YY..here is the first qtr release...there is a LOT to like in here. I have been buying on dips when it gets down around a buck. From the looks of the trading over the past two weeks somebody is buying with regularity...I like the company going forward w/or w/o the buyout rumors. They are approaching critical mass.
gpg
Hemagen Announces 34% Increase in Sales From
Same Quarter Last Year
WALTHAM, Mass.--(BW HealthWire)--May 17, 1999--Hemagen Diagnostics, Inc.
(NASDAQ:HMGN - news; NASDAQ:HMGNW - news; BSE:HGN) a developer, manufacturer and marketer of proprietary
medical diagnostic products and equipment today reported sales of $3,658,000 and $8,258,000 for the three and six month
periods ended March 31, 1999. This represents a 34% and 48% increase respectively when compared with sales of
$2,740,000 and $5,584,000 for the same periods last year. The increases in revenues were primarily the result of sales from
the Company's new Analyst® business. The net loss for the three month period ended March 31, 1999 was $354,000 ($0.05
per share) compared with net income of $31,000 ($0.004 per share) for the same period last year. For the six month period
ended March 31, 1999 net income was $7,000 compared with income of $100,000 last year. Operating income for the six
month period was $258,000, a 98% increase from the $132,000 for the same period last year. EBITDA was approximately
$758,000 for the six months ended March 31, 1999. The Company has paid down over $1.2 million of its original bank debt
in the six month period.
The loss for the quarter was the result of a translation adjustment resulting from the devaluation of the Brazilian Real, higher
interest expense resulting from the financing of the Analyst® purchase, higher research and development costs and higher sales
and marketing expenses. ''We are making significant investments into our business, which I anticipate will begin to bear fruit in
upcoming quarters,'' stated Dr. Carl Franzblau, president of Hemagen. ''We have completed work on a new veterinary rotor
and veterinary controls for the Analyst. We are renovating our facilities in order to take more production in house, which will
significantly reduce our costs, and we have made an investment in sales and marketing in order to introduce the Company to the
veterinary market.'' Dr. Franzblau continued: ''While I am somewhat disappointed with the results for the quarter, I remain
extremely optimistic about the future. The response to the new Analyst business has been tremendous. I expect this business to
continue to grow quickly.''
The Company has also announced two new distribution agreements. The first is with a distributor to market all RAICHEM
clinical chemistry products in Mexico and Baja California. The second is with a large manufacturer and distributor of diagnostic
instruments. RAICHEM will supply reagents for sale in South America for use with this company's instruments.
Hemagen Diagnostics, Inc. develops, manufactures and markets more than 135 FDA-cleared proprietary medical diagnostic
test kits, and an FDA-cleared Clinical Chemistry Analyzer, for use in the diagnosis of autoimmune and infectious diseases and
to measure important constituents in human and animal blood. The Company focuses on markets which offer significant growth
opportunities.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking
statements that involve risks and uncertainties which are described in the Company's Securities and Exchange Commission
reports and filings.
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