The Med-Design Corporation Reports Third Quarter Financial Results; Company to Hold Conference Call at 4:30 p.m. EST Tuesday, November 8th.VENTURA Ventura (vĕnt  `rə), city (1990 pop. 92,575), seat of Ventura co., SW Calif., on the Pacific coast in a farm and oil region; inc. 1866. , Calif. -- The Med-Design Corporation (NASDAQ NASDAQin 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 :MEDC MEDC Michigan Economic Development Corporation MEDC More Economically Developed Country MEDC Maharashtra Economic Development Council (India) MEDC Mobile & Embedded Developers Conference (Microsoft) ), a leader in the design and development of safety needle needle, implement of metal or other material used to carry the thread in sewing and in various forms of needlework and manufacturing. The earliest needles were merely awls or punches. products for medical use, today announced financial results for the third quarter of 2005. Results for the Three Months Ended September September: see month. 30, 2005: The net loss for the third quarter was $756,239, or $0.05 per share (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared to a net loss of $1,740,334, or $0.10 per share for the corresponding period in 2004. Revenue for the quarter was $873,139, an increase of $383,665, compared to revenue of $489,474 for the corresponding period in 2004. Revenue for the quarter reflects $569,715 in sales of the Safe-Step(R) Low Profile Safety Huber Huber may refer to:
Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. from Med-Design's licensed technology. Revenues from the corresponding period in 2004 reflected $322,104 in sales of the Safe-Step(R) Low Profile Safety Huber Needle and $167,370 in royalties from Med-Design's licensed products. Product costs of $459,979 for the third quarter, which consisted of direct and indirect costs Indirect costs are costs that are not directly accountable to a particular function or product; these are fixed costs. Indirect costs include taxes, administration, personnel and security costs. See also
General and administrative expenses for the third quarter were $1,009,473, a decrease of $244,724 as compared to general and administrative expenses of $1,254,197 for the corresponding period in 2004. The decrease in general and administrative expenses was primarily due to a reduction in professional and technical fees of $95,942, a reduction in legal fees of $63,963, a reduction in accounting fees, corporate expense and travel of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $40,000 and a decrease in stock based compensation of $27,573. Research and development expenses for the third quarter were $204,905, a decrease of $69,001 as compared to research and development expenses of $273,906 for the corresponding period in 2004. The decrease in research and development expenses was due primarily to a reduction in expenditures for employee compensation. Results for the Nine Months Ended September 30, 2005: The net loss for the nine months ended September 30, 2005 was $3,480,270, or $0.21 per share (basic and diluted) compared to net loss of $4,620,434, or $0.28 per share (basic and diluted) for the corresponding period in 2004. Revenue for the nine months ended September 30, 2005 was $2,349,301, an increase of $1,400,986 as compared to revenue of $948,315 for the corresponding period in 2004. Revenue for the nine months ended September 30, 2005 included $1,598,663 in sales of the Safe-Step(R) Low Profile Safety Huber Needle, $699,918 in royalties from Med-Design's licensed products and a $50,000 reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of costs for development efforts relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the pre-filled dual chamber pharmaceutical mixing device. Contributing to the net loss for the nine months ended September 30, 2005 was a $658,000 write off of equipment and inventory related to Med-Design's discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of production of the 1 Shot(TM) Safety Dental Syringe dental syringe n. A breech-loading syringe fitted with a sealed cartridge containing anesthetic solution. and the charges to cost of sales for the excess inventory reserve and a write off of inventory related to the Safe-Step(R) Low Profile Safety Huber Needle aggregating $72,603. General and administrative expenses for the nine months ended September 30, 2005 were $3,213,458, a decrease of $684,049 as compared to general and administrative expenses of $3,897,507 for the corresponding period in 2004. The decrease in general and administrative expenses was primarily due to a decrease in stock based compensation of $335,861, a decrease in patent related legal fees of $228,193 and a decrease in expenditures for employee compensation of $113,285. Research and development expenses for the nine months ended September 30, 2005 were $692,631, a decrease of $241,533 as compared to research and development expenses of $934,164 for the corresponding period in 2004. The decrease in research and development expenses was due primarily to a $118,255 decrease in product development related expense and $124,996 reduction in expenditures for employee compensation. Total cash, cash equivalents and available for sale securities as of September 30, 2005 were $10,953,793 compared to $14,600,270 at December December: see month. 31, 2004, a decrease of $3,646,477. Company Commentary David Dowsett, Acting Chief Executive Officer, commented, "In the third quarter 2005, we experienced a continuation continuation - continuation passing style of trends seen during the past several quarters. Revenues continue to increase, growing 9% compared to the second quarter 2005, while expenses dropped by approximately $113,000 in the same time frame. Notably, royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. revenues increased by 36% to $303,000 for the quarter, principally reflecting continued steady sales growth of the BD Vacutainer Vacutainer™ A proprietary blood collection tube with a vacuum to facilitate blood collection (TM) Push Button Blood Collection Set and improved results for the BD Integra Integra™ Dermatology An acellular artificial skin used to cover severe burns and wounds. See Artificial skin, Burns. syringe syringe /sy·ringe/ (si-rinj´) (sir´inj) an instrument for injecting liquids into or withdrawing them from any vessel or cavity. product line. The BD Integra syringe is in greater demand during the flu season
