Net sales in the year ended July 31, 2001 were $247,000 as compared to $802,000 for the year ended July 31, 2000. Over the past two fiscal years, the Company divested its shares in Rosch AG, a German affiliate, through a series of private and public transactions. As a result, the Registrant received proceeds of $49.2 million and $14.3 million during the years ended July 31, 2001 and 2000, respectively. The net gains resulting from these transactions were $40.3 million and $12.7 million, in the years ended July 31, 2001 and 2000, respectively. Subject to the completion of the audit, the Company expects net income for the year ended July 31, 2001 to exceed $12.0 million, as compared to net income of $4.5 million for the year ended July 31, 2000.
As of July 31, 2001, the Company has cash and shortterm investments of $22.6 million and working capital in excess of $18 million. This compares to cash and working capital of $2.0 million and $2.1 million, respectively as of July 31, 2000.
In other news, the Company is implementing an 18person reduction in its sales force consistent with Equidyne's focus on clinical distribution, pharmaceutical licensing and consumer education in the domestic diabetes market.
Dr. James Gavin, Chairman of Equidyne, commented that "we have found that consumer education for our needlefree products can be effectively accomplished with directtoconsumer advertising, an informative web site and sales support for our retail distribution partners including sales training and pointof sale materials. A substantial domestic sales organization for detailing doctors and hosting consumer seminars has not been found to be costeffective. Consequently, we are resizing our organization in accordance with our business strategy and our primary goal of achieving the fastest possible path to profitability. Undertaking this workforce reduction was difficult for everyone at Equidyne, but it is a necessary step given the current environment. We remain focused on developing and marketing needlefree drug delivery systems."
The filing said that Equidyne had net sales of $247,000 in its fiscal year ended July 31, compared with $802,000 for the prior year. Over the past two fiscal years, Equidyne sold its shares in former German affiliate Rosch AG through a series of private and public transactions.
As a result, Equidyne received proceeds of $49.2 million for the year ended July 31 and $14.3 million during the year ended July 31, 2000. The net gains resulting from these transactions were $40.3 million for the year ended July 31 and $12.7 million for the year ended July 31, 2000, the filing said.
Net income for the year ended July 31 is expected to exceed $12 million, compared with $4.5 million the previous year.
Was NOT hoping for a delay....I hope the $12 million figure is correct....worried that more loss of sales people will hurt the amount of sales. This makes it absolutely critical that a big pharma contract be WON!
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