Message #6 From:
Stock News Bot Date: August 16, 2005 01:00:00 AM
CAPS News Caprius, Inc. Reports Third Quarter Fiscal 2005 Results
FORT LEE, N.J.--(BUSINESS WIRE)--Aug. 16, 2005--Caprius, Inc. (OTCBB: CAPS) today announced financial results for the third quarter and first nine months of fiscal 2005, ending June 30, 2005.
Third Quarter Results
Revenues for the third quarter were $203,712, compared to $284,673 reported in the third quarter of fiscal 2004. Revenues generated from product sales and rentals totaled $188,555 in the third quarter, compared to $272,173 reported for the same quarter last year.
"Our revenues in the third quarter were impacted by consolidation within our target market of dialysis clinics, which included the acquisition of one of our largest US clients. Consequently, this client's scheduled rollout of units was placed on hold," said George Aaron, Chief Executive Officer. "That said, we penetrated new geographic markets in the quarter, such as Greece and St. Croix, USVI, as well as participated in the Medical Waste Conference, the co-located conference of WasteExpo."
R&D expense in the quarter decreased to $69,439 from $77,999 reported for the third quarter of 2004. SG&A expense rose to $752,327 for the third quarter of 2005 from $693,277 for the comparable period in 2004 due to legal and professional fees in connection with the Company's Registration Statement that was declared effective on May 10, 2005, and the Company's retention of an investor relations firm.
Net loss attributable to common stockholders was $863,691, or a loss of $0.26 per basic and diluted common share. This compares to a net loss attributable to common stockholders of $731,322, or a loss of $0.72 per basic and diluted common share, for the third quarter of fiscal 2004.
Jonathan Joels, Chief Financial Officer, noted, "With a backlog of US orders, along with our pipeline of sales opportunity, we believe the Company is well positioned for growth in the fourth quarter and beyond."
Nine-Months Results
Revenues for the nine-months ended June 30, 2005 were $710,923, compared to $761,979 for the comparable period of fiscal 2004.
Overall operating expenses for the nine-month period were $2.7 million, compared to $3.0 million in the same period of last year.
Net loss from continuing operations attributable to common stockholders for the nine-month period was $2.35 million, or a loss of $1.21 per basic and diluted share, compared to a net loss of $2.34 million, or a loss of $2.26 per basic and diluted share for same period of fiscal 2004.
About Caprius
Caprius, Inc. headquartered in Fort Lee, NJ is engaged in manufacturing proprietary equipment for on-site medical waste disposal through its subsidiary, M.C.M. Environmental Technologies, Inc. (MCM). The Company's SteriMed units simultaneously shred and disinfect regulated medical waste, reducing its volume up to 90%, and rendering it harmless for disposal as ordinary waste. The SteriMed Systems are environmentally friendly and efficiently disinfect the infectious clinical waste, including among others, sharps, dialyzers, blood lines, bandages, plastic tubing and glass, in a 15-minute cycle. The MCM patented technology is an alternative to hauling and incinerating medical waste. Medical Waste represents approximately a $3 billion market in the U.S. and a $10 billion market worldwide. More information on the Company and MCM can be found at www.caprius.com or www.mcmetech.com.
Forward Looking Statements
Forward looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and accordingly involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Our expectations, beliefs and projections are expressed in good faith and are believed by us to have a reasonable basis, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties, but there can be no assurance that management's expectation, beliefs or projections will result or be achieved or accomplished. In addition to other factors and matters discussed elsewhere herein, the following are important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements: technological advances by our competitors, changes in health care reform, including reimbursement programs, changes to regulatory requirements relating to environmental approvals for the treatment of infectious medical waste, capital needs to fund any delays or extensions of development programs, delays in the manufacture of new and existing products by us or third party contractors, the loss of any key employees, delays in obtaining federal, state or local regulatory clearance for new installations and operations, changes in governmental regulations, the location of the MCM business in Israel, and availability of capital on terms satisfactory to us. We are also subject to numerous Risk Factors relating to manufacturing, regulatory, financial resources and personnel as described in the Company's Form SB-2 (File No. 333-124096) dated April 15, 2005 as filed with the Securities and Exchange Commission. We disclaim any obligation to update any forward-looking statements to reflect events or circumstance after the date hereof.
CAPRIUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
June 30 June 30
2005 2004 2005 2004
---------- ---------- ----------- -----------
Revenues:
Product sales $ 185,878 $ 257,308 $ 622,486 $ 674,931
Equipment rental
income 2,677 14,865 10,627 49,548
Consulting &
royalty fees 15,157 12,500 77,810 37,500
---------- ---------- ----------- -----------
Total revenues 203,712 284,673 710,923 761,979
---------- ---------- ----------- -----------
Operating Expenses:
Cost of product
sales and
equipment rental
income 121,420 177,204 451,810 551,382
Research and
development 69,439 77,999 262,935 171,301
Selling, general
and
administrative 752,327 693,277 2,026,961 2,276,980
---------- ---------- ----------- -----------
Total
operating
expenses 943,186 948,480 2,741,706 2,999,663
---------- ---------- ----------- -----------
Operating
loss (739,474) (663,807) (2,030,783) (2,237,684)
Other income - - 132,200 -
Interest income
(expense), net 311 (67,515) (330,709) (70,500)
---------- ---------- ----------- -----------
Loss from
continuing
operations (739,163) (731,322) (2,229,292) (2,308,184)
Loss from
operations of
discontinued
Strax Business - - - (28,425)
---------- ---------- ----------- -----------
Net loss (739,163) (731,322) (2,229,292) (2,336,609)
Beneficial
conversion
feature - Series
C Mandatory
Convertible
Preferred Stock (124,528) - (124,528) -
---------- ---------- ----------- -----------
Net loss
attributable to
common
stockholders $ (863,691) $ (731,322) $(2,353,820) $(2,336,609)
========== ========== =========== ===========
Net loss per basic
and diluted common
share
Continuing
operations $ (0.26) $ (0.72) $ (1.21) $ (2.26)
Discontinued
operations - - - (0.03)
---------- ---------- ----------- -----------
Net loss per basic
and diluted
common share (0.26) (0.72) (1.21) (2.29)
========== ========== =========== ===========
Weighted average
number of common
shares outstanding,
basic and diluted 3,321,673 1,022,328 1,940,381 1,022,328
========== ========== =========== ===========
CAPRIUS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30
2005
------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,961,645
Accounts receivable, net of reserve for bad debts of
$5,163 137,817
Inventories, net 579,314
Other current assets 26,399
------------
Total current assets 2,705,175
------------
Property and Equipment:
Office furniture and equipment 182,689
Equipment for lease 76,666
Leasehold improvements 19,536
------------
278,891
Less: accumulated depreciation 214,902
------------
Property and equipment, net 63,989
------------
Other Assets:
Goodwill 737,010
Intangible assets, net of accumulated amortization of
$705,750 334,250
Other 13,330
------------
Total other assets 1,084,590
------------
Total Assets $ 3,853,754
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 508,898
Accrued expenses 117,407
Accrued compensation 122,793
------------
Total current liabilities 749,098
------------
Commitment and Contingencies -
Stockholders' Equity:
Preferred stock, $.01 par value (stated value at $100)
Authorized - 1,000,000 shares
Issued and outstanding - Series A, none; Series
B, convertible, 27,000 shares.
Liquidation preference $2,700,000 2,700,000
Common stock, $.01 par value
Authorized - 50,000,000 shares; issued
3,322,798 shares and outstanding 3,321,673
shares 33,228
Additional paid-in capital 74,241,755
Accumulated deficit (73,868,077)
Treasury stock (1,125 common shares, at cost) (2,250)
------------
Total stockholders' equity 3,104,656
------------
Total Liabilities and Stockholders' Equity $ 3,853,754
============
