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ProCyte Announces Quarterly Revenues Increase
23%
Quarterly Loss Narrows and 9-Month Revenues Increase 86%
REDMOND, Wash, Oct. 19 /PRNewswire/ -- ProCyte Corporation (OTC Bulletin Board: PRCY - news), a leading skin
care and tissue repair company, today reported its results from operations for the third quarter ended September 30, 1999.
Revenues for the quarter increased 23% to $948,915 as compared to $771,533 for the same period a year ago. Net loss for
the quarter was $822,157, or ($.05) per share, as compared to a net loss of $1,133,924, or ($.08) per share for the same
period a year ago.
Revenues for the nine months ended September 30, 1999 increased 86% to $3,268,327 from $1,761,440 as compared to the
same nine-month period in 1998.
Operating expenses are continuing to trend lower as a result of product cost reductions and a reduction in administrative costs.
For the third quarter ended September 30, 1999, operating expenses decreased 14% to $1,495,305 from $1,734,011 in the
same quarter a year ago. When expressed as a percentage of sales, operating expenses declined 30% from year-ago figures.
During the quarter ProCyte entered into a new supply agreement with Advicare, Inc.; which makes ProCyte their primary
supplier of skin care products for cosmetic surgery procedures. Advicare was founded by Steve Goldstein, who successfully
developed the ophthalmic laser business 20/20 Laser Centers, that were later sold in a deal valued at $35 million.
Also during the quarter, the Neova(TM) Therapy copper peptide anti-aging product line, which has been shown to reduce fine
lines and wrinkles without the irritation usually associated with popular AHA and retinal products, was launched into the
physician market. In October, a new microdermabrasion kit was introduced to capitalize on this rapidly growing procedure in
the medical and esthetic marketplace. Both items are expected to contribute to strong product sales in the fourth quarter.
Commenting on ProCyte's third quarter results, the Company's President and CEO Jack Clifford stated, ``In the third quarter
of 1999, we were able to reduce our operating expenses significantly through more directed promotional programs and
reductions in administrative costs, while expanding sales of our products through a new three-year supply agreement with
Advicare. We have already received an initial order from Advicare under this agreement.'
Mr. Clifford continued, ``We are excited about the opportunities with our base business as well as what Advicare brings to our
cosmetic surgery business. Our products give them a leading edge, and we expect to grow our business significantly with this
new agreement.'
Separately, the Company announced that in connection with its new agreement with Advicare, Susan Bowner and Ken
Tapman left ProCyte to join Advicare. Accordingly, Ms. Bowner resigned from her board position. The ProCyte Board of
Directors has decided to reduce its size by one member and is now comprised of Jack Clifford, Chairman and CEO of
ProCyte, and four outside directors.
About ProCyte:
ProCyte Corporation is a healthcare products company that develops, manufactures, and markets products for tissue repair,
skin health and hair care. ProCyte's product portfolio includes comprehensive skin care lines for therapeutic care, pigmentation
concerns, anti-aging products and products for thinning hair. The Company's products incorporate its patented copper peptide
technology and are marketed both directly and through distribution partners.
This report may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual
results to differ materially from those projected. The Company's results may vary significantly from quarter to quarter and will
depend, among other factors, on product launches and market acceptance, manufacturing contracts, and distribution
agreements.
The ProCyte third quarter earnings results conference call is scheduled for October 19, 1999 at 1:00 PDT. The speaker will be
Jack Clifford. Please dial 800-313-8195 to be directly connected to the call.
To access postview of the conference call, dial 800-633-8284/619-812-6440 and enter reservation number 13365083.
ProCyte Contact Magnum Financial Group, LLC Contact
Jack Clifford, Chairman/CEO Michael S. Manahan, Principal
425-869-1239 213-488-0443
www.ProCyte.com www.magnumfinancial.com
Statements of Operations Data:
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
REVENUES
Product sales $826,622 $640,341 $2,746,184 $1,485,927
Contract manufacturing 105,980 123,280 407,730 255,267
Licenses, royalties
and other 16,313 7,912 114,413 20,246
Total operating
revenue 948,915 771,533 3,268,327 1,761,440
Cost of product sales 321,565 290,990 1,064,512 634,779
627,350 480,543 2,203,815 1,126,661
OPERATING EXPENSES
Research & development 410,125 492,743 1,353,195 1,605,931
Selling, general
& administrative 1,085,180 1,241,268 3,896,452 3,182,356
Total costs
and expenses 1,495,305 1,734,011 5,249,647 4,788,287
OPERATING LOSS (867,955) (1,253,468) (3,045,832) (3,661,626)
INTEREST INCOME 45,798 119,544 195,722 438,243
NET LOSS $(822,157) $(1,133,924) $(2,850,110) $(3,223,383)
Net Loss per
common share $(0.05) $(0.08) $(0.19) $(0.23)
Weighted average number
of common shares used
in computing net
loss per common share 15,400,850 14,468,678 14,858,285 13,992,016
Balance Sheet Data: June 30, Dec 31,
1999 1998
Cash and short-term
investments $4,377,937 $6,938,981
Accounts
receivable, net 524,004 692,196
Inventories, net 1,466,010 1,982,890
Property and
equipment, net 4,777,038 5,163,967
Intangibles, net 3,506,348 3,159,101
Other assets 373,464 365,243
Total Assets $15,024,801 $18,302,378
Total Liabilities $529,863 $622,828
Stockholders' equity 15,251,772 17,679,550
Total Liabilities
and Stockholders'
Equity $15,781,635 $18,302,378
SOURCE: ProCyte Corporation |
