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EDITEK, INC. ANNOUNCES SECOND QUARTER RESULTS

 BURLINGTON, N.C., Aug. 13 /PRNewswire/ -- EDITEK, Inc. (AMEX: EDI.EC) reported today that its revenues for the second quarter were $617,908, a decrease of 24 percent from revenues of $815,633 during the quarter ended June 30, 1993. The net operating loss for the quarter was $528,313 as compared with $195,297 for quarter ended March 31, 1992. During the second quarter of 1993 the company also recorded arbitration related costs and expenses of $680,108. As such the net loss for the quarter was $1,208,421 as compared to $195,297 for the same quarter in 1992.
 For the six month period ended June 30, 1993, the company had revenues of $1,275,321, a decrease of 18 percent from revenues of $1,549,544 reported for the same period in 1992. The company's net operating loss for the period was $877,882 as compared with $458,227 for the corresponding six month period in 1992. The company also recorded arbitration related costs and expenses during 1993 of $837,369. As a result of this, the net loss for the six months ended June 30, 1993, was $1,715,251, compared to a net loss of $458,227 for the six months ended June 30, 1992.
 Jim Skinner, president and CEO, stated: "The costs associated with the two arbitration matters, decreased revenues for some products and the manufacturing scale-up costs of the VERDICT product line resulted in lower revenues and a significantly increased loss for the quarter ended June 30, 1993, compared to the results in the prior year. As we announced a couple of days ago the company will be required to pay DDI's legal costs and fees as a result of the arbitrator's unfavorable decision towards the company. A reserve of $500,000, for this future and as yet undefined liability, plus the company's own legal costs, amounted to 56 percent of the net loss for the quarter ended June 30.
 Skinner continued: "The company had decreased sales in several product lines, such as certain of the company's conventional diagnostic products, EZ-SCREEN Agridiagnostic products and contract manufacturing services, in which the company normally receives a few large orders. Such orders were absent during the quarter. We believe this to be a result of timing differences between orders as much as any thing else. The company also experienced, during the quarter, the incremental costs associated with the manufacturing scale-up of the VERDICT One-Step Drugs of Abuse Assays. The company anticipates these costs decreasing over time as manufacturing efficiencies are realized."
 Skinner added: "While the operating results for the quarter and the DDI decision are disappointing the company was successful in the Transia arbitration proceeding and has been able to raise over $2,000,000 in five separate transactions this year. The company also continues to be successful with its development of products for the U.S. Department of Defense. Consequently the company is beginning to market such products to potential purchasers of such products."
 EDITEK, Inc. is an emerging, biodiagnostic company with patented technology for the performance of rapid, on-site assays including one-step assays.
 EDITEK, INC.
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Quarter Ending June 30
 1993 1992
 Revenues $617,908 $815,633
 Cost of Goods Sold 510,360 496,185
 Gross Profit 107,548 319,448
 Operating Expenses 635,861 514,745
 Net Loss (528,313) (195,297)
 Arbitration Costs 680,108 ---
 Net Loss $(1,208,421) $(195,297)
 Loss Per Share of Common Stock ($.24) ($.06)
 Weighted Average Number of
 Shares of Common Stock
 Outstanding 5,085,191 3,332,324
 Six Months Ending June 30
 1993 1992
 Revenues $1,275,321 $1,549,544
 Cost of Goods Sold 905,014 966,849
 Gross Profit 370,307 582,695
 Operating Expenses 1,248,189 1,040,922
 Net Operating Loss (877,882) (458,227)
 Arbitration Costs 837,369 ---
 Net Loss $(1,715,251) $(458,227)
 Loss Per Share of Common Stock ($.34) ($.14)
 Weighted Average Number of
 Shares of Common Stock
 Outstanding 5,054,023 3,277,392
 -0- 8/13/93
 /CONTACT: Peter Heath, Vice President-Finance and Chief Financial Officer, EDITEK, 919-226-6311/
 (EDI)


CO: EDITEK, Inc. ST: North Carolina IN: MTC SU: ERN

CM-SB -- CH007 -- 2733 08/13/93 17:18 EDT
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Publication:PR Newswire
Date:Aug 13, 1993
Words:709
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