Rande,
This out on Medj today....
Medi-Ject Corporation Reports First Quarter Results
April 30, 1999 8:30 AM EDT
-- Medi-Ject's net loss narrowed in the first quarter due to higher revenues. -- Revenues increased 74% to $1.6 million. * Licensing revenues more than tripled due to a one-time settlement with Schering-Plough. * Unit sales rose 20%, as strong domestic sales benefited from advertising and E-commerce. * Sales revenue decreased 7%, mainly due to a product upgrade in late 1998 that has lower prices than the previous model but comparable margins. -- Management expects growth in unit sales revenue for 1999. Comparative Financial Highlights (Dollar amounts in thousands, except per share data) First Quarter Ended 3/31/99 3/31/98 Change Total revenues $1,592 $913 74% Net income (loss) $(265) $(846) 69% Net income (loss) per share* $(0.20) $(0.60) 67% Average shares outstanding* 1,424,736 1,414,318 2% *Shares outstanding have been retroactively restated to reflect a 1 for 5 reverse stock split effective January 29, 1999.
"We are pleased with our first quarter progress, as we reduced our net loss and generated 20% growth in unit sales. Looking ahead, we are encouraged by the continued growth in unit sales, strengthening domestic sales, increased worldwide distribution and early signs of success with E-commerce sales on the Internet."
-- Franklin Pass, M.D., Chairman and Chief Executive Officer
MINNEAPOLIS, April 30 /PRNewswire/ -- Medi-Ject Corporation (Nasdaq: MEDJ) today reported a net loss of $265,121 or $0.20 per share for the first quarter ended March 31, 1999, compared with a net loss of $845,556 or $0.60 in the year-ago quarter. Per share figures for both 1998 and 1999 periods have been adjusted to reflect the 1 for 5 reverse stock split effective January 29, 1999.
The first quarter earnings improvement was led by a 74% increase in revenues to $1.6 million. The revenue increase was due to a substantial increase in licensing and product development revenues, resulting primarily from a favorable financial settlement associated with the termination of Medi-Ject's contract with Schering-Plough Corporation. With this one-time settlement and ongoing revenues from two additional pharmaceutical companies, first quarter 1999 licensing and product development revenues more than tripled to $1.0 million.
Unit sales increased 20% compared with last year's strong first quarter, in which unit sales climbed 82%. Domestic unit sales rose 38% in this year's first quarter, driven by increased advertising and Internet sales of insulin injectors, which began in late February. In addition, international sales benefited from the introduction of a new growth hormone injector in Europe. However, sales revenue decreased 7% to $567,671. Management said last year's first quarter included sales of a steel product that has since been replaced with a lower-priced plastic disposable, which now has greater customer acceptance and comparable profit margins.
"We are pleased with our first quarter progress, as we reduced our net loss and generated 20% growth in unit sales," said Franklin Pass, M.D., Chairman and Chief Executive Officer. "Looking ahead, we are encouraged by the continued growth in unit sales, strengthening domestic sales, increased worldwide distribution and early signs of success with E-commerce sales on the Internet."
Pass added, "The Schering settlement strengthens our cash position, which is sufficient to fund our 1999 operations." At March 31, 1999, cash and cash equivalents totaled $2.7 million compared to $2.9 million at December 31, 1998, and $6.8 million at March 31, 1998. The Company has no long term debt.
Any statements released by Medi-Ject that are forward looking, including statements relating to future product development, product sales, development and licensing agreements, and research activities, are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements involve risks and uncertainties which may affect the Company's business and prospects, including changes in economic and market conditions, healthcare legislation, progress in Medi-Ject's alliances with pharmaceutical companies, the development of competing drug delivery systems, management of growth and other factors discussed in the Company's filings with the Securities and Exchange Commission.
Medi-Ject Corporation is the world's leading marketer of needle-free injectable drug delivery systems. The Company manufactures hand-held injectors that deposit pharmaceuticals, including insulin and growth hormone, under the skin without a needle. Presently, Medi-Ject has alliances with eight pharmaceutical and medical equipment companies. Headquartered in Minneapolis, the Company's common stock is traded on the Nasdaq Small Cap Market under the symbol MEDJ.
Company information can be found on the Internet under Medi-Ject's site on the World Wide Web at mediject.com. For more information on Medi- Ject Corporation via facsimile at no additional cost, simply dial 1-800-PRO-INFO and enter company's ticker symbol MEDJ.
Medi-Ject Corporation
First Quarter Financial Summary
Statements of Operations
(Unaudited)
For Three Months Ended
March 31, 1998 March 31, 1999
Revenues:
Sales $609,195 $567,671
Licensing & product development 303,778 1,024,317
912,973 1,591,988
Operating Expenses:
Cost of sales 467,823 472,747
Research & development 592,486 660,522
General & administrative 544,812 485,683
Sales & marketing 246,843 264,205
$1,851,964 $1,883,157
Other Income (Expense):
Interest & other income 94,593 26,099
Interest & other expense (1,158) (51)
93,435 26,048
Net Income (Loss) (845,556) (265,121)
Preferred Stock Dividends -- (25,000)
Net Loss Applicable to Common Stock $(845,556) $(290,121)
Shares Outstanding 1,414,318 1,424,736
EPS $(0.60) $(0.20)
Balance Sheet Highlights
March 31, December 31, March 31,
1998 1998 1999
Cash & equivalents $6,800,017 $2,852,285 $2,704,763
Other current assets 919,152 919,885 708,654
Other assets 1,700,170 1,562,261 1,475,155
Total $9,419,339 $5,334,431 $4,888,572
Current liabilities $926,599 $704,424 $541,256
Long-term liabilities 1,166 -- --
Shareholders' equity 8,491,574 4,630,007 4,347,316
Total $9,419,339 $5,334,431 $4,888,572 SOURCE Medi-Ject Corporation |
