Message #27 From:
Stock News Bot Date: November 15, 2005 03:00:00 AM
OXIS News OXIS International Reports Results for Third Quarter 2005; Revenues From Product Sales Increase 14% For The First Nine Months
PORTLAND, Ore.--(BUSINESS WIRE)--Nov. 15, 2005--OXIS International, Inc. (OTCBB:OXIS) (Nouveau Marche:OXIS) (FWB:OXI), specialists in developing technologies for the diagnosis of diseases resulting from oxidative stress, today reported results for the third quarter of 2005.
Total revenues decreased 44% to $0.53 million from $0.95 million in the same period of 2004 due to a one time licensing fee received in the third quarter of 2004. Excluding the impact of the non-recurring licensing fee, revenues from the Company's core operations -- the sales of research assays and fine chemicals -- increased by 6% in the third quarter of 2005 from $0.50 million in the third quarter of 2004 and were driven by an increase in sales volumes to U.S. and foreign distributors.
The third quarter 2005 net loss was $0.32 million, or ($0.01) per share, compared to $53,000 or ($0.00) per share net loss for the comparable quarter of 2004, and was primarily due to the licensing revenue received during 2004. Excluding the impact of the non-recurring licensing revenue, the third quarter 2005 net loss decreased by 37% over the same period of 2004.
Total revenues for the nine months ended September 30, 2005, decreased 12% to $1.72 million compared to $1.95 million for the same period of 2004, which included the one-time licensing revenue. On a comparable basis, revenues from product sales increased by 14% from $1.50 million in the first nine months of 2004 driven by increased sales volumes to U.S. distributors and other customers, as well as increased prices of the Company's products.
Net loss for the first nine months of 2005 decreased 52% to $0.87 million, or ($0.02) per share from a net loss of $1.84 million, or ($0.07 per share) in 2004 due primarily to increased operating efficiencies.
"Sales of our core clinical diagnostic product lines -- research assays and fine chemicals -- continued to increase during the first nine months of 2005," stated Steve Guillen, CEO of OXIS. "We are also excited about the potential operating synergies and future growth opportunities resulting from our recently announced agreement to acquire leading immunoassay kit producer BioCheck. The combined company would have an expanded product portfolio of antigen and antibody test kits and a management team with extensive experience in the commercialization of emerging technologies."
Assuming the successful completion of the BioCheck acquisition, OXIS plans to merge its Portland, OR based operations with BioCheck's GMP and ISO quality certified facilities in Northern California. The operating and cost efficiencies that could be derived from the consolidation of the companies' operations and workforce, including R&D, manufacturing, sales and marketing functions, are expected to lead to possible margin expansion and accelerated profitability for the combined entity.
OXIS International Inc., headquartered in Portland, Oregon, focuses on developing technologies and products to research, diagnose, treat and prevent diseases associated with damage from free radical and reactive oxygen species -- diseases of oxidative stress. The company holds the rights to three therapeutic classes of compounds in the area of oxidative stress, and develops, manufactures and markets products and technologies to diagnose and treat diseases caused by oxidative stress. More information about OXIS and its products, services as well as current SEC filings may be obtained by visiting the Company's Web site at http://www.oxis.com.
The statements in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding our expectations, objectives, anticipations, plans, hopes, beliefs, intentions or strategies regarding the future. Forward looking statements include, without limitation, statements regarding: (i) the potential operating synergies and future growth opportunities that could result from our future acquisition of BioCheck; (ii) our expectation that our acquisition of BioCheck shares from the stockholders of BioCheck will occur in a timely manner pursuant to the terms and conditions of our agreement with BioCheck and its stockholders; (iii) our intent that, upon completion of the BioCheck acquisition, we will likely relocate all core operations of the Company to a facility in Northern California, close the Portland facility and terminate Company employees in connection with the integration of the work force for the two companies; (iv) that the operating and cost efficiencies resulting from the consolidation of the two companies' operations and workforce will be realized as expected and that such efficiencies will lead to margin expansion and accelerated profitability for the combined company.
