JMAR Technologies Reports Financial Results for Fourth Quarter and Fiscal Year 2007
Wednesday April 2, 12:49 pm ET
Revenues Reflect Shift from R&D Focus to Commercialization; Company Sees Growth Ahead with Hazard-Sensing Products
SAN DIEGO--(BUSINESS WIRE)--JMAR Technologies, Inc. (OTCBB: JMAR - News), a leading developer of advanced laser, photonics and detection technologies, today released financial results for the fourth quarter and fiscal year ended December 31, 2007.
For the fourth quarter ended December 31, 2007, revenues totaled $436,560, compared to $962,114 in the fourth quarter of 2006. Net income applicable to common stock was $704,696, or $0.01 per fully diluted share, compared to a net loss of ($5.83 million), or ($0.15) per fully diluted share, in the fourth quarter of 2006. Net income before preferred stock dividends was $1.00 million in the fourth quarter of 2007, compared to net loss of ($5.52 million) in the fourth quarter of 2006.
For the year ended December 31, 2007, revenues totaled $869,662, compared to $2.00 million in 2006. Net loss applicable to common stock in 2007 was ($3.33 million), or ($0.07) per fully diluted share, compared to a loss of ($14.39 million), or ($0.37) per fully diluted share, in 2006. Net loss before preferred dividends was ($1.62 million) in 2007 compared to ($13.1 million) in 2006.
The decrease in revenues for both the fourth quarter and fiscal year 2007 reflects JMAR’s transition away from a primary focus on government-sponsored research and development toward the marketing of its technology through commercial products. Government contract revenue fell to approximately 36% of total revenues in 2007, from approximately 65% in 2006. Most of the overall drop in revenue was due to a decrease of $1.32 million related to contract R&D projects for the Defense Advanced Research Projects Agency and the Naval Air Systems Command.
This revenue decrease was partially offset by an increase of $227,209 in revenue from sales of the Company’s BioSentry, a continuous, on-line, real-time monitoring system for detecting and classifying harmful microorganisms in water.
Margins Rise with BioSentry Sales
Gross margins rose year-over-year, to 26% in the fourth quarter of 2007 from 18% in the fourth quarter of 2006. For the full year, gross margins rose to 27% in 2007 from 24% in 2006. The Company attributed these increases to the shift toward higher-margin sales of the BioSentry and away from lower-margin government contract revenue.
The transition to a commercialization focus also contributed to a drop in R&D expenses for fiscal 2007, to $956,065 from $2.61 million in 2006. R&D expenses for the fourth quarter of 2007, however, were $476,456, up from $303,246 in the fourth quarter of 2006. Selling, general and administrative (SG&A) expenses fell year-over-year, in line with the reduction in revenue. In the fourth quarter of 2007, they were $695,208, down from $1.28 million in the fourth quarter of 2006. SG&A totaled $3.17 million for all of 2007, down from $5.00 million in 2006.
Net income and losses applicable to common stock were significantly impacted by non-operating factors. Changes in the market value of derivative liability were positive in the fourth quarter of 2007, at $3.88 million, and in the fiscal year 2007, at $10.3 million. There was no derivative liability impact in the fourth quarter of 2006 or the fiscal year 2006.
Interest and other expense was $1.71 million in the fourth quarter of 2007, compared to $136,531 in the fourth quarter of 2006. For all of 2007, interest and other expense totaled $9.05 million, compared to $408,804 in 2006. Non-cash interest related to derivative liability and debt discount for fourth quarter and year end 2007 was 1,317,708 and 8,092,689, respectively. Net income and losses also were impacted significantly by results from discontinued operations. In the fourth quarter of 2007, the Company recorded a loss of ($37,291) from discontinued operations, compared to a loss of ($3.92 million) in that category in the fourth quarter of 2006. For all of the 2007, the company reported income of $539,325 from discontinued operations, compared to a loss of ($5.52 million) in 2006.
On the balance sheet, the Company reported $174,879 in cash and cash equivalents as of December 31, 2007, up from $138,541 on September 30, 2007.
CEO Discusses Growth Outlook
Commenting on these results, JMAR Technologies’ President and CEO C. Neil Beer, PhD, said, “The financials we present today show the Company to be on track in its transition from the development stage to commercialization. The most notable number -- in light of our growth strategy -- is the rising revenue from BioSentry, the first commercial product we have brought to market. We have sold BioSentry systems to customers in the U.S. and abroad, including Vitens, the largest water company in the Netherlands, and Aquatec, a Swiss distributor of water quality control systems. The Environmental Protection Agency and a large pharmaceutical company have been testing the product for applications in homeland security and manufacturing.”
Dr. Beer continued, “With 57,000 water treatment facilities in the U.S. alone, the market for a hazard-sensing product such as BioSentry is potentially enormous. Overseas opportunities are also largely untapped, especially in Europe and Asia, due to water contamination, terrorist threats to government and military facilities, and expansion of pharmaceutical manufacturing in China and India.”
In addition to BioSentry, the Company markets its patented “BriteLight,” the diode-pumped modular solid-state (DPSS) laser, suitable for advanced laser applications in academic, military and manufacturing settings. Sales have been limited to this point, but JMAR is now offering the BriteLight system to a wider range of customers, packaging it either as discrete modules or as a complete, integrated system to match specific customer requirements and budgets. Potential buyers include research centers, universities, industrial research laboratories and semiconductor equipment suppliers. In the development stage are a number of potential products based on the Company’s double-pulse laser technology. These include sensor systems to detect explosives, drugs or environmental contaminants, and products measuring gas flow velocities, for use in wind tunnels and automotive research.
To be added to JMAR Technologies' investor lists, please contact Haris Tajyar at htajyar@irintl.com or at 818-382-9702. |
