VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) - Pyng Medical Corp. (TSX VENTURE:PYT) is pleased to announce that it has filed with SEDAR its third quarter results ended June 30, 2006. The highlights of the filings for the 3rd Quarter are as follows:
- The Company achieved record sales for the third quarter with invoiced sales of $985,210 (2005: $942,782). This is a 5% increase in sales over the same quarter in fiscal 2005;
- On a year to date basis, the Company also achieved record sales for the nine months ended June 30, 2006, with invoiced sales of $2,104,737 (2005: $1,957,416), a 8% increase in sales over the same period in fiscal 2005.
- Cost of sales for the third quarter was $259,950 (2005: $236,808) providing a Gross Margin of $725,260 or 74% (2005: $705,974 or 75%).
- Net income for the third quarter was $236,069 with cash inflows of $5,471 (2005: cash inflows of $9,596).
- The Company generated EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for the third quarter of $167,419 or 17% (2005: EBITDA of $80,987 or 9%).
- Cost of sales for the nine months ended June 30, 2006 was $641,846 (2005: $612,645) providing a Gross Margin of $1,462,891 or 70% (2005: $1,344,771 or 69%).
- On a year to date basis, cash inflows were $100,664 (2005: cash inflows of $65,709).
- For the nine month period, the Company generated EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $24,461 or 1% (2005: EBITDA of negative $95,583 or negative 5%).
Overall, Pyng Medical continues to generate revenue growth and increase profits in spite of the decline in the US to Canadian exchange rates over the past year.
Pyng recently embarked on a strategy to increase sales and achieve greater penetration in the civilian market via increasing our distribution channels (this was in part a response to the ILCOR guideline changes elevating intraosseous devices such as the F.A.S.T.1(TM) to a class IIa device). To this end 8 additional distributors have been appointed in the USA (an increase from the previous 3), and new distributors appointed for each of Australia, New Zealand and South Africa. All but two of these new appointments (2 of the USA based distributors) have placed orders and in certain cases repeat orders. We will be attending a major conference in Europe in the Fall (MEDICA 2006) and will use this event as part of our strategy to significantly increase our European distribution presence and channels.
We also recently released an important product enhancement whereby the remover tool is attached to the protective dome. This ensures the remover tool is transported with the patient for eventual removal of the portal. This enhancement was introduced in part based on user feedback, in particular from the US military.
Again in response to the ILCOR guidelines we have recently increased our pace of advertising and now have monthly advertisements in three leading emergency publications. We anticipate that this advertising will increase awareness of our product in the civilian sector in particular and result in new sales.
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.
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Pyng Medical Corp.