VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 27, 2012) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the three months ended December 31, 2011. All amounts are in Canadian dollars unless stated otherwise.
The Company reported total sales of $1,327,190 for the three months ended December 31, 2011, down 35% compared with $2,041,737 for the same quarter last year, due in part to the late approval of the US Department of Defense budget. As a result, gross margin decreased to $818,491, from $1,398,349 reported a year ago. The gross margin as a percentage of revenue decreased from 69% to 62%, primarily due to lower sales. Total operating expenses went down 24% to $708,194 from $921,298 for the first quarter of last year as a result of lower sales and cost reduction efforts that the Company has taken.
The Company also reported a net income of $105,641 for this quarter, equal to earnings of $0.01 per share, compared to a net income of $413,007 or $0.03 per share one year earlier. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were $264,700, which decreased 59% from $647,588 reported for the first quarter of fiscal 2011.
As at December 31, 2011, the Company had a cash balance of $117,462, a decrease of $77,952 compared with the balance of $195,414 as at September 30, 2011. The working capital increased to $202,828 from $113,710 due to the payout made to accounts payable and loans payable during this quarter.
The Company continues to pursue debt and/or equity financing to help fund its working capital needs. Management hopes to secure the necessary financing through the combination of new credit facilities and issuance of new equity or convertible debt instruments. There can be no assurance that these initiatives will be successful.
Full audited financial results for fiscal year ended September 30, 2011 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.
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