Message #4 From:
NewsBot Date: August 7, 2006 09:26:00 AM
OMRX News Orthometrix, Inc. Announces 82% Increase in Quarterly Sales and Forms Orbasone Mobile LLC to Provide ESWT Service to Podiatric and Orthopedic Practices
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Aug. 7, 2006--Orthometrix, Inc. (OTCBB: OMRX) announced today its financial results for the second quarter ended June 30, 2006.
Revenue for the second quarter ended June 30, 2006 increased by 82% to $711,956 compared with $391,484 for the second quarter ended June 30, 2005. Gross Margin for the second quarter ended June 30, 2006 increased to 60% compared with 57% for the second quarter ended June 30, 2005. The net loss for the second quarter of 2006 increased to $396,077 compared with a 2005 second-quarter net loss of $341,734 and was primarily due to increased sales and marketing expenses resulting from the hiring of six regional Orbasone sales managers.
Revenue for the six month period ended June 30, 2006 increased by 69% to $1,460,022 compared with $862,464 for the six month period ended June 30, 2005. Gross Margin for the six month period ended June 30, 2006 increased to 65% compared with 60% for the six month period ended June 30, 2005. The net loss for the first half of 2006 decreased to $649,244 compared with a 2005 first-half net loss of $958,599.
The Company also announced that it formed Orbasone Mobile, LLC ("Orbasone Mobile"), as a wholly-owned subsidiary, to offer health care providers, such as those with Podiatric and Orthopedic practices, access to its new Orbasone(TM) Extracorporeal Shock Wave Therapy ("ESWT") Pain Relief System to treat their patients in their surgical suite or simply in their offices. As part of this new offering, Orbasone Mobile will also provide complete insurance billing services to its clients through the continuation of its agreement with Health Reimbursement Solutions, Inc. Orbasone Mobile is starting its operations with 6 Orbasone units offering treatment in 6 regions of the United States, not only in Ambulatory Surgical Centers but also in the doctor's office. The Orbasone(TM) received market approval from the U.S. Food and Drug Administration in August 2005 for the treatment of chronic plantar fasciitis (foot pain).
Reynald Bonmati, Chairman and Chief Executive Officer of Orthometrix, commented, "We are very pleased with our sales for the first half of 2006 which came close to the sales we booked for the entire year 2005. A new Category III Current Procedural Terminology (CPT) Code became effective as of January 1 for Medicare coverage of ESWT procedures. Although the availability of Medicare reimbursement generally leads additional private health insurance carriers to cover a new procedure, it typically also has the effect of reducing the reimbursement rates offered by the insurance carriers that already cover such procedure. This situation is already exerting pressure on the ESWT mobile service industry which uses equipment that is 2 to 3 times more expensive than our Orbasone and too large to be used in the doctor's office. This can be a real opportunity for our Company to enter that segment of the market. Orbasone Mobile LLC will now provide participating doctors the opportunity to increase their practice by offering a non-invasive pain management procedures right in their office. Unlike other mobile service companies, because our Company also manufactures the Orbasone, we are afforded the flexibility to offer the largest clients of Orbasone Mobile the opportunity to purchase their own ESWT system at an attractive price. Orbasone Mobile will either develop into a separate stand-alone entity or continue to be a subsidiary of the Company and serve as a strong marketing tool for our Orbasone system. It is a win-win situation."
Orthometrix, Inc. markets, sells and services several musculoskeletal product lines used in pharmaceutical research, diagnostic and monitoring of bone and muscle disorders, sports medicine, rehabilitative medicine, physical therapy and pain management.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this release are forward looking statements that involve risk and uncertainties, including, but not limited to, any effect on future financial results from efforts to broaden the Company's position in the rehabilitation, physical therapy and musculoskeletal markets, any potential impact on sales of the Orbasone in North America, any potential impact on sales of Orbasone Mobile LLC services in the United States and other risks detailed in the documents periodically filed with the Securities and Exchange Commission, specifically the most recent reports on Forms 10-KSB and 10-QSB. These risks and uncertainties could cause actual results to differ materially from those expected and/or contained in the forward-looking statements. Any forward-looking statement made in this release is made as of the date of this release and the Company assumes no obligation, subject to applicable law, to update such forward-looking statement.
Orthometrix, Inc.
Consolidated Statement of Operations
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(unaudited)
Six months ended Three months ended
June 30 June 30,
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenue $1,460,022 $862,464 $711,956 $391,484
Cost of revenue 509,047 343,982 285,249 169,653
----------- ----------- ----------- -----------
Gross profit $950,975 $518,482 $426,707 $221,831
Sales and marketing
expense 864,613 545,774 421,054 195,140
General and
administrative expense 669,177 666,210 333,679 277,654
Research and
development expense 67,529 228,203 25,498 92,962
Operating loss ($650,344) ($921,705) ($353,524) ($343,925)
Interest expense (96,139) (40,329) (64,494) -
Interest income 2,008 3,435 1,941 2,191
Other income (expense) 95,231 - 20,000 -
----------- ----------- ----------- -----------
Loss before income
taxes ($649,244) ($958,599) ($396,077)) ($341,734)
Income tax - - - -
----------- ----------- ----------- -----------
Net loss ($649,244) ($958,599) ($396,077) ($341,734)
=========== =========== =========== ===========
Basic and diluted
weighted average
shares 44,321,298 40,456,500 44,353,618 42,949,621
=========== =========== =========== ===========
Basic and diluted loss
per share ($0.01) ($0.02) ($0.01) ($0.01)
=========== =========== =========== ===========
Selected Balance Sheet Data:
----------------------------
June 30, December 31,
2006 2005
----------- -----------
Cash and cash
equivalents $6,758 $22,861
Other current assets 1,264,689 454,167
Long term assets 107,834 53,694
----------- -----------
Total assets $1,379,281 $530,722
=========== ===========
Bank Borrowings $350,000 $330,000
Other current
liabilities 1,420,338 816,449
Note payable - net 671,143 183,069
Total stockholders'
equity (deficit) (1,062,200) (798,796)
----------- -----------
Total liabilities
and equity 1,379,281 $530,722
=========== ===========
