TORONTO, May 9 /CNW/ - Spectral Diagnostics Inc. ("Spectral") today reported a loss of $207,000 (1 cent per share) for the three months ended March 31, 2007 compared to net income of $387,000 (2 cents per share) for the same period last year. The prior period earnings included a one time gain of $2,385,000 (12 cents per share) on the sale of the Company's rapid cardiac business that was effective February 6, 2006.
Sales for the quarter were $841,000 compared to $1,007,000 in the previous year. Last year's first quarter sales included $252,000 of rapid cardiac test revenues related to the business that was sold.
"Our sales this quarter were up 11% over last year on the same comparative basis and our operating results improved by $1.5 million," stated Mr. Anthony Businskas, Executive Vice President and CFO of Spectral. "We anticipate gradual sales increases over the remainder of the year from our EAA(TM) and our RapidWN(TM) products and we are confident that commercial arrangements now under negotiation will lead to consistent growth over the next several years," added Mr. Businskas.
Spectral is a developer of innovative technologies for comprehensive disease management. Spectral provides accurate and timely information to clinicians enabling the early initiation of appropriate and targeted therapy. Current products include Spectral's FDA approved rapid diagnostic for sepsis (EAA(TM)) and its FDA approved rapid diagnostic for West Nile Virus (RapidWN(TM)), as well as a range of other biological reagents. Spectral's common shares are listed on The Toronto Stock Exchange under the symbol SDI.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral's senior management as well as information currently available to it. While these assumptions were considered reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected.
Spectral Diagnostics Inc.
Consolidated Financial Statements - unaudited
March 31, 2007 and December 31, 2006
(in thousands of Canadian dollars)
Spectral Diagnostics Inc.
Consolidated Balance Sheets - unaudited
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(in thousands of Canadian dollars)
March 31, December 31,
2007 2006
$ $
Assets
Current assets
Cash and cash equivalents 418 945
Short-term investments 5,120 5,057
Accounts receivable 905 762
Inventories 345 253
Prepaid expenses 197 130
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6,985 7,147
Property, plant and equipment 161 166
Purchased technology and trademarks 1,949 2,022
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9,095 9,335
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Liabilities
Current liabilities
Accounts payable and accrued liabilities 396 504
Convertible notes payable 1,885 1,843
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2,281 2,347
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Shareholders' Equity
Common shares 2,524 2,520
Other equity 5,518 5,489
Deficit (1,228) (1,021)
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6,814 6,988
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9,095 9,335
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Spectral Diagnostics Inc.
Consolidated Statements of Operations and Deficit - unaudited
For the three months ended March 31, 2007 and 2006
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(in thousands of Canadian dollars, except share and per share data)
2007 2006
$ $
Sales 841 1,007
Cost of sales 225 438
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Gross margin 616 569
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Operating expenses
Selling, general and administrative 813 1,826
Amortization 136 290
Foreign exchange(gain) loss (9) 72
Stock-based compensation 29 (37)
Research and product development, net of
tax credits (125) 191
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844 2,342
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Loss from operations (228) (1,773)
Interest expense on convertible notes payable (42) (234)
Interest income 63 9
Gain on sale of rapid cardiac business - 2,385
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Net income (loss) for the period (207) 387
Deficit - Beginning of period (1,021) (104,058)
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Deficit - End of period (1,228) (103,671)
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Basic and diluted (loss) earnings per
common share (0.01) 0.02
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Weighted average number of common shares
outstanding 24,114,001 19,860,166
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Spectral Diagnostics Inc.
Consolidated Statements of Cash Flows - unaudited
For the three months ended March 31, 2007 and 2006
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(in thousands of Canadian dollars)
2007 2006
$ $
Cash provided by (used in)
Operating activities
Net income (loss) for the period (207) 387
Items not affecting cash
Amortization 136 290
Stock-based compensation 29 (37)
Accrued interest on convertible notes payable 42 234
Gain on sale of rapid cardiac business - (2,385)
Changes in non-cash working capital (410) (128)
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(410) (1,639)
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Investing activities
Purchase of property, plant and equipment (14) (13)
Purchase of technology and trademarks (44) -
Increase in short-term investments (63) -
Proceeds on sale of rapid cardiac business - 5,650
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(121) 5,637
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Financing activities
Issuance of common shares 4
Bank indebtedness - (859)
Restricted cash - 447
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4 (412)
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(Decrease) increase in cash and cash equivalents
during the period (527) 3,586
Cash and cash equivalents - Beginning of period 945 417
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Cash and cash equivalents - End of period 418 4,003
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Non-cash investing and financing activities
Securities received on sale of rapid cardiac
business - 3,350
%SEDAR: 00002006E