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Here's today's news - company is still selling way below book value.
Company Continues to Expand Product Line and Reduce Net Loss
REDMOND, Wash., Oct. 24 /PRNewswire/ -- ProCyte Corporation (Nasdaq: PRCY)
today reported a net loss of $1,649,499, or twelve cents per share, for the
quarter ended September 30, 1997. This compares to a net loss of $2,298,819,
or seventeen cents per share, for the same three-month period in 1996.
ProCyte ended the quarter with cash, cash equivalents and short-term
investments of approximately $14.2 million.
"Product revenue and revenue from our contract manufacturing services were
in keeping with our expectations for the quarter," said ProCyte's president
and chief executive officer Jack Clifford. "As previously discussed, in third
quarter ProCyte implemented its plan to eliminate its direct sales force in
the chronic wound care sector and began using select distributors to market
its specialty wound care line, the GraftCyte(TM) system. The company also
launched a third GraftCyte(TM) product in August - GraftCyte(TM) Post-Surgical
Shampoo."
The GraftCyte(TM) System is designed for use following hair restoration to
help to promote natural wound healing following hair transplantation
procedures. The products were well received at the recent International Hair
Restoration Conference in Barcelona, Spain, and will be featured in upcoming
media programs. The company plans to continue to expand this product line in
the coming months.
ProCyte's other unique peptide-copper or polymer based wound care products
are promoted to hospitals, nursing homes and other extended care facilities
for the care and management of wounds like diabetic ulcers, pressure sores,
burns and venous stasis ulcers. The company plans to partner the distribution
of this innovative product line in North America and elsewhere.
For the three and nine-month periods ended September 30, 1997, ProCyte
earned revenue from initial product sales, contract manufacturing services,
other income and interest income of $429,819 and $1,989,904, respectively. The
company was performing contract research and development in 1996 that it is
not conducting in 1997, and ProCyte received its first FDA product clearances
in 1996 to begin promoting its products in the US in the second half of that
year. The three and nine-month periods in 1996 are not directly comparable
with regard to revenue in the same periods in 1997.
The increase in the company's three and nine-month operating revenue for
the period ended September 30, 1997, compared to the like year-ago periods,
was primarily a result of increased product sales and fees from contract
manufacturing. The decrease in total revenue for the three and nine-month
periods ended September 30, 1997 compared to the same periods in 1996 was
primarily a result of lower interest earnings due to decreased cash available
for investment.
Total operational expenses for the three and nine-month periods ended
September 30, 1997 decreased $770,581 and $1,243,230, respectively, compared
to the year-ago periods, primarily as a result of decreased research and
development and general and administrative spending. The planned decrease in
expenses was primarily related to the stage of development of the company's
products and reduced staffing expenses. The impact of the reduced sales force
expenses will be reflected in the fourth quarter. |
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