Tuesday September 15, 9:02 am Eastern Time
Company Press Release
SOURCE: Biomerica, Inc.
Biomerica Announces Year-End
Results; Diagnostic Sales Reach Record Level
NEWPORT BEACH, Calif., Sept. 15 /PRNewswire/ -- Biomerica, Inc. (Nasdaq: BMRA - news)
reported for the fiscal year ended May 31, 1998 consolidated net revenues rose to $9.4 million
compared to $9.2 million for the prior year. The increase was directly attributable to a 12 percent
increase in diagnostic sales, which reached record levels in the fiscal year ended May 31, 1998.
Revenues from Biomerica's subsidiary, Lancer Orthodontics, were down slightly due to divestment
of unprofitable products and increases in discounts. The Company's Allergy Immuno Technologies
(AIT) subsidiary also reported lower revenues for the year end.
Net income for the year ended May 31, 1998 was $141,432, or $0.03 per share, compared to net
income of $446,845, or $0.11 per share, for the fiscal year ended May 31, 1997. The decrease in
net income was primarily attributable to a 96% increase in new product development expenditures
during the fiscal year ended May 31, 1998. New product development expenses increased by more
than $270,000 compared to the prior fiscal year and were funded completely from operating profits.
The Company also indicated that selling, general and administrative expenses increased at AIT. The
effect of expending the $270,000 in additional new product development expenses, and increased
selling, general and administrative expenses at AIT, reduced consolidated net income from
approximately $442,000 to $141,431 for the fiscal year ended May 31, 1998. The additional
selling, general and administrative expenses at AIT were attributable to the Company's search for a
possible partner for its patented allergy treatment technologies.
Biomerica's CEO, Mr. Zackary Irani, stated, ''We have invested in these new product opportunities
to enhance future revenues and earnings. Biomerica's product development should yield exciting new
products in the areas of cancer detection, gastrointestinal diseases, and thyroid disorders, with some
of these products being introduced as soon as the fourth quarter of this calendar year. We chose not
to sacrifice long term profitability for short term gains.''
Irani added, ''AIT's research has led to unique allergy treatment products which are covered by four
patents. The technology utilizes a liposome encapsulated allergen and is expected to greatly reduce
the length of allergy treatment. Lancer has new products that can significantly assist orthodontists in
reducing the time needed to treat a patient. We believe both our subsidiaries are poised for future
growth.''
Biomerica (Nasdaq: BMRA - news) is a global medical company devoted to developing,
manufacturing and marketing advanced medical diagnostic products for the early detection of
diseases. The products are used in hospitals, physician's offices and in the home for self testing.
Except for historical information contained herein, the statements in this Press Release are
forward-looking statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform act of 1995. Forward-looking statements involve known and unknown
risks and uncertainties which may cause the Company's actual results in future periods to differ
materially from forecasted results. These risks and uncertainties include, among other things, the
continued demand for the Company's products, availability of raw materials and the state of the
economy. These and other risks are described in the Company's Annual Report on Form 10-KSB
and in the Company's other filings with the Securities and Exchange Commission.
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