DEURLE, BELGIUM--(Marketwire - February 17, 2010) - Remedent, Inc. (OTCBB: REMI), an
international company specializing in the research, development, and
manufacturing of oral care and cosmetic dentistry products, reported
results for the fiscal third quarter ended December 31, 2009 (in U.S.
dollars).
Net sales in the third quarter decreased 62% to $1.8 million from $4.8
million in the same year-ago quarter. The decrease in sales was primarily
due to the non-recurrence of license fees received from Denmat,
specifically $2,500,000 during the three months ended December 31, 2008.
Loss from operations in the third quarter was $964,000, as compared to a
loss from operations of $467,000 in the same year-ago quarter, which was
attributable to non-recurring license fees as discussed above, the planned
U.S. reorganization, and an agreed settlement with an OTC customer.
Net loss for the third quarter totaled $836,000 or $(0.04) per share (after
minority interest and based on 20 million weighted average basic shares
outstanding), as compared to net income of $2.5 million or $0.13 per share
(based on 19 million weighted average basic shares outstanding) in the same
year-ago quarter. The net loss in the third fiscal quarter included a
charge of $8,000 for warrants issued during the quarter, as compared to the
year-ago quarterly loss which included a $4.3 million charge for warrants
issued.
Cash and cash equivalents totaled $1.4 million at December 31, 2009 as
compared to $1.8 million at March 31, 2009.
Management Commentary
"We have now established a new worldwide production facility in China,"
said Guy De Vreese, CEO of Remedent. "Our goal has been to prepare for
increasing demand and improved margins, while maintaining the quality of
our dental veneers. We achieved this in the second quarter and in the third
quarter have been delivering veneers with exceptional thinness and
durability. Our new manufacturing facility has enabled us to increase both
capacity and timeliness of shipments, while reducing costs."
New Remedent Web Site
On November 19, 2009, Remedent unveiled new corporate website at
www.Remedent.com featuring its latest dental technologies. This includes
GlamStrip(TM) for the single-motion application of dental veneers, and
FirstFit, a revolutionary solution for dental bridges and crowns. The
highly interactive website features new before and after images as well as
engaging videos.
The site also provides coverage of the FirstFit presentation at the Den-Mat
Education Destination Seminar in Las Vegas, which was held on November 7,
2009. The presentation was conducted by Remedent's CEO, Guy De Vreese,
with the Belgian inventor of FirstFit, Dr. Evelyne Jacquemyns, presenting
live via webcast from one of Remedent's international GlamSmile locations
in Dubai, UAE. The event represented the first official presentation of the
new bridge and crown technology to dentists in the United States.
Teleconference Information
Remedent will host a conference call on February 18th, 2010, at 11 am
Eastern time (8:00 am Pacific time) to discuss these results. A question
and answer session will follow management's presentation. To participate in
the call, dial the appropriate number 5-10 minutes prior to the start time,
request the Remedent conference call and provide the conference ID.
Participant Dial-In Numbers:
Date: February 18, 2010
Time: 11:00 am Eastern time (8:00 am Pacific time)
Dial-In Number: 1-800-894-5910
International: 1-785-424-1052
Conference ID#: 7REMEDENT
A simultaneous webcast and replay of the call will be accessible.
Please call the conference telephone number 5-10 minutes prior to the start
time. An operator will register your name and organization and ask you to
wait until the call begins. A telephone replay of the call will be
available from 2:00 p.m. Eastern time on the same day until March 17,
2010.
Toll-free replay number: 1-800-723-0394
International replay number: 1-402-220-2649
(No passcode required)
About Remedent
Remedent, Inc. specializes in the research, development, manufacturing and
marketing of oral care and cosmetic dentistry products. The company serves
professional dental industry with breakthrough technology for dental
veneers, bridges and crowns that are recognized worldwide for their
technological superiority and ease-of-application. These products are
supported by a line of professional veneer whitening and teeth sensitivity
solutions. Headquartered in Belgium, Remedent distributes its products to
more than 35 countries worldwide. For more information, go to
www.remedent.com.
Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are "forward-looking statements" are
based on current expectations and assumptions that are subject to risks and
uncertainties. Such forward-looking statements involve known and unknown
risks, uncertainties and other unknown factors that could cause Remedent's
actual operating results to be materially different from any historical
results or from any future results expressed or implied by such
forward-looking statements. In addition to statements that explicitly
describe these risks and uncertainties, readers are urged to consider
statements that contain terms such as "believes," "belief," "expects,"
"expect," "intends," "intend," "anticipate," "anticipates," "plans,"
"plan," "projects," "project," to be uncertain and forward-looking. Actual
results may differ materially because of such risks and uncertainties and
the reported results should not be considered as an indication of future
performance. For further information regarding risks and uncertainties
associated with Remedent's business, please refer to the risk factors
described in Remedent's filings with the Securities and Exchange
Commission, including, but not limited to, its annual report on Form 10-K
and quarterly reports on Form 10-Q.
REMEDENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31,
2009 March 31,
(unaudited) 2009
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,386,231 $ 1,807,271
Accounts receivable, net of allowance
for doubtful accounts of $36,982
at December 31, 2009 and $33,966
at March 31, 2009 1,146,859 3,208,120
Inventories, net 2,415,977 1,937,946
Prepaid expenses 1,512,581 1,310,900
------------- -------------
Total current assets 6,461,648 8,264,237
------------- -------------
PROPERTY AND EQUIPMENT, NET 1,320,352 1,024,999
OTHER ASSETS
Long term investments and advances 750,000 750,000
Patents, net 200,304 163,106
------------- -------------
Total assets $ 8,732,304 $ 10,202,342
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion, long term debt $ 39,797 $ 78,798
Line of Credit 1,186,103 660,200
Accounts payable 2,204,277 1,398,420
Accrued liabilities 721,087 1,590,360
Income taxes payable 37,466 39,339
------------- -------------
Total current liabilities 4,188,730 3,767,117
Long term debt less current portion 303,173 100,542
------------- -------------
Total liabilities 4,491,903 3,867,659
------------- -------------
EQUITY:
REMEDENT, INC. STOCKHOLDERS' EQUITY
Preferred Stock $0.001 par value
(10,000,000 shares authorized,
none issued and outstanding) -- --
Common stock, $0.001 par value;
(50,000,000 shares authorized,
19,995,969 shares issued and
outstanding at December 31, 2009
and March 31, 2009) 19,996 19,996
Treasury stock, at cost; 723,000 shares
at September 30, 2009 and March 31, 2009 (831,450) (831,450)
Additional paid-in capital 24,578,643 24,106,055
Accumulated deficit (19,440,363) (17,216,028)
Accumulated other comprehensive (loss)
(foreign currency translation adjustment) (547,110) (640,595)
------------- -------------
Total Remedent, Inc. stockholders'
equity 3,779,716 5,437,978
Non-controlling interest 460,685 896,705
------------- -------------
Total stockholders' equity 4,240,401 6,334,683
------------- -------------
Total liabilities and equity $ 8,732,304 $ 10,202,342
============= =============
REMEDENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the three months ended
December 31,
2009 2008
------------- -------------
Net sales $ 1,834,021 $ 4,842,648
Cost of sales 972,247 2,909,531
------------- -------------
Gross profit 861,774 1,933,097
------------- -------------
Operating Expenses
Research and development 150,225 56,006
Sales and marketing 403,171 912,422
General and administrative 1,065,114 1,268,500
Depreciation and amortization 206,923 167,399
------------- -------------
TOTAL OPERATING EXPENSES 1,825,433 2,400,327
------------- -------------
INCOME (LOSS) FROM OPERATIONS (963,659) (467,230)
------------- -------------
OTHER INCOME (EXPENSES)
Warrants issued (8,350) --
Gain on disposition of OTC -- 2,830,953
Interest expense (56,915) (168,659)
Interest income 24,179 289,646
------------- -------------
TOTAL OTHER INCOME (EXPENSES) (41,086) 2,951,940
------------- -------------
NET LOSS (Income) (1,004,745) 2,484,710
LESS: NET LOSS ATTRIBUTABLE TO
NON-CONTROLLING INTEREST (168,624) --
------------- -------------
NET LOSS (Income) ATTRIBUTABLE
TO REMEDENT, INC. Common Stockholders $ (836,121) $ 2,484,710
============= =============
LOSS PER SHARE
Basic $ (0.04) $ 0.13
============= =============
Fully diluted $ (0.04) $ 0.08
============= =============
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 19,995,969 19,332,760
============= =============
Fully diluted 33,789,738 31,371,629
============= =============
Contact Information: Company Contact:
Stephen Ross
Chief Financial Officer
Remedent, Inc.
Tel 310-922-5685
docktor99@aol.com