Business
Spectral Diagnostics Inc. reports financial results for the year ended March 31, 2005
Spectral Diagnostics Inc. reports financial results for the year ended March 31, 2005.
About this update from Spectral Medical Inc
[{"type":"text","content":"\n\n\n\n\nTORONTO, June 9 /CNW/ - Spectral Diagnostics Inc. (TSX: SDI), a developer\nof innovative rapid diagnostic technologies, reported a consolidated loss for\nthe year ended March 31, 2005 of $7.4 million (40 cents per share) compared to\na loss in the previous year of $2.2 million (13 cents per share). Prior year\nresults included a one time gain of $3.6 million (22 cents per share) on the\nsettlement of certain debt. Excluding this gain, the loss in fiscal 2004 was\n$5.8 million, or 35 cents per share.\n\nRevenues for the year were $10 million, a drop of $1.8 million from last\nyear. Cardiac sales were $7.1 million (2004 - $8.9 million). This decline was\nattributable primarily to sluggish cardiac product sales stemming from a delay\nin the commercialization of the Company's i-Lynx(TM) product which was\nsuccessfully launched in the last month of the fiscal year. Sales were also\nnegatively impacted by the continuing strength of the Canadian currency versus\nthe U.S. dollar. Technology revenues of $2.9 million were consistent with\nprior year levels.\n\nCosts continued to be closely managed. Operating expenses of \n$11.5 million, including $1.8 million of net research and development\nexpenditures, were $0.6 million lower than in the prior year. Accrued interest\nexpense on convertible notes of IDx Inc. (IDx) amounted to $1.4 million \n(2004 - $0.3 million). IDx is a joint venture carrying on specific research\nand development activities on behalf of Spectral. IDx accounts are fully\nconsolidated due to the Company's financial obligations related to IDx\nconvertible securities.\n\nIn November, 2004, the Company completed a private equity financing\nresulting in net cash proceeds of $3.3 million. The funds are being utilized\nto launch new product lines and for general working capital needs.\n\n\"Spectral is well positioned for solid growth in fiscal 2006\" stated \nDr. Paul Walker, President and CEO. \"Although financial results for the past\nyear were disappointing, we achieved significant product development\nmilestones and strengthened our senior management team. The i-Lynx(TM) product\nwas successfully launched at the end of Fiscal 2005 and significant progress\nwas made in the commercialization of our new proprietary EAA(TM) sepsis assay.\nIn addition, we are working towards regulatory approval of our West Nile test\...