MISSISSAUGA, ON, April 30 /CNW/ - MedX Health Corp. (TSXV: MDX) ("MedX" or the "Company") today announced its results for the year ended December 31, 2007.
Revenue for 2007 was $1,055,792 compared to $2,596,381 in 2006, a decrease of 59%, reflecting a deteriorating US dollar, a declining demand in the Company's primary rehab market and a lack of capital to pursue market opportunities.
MedX's gross margins were at 65%, compared to 78% in 2006, a decrease of 13%, a reflection of lower sales and the deteriorating US dollar.
Net loss in 2007 was $2,096,021 or $0.14 per share compared to a net loss of $1,558,787 or $0.10 per share from a year earlier, an increase of 34%. The Company reduced selling, general & administrative expenses by over $471,034 from 2006, primarily reflecting reduced salary costs as compared to the previous year. Nonetheless, 2007 net results were adversely affected by reduced gross margins and higher research and development costs.
"Prior to the successful public offering that closed in February 2008," said Steve Guillen, President of MedX Health, "MedX had reduced expenses in an effort to conserve the company's resources, and this had a negative effect on the demand from the rehab sector; however, we are now in a position to capitalize on the market opportunities. In fiscal 2008, we plan to do just that. Our new line of dental products, Oralase, has the potential to generate significant levels of sales, and our wound-care technology, Photobandage, offers the prospect of strong partnerships delivering recurring revenues. With the right commercial and product development strategies, there is no reason why the Company should not have a strong growth year."
About MedX Health Corp.
MedX is a leading North American developer and manufacturer of phototherapy medical devices, including dental, rehabilitation and wound care products. MedX is using the proceeds from its recent public offering to expand its distribution network; support its marketing program; continue development of new dental, rehabilitation and wound care products; undertake research and development for wound care products; and for working capital purposes. In particular, MedX plans to accelerate the development of a new product aimed at the rapidly-growing wound care market: its "Photobandage", a bandage technology that allows a wound to be bathed in light, designed to enhance the healing process. The Company intends to license this new technology to one or more major wound care companies for further development, marketing and sales.
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This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information may include statements regarding the Company's future plans, objectives, performance, growth, profits, operating expenses or its underlying assumptions. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of MedX to be materially different from those expressed or implied by such forward-looking information, including uncertainty of successful development of new products, uncertainty of successful manufacturing or marketing of products, uncertainty of commercial acceptance of products, uncertainty concerning governmental regulation, dependency on key employees and relationships, rapid technological changes, foreign currency fluctuations. MedX does not undertake to update any forward-h applicable securities laws.
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