|Pyng Medical Corp. Reports Second Quarter Fiscal 2016 Results|
|By Marketwired - Medical and Healthcare|
|Tuesday, 24 May 2016 19:00|
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 24, 2016) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced financial and operating results for the three and six months March 31, 2016. All amounts are in Canadian dollars unless stated otherwise.
The Company reported total sales of $1,218,080 for the three months ended March 31, 2016, down 26% from $1,650,528 reported for the second quarter fiscal 2015. This decrease was primarily attributed to lower military sales this year, partially offset by increased sales from the civilian market for the Company's trauma products. Gross margin as a percentage of sales decreased to 49% from 51% a year ago, driven by the higher landed costs this year. Operating expenses for the three months ended March 31, 2016 increased 9% to $937,638, primarily due to the higher sales & marketing expenses as part of the Company's growth strategy.
The Company reported a net loss of $318,773 for this quarter, equal to a loss of $0.011 per share, compared to a net loss of $166,064 or loss of $0.007 per share one year earlier. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were a loss of $175,329, an increase of $171,539 from loss of $3,790 reported for the second quarter of fiscal 2015.
For the six months ended March 31, 2016, total sales of $2,440,077 were recorded, down 23% from $3,164,603 for the comparative period last year due to the lower military sales. As a result, the gross margin decreased to $1,144,437 from $1,512,290 reported one year ago. As the Company continued its growth strategy with market penetration, operating expenses went up 30% to $1,912,703 this year as compared to $1,467,537 for the comparative period of last year.
As at March 31, 2016, the Company had a cash balance of $295,277, a decrease of $212,232 compared with the balance of $507,509 as at September 30, 2015. During the quarter ended March 31, 2016, the Company paid back principal of $164,847 on one promissory note. The Company continues to pursue debt and/or equity financing to help fund its working capital needs. There can be no assurance that these initiatives will be successful.
Full audited financial results for fiscal year ended September 30, 2015 are available on SEDAR at www.sedar.com.
About Pyng Medical Corp.
Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide.
Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatoryapproval and market acceptance; and seasonality of sales in some products.
Neither the TSX Venture Exchange nor its Regulatory Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.