Thursday January 15, 7:31 am Eastern Time
Company Press Release
Cyclopss Corporation Reports Results
SALT LAKE CITY--(BW HealthWire)--Jan. 15, 1998--Cyclopss Corporation (NASDAQ: OZON - news) today released results from operations for the third quarter and first nine months ended November 30, 1997.
Net revenues for the third quarter ended November 30, 1997, were $561,474, versus net revenues booked in the same quarter last year of $48,101. The Company recorded a net loss applicable to Common Stock for the third quarter of $(784,295), or $(0.06) per share, on 14,335,587 shares outstanding. This compares with a net loss applicable to Common Stock reported for the comparable period last year of $(810,532), or $(0.07) per share, on 12,243,607 shares outstanding.
Net revenues for the nine months ended November 30, 1997, were $1,113,093, compared with net revenues for the comparable period last year of $264,080. The Company recorded a net loss applicable to Common Stock for the nine month period of $(2,002,859), or $(0.15) per share, on 13,491,875 shares outstanding. This compares with a net loss applicable to Common Stock for the same nine month period ended November 30, 1996, of $(2,132,943), or $(0.19) per share, on
11,232,931 shares outstanding.
Two of the Company's wholly-owned subsidiaries -- Cyclopss Textile Systems, Inc. (''CTSI'') and Cyclopss Biochemical Corporation (''CBC'') -- are currently contributing to the Company's revenues. As of November 30, 1997, Cyclopss Food Processing Systems, Inc., the Wholly-owned subsidiary responsible for the design of the Eco-Pure food safety system which uses ozone to kill micro-organisms on foods such as poultry, meat and produce, had not booked any revenues. however, the Company is currently working with a number of food processors on pilot programs in the meat and poultry markets and believes sales of the Eco-Pure system in these markets, as well as to growers and packers of produce, will represent a large percentage of revenues for the Company in the near- and long- term. Further, the Company anticipates a dramatic increase in the number of textile washing systems sold to hospitals and hotels within the coming months.
During the three months and nine months ended November 30, 1997, certain expenses increased including cost of sales, sales and marketing expenses, and general and administrative expenses. As the demand for the Eco-Pure system grows as well as the Company's hotel, hospital and commercial laundry systems, the Company will experience added costs in these areas. However, expenses relating to research and development will fall pro rata as the Company brings these developed lines to market.
Bill Stoddard, Cyclopss' President, said, ''We are a company in transition from research and development into commercial sales. Sales activity, particularly in light of the food safety crisis and attention given to microbial contaminates within the health care industry, is tremendous. We now have more demand for our systems than ever before and will continue to turn our research and development efforts into increasing revenues for our Company.''
Cyclopss Corporation is one of the nation's leading developers of ozone applications and technology for industries ranging from poultry-, beef- and produce- processing and hotel- and hospital- laundry disinfection to medical sterilization and aerospace.
Consolidated Statements of Operations
(UNAUDITED)
For the three months ended For the nine months ended
November 30, November 30,
1997 1996 1997 1996
Net Revenues $561,474 $48,101 $1,113,093 $264,080
Costs and Expenses:
Cost of sales 505,465 47,524 928,839 213,329
Research and
development 51,895 236,850 203,918 637,798
Selling and
marketing 77,658 50,631 241,932 135,034
General and
administrative 566,960 330,330 1,224,828 901,514
Depreciation
and amortization 116,467 115,845 333,626 350,217
Total expenses 1,318,445 781,180 2,933,143 2,237,892
Loss from
operations (756,969)(733,079) (1,820,050) (1,973,812)
Interest income 19,775 18,540 43,266 30,154
Interest expense (8,567) (95,993) (109,625) (189,285)
Net loss (745,761)(810,532) (1,886,409) (2,132,943)
Preferred
stock dividends (38,534) (116,450)
Net loss applicable
to common
stock $(784,295)$(810,532) $(2,002,859) $(2,132,943)
Net loss per
common share $ (.06)$ (.07) $ (.15) $ (.19)
Weighted
average number
of common shares
issued and
outstanding 14,335,587 12,243,607 13,491,875 11,232,931 |
