Biomerica Reports First Quarter 2024 Financial Results
- Revenues excluding Covid test sales increased 16.3% for first fiscal quarter of 2024 vs the first fiscal quarter of 2023
- Company believes current cash position, forecasted revenue growth and corporate strategy is expected to enable it to achieve profitability
- GAAP gross margin percentage of 24.1% for the first fiscal quarter of 2024 improved substantially over -3.4% for the first fiscal quarter of 2023
- Company completes pre-launch phase for inFoods IBS; veteran Vice President of sales and national accounts hired along with regional key account representatives
IRVINE, Calif., Oct. 13, 2023 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), (the “Company”) a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the first quarter of fiscal 2024 ended August 31, 2023.
Recent Highlights:
- Completes pre-launch phase of inFoods IBS, which remains on track for national market launch during calendar 2024. Several experienced sales professionals recently hired to enable broader adoption by additional GI physician groups.
- Company appointed diagnostics industry leader Jack Kenny (former CEO of Meridian Biosciences) to Biomerica’s board of directors, bringing a wealth of commercial experience and relationships in the medical diagnostic industry with insights that will be invaluable for the launch of inFoods IBS both domestically and internationally.
- Announced that the Dubai government has officially approved insurance reimbursement for the EZ Detect product providing qualified Dubai residents access to government-paid at-home screening to detect an early warning sign of colorectal cancer and other colorectal diseases. Colorectal cancer (“CRC”) is the second most common cause of cancer death in the UAE [1].
“Our commercial progress during the quarter is now driving top-line revenue growth toward profitability,” said Zackary Irani, CEO of Biomerica. “With inFoods IBS as our main focus along with a variety of effective at-home, point-of-care and clinical lab products that provide significant ease of use, we feel we are well positioned to expand our diversified sales opportunities on multiple fronts while meeting our financial targets to grow the business and shareholder value.”
First Quarter Fiscal 2024 Financial Results
Net sales for the fiscal first quarter 2024 were $1.7 million, up from $1.6 million for the fiscal first quarter of 2023. Further, excluding sales of Covid related products during fiscal first quarter 2023, net sales for the fiscal first quarter 2024 were 16.3% higher than sales during fiscal first quarter of 2023. All revenues are now coming from products that focus on existing and largely unmet IBS, GI, colorectal and other health-related sales expansion opportunities. With a tight focus on controlling expenses while growing sales, total operating expenses for the quarter were $1.6 million, down from $2.0 million for the year-ago quarter.
As a result of carefully managing operating expenses while maintaining top-line revenue growth toward achieving profitability, net loss for the fiscal first quarter of 2024 was $1.1 million, or approximately 48% lower than the net loss of $2.1 million reported in the fiscal first quarter of 2023. As of August 31, 2023, the Company had cash and equivalents of $8.0 million.
| Selected Financial Result | Quarter Ended | Quarter Ended | ||||
| August 31, 2023 | August 31, 2022 | |||||
| (Numbers in millions, except percentages) | ||||||
| Revenue | $1.7 | $1.6 | ||||
| Gross margin | 24.1% | (3.4% | ) | |||
| Operating expenses | $1.6 | $2.0 | ||||
| Operating loss | ($1.2 | ) | ($2.1 | ) | ||
| Net Loss | ($1.1 | ) | ($2.1 | ) | ||
| Cash and equivalents, restricted cash, and short-term investments | $8.0 | $6.1 | ||||
About Biomerica (NASDAQ: )
Biomerica, Inc. () is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment 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's primary focus is on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.
- Humaid O. Al-Shamsi, Amin M. Abyad, and Saeed Rafii, A Proposal for a National Cancer Control Plan for the UAE:2022–2026. Clin. Pract. 2022, 12, 118–132.
About inFoods®
The inFoods IBS test is designed to assess a patient’s above normal immunoreactivity to specific foods utilizing a simple finger prick blood sample. Instead of difficult to manage broad dietary restrictions, physicians can now use the inFoods IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. The inFoods IBS test and clinical outcomes were studied at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for improvement in the Abdominal Pain Intensity (API) responder endpoint of >30% reduction in pain, for IBS patients in the treatment diet arm was greater than patients in the placebo diet arm (p-value of 0.0246). The improvement for patients in the treatment arm versus the placebo arm is considered clinically significant and for certain endpoints is similar and, in some cases, better than the current drugs in the market. Further information about Biomerica’s patented inFoods® Technology Platform can be found at: .
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company’s current and future sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected commercialization launch dates for the Company's inFoods IBS product; and diversification of the Company's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC and available on the SEC's website (). The Company is under no obligation to update any forward-looking statements after the date of this release.
Corporate Contact:
Zack Irani
949-645-2111
Source: Biomerica, Inc.
