MEDIVATORS REPORTS SECOND QUARTER
MEDIVATORS REPORTS SECOND QUARTER CANNON FALLS, Minn., Aug. 11 /PRNewswire/ -- MediVators, Inc.
(NASDAQ: MVAT) reported for the second quarter ended June 30, 1992 sales of $420,644 compared to $455,438 for the second quarter of 1991. The company generated a net loss of $334,819 or $.12 per share for the second quarter of 1992 versus net income of $6,405 in the comparable 1991 quarter. Curtis D. Luebke, chairman of the board, stated, "The net loss in second quarter was directly attributable to lower gross profit margins, increased research and development expenditures and additional general and administrative personnel and expenditures."
For the six months ended June 30, 1992, the company reported sales of $864,499 and a net loss of $494,269 or $.17 per share compared to sales of $1,033,607 and net income of $138,261 or $.10 per share for the comparable 1991 period. In the second quarter gross profit as a percentage of sales decreased from 60.8 percent in 1991 to 34.3 percent in 1992 primarily due to reduced price on the sale of components for 13 demonstrator Dual Scope Disinfectors (DSD-91) sold to and assembled by international distributors and a sales promotion on the OTT Disinfector. "The special pricing and sales promotions were required to meet our customers' needs as we wait for the FDA's 510(k) pre-market notification on the DSD-91. In March 1992, the FDA requested additional information on the DSD-91 and on July 20, 1992, the company responded to that request. We are confident that the company will satisfy the FDA's information requirements," stated Donald L. Sturtevant, president. The increase in research and development expenditures during the second quarter of 1992 was attributable to the company's redesign efforts on the Disposal Sciences' sharps disposal system which was acquired in early 1992. The patented system provides point-of-use destruction and decontamination of most types of disposable sharps. "In the next few months we expect to have completed the field trials of the redesigned sharps disposal system," said Luebke. "In 1992 we expanded the management and administrative staff to prepare for the company's future growth. The market place continues to show extraordinary interest in the new disinfection systems and the sharps disposal system. We continue to believe 1992, with FDA approval of the DSD-91, will be a significant step forward for MediVators and its shareholders," stated Sturtevant. MediVators designs, manufactures and markets infection control and medical waste disposable equipment and supplies. MEDIVATORS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended 6/30/92 6/30/91 6/30/92 6/30/91 Sales $420,644 $455,438 $864,499 $1,033,607 Cost of sales 276,262 178,655 476,271 361,906 Gross profit 144,382 276,783 388,228 671,701 Operating expenses Marketing 149,028 127,380 278,157 244,405 Research and development 74,332 8,443 95,567 12,651 General and administrative 247,992 131,612 536,478 265,608 Operating income (loss) (326,970) 9,348 (521,974) 149,037 Nonoperating income (expense) (7,849) (2,943) 27,705 (10,776) Income (loss) before income taxes and extraordinary item (334,819) 6,405 (494,269) 138,261 Federal and state income taxes -- 1,000 -- 48,000 Income (loss) before extraordinary item (334,819) 5,405 (494,269) 90,261 Extraordinary item -- tax benefit of net operating loss carryforward -- 1,000 -- 48,000 Net income (loss) $(334,819) $6,405 $(494,269) $138,261 Net income (loss) per share: Income (loss) before extraordinary item $(.12) -- $(.17) $.07 Extraordinary item -- -- -- .03 -- $(.12) -- $(.17) $.10 Weighted average common shares outstanding 2,846,494 1,346,543 2,846,494 1,346,543 -0- 8/11/92 /CONTACT: Curtis D. Luebke or Donald L. Sturtevant, both of MediVators, 507-263-4721/ (MVAT) CO: MediVators, Inc. ST: Minnesota IN: MTC SU: ERN
KH -- MN012 -- 9092 08/11/92 16:02 EDT
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|Date:||Aug 11, 1992|
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