IRVINE, CA--(Marketwire - August 31, 2010) - Biomerica, Inc. (
Biomerica announced net loss (including stock options expenses) of $331,455, or $0.05 per share, for the fiscal year ended May 31, 2010, compared to net income of $354,180, or $0.05 per share, in fiscal 2009.
During fiscal 2010 the Company moved its facilities from Newport Beach to Irvine, California. This move impacted expenses in every department. The Company incurred direct moving costs of approximately $225,000. This included overlapping rent and related expenses during the transition. Cost of goods as a percentage of sales also increased due to various factors many of which were non-recurring.
Research and development expense was $455,171 in fiscal 2010 as compared to $278,308 in fiscal 2009. This is an increase of $176,863, (63.5%). The Company expended considerable funds in the effort to ready certain new products for market. Biomerica has recently eliminated two scientists from its internal research and development group. The Company has shifted its focus to licensing in new technology from universities and other outside institutions as it aims to more rapidly expand its product offerings, build intellectual property and speed its time to market.
"We planned for and expected a loss for this fiscal year due to the move into our new state of the art facility," stated Zackary Irani, Biomerica CEO. "While the move impacted our expenses this fiscal year, it is a major step forward for our Company in terms of work flow, quality, capacity and ability to partner with other companies. The monthly cost of the new facility is not significantly higher than the cost of our old facility. Our shift to licensing in new technology from universities and other institutions has resulted in a much larger product pipeline. It also allows us to seek out products with potential patent coverage. We are looking forward to this fiscal year as we focus on increasing our sales and bottom line."
About Biomerica (
Biomerica, Inc. (www.biomerica.com) is a global biomedical company that develops, manufactures and markets advanced diagnostic products used at the point-of-care (in home and in physicians' offices ) and in hospital/clinical laboratories for the early detection of medical conditions and diseases. The Company's products are designed to enhance the health and well being of people, while reducing total healthcare costs. Biomerica primarily focuses is on products for Diabetes, Gastrointestinal Disease and esoteric testing.
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, larger product offering, its aims, sales potential, significant benefits, market size, growth of business, favorable positions, expansion, 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.
Contact Information:
Contact:
Zackary Irani
Tel: 949-645-2111