialty theranostic tests in collaboration with pharmaceutical partners can bring significant shareholder value in the future." PharmaNetics, Inc. develops, manufactures and markets rapid turnaround diagnostics to assess blood clot blood clot n. A semisolid, gelatinous mass of coagulated blood that consists of red blood cells, white blood cells, and platelets in a fibrin network. formation and dissolution. The Company develops tests based on its proprietary, dry chemistry Thrombolytic thrombolytic /throm·bo·lyt·ic/ (throm?bo-lit´ik) dissolving or splitting up a thrombus, or an agent that so acts. thrombolytic 1. dissolving or splitting up a thrombus. 2. an agent that dissolves or splits up a thrombus. Assessment System for its principal target market of powerful new drug compounds, some of which have narrow therapeutic ranges, as well as for monitoring routine anticoagulants Anticoagulants Drugs that suppress, delay, or prevent blood clots. Anticoagulants are used to treat embolisms. Mentioned in: Embolism, Heart Valve Replacement . The Company's therapeutic diagnostics are used to monitor the effect of antithrombotic agents in the treatment of angina, myocardial infarction myocardial infarction: see under infarction. (heart attack), stroke, deep venous thrombosis deep venous thrombosis n. Abbr. DVT A condition in which one or more thrombi form in a deep vein, especially in the leg or pelvis, resulting in an increased risk of pulmonary embolism. , and pulmonary and arterial emboli emboli /em·bo·li/ (em´bo-li) plural of embolus. Emboli Plural of embolus. An embolus is something that blocks the blood flow in a blood vessel. . This press release contains forward-looking statements regarding future events and the future performance of PharmaNetics that involve risks and uncertainties, such as risks related to market acceptance, clinical trials, dependence on third-party distributors and collaborative partners, and continuing losses that could cause actual results to differ materially from those projected in the forward-looking statements. Information concerning these and other of the factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's SEC filings, including 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. , Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. reports. -0-
PharmaNetics, Inc.
Selected Financial Summary
CONSOLIDATED INCOME (LOSS) STATEMENTS
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
---------------------- -----------------------
Net Revenue $1,762,964 $2,191,526 $3,937,227 $4,595,532
Cost of Goods Sold 1,569,500 1,503,596 3,125,700 3,148,423
---------------------- -----------------------
Gross Profit 193,464 687,930 811,527 1,447,109
Operating Expenses 1,688,694 1,656,192 3,324,152 3,278,984
---------------------- -----------------------
Operating Loss (1,495,230) (968,262) (2,512,625) (1,831,875)
Other Income
(Expense) (13,383) (10,685) (14,188) 360,558
---------------------- -----------------------
Net Loss
From Continuing
Operations
Before Tax (1,508,613) (978,947) (2,526,813) (1,471,317)
Provision for
Income Taxes (3,286) (26,250) (16,971) (52,500)
----------------------- ------------------------
Net Loss From
Continuing
Operations ($1,511,899) ($1,005,197) ($2,543,784) ($1,523,817)
Loss on Disposal
of Segment ($826,093) - ($826,093) -
------------------------ ------------------------
Net Loss ($2,337,992) ($1,005,197) ($3,369,877) ($1,523,817)
======================== ========================
Basic and Diluted
Loss Per
Common Share ($0.31) ($0.15) ($0.45) ($0.23)
------------------------ ------------------------
Weighted Average
Common Shares
Outstanding 7,467,338 6,800,332 7,460,506 6,782,388
---------------------- -----------------------
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1999 1998
---------------- ----------------
Cash and Investments $7,311,383 $7,701,035
Other Current Assets 3,695,436 4,765,205
Total Assets $15,234,376 $18,693,211
Current Liabilities $1,470,461 $1,322,824
Total Liabilities 2,754,277 2,949,107
Total Shareholders' Equity 12,480,099 15,744,104
Total Liabilities and
Shareholders' Equity $15,234,376 $18,693,211
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