VANCOUVER, BRITISH COLUMBIA, Feb. 23, 2011 (Marketwire) --
Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the three months ended December 31, 2010. All amounts are in Canadian dollars unless stated otherwise.
The Company continued revenue growth realized in the fourth quarter of last year and reported another record quarter with strong shipments of the flagship product FAST1. Total sales of $2,041,737 were recorded for the first quarter of fiscal 2011, up 29% from $1,585,684 from the same quarter last year. Gross margin for the quarter ended December 31, 2010 amounted to $1,398,349, an increase of $265,443 from $1,132,906 reported a year ago. Gross margin as a percentage of sales decreased from 71% to 69%, which was mainly due to the continuing appreciation of Canadian dollar against the U.S. dollar (more than 93% of sales are in U.S. dollars). Total operating expenses were $990,995, down to 49% of sales compared to $1,102,189 or 69% of sales for the same quarter last year. This was primarily due to the lower labor costs, travel costs, and interest expenses incurred during the quarter.
The Company also reported net income of $407,354 for this quarter, equal to earnings of $0.03 per share diluted, compared to $30,717 or $0.003 per share diluted for the same quarter of last year. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations increased to $575,207, 27% of the sales, compared with the EBITDA of $151,835, or 10% of sales a year ago.
As of December 31, 2010, the Company had a cash balance of $1,382,457 and working capital of $1,730,028, representing an increase of $1,099,464 and $968,773 respectively, compared to similar amounts as of September 30, 2010. Strong operating results and the private placement financing that closed in December 2010 were primary contributors to improvements seen in cash and working capital.
Full audited financial results for fiscal year ended September 30, 2010 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 regulatory approval 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.
Pyng Medical Corp.<br/>Chief Financial Officer<br/>(604) 303-7964 ext. 219<br/><br/>www.pyng.com<br/><br />