These are excellent numbers...stock at 1 3/16 on over 200,000...spiked to 1.44 and came all the way back...now buy it flat for day:
Hemagen Announces Record Sales and 423%
Increase in Earnings
WALTHAM, Mass.--(BW HealthWire)--Jan. 27, 1999--Hemagen Diagnostics, Inc. (NASDAQ:HMGN - news;
NASDAQ:HMGNW - news; BSE:HGN) a developer, manufacturer and marketer of proprietary medical diagnostic test kits,
today announced record financial results for the first quarter of fiscal 1999. For the three months ended December 31, 1998,
net income was $361,000, or $0.05 per diluted share, compared with net income of $69,000, or $0.01 per diluted share, for
the same period last year, a 423% increase. Revenues for the quarter increased 65% to $4,679,000 from $2,844,000 for the
same period ending December 31, 1997. The revenue increase is primarily attributed to higher sales of the company's blood
banking products and its new Analyst product.
''We are very pleased with our record financial performance for the first quarter,'' stated Dr. Carl Franzblau, Hemagen's
chairman, president and chief executive officer. ''These results clearly demonstrate that the marketplace is responding favorably
to our Analyst Clinical Chemistry System. Together with our extensive array of 135 FDA-cleared diagnostic products, we
believe that we have now built a very strong core business from which we can continue to grow.''
Dr. Franzblau continued: ''During this year, we can anticipate introducing new diagnostic testing applications for the Analyst
that will greatly enhance its acceptance in both the physician office laboratory and veterinary markets. Furthermore, by
beginning to manufacture the majority of the components for this system in house, which we expect to accomplish by summer,
we should significantly reduce our costs of manufacturing consumables for the system, thereby improving profit margins.''
Hemagen's Analyst system consists of a bench-top instrument ideal for physician's offices, small clinical laboratories, and
veterinary offices. The system uses a rotor-based technology that is currently capable of producing results of up to 14 different
clinical chemistry test in under ten minutes. The Company plans to engage in an active development program to increase the
product offerings available for the Analyst system in both the human and veterinary markets. A rotor specifically designed for
the veterinary market, the Vet 16, is currently being beta tested at customer sites and is expected to be available for sale at the
beginning of April 1999.
Hemagen Diagnostics, Inc. develops, manufactures and markets more than 135 FDA-cleared proprietary medical diagnostic
test kits used to aid in the diagnosis of autoimmune and infectious diseases and to measure important constituents in human and
animal blood. The Company focuses on markets which offer significant growth opportunities.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking
statements that involve risks and uncertainties which are described in the Company's Securities and Exchange Commission
reports and filings.
-0-
Consolidated financial statements
Hemagen Diagnostics Inc. and subsidiary
(Unaudited)
Statement of Operations (condensed)
Three Months Ended
December 31,
1998 1997
REVENUES $4,679,101 $2,843,767
COSTS AND EXPENSES
Cost of product sales 2,773,640 1,577,651
Research and development 267,547 279,290
Selling, general and administrative 1,177,012 883,499
---------- ----------
4,218,199 2,740,440
OPERATING INCOME 460,902 103,327
Other income (expense) (99,691) (34,294)
NET INCOME $ 361,211 $ 69,033
Net income per share - basic $ 0.05 $ 0.01
Net income per share - fully diluted $ 0.05 $ 0.01
Balance Sheet (condensed)
Dec. 31, Sept. 30,
1998 1998
ASSETS
Current assets:
Cash and cash equivalent $ 168,654 $ 412,193
Accounts receivable (net 2,910,611 3,294,598
Inventory 6,334,110 6,212,254
Prepaid expenses and other
current assets 422,411 273,909
TOTAL CURRENT ASSETS 9,835,786 10,192,954
Net property and equipment 4,243,940 4,367,196
Other assets 1,392,739 1,403,486
TOTAL ASSETS $15,472,465 $15,963,636
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 1,485,968 $ 1,093,532
Deferred revenue 134,633 152,929
Note payable 2,251,926 3,500,000
TOTAL CURRENT LIABILITIES 3,872,527 4,746,461
Subordinated note payable 1,089,915 1,068,363
Stockholders equity 10,510,023 10,148,812
TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY $15,472,465 $15,963,636
Contact:
Hemagen Diagnostics
William Franzblau
617-890-3766
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