VANCOUVER, BRITISH COLUMBIA, Aug. 30, 2010 (Marketwire) -- Pyng Medical Corp. (TSX VENTURE:PYT) today announced it's financial and operating results for the three months ended June 30, 2010. All amounts are in Canadian dollars unless stated otherwise.
For the three months ended June 30, 2010, the Company reported sales of $1,290,243, which remained relatively stable as compared to the same quarter of last fiscal year. The gross margin was $832,124, down 8% from the third quarter last fiscal year of $900,292. Operating expenses for the three months ended June 30, 2010 dropped to $925,114, an 8% decrease from $1,001,810 for the same quarter of last fiscal year. The decrease was mainly attributable to lower legal costs, consulting fees and other cost-saving measures.
The Company also reported a net loss of $92,990 for this quarter, or loss of $0.01 per share, compared to a net loss of $101,518, or loss of $0.01 per share for the same quarter of last fiscal year. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were a loss of $56,897 for the quarter ended June 30, 2010, compared to EBITDA of $28,754 for the same period of last fiscal year. Interest expenses for the convertible debenture contributed to the majority of the decrease in EBITDA for this quarter.
As at June 30, 2010, the Company had a cash balance of $146,900 and working capital of $104,187, representing a decrease of $5,631 and $550,419 respectively, compared to the year ended September 30, 2009. The Company generated a negative cash flow of $129,395 from operating activities in this quarter which was primarily due to the increased cash outflow on the operating expenses.
Subsequent to June 30, 2010, the Company obtained recertification to ISO 13485:2003 standards and announced the expansion of its exclusive dealer network globally with a significant addition of India to its Asia-Pacific markets.
Full audited financial results for fiscal year ended September 30, 2009 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. Pyng has received the exclusive 2008 Medical Device Company of the Year Award from Life Sciences British Columbia for its sustained achievements in commercializing the Company's proprietary FAST1(R), the only medical device able to provide rapid sternal access for administering drugs and fluids to the heart in seconds.
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 regulatory approval and market acceptance; and seasonality of sales in some products.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Pyng Medical Corp.
Chief Financial Officer