TORONTO, Sept. 14, 2009 (GLOBE NEWSWIRE) -- Polydex Pharmaceuticals Limited (OTCBB:POLXF) (the "Company") reports financial results for the second quarter of fiscal 2010, the three-month period ending July 31 2009. All figures are reported in U.S. dollars.
Q.2, ending 7/31/2009 Q.2, ending 7/31/2008
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Sales $ 1,232,799 $ 1,296,704
Net Loss (503,902) (112,394)
Loss per common share (0.17) (0.04)
Weighted avg. common
Shares outstanding (basic
and diluted) 3,072,846 3,072,846
The second quarter of operation is typically a slow sales period, as demand for products decrease due to the natural summertime reduction in veterinary supplement requirements, and the Company did indeed experience a reduction in demand for products during this second quarter, especially in the more profitable powdered products.
Additionally, the Company experienced a large writedown of inventory, due to the expiration date of the time limit for its viability. This product would normally have been utilized by reprocessing with new materials, but reduced powdered orders during the year to date eliminated this option. Had this writedown not occurred, and after adjusting the budget for the change in actual exchange rates, the Company would have exceeded its net income budget for the second quarter and year to date of fiscal year 2010. Further writedowns of this type and magnitude are not expected to occur in the remainder of fiscal 2010.
Going forward, management is continuing to explore opportunities to increase distribution chains for existing dextran products in overseas markets, and has identified potential new customers in Europe. Increased production utilizing the plant refurbishments and construction of new drying facilities is planned following the completion of its validation and the receipt of orders.
Also, the Company is concentrating its efforts internally on developing new derivatives of its existing products in order to exploit other marketing possibilities.
The Company's working capital increased to $1,185,130 as at July 31, 2009 from the $1,135,946 reported at January 31, 2009.
The Company shares continue to be quoted on the Pink Sheet platform (www.pinksheets.com), where the Company is currently identified as a Pink Quote OTCBB Transparent company, one that may be quoted both on the Pink Quote system and the Over The Counter Bulletin Board (OTCBB).
Polydex Pharmaceuticals Limited, based in Toronto, Ontario, Canada, is engaged in the development, manufacture and marketing of biotechnology-based products for the human pharmaceutical market, and also manufactures bulk pharmaceutical intermediates for the worldwide veterinary pharmaceutical industry. Company website: www.Polydex.com
The Polydex Pharmaceuticals Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3414
Note: This press release may contain forward-looking statements, within the meaning of the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended, regarding Polydex Pharmaceuticals Limited, including, without limitation, statements regarding expectations about future revenues or business opportunities or potential research projects. These statements are typically identified by use of words like "may", "could", "might", "expect", "anticipate", "believe", or similar words. Actual events or results may differ materially from the Company's expectations, which are subject to a number of known and unknown risks and uncertainties including but not limited to changing market conditions, future actions by the United States Food and Drug Administration or equivalent foreign regulatory authorities as results of pending or future clinical trials. Other risk factors discussed in the Company's filings with the United States Securities and Exchange Commission may also affect the actual results achieved by the Company.