SUNNYVALE, Calif., July 16 /PRNewswire/ -- ChemTrak, Inc. (Nasdaq: CMTR)
today reported a net loss for the quarter ending June 30, 1997 of
$1,654,000 ($0.13 per share), down from the loss of $2,789,000 ($0.29 per
share) for the same period last year. Total revenues for the quarter were
$870,000, an increase of $264,000, or 44 percent, over the $606,000 in
revenues reported in the second quarter of 1996. ChemTrak's increase in
revenues results primarily from growth in product revenues due to higher
shipments of its CholesTrak(R) product.
Cost of products sold, $517,000, was $307,000 less than the second quarter
of 1996, reflecting higher volumes and adjustments to inventory reserves.
Research and development expenditures of $579,000 are $150,000 less than in
1996, primarily due to reduced headcount and spending for laboratory supplies
and outside services. Interest and other expenses of $663,000 during the
second quarter of 1996 reflect the recognition of $650,000 of non-cash
interest charges related to the conversion feature of the company's
convertible debentures.
For the six months ending June 30, ChemTrak's revenues increased
43 percent to $2,311,000 over the first half of 1996, primarily a result of
increased progress payments during the first quarter of 1997 for funded
research and other revenues. Net loss for the six-month period ending
June 30 amounted to $2,949,000, down from the 1996 total of $4,285,000. The
current loss results primarily from higher marketing and advertising
investments.
"ChemTrak is encouraged by the improved sales of CholesTrak(R) and the
rapid introductions of ColoCARE(R) and the forthcoming Parent's Alert(R) home
drug test service to nationally recognized retailers," said Edward F. Covell,
President and Chief Executive Officer.
ChemTrak has already released two major new products in fiscal 1997:
ColoCARE(R), A Home Test to Detect the Early Warning Signs of Colorectal
Disease, and, most recently, Parent's Alert(R), a home testing kit that
screens for eight drugs most commonly abused by young people. The ColoCARE
product is now being shipped to major drug chain stores and mass
merchandisers, while Parent's Alert is in readiness for national distribution
this Fall.
ChemTrak applied for and recently received waived status under the
Clinical Laboratory Improvement Amendments Act of 1988 (CLIA) for its
AccuMeter H. pylori test kit. This action by the U. S. Department of Health
Human Services permits Astra Merck to distribute the test kit directly to
doctors for use in their offices -- not just to medical laboratories. The
waiver allows ChemTrak's product to reach another 28,000 doctors' offices.
Founded in 1985, ChemTrak is a full-service medical diagnostics company
offering reliable and easy-to-use medical testing systems for in-home use and
use in doctors' offices. ChemTrak medical rest kits are designed to screen
and diagnose health conditions with accuracy comparable to physician and
laboratory-administered tests.
Except for the historical information contained herein, this news release
contains forward-looking statements that involve risk and uncertainties.
Actual results might differ materially from these statements due to risks and
uncertainties, including determinations by the FDA, the impact of competitive
product and pricing, the timely development and acceptance of new products and
medical market conditions and other factors discussed in the company's
1996 form 10-K.
CHEMTRAK INCORPORATED
SUMMARY STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Second quarter ended Six months ended
June 30, June 30,
1997 1996 1997 1996
Net revenues:
Product sales $870 $581 $1,478 $1,437
Funded research and other 0 25 833 175
Total revenues 870 606 2,311 1,612
Cost and expenses:
Cost of product revenues 517 824 1,221 1,555
Research and development 579 729 1,032 1,473
Marketing, general and
administrative 1,530 1,179 3,153 2,273
Total costs and expenses 2,626 2,732 5,406 5,301
Operating loss (1,756) (2,126) (3,095) (3,689)
Interest and other
income (expense), net 102 (663) 146 (596)
Net loss $(1,654) (2,789) (2,949) $(4,285)
Net loss per share $(0.13) $(0.29) $(0.24) $(0.44)
Shares used in calculating
per share data 12,855 9,773 12,470 9,743
CHEMTRAK INCORPORATED
BALANCE SHEET DATA
(in thousands)
June 30, Dec. 31,
1997 1996
Cash, cash equivalents and short-term investments $1,875 $4,692
Working capital 1,525 4,656
Property and equipment, net 2,286 2,738
Total assets 6,401 8,841
Total stockholders' equity 3,877 5,030
SOURCE ChemTrak Inc.
CO: ChemTrak Inc.
ST: California
IN: MTC
SU: ERN
07/16/97 08:15 EDT prnewswire.com
|
