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MEDICAL TECHNOLOGY TRIMS LOSS IN 3RD QTR
GROSS PROFIT MARGIN RISES TO 25.2 % FROM 23.9% IN 2ND QTR
ANNOUNCES NEW $650,000 LINE OF CREDIT
Lancaster, PA ...May 16, 1997... Medical Technology & Innovations, Inc. (OTC Bulletin Board: MTEN) reported revenues of $931,193 in the three months ended March 31, 1997 compared with revenues of $190,788 in the three months ended March 31, 1996. Net loss of $883,866 or almost seven cents per share compared with net loss of $360,836 or three cents per share in the same period in 1996. Chairman and CEO Jeremy Feakins noted that net loss narrowed from $907,755 in the preceding December quarter as gross margins widened to 25.2% from 23.9% in the second quarter.
For the nine months ended March 31, 1997 the company reported revenues of $2,778,230 versus revenues of $461,651 in the nine months ended March 31, 1996. Net loss of $2,470,606 or eighteen cents per share compared with net loss of $924,524 or eight cents per share in the 1996 period. Feakins said that without several one-time charges in the March quarter just ended, Medical Technology would have reduced its loss very substantially from the preceding quarter.
President and COO Robert D. Brennan said, "Cost reductions now taking place should make a great impact in the next several quarters. These include streamlining the sales force as part of the company's new focus on national accounts and consolidating the financial and administrative functions from the company's Steridyne division to our corporate headquarters in Lancaster, PA."
Feakins announced that Medical Technology has received a $650,000 line of credit from First Capital Corporation of Oklahoma. "With costs coming down dramatically under Mr. Brennan's direction and with our new line of credit backing us up, Medical Technology is making progress in executing its revised, market-driven business plan to become the new standard of children's eyecare in the U.S. In medicine, paradigm shifts are slow but sure. We are confident that the MTI PhotoScreenertm will continue to capture an increasing share of the market as the screening device for the detection of eye problems in early childhood, thus establishing MTI as the technological leader for vision screening. Our recent reorders from Spain and Japan prove this is truly a global market with more than 700 million children under five who are candidates for photoscreening."
Medical Technology & Innovations, Inc. manufactures and distributes the MTI PhotoScreenertm, which is designed to improve early detection for children who develop "lazy-eye" and other preventable vision problems, an estimated 5% or 1.25 million children in the U.S. each year. Its strategic marketing partner is Polaroid Corporation (NYSE:PRD), which supplies film for the patented camera system. Its Steridyne division manufactures and distributes pediatric and general health products including fever monitoring devices and disposables.
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Note: Any forward-looking statements in this press release are necessarily subject to risks and uncertainties which may affect the accuracy of such statements. For a full discussion of such risks, please refer to the company's Form 10-KSB for the fiscal year ended June 30, 1996 and subsequent filings. |
