Orlando, Fl., April 13, 2016 - MEDITE Cancer Diagnostics, Inc., (OTCQB: MDIT, the “Company”) specializing in the development, manufacturing, and marketing of molecular biomarkers and premium medical devices for detection, risk assessment and diagnosis of cancer and precancerous conditions announces its 2015 financial results.
The Company reports $9.9 million in revenue for 2015. It successfully sold more MEDITE developed and manufactured devices and products than in 2014. Excluding USD-EURO exchange rate effects, revenues would have increased 6.3%. With the exchange rate influence, the overall revenues for the Company were $9.9 million in 2015 compared to $11.0 million for 2014, a reduction of $1.1 million or 9.97%.
The cost of revenue improved from 65% in 2014 to 62% in 2015, mainly resulting from a 19% increase of sales of our own manufactured equipment with higher gross margins. The operating loss was $599k for 2015 compared to $394k in 2014. Due to the merger with CytoCore, Inc. on April 3, 2014 the first quarter expenses of CytoCore, Inc. are not included in the 2014 comparison figure.
Total stockholders’ equity increased by $0.7 million to $9.2 million. Total liabilities for 2015, including $2.205 million deferred taxes, were reduced by $1.0 million to $9.2 million.
In 2015 the Company continued to expand sales distribution by adding new distribution channels worldwide. The Company increased its Chinese revenues to $1 million and is expecting continued growth from China. We also expect to grow our revenues in histology and soon to be introduced cytology products, including newly developed cancer assays. According to a January 2016 report published by the Beijing National Cancer Center, approximately 2.8 million Chinese died from cancer in 2015. In addition, there were 4.2 million newly diagnosed cancer cases last year in China representing an annual increase of 73.8 % since 2006.
The Company has restated the balance sheet of the 2014 financial statements to reflect an increase of $2.205 million for an increase in goodwill and the deferred tax liability resulting from the recognition of “In Process Research and Development” valued by the Company at December 31, 2014 in conjunction with the acquisition of MEDITE Enterprises Inc. This restatement does not affect the earnings or cash position of the Company during 2014 or 2015.
For 2016, management expects to grow revenues in China and the United States from increased sales and marketing activities. New product launches of microtomes, cryostats (which are instruments for biopsy sectioning), and a BreastPap device, which offers gentle and affordable breast cancer risk assessment screening primarily for women between the ages of 20 and 45, are expected to provide contributions to overall revenue. Clinical trials for the recently developed and patent pending cancer risk assessment assay SureCyte+ are planned for this year in China. BreastPap along with cytology product lines of SureThin and SureCyte+ are expected to accelerate growth in the foreseeable future.
About MEDITE Cancer Diagnostics, Inc.
MEDITE Cancer Diagnostics Inc., is a Delaware registered company consisting of wholly-own MEDITE GmbH a Germany-based company with its subsidiaries. On April 3, 2014, MEDITE was acquired by former CytoCore, Inc. a biomolecular diagnostics company engaged in the design, development, and commercialization of cost-effective cancer screening systems and Biomarkers to assist in the early detection of cancer. By acquiring MEDITE the company changed from solely research operations to an operating company with a well-developed infrastructure, 80 employees in four countries, a distribution network to about 70 countries worldwide, a well-known and established brand name and a wide range of products for anatomic pathology, histology and cytology laboratories.
Forward Looking Statement
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “projects,” “estimates,” “anticipates,” or “believes” or the negative thereof or any variation thereon or similar terminology or expressions. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause our actual results to differ from our expectations, include but are not limited to, MEDITE’s ability to maintain and grow its revenues. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances occurring after the date hereof.
For more information please visit: www.medite-group.com
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Robert McCullough, Jr. CFO
407 996 9630