Orlando, Fl., August 29, 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 second quarter and six months 2016 results.
For the three months ended June 30, 2016, the Company reports $2.8 million of revenues, an increase of 32% compared to last year’s second quarter. Gross profit increased by 31% to $1.3 million primarily due to a higher sales percentage of higher margin Company manufactured equipment. Higher R&D expenses and professional fees resulted in an operating loss of $0.1 million.
For the six months ended June 30, 2016, revenue increased by 12% to $4.9 million, and gross profit increased by 16% to $2.2 million. Similar to the second quarter, higher R&D expenses and professional fees resulted in an operating loss of $0.5 million compared to $0.2 million loss for the six months ended June 30, 2015. The significant increase in interest expense to a total of $0.4 million was mainly due to non-cash charges for the issuance of warrants associated with a $0.65 million bridge loan. As a result, the net loss for the six months is $0.8 million.
Even though the Company’s Cash position decreased by $0.4 million to $0.1 million at December 31, 2015, the Company’s working capital is approximately $.7 million net of amounts due to employees. Management is pursuing ongoing initiatives to raise additional funds.
By hiring a highly experienced U.S. national sales manager and also hiring an industry professional as national marketing manager, we are moving towards our goal of significantly increasing United States sales, which currently represent approximately 5% of sales. The larger sales team is focused on building relationships and working closely with multi-market distribution channels concentrating on the Healthcare, Education, Medical Research and Pharmaceutical markets. These third party sales teams just have finished an intense training program on our core product line at the Orlando headquarters, and they have already made an impact reflected in new orders from both new and existing customers. In addition, MEDITE’s first attendance at a Hospital Group Purchasing (GPO) trade show, the “Premier Break Through” Exhibit in Washington DC, has exposed the Company to many new purchase manager contacts and interested potential customers from within this GPO network. In particular, large laboratories have shown a great deal of interest in our products after they became aware for the first time of MEDITE’s high quality and value products. According to Michael Ott, COO of MEDITE: “Once they test and use our equipment, we anticipate a significant percentage will order our products. With five exhibits scheduled in 2016 we will be able to reach many more of our core customers and end-users for hands on demonstrations.”
Positive results from our second quarter Chinese field study highlighted the innovative and newly developed fluorescence SureCyte stain, compared to the standard pap stain with improved efficiency of diagnosis. The evaluation of cervical specimens by Chinese pathologists confirmed 100 % identical results at a fraction of the cost and time used with the standard stains. The Chinese pathologists confirmed the new SureCyte stain is perfectly suitable for morphological staining. As a result, we expect to commence a September 2016 clinical trial using an automated fluorescence slide scanner for digital computer assisted screening addressing the need for high volume cancer screening. In addition, the SureCyte stain replaces the industry standard hazardous competitors’ Pap stains, is easier to use and apply, and reduces the staining process time from approximately one hour to just seconds. We believe the SureCyte stain based on existing regulations can be sold with either no or minimal USA or Chinese regulatory interactions.
More new and innovative MEDITE products will be presented at the major industry show for the United States organized by the National Society of Histotechnology from September 16 to 21 in Long Beach, California.
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
Robert McCullough, Jr. CFO
407 996 9630