VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2012) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the three and nine months ended June 30, 2012. All amounts are in Canadian dollars unless stated otherwise.
For the three months ended June 30, 2012, the total sales fell to $1,445,785 from $1,723,803 in Q3 2011, primarily due to sales reductions from the U.S.A. military market. On a year to date basis, total sales of $3,583,366 were recorded for the nine-month period of 2012, a decrease of $1,471,444 or 29% compared to sales of $5,054,810 for the same period last year. Reduced U.S.A. military sales have impacted the Company since the fourth quarter of FY2011. As a result, the gross margin decreased to $947,985 and $2,259,227 respectively, for the three and nine months ended June 30, 2012, compared to $1,121,336 and $3,329,488 reported for the same periods of last year. Overall operating expenses which include financing related expenses were reduced by 4% and 22% to $875,517 and $2,266,171 respectively for the three and nine-month periods, due to cost saving efforts that the Company has taken.
The Company also reported a net income of $73,468 for this quarter, equal to income of $0.005 per share, down 65% from the net income of $212,887, or $0.01 per share reported one year earlier. For the nine months ended June 30, 2012, the Company reported a net loss of $6,944 while net income of $429,914 was reported for the same period of last year. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations for the three and nine months ended June 30, 2012 decreased to $236,771 and $486,985 respectively, from $384,767 and $1,097,761 reported for the same periods of last year.
During the quarter ended June 30, 2012, the Company paid back all the draw down from the line of credit and secured the short-term loans in the total of US$175,000 from its largest shareholder. As at June 30, 2012, the Company had a cash balance of $420,240 and working capital deficiency of $231,298. The working capital position is expected to improve with the increasing sales from U.S.A. military in the last quarter of fiscal 2012.
Meantime, the Company will continue to pursue debt and/or equity financing to fund its product development and working capital needs. Management hopes to secure the necessary financing through the combination of new credit facilities and issuance of new equity or convertible debt instruments.
Full audited financial results for fiscal year ended September 30, 2011 are available on SEDAR at www.sedar.com.
About Pyng Medical Corp.
Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide.
Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.
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