Biomerica Announces Second Quarter Financial Results
Sales Up Over 9% for the 3 Months Ended November 30, 2008 vs. November 2007
NEWPORT BEACH, CA--(Marketwire - January 15, 2009) - Biomerica, Inc. (OTCBB: BMRA) today reported net sales of $1,120,575 for the three months ended November 30, 2008, compared to $1,027,534 for the same period in the previous year, an increase of $93,041 or 9.1%. The increase in sales for the quarter ended November 30, 2008 as compared to 2007 was due to an increase in international orders. Net sales were $2,314,920 for the first six months of fiscal 2009 compared to $2,367,599 for the first six months in fiscal 2008, a decrease of $52,679.
Biomerica announced net income for the six months ended November 30, 2008, of $37,796 versus a net income of $888,744 in the previous fiscal year during the same period. The previous fiscal year included income of $697,034 on the sale of the Hollister-Stier Laboratories securities Biomerica held for investment. The net loss for the three months ended November 30, 2008 was $103,016, compared to net income of $3,358 in the same quarter the previous fiscal year. The loss was primarily due to several factors including: scrap write off for validation of new instruments in addition to reserving for obsolete inventory, the start up costs of setting up operations in Germany and Austria under a new subsidiary called Biomerica Europe GmbH, the incorporation of Biomerica de Mexico and higher trade show costs in order to try to gain new distributors.
"We are investing in new production equipment and automation to increase our efficiency and margins. At the same time we just set up operations in Germany as Biomerica Europe GmbH to increase our presence and distribution in Europe. While we are disappointed with the loss in the quarter, our investments to increase productivity and distribution should pay off in the future. We continue to be optimistic about the growth prospects for our products," stated Zackary Irani, Biomerica CEO. "We are looking forward to introducing new products during this fiscal year and adding new distributors."
About Biomerica (OTCBB: BMRA)
Biomerica, Inc. (www.biomerica.com) is a global medical technology company, based in Newport Beach, CA. The Company's diagnostics division manufactures and markets advanced diagnostic products used at home, in hospitals, and in physicians' offices for the early detection of medical conditions and diseases. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Biomerica) contains statements that are forward-looking; such as statements relating to intended launch dates, sales potential, significant benefits, market size, growth prospects, new products, favorable positions, new distributors, expansion, increases in productivity and margins, expected orders, leading market positions, anticipated future revenues or production volume of the Company, success of product and new product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. The potential risks and uncertainties include, among others, fluctuations in the Company's operating results due to its business model and expansion plans, downturns in international and or national economies, the Company's ability to raise additional capital, the competitive environment in which the Company will be competing, and the Company's dependence on strategic relationships. The Company is under no obligation to update any forward-looking statements after the date of this release.