EDITEK, INC. ANNOUNCES THIRD QUARTER RESULTS
EDITEK, INC. ANNOUNCES THIRD QUARTER RESULTS BURLINGTON, N.C., Nov. 13 /PRNewswire/ -- Editek, Inc.
(AMEX: EDI.EC) reported today its results for the quarter ended Sept. 30, 1992.
The Company's revenues for the quarter were $738,913, a decrease of less than 1 percent from the $744,785 reported for the third quarter in 1991. The Company's net loss was $327,400 or a loss of $.09 per share, compared to a net loss of $78,586 or a loss of $.02 per share, in the same quarter in the prior year. For the nine months period ended Sept. 30, 1992, the Company had revenues of $2,288,457, an increase of 6 percent from the revenues of $2,157,141 reported for the same period in 1991. The Company's net loss for the nine months ended Sept. 30, 1992 was $785,627, or a loss of $.23 per share compared to a net loss of $371,276 or $.14 per share for the nine months ended Sept. 30, 1991. "Legal expenses related to our patents and patent applications as well as the sales and marketing expenses associated with the market introduction of the Company's VERDICT One-Step Drugs of Abuse Assays were the significant contributors to our third quarter losses. Theese expenses were combined with a production delay of VERDICT products in addition to the loss of an important foreign contract for conventional biodiagnostic products to a local supplier in that Country," stated James D. Skinner, EDITEK President and C.E.O. "The criminal justice marketplace response to VERDICT has been very enthusiastic. Competitive pricing practices for the first generation products, including EZ-SCREEN, have resulted in declining gross margins in spite of increased unit sales. We anticipate the gross margins for VERDICT will be better than for other products. "Throughout the quarter, interference proceedings with Murex Corporation and Hybritech, Inc. necessitated extensive legal support in order to protect the EDITEK intellectual property position which is one of our most important corporate assets. The Company's efforts continue to be successful. On July 16, 1992 the United States Patent and Trademark Office denied the preliminary motions of Murex and granted the preliminary motions of the Company. This decision also put Murex under an Order to Show Cause as to why judgment of priority of invention should not be entered against Murex. Murex filed a response to the Order to Show Cause on Sept. 11, 1992. The U.S. PTO denied the motion by Murex to take testimony. Murex has been granted the request for final hearing. EDITEK and Hybritech filed preliminary motions with the U.S. PTO on July 29, 1992. With the various patents issued to EDITEK including patent Number 5,141,875 which describes, among other things, one-step assays, management has determined to dedicate its efforts to protecting, and as necessary, enforcing these patents and patent applications. "In support of the aforementioned patent goal and in an effort to find a suitable partner for the clinical diagnostic market applications of our patented technology, EIDTEK entered into an Option Agreement with Boeringer Mannheim Corporation in September for which EDITEK received a non-refundable payment. "The Company's important, funded product development agreements with the U.S. Department of Defense and Farnam Companies contributed a significant increase, on a quarter to quarter basis, of research and development expenses. However, many of these expenses were off-set by development contract payments." EDITEK, INC. STATEMENT OF OPERATIONS (Unaudited) Quarters Ending Sept. 30 1992 1991 Revenues $ 738,913 $ 744,785 Cost of Goods Sold 492,277 434,180 Gross Profit 246,636 310,605 Operating Expenses 574,036 389,191 Net Loss ($327,400) ($78,586) Loss Per Share Of Common Stock ($.09) ($.02) Weighted Average Number Of Shares Of Common Stock Outstanding 3,619,561 3,190,686 Nine Months Ending Sept. 30 1992 1991 Revenues $2,288,457 $2,157,141 Cost Of Goods Sold 1,459,126 1,334,727 Gross Profit 829,331 822,414 Operating Expenses 1,614,958 1,193,690 Net Loss ($785,627) ($371,276) Loss Per Share Of Common Stock ($.23) ($.14) Weighted Average Number of Shares of Common Stock Outstanding 3,392,161 2,632,246 -0- 11/13/92 /CONTACT: Peter Heath, Vice President Finance and Chief Financial Officer, EDITEK, Inc. 919-226-6311/ (EDI) CO: EDITEK, Inc. ST: North Carolina IN: MTC SU: ERN
2:40 -- CH007 -- 0798 11/13/92 15:07 EST
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|Date:||Nov 13, 1992|
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