SINGAPORE, Aug. 10 /Xinhua-PRNewswire-FirstCall/ -- Biosensors
International Group, Ltd. ("Biosensors" or the "Company"; Bloomberg: BIG
SP) reported higher product revenue of US$7.9 million for the first fiscal
quarter ended June 30, 2006 ("1Q FY07"), a 35 percent increase over US$5.9
million in the corresponding quarter last year ("1Q FY06"). This was also a
slight increase over the US$7.7 million reported in the previous quarter
("4Q FY06"). Revenue from its drug-eluting stent ("DES") systems grew to
US$3.2 million in 1Q FY07 from US$457,000 in 1Q FY06 and remained unchanged
from US$3.2 million reported in 4Q FY06, consistent with the Company's
Product gross margin was also higher in 1Q FY07 at 47 percent compared
to 43 percent in 1Q FY06. This reversed an earlier decline in 4Q FY06 where
product gross margin was 33 percent, with some of the decrease in that
quarter due to a one-time higher provision for material scrap relating to
manufacturing ramp-up of the DES line.
Mr. Yoh-Chie Lu, Chairman and CEO of Biosensors said that the Company
is pleased that the cost management strategies it implemented have shown
some initial positive impact during the first fiscal quarter. He added, "We
will continue to review and streamline our operational structure and
requirements to further fine-tune our operations and enhance efficiencies."
In May of this year, Mr. Lu took on additional responsibilities for
management of the Company's operations. He has since implemented plans that
include cost management and operations-related strategies to enhance the
operational readiness of Biosensors in preparation for the launch of
BioMatrix(R). The Company is currently awaiting CE Mark regulatory approval
for its BioMatrix DES for commercialization in the European Union.
During 1Q FY07, R&D expenses, which include new product research &
development, clinical trials, patent registration, and costs associated
with regulatory approvals, increased to US$5.1 million from US$3.0 million
in 1Q FY06. However, this was lower than the US$7.0 million reported in 4Q
FY06. Similarly, sales and marketing expenses were US$2.4 million in 1Q
FY07, compared to US$2.0 million in 1Q FY06 and US$3.0 million. General and
administrative expenses were US$3.9 million in 1Q FY07, compared to US$3.2
million in 1Q FY06, and recorded a slight increase of US$0.3 million
compared to US$3.6 million in 4Q FY06.
Prior comparative expenses have been adjusted to include share-based
compensation expenses to be consistent with the current quarter's
"While we remain mindful on the need to manage costs, we need to pace
ourselves in our levels of spending and will continue to focus our spending
particularly on maximizing the growth of the Company through prudent
investments in R&D activities and enhancing the sales & marketing
infrastructure. As such, when we begin our LEADERS and STEALTH II clinical
trials, we will expect related expenses to increase, all of which are in
line with our expense guidance provided recently", said Ms. Chato Abad,
Chief Financial Officer.
For 1Q FY07, the Company reported a net loss of US$6.7 million, or 0.74
US cent loss per basic and diluted share compared to a net profit of
US$758,000, or 0.09 US cent earnings per basic and diluted share in 1Q
FY06, due largely to considerably higher licensing revenue received in 1Q
FY06. The net loss in 1Q FY07 was significantly lower than the net loss of
US$9.7 million in 4Q FY06, or 1.08 US cent loss per share.
Mr. Lu commented: "Our industry is focused on longer term results. As a
company, we will also focus our efforts on achieving long term success by
continuing to challenge ourselves to further improve and enhance our
organizational infrastructure while commercializing innovative, proprietary
products to support our ultimate goal of becoming a leading DES player."
About Biosensors International Group, Ltd.
Biosensors develops, manufactures and markets innovative medical
devices used in interventional cardiology and critical care procedures.
Biosensors is well-positioned to emerge as a leader in drug-eluting stents,
an evolving therapy that is rapidly gaining market share from traditional
therapies such as bare-metal stenting and open-heart surgery. Biosensors
has internally developed technology to address each component of a
drug-eluting stent system, including a stent, a stent delivery catheter, a
biodegradable polymer and a proprietary anti-restenotic drug. It is
pursuing two separate drug-eluting stent programs, BioMatrix(R) and
Axxion(TM), and has licensed aspects of its drug-eluting stent technology
to four companies.
Forward Looking Statements
Certain statements herein include forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally can be identified by the use of
forward-looking terminology, such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," "project" or "continue" or the
negative thereof or other similar words. All forward-looking statements
involve risks and uncertainties, including, but not limited to, customer
acceptance and market share gains, competition from companies that have
greater financial resources; introduction of new products into the
marketplace by competitors; successful product development; dependence on
significant customers; the ability to recruit and retain quality employees
as Biosensors grows; and economic and political conditions globally. Actual
results may differ materially from those discussed in, or implied by, the
forward-looking statements. The forward-looking statements speak only as of
the date of this release and Biosensors assumes no duty to update them to
reflect new, changing or unanticipated events or circumstances.
Biosensors International Group
Ms Tina Lim, Executive, Corporate Communications
Tel: (65) 6213 5712
Media Relations / Investor Relations Firm
Allen & Caron Inc.
Mr. Matt Clawson
Executive Vice President, Investor Relations
Tel: (1) 949 474 4300
SOURCE Biosensors International Group, Ltd.