Conference Call Information Med-Design will host a conference call to discuss third quarter 2005 financial results at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. (1:30 p.m. PST PST Paroxysmal supraventricular tachycardia, see there ) on Tuesday Tuesday: see week. , November November: see month. 8. Toll-free telephone lines have been set up to listen to the presentation and participate in a question and answer session. --Call-in number: 800-573-4752 --Passcode: 18314299 If you are unable to participate during the live Webcast, the call will be archived on the Web site www.med-design.com or call 888-286-8010, passcode: 36408289 until November 22, 2005 at 5:30 p.m. EST. To access the replay on the Web, click on Investor Relations Investor relations The process by which the corporation communicates with its investors. , then conference call. Forward Looking Statements This release contains forward looking statements within the meaning 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. There are important factors that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward looking statements including lack of demand or low demand for Med-Design's products or for safety products generally, competition, delays in introduction of Med-Design's licensed products due to manufacturing difficulties or other factors, requirements under Med-Design's contract arrangements, commitments under contractual arrangements Med-Design may enter into, a determination by companies that have entered into confidentiality Restrictions on the accessibility and dissemination of information. Confidentiality is one of the six fundamental components of information security (see Parkerian Hexad). agreements with Med-Design that they do not wish to pursue negotiations for agreements with regard to safety pre-filled devices and other factors discussed in Med-Design's filings with the Securities and Exchange Commission. For more information on Med-Design Corporation you may access the Med-Design Corporation Web site at www.med-design.com.
THE MED-DESIGN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2005 2004
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 932,826 $ 3,964,388
Available-for-sale securities 10,020,967 10,635,882
Trade receivables 624,953 386,979
Inventory, net 308,150 39,250
Prepaid expenses and other current
assets 138,929 236,265
-------------- --------------
Total current assets 12,025,825 15,262,764
Property, plant, and equipment, net of
accumulated depreciation of $1,447,853
and $1,573,875 at September 30, 2005
and December 31, 2004, respectively 203,940 714,477
Patents, net of accumulated amortization
of $1,206,143 and $1,046,700 at
September 30, 2005 and December 31,
2004, respectively 1,744,944 1,816,760
Investment in acquired license rights 5,853,256 6,150,879
Goodwill 232,054 232,053
-------------- --------------
Total assets $ 20,060,019 $ 24,176,933
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term payable $ 250,000 $ 250,000
Accounts payable 146,741 458,122
Accrued compensation and benefits 142,319 111,912
Accrued professional fees 196,322 325,000
Other accrued expenses 64,436 68,742
-------------- --------------
Total current liabilities 799,818 1,213,776
Long-term payable, less current
maturities 226,474 456,342
-------------- --------------
Total liabilities 1,026,292 1,670,118
-------------- --------------
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $.01 par value,
4,700,000 shares authorized; No shares
outstanding at September 30, 2005 and
December 31, 2004 -- --
Common stock, $.01 par value, 30,000,000
shares authorized; 16,749,486 shares
issued and outstanding as of September
30, 2005 and December 31, 2004 167,495 167,495
Additional paid-in capital 71,987,354 71,917,610
Accumulated deficit (52,921,348) (49,441,079)
Accumulated other comprehensive loss (199,774) (137,211)
-------------- --------------
Total stockholders' equity 19,033,727 22,506,815
-------------- --------------
Total liabilities and stockholders'
equity $ 20,060,019 $ 24,176,933
============== ==============
THE MED-DESIGN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenue
Product sales $ 569,715 $ 322,104 $ 1,599,383 $ 598,151
Licensing revenue 303,424 167,370 699,918 350,164
Product
development -- -- 50,000 --
------------ ------------ ------------ ------------
Total Revenue 873,139 489,474 2,349,301 948,315
Product costs 459,979 495,689 1,667,182 815,210
General and
administrative 1,009,473 1,254,197 3,213,458 3,897,507
Research and
development 204,905 273,906 692,631 934,164
------------ ------------ ------------ ------------
Total operating
expenses 1,674,357 2,023,792 5,573,271 5,646,881
------------ ------------ ------------ ------------
Loss from
operations (801,218) (1,534,318) (3,223,970) (4,698,566)
Interest expense (13,754) (8,020) (28,483) (17,073)
Investment income 114,048 (197,996) 352,503 95,205
Realized gain
(loss) on
investments (55,315) -- (115,923) --
Write-off of fixed
assets -- -- (464,397) --
------------ ------------ ------------ ------------
Net loss $ (756,239) $(1,740,334) $(3,480,270) $(4,620,434)
============ ============ ============ ============
Basic and diluted
loss per common
share:
Basic and diluted
loss per common
share $(0.05) $(0.10) $(0.21) $(0.28)
Basic and diluted
weighted average
common shares
outstanding 16,749,486 16,749,486 16,749,486 16,700,661
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