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Biotech / Medical : BMRA (Biomerica) -- Ignore unavailable to you. Want to Upgrade?

To: Radam who wrote (72)	5/20/1998 2:48:00 PM
From: Radam	Read Replies (1) \| Respond to of 170

Companies often announce stock buybacks, but do not follow through: Biomerica Announces Stock Repurchase Plan NEWPORT BEACH, Calif., May 20 /PRNewswire/ -- Biomerica, Inc, (Nasdaq: BMRA) today announced its Board of Directors has approved the repurchase of up to 1 percent of its outstanding common stock shares in the open market over the next 12 months, subject to market conditions and pricing. Management believes that the company's common stock is undervalued. It could not attribute a cause for the recent decline in the Company's common stock price. "For our nine months ended February 1998, our diagnostic revenues increased by 23 percent compared to the same period last year and reached record levels," stated Zackary S. Irani, Biomerica CEO. "The increase in consolidated revenues was directly attributed to increases in diagnostic sales. During the period Biomerica has made meaningful research and development investments in new products to ensure future growth and as a result earnings were lower than the previous year. Had these expenditures in research and development stayed at the same levels as the previous year, our net income for the nine month period of this fiscal year would have increased by 25% compared to the same period in the prior year." "We believe in product development for our future and the funds spent should yield significant new diagnostic products in the areas of cancer detection, gastrointestinal diseases, and thyroid disorders. We anticipate some of the new products we have been developing will be released as soon as the next fiscal quarter (1st quarter fiscal 1999)," Irani said. "We could have not invested in these new product opportunities and reported increased short term profits," Biomerica's CEO said. "However, this would be sacrificing long term profitability for short term gains which is not in the best interest of the Company. Our new product investments should enhance future revenues and earnings." Irani also emphasized that several positive developments have been occurring at Biomerica's Lancer Orthodontics subsidiary. That Company has recently experienced an increase in orders to its new distribution partners and has implemented its strategy to more effectively market in the important Dental Health Management Organizations (DHMO) market segment, which is the managed care portion of the orthodontics industry. Lancer's president and CEO has recently commented that he believes the Company is now in a position to increase revenues and profits.