ProCyte Reports 1998 3rd Quarter Results
Product Introductions and Expense Reduction Improve Performance
REDMOND, Wash., Oct. 16 /PRNewswire/ -- ProCyte Corporation (Nasdaq: PRCY - news) today reported a net loss of
$1,133,924 or eight cents per share for the quarter ended September 30th, 1998. This compares to a net loss of $1,649,499
or twelve cents per share for the same three month period in 1997. The year to date net loss has been reduced from
$5,278,822 or forty cents per share to $3,223,383 or twenty-three cents per share in 1998.
ProCyte ended the quarter with cash, and short term investment of $8.2 million.
Revenues for the third quarter of 1998 were $763,621 as compared to $177,114 in 1997. Year to date revenues also
increased to $1,741,194 in 1998 from $829,669 for the same period in 1997. The revenue base continues to expand and
grow with the successful introduction of new products like Tricomin(R), GraftCyte(TM) Concentrate and the Complex
Cu3(TM) tissue repair cremes and gel.
Jack Clifford, President & CEO said that ''during the third quarter, the company launched Tricomin(R) products for thinning
hair into the Dermatology and Cosmetic Surgery markets with very positive results.'' The products are also available via the
Internet through several websites and are being supported with professional and consumer ads, direct mail and a heavy
sampling program. We also expanded our wound care distribution agreement with Tanox Pharma for the Far East by adding 5
additional countries,'' Mr. Clifford added. ''We will be shipping products to China before year end 1998. Results from our
Bard agreement were hampered by Bard's restructuring of their non-hospital sales efforts to full time company sales
representatives.''
The sales of HumaTech products continue to go well in the United States. Consistent with the current global market conditions,
sales to the international markets were slower in the current quarter, however, we consider this to be temporary. Mr. Clifford
stated that ''since the acquisition, we have increased the number of sales representatives into the major dermatology markets
and during the month of October, we successfully completed the consolidation of the HumaTech operations from Boca Raton,
Florida, to our Redmond facility.''
This report may contain forward looking statements. The Company's results may vary significantly from quarter to quarter and
will depend among other factors on product launches and market acceptance, manufacturing contracts, and distribution
agreements.
ProCyte Corporation is a healthcare company which develops, manufactures and markets products for tissue repair, skin health
and hair care. The Company's products incorporate its patented copper peptide technology and are marketed both directly and
through distribution partners.
PROCYTE CORPORATION
Third Quarter 1998 and 1997
Selected Financial Data
Statements of Operations Data:
Three months ended September 30 Nine months ended September 30
1998 1997 1998 1997
REVENUES
Product Sales $640,341 $41,391 $1,485,927 $123,963
Contract
Manufacturing 123,280 135,723 255,267 705,706
Total operating
revenue 763,621 177,114 1,741,194 829,669
OPERATING EXPENSES
Cost of product
sales 290,990 17,362 634,779 48,583
Research &
development 492,743 1,025,296 1,605,931 3,677,586
General &
administrative1,241,268 1,036,660 3,182,356 3,542,557
Litigation settlement - - - (400,000)
Total costs
and expenses2,025,001 2,079,318 5,423,066 6,868,726
OPERATING LOSS (1,261,380) (1,902,204) (3,681,872) (6,039,057)
OTHER INCOME
Interest income 119,545 252,705 438,244 760,235
Other income 7,912 - 20,246 -
Total other
income 127,457 252,705 458,490 760,235
NET LOSS $(1,133,924) $(1,649,499) $(3,223,383) $(5,278,822)
Net Loss per
common share $(0.08) $(0.12) $(0.23) $(0.40)
Weighted average
number of common
shares used in
computing net
loss per common
share 14,468,678 13,340,058 13,992,016 13,315,257
Balance Sheet Data: September 30, December 31,
1998 1997
Cash, cash equivalents and
short-term investments $8,228,916 $12,866,617
Accounts receivable 419,536 208,247
Inventories, net of reserve 2,113,278 1,927,325
Other current assets 155,805 154,887
Property and equipment, net 5,254,160 5,603,823
Patents, net 153,659 165,661
Goodwill, net 3,061,944 -
Other assets 178,385 384,399
TOTAL ASSETS $19,565,683 $21,310,959
Current liabilities $536,692 $674,407
Long-term liabilities 120,877 20,055
Common stock 144,687 133,650
Additional paid-in-capital 84,305,793 82,801,830
Accumulated deficit (65,542,366) (62,318,983)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $19,565,683 $21,310,959 |
