Biomerica Reports Third Quarter 2024 Financial Results
- Fiscal Discipline Leads to Improvement as Loss per Share Narrows to $0.27 from $0.40 Amidst Sales Force Expansion for the Nine Months in Fiscal 2024
- InFoods IBS Positive Clinical Data to be Presented at the Upcoming Digestive Disease Week (DDW) 2024 Conference in the DDW Irritable Bowel Syndrome (IBS) Clinical Session
- Company in discussions with Key Clinical Lab Customers for Use of its Recently US FDA 510(k) Cleared Hp Detect™ Test Product, Designed to Detect the Presence of the H. pylori Bacteria that infects approximately 35% of the U.S. Population
IRVINE, Calif., April 12, 2024 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), (the “Company”) a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the third quarter of fiscal 2024 ended February 29, 2024.
Recent Highlights:
- Collaborators from the University of Michigan will present inFoods IBS clinical trial data during the highly anticipated IBS Clinical Session at the 2024 Digestive Disease Week (DDW) Annual Meeting in Washington DC. Known as the foremost gathering for digestive disease healthcare professionals globally, DDW provides an unparalleled platform for showcasing cutting-edge research and advancements.
- The Company is in discussions with labs to facilitate the adoption of its recently US FDA 510(k) cleared HP Detect™ ELISA Test. HP Detect is designed to Detect the Presence of the H. pylori Bacteria that infects approximately 35% of the U.S. Population. Over 80% of gastric cancers are attributed to H. pylori infection, and gastric cancer is the third most common cause of cancer-related death worldwide. The Company is now marketing the product to clinical labs In the US and distributors internationally.
“We are excited about the sales growth of our inFoods IBS technology. At the same time, we are seeing increased demand for our EZ Detect colorectal disease test given the insurance reimbursement in UAE. Finally, we expect the opportunities for HP Detect revenues in the USA will be meaningful," said Zackary Irani, CEO of Biomerica.
Third Quarter Fiscal 2024 Financial Results
In our fiscal third quarter of 2024, despite encountering some softness in top-line revenue, we remain optimistic and steadfast in our commitment to advancing the commercialization efforts of the inFoods® IBS test. While net sales for the fiscal third quarter of 2024 were $1.0 million, down from $1.1 million for the fiscal third quarter of 2023, we observed notable sales growth of EZ Detect and Aware with new customers from the Europe and MENA regions (which does not yet include UAE sales), up 13% compared to the same period last year.
Although our operating expenses for the quarter were $0.1 million higher than the third quarter of 2023, primarily due to the strategic expansion of our sales force in fiscal year 2024, it is noteworthy that our operating expenses remained consistent with the second quarter of 2024. Importantly, over the nine months of fiscal year 2024, we have made significant strides in improving operating expenses by over 6%, inclusive of our sales force expansion, when compared to the same period in fiscal year 2023. Our losses per share narrowed to $0.11 per share from $0.12 per share when compared to the third fiscal quarter of 2023. As of February 29, 2024, the Company maintained a cash and equivalents balance of $5.3 million down from $7.1 million from fiscal second quarter of 2024.
Net sales for the nine months in fiscal 2024 were $4.3 million, up from $4.2 million for the nine months in fiscal 2023. Our gross margins improved to 13.7% from 9.9% within the year-to-date 2024 fiscal year compared to same period in 2023. With the aforementioned focused management of operating expenses, net operating loss was 11% better in 2024 fiscal year compared to 2023.
| Selected Financial Results | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| February 29, 2024 | February 28, 2023 | February 29, 2024 | February 28, 2023 | ||||||||||
| ($ in millions, except percentages) | |||||||||||||
| Revenue | $1.0 | $1.1 | $4.3 | $4.2 | |||||||||
| Gross magin | -14.7 | % | 10.8 | % | 13.7 | % | 9.9 | % | |||||
| Operating expenses | $1.9 | $1.8 | $5.4 | $5.8 | |||||||||
| Operating loss | ($2.0 | ) | ($1.7 | ) | ($4.8 | ) | ($5.4 | ) | |||||
| Net Loss | ($1.9 | ) | ($1.7 | ) | ($4.6 | ) | ($5.3 | ) | |||||
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.
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 and future revenues from the Company's HP Detect product, InFoods IBS product and other products; 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.
