May 24, 2011 (Marketwire Canada) --
VANCOUVER, BRITISH COLUMBIA -- Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the three months ended March 31, 2011. All amounts are in Canadian dollars unless stated otherwise.
The Company reported total sales of $1,289,270 for the three months ended March 31, 2011, down 18% compared with $1,578,715 for the same quarter last year, resulting from reduced orders from the U.S. military market due to the failure of the U.S. government to approve its budget. Gross margin for the quarter ended March 31, 2011 amounted to $809,803, a decrease of $265,762 from $1,075,565 reported a year ago. This was mainly due to the continuing appreciation of Canadian dollar against the U.S. dollar causing an unfavorable effect on the majority of sales dominated in U.S. dollars. Total operating expenses were $1,007,576, down to 78% of sales compared to $1,350,593 or 85% of sales for the same quarter last year.
The Company also reported a smaller net loss of $197,773 for this quarter, equal to a loss of $0.01 per share, compared to a net loss of $275,028 or $0.02 per share one year earlier. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were a loss of $63,558, which remained at the same level as last year of $64,615.
For the six months period, the total sales climbed 5% to $3,331,007 compared to $3,164,399 for the comparable period last year. Meanwhile, operating expenses were cut 19% to $1,998,571 from $2,452,784 incurred one year ago. The higher sales and reduction on operating expenses lead to a net income of $209,581 compared to a net loss of $244,311 reported last year.
As of March 31, 2011, the Company had a cash balance of $708,674 and working capital of $1,276,094, representing an increase of $425,681 and $514,839 respectively, compared to the amounts as at September 30, 2010. The overall financial position improved significantly with the increase in total assets by 2% to $8,233,910 and decrease in total liabilities by 22% to $2,289,242. Strong operating results in the first quarter and the private placement financing 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.
Chief Financial Officer
(604) 303-7964 ext. 219