(PR NEWSWIRE) Turnaround Well Underway at ProCyte; New Member Added to the Turnaround Well Underway at ProCyte; New Member Added to the Board
REDMOND, Wash., June 4 /PRNewswire/ -- ProCyte Corporation
(OTC Bulletin Board: PRCY), a leading healthcare products company that
develops, manufactures and markets products for tissue repair, skin health and
hair care, announced today that it held its annual meeting of shareholders on
Wednesday, May 26, 1999 at the Doubletree Hotel in Bellevue, Washington.
At the meeting, all six nominees for the board of directors of the Company
were elected. Two prior board members, Mr. William Sullivan and Mr. Thomas
Tierny, retired from the board, and concurrently the number of board members
was reduced from seven to six.
Mr. Glenn Oclassen was elected to the board for the first time this year.
Mr. Oclassen founded Oclassen Pharmaceuticals, Inc. in 1985, served as
president and CEO through to 1991, and served as chairman of the board through
to 1997 when the company was sold to Watson Pharmaceuticals. Previously, in
1977, Mr. Oclassen founded the Neutrogena Dermatologics division of Neutrogena
Corp. and served as president of that division until 1982. Mr. Oclassen also
worked for Allergan Pharmaceuticals for six years, and founded NextDerm, Inc.,
a company focused on the development and marketing of topical therapeutics for
cosmetic skin defects, which ProCyte will acquire in June, 1999.
Mr. Jack Clifford, President and Chief Executive Officer of ProCyte, said,
"Having someone with Glenn Oclassen's stature and reputation in the
dermatology industry on our board is a welcome asset. He is recognized as a
leader in the field, and I anticipate that his contributions to our business
strategy and product line will be significant. Further, Glenn has business
relationships throughout our industry and our customer base that should
facilitate penetration of the market."
During the meeting Mr. Clifford, reviewed the Company's operations and
financial performance during the year ended December 31, 1998, and outlined
plans for fiscal 1999. In his presentation, Mr. Clifford noted that revenues
from product sales in 1998 increased to over $2.2 million from $184,000 in
1997, and the Company expects revenues to double in 1999 as compared to 1998.
Mr. Clifford credited the significant increase in sales to the market-focused
strategy he developed and began implementing in 1997. That strategy included
redesigning packaging for a new, consumer oriented look, expansion of the
product line from 37 to approximately 200 SKUs, two strategic acquisitions,
and an expansion of the Company's sales force to 14 people. As a result of
this strategy, the Company has achieved average compounded sales growth over
the last five quarters of 52%. Further, Mr. Clifford noted that since he
joined the Company he has made tremendous strides in reducing costs, and as a
result, anticipates break-even performance in the first quarter of 2000.
Mr. Clifford stated, "ProCyte is a turnaround situation. When I arrived
in mid-1996 I inherited from the previous management a superior scientific
research facility, an army of researchers, and an intriguing technology --
copper peptides. Unfortunately, we had virtually no sales and marketing, no
products, and we were burning through cash at an alarming rate."
"With the assistance of a few key dedicated staff members we took on the
challenge of moving ProCyte from an R&D company to a product/market driven
company, and I am pleased to report our very positive success. In only a few
short years, we have developed a comprehensive product line directed into
three very substantial markets -- hair restoration, anti-aging, and wound
care, we have designed and implemented sales and marketing strategies, and we
have achieved significant increases in sales. But the turnaround story has
only just begun -- our near term objectives are to solidify our brand
identity, drive sales, and generate profits. Long term, I believe we are
positioning ProCyte to be a significant player in the cosmeceutical landscape,
which is a $5 billion industry."
About ProCyte:
ProCyte Corporation is a healthcare products company that 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.
Two of the Company's more significant product lines are riding the tide of the
aging baby boomers. One product line is designed for sale into the hair
restoration market, and the other product line targets the anti-aging market.
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.
CONTACT: Jack Clifford, President/CEO of ProCyte Corporation,
425-869-1239, www.procyte.com; or Michael S. Manahan, Principal of Magnum
Financial Group, LLC, 213-488-0443, www.magnumfinancial.com
SOURCE ProCyte Corporation
-0- 06/04/99
/CONTACT: Jack Clifford, President/CEO of ProCyte Corporation,
425-869-1239; or Michael S. Manahan, Principal of Magnum Financial Group, LLC,
213-488-0443/
/Web site: magnumfinancial.com
/Web site: procyte.com
(PRCY)
CO: ProCyte Corporation
ST: Washington
IN: MTC
SU: PER
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