ORLANDO, Fla., Nov. 21, 2014 /PRNewswire/ -- MEDITE Group acquired by CytoCore, Inc. ( OTCBB: CYOE) on April 4, 2014 reported nine months and the 3rd quarter sales ended September 30, 2014 of $8.7 million and $2.8 million. Operating income was $448,000 for the nine months ended September 2014 and a $38,000 loss for the quarter ended September 2014. "Even though our 3rd quarter is usually a seasonable weak period due to the summer vacation period which extends from July into September for many countries worldwide, we are proud to announce record sales for these periods versus comparable periods in prior years. A tripling of US sales was the driving factor for the nine month period," says Michael Ott, President and COO of CytoCore, Inc. soon to become MEDITE Cancer Diagnostics, Inc. an Orlando, Florida based company specializing in Anatomic Pathology and Cytology products used by medical laboratories for the diagnosis of cancer and precancerous conditions. "Robust demand for our products as indicated by our excellent current order backlog supports the general seasonality from past years where the fourth quarter usually has contributed 35 % of annual sales."
The one time increase in Research and Development expenses for the third quarter resulting from the CytoCore purchase establishing our Chicago based research center along with the opening of our new design and engineering center in Poland suppressed our profitability from operations. We are encouraged by the biomarker results for cervical and breast cancer detection emanating from Chicago and the development of a breast cancer risk assessment device currently under way in Poland.
CytoCore, Inc. going forward is working to become a global force in providing solutions to the world wide cancer epidemic which according to the recently published "World Cancer Report 2014" by the World Health Organization, states that the number of cancer cases will increase by about 57% to 22 million cases in the next two decades. At the same time cancer deaths will rise from 8.2 million to 13 million per year.
As a result of these trends, we expect to achieve record sales and profitability driven by the announced new distribution contracts and new product launches as evidenced by our consumable product sales which are now exceeding 30% of sales and rapidly becoming a larger part of reoccurring sales. In addition, our expanded worldwide distribution and our emerging relationship with our Chinese joint venture partner, UNIC, where we look to establish a standardized Anatomic Pathology Laboratory process using MEDITE devices and consumables addressing the needs of over 20,000 existing Chinese hospitals and up to 500 new hospitals annually, support our growth.
About CytoCore, Inc. and MEDITE Cancer Diagnostics, Inc.
MEDITE Cancer Diagnostic, Inc., Orlando, and its wholly-own MEDITE GmbH a Germany-based company with its subsidiaries has specialized on the development, manufacture and distribution of medical laboratory automation equipment and supplies for anatomic pathology, histology and cytology. For these segments, the company offers a complete range of devices and consumables. MEDITE currently sells into 70 countries and is a market leader in Germany.
This press release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the factors described under the Risk Factors section of our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission for the period ended September 30, 2014. CytoCore, Inc. cautions investors not to place considerable reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this document, and CytoCore, Inc. undertakes no obligation to update or revise the statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. CytoCore's business is subject to substantial risks and uncertainties, including those identified above. When evaluating CytoCore's business and securities, investors should give careful consideration to these risks and uncertainties.
SOURCE MEDITE Cancer Diagnostics, Inc.