PMED Paradigm Medical Industries Reports Net Profit in 2004 on Flat Revenues
Paradigm Medical Industries Reports Net Profit in 2004 on Flat Revenues
SALT LAKE CITY--(BUSINESS WIRE)--April 28, 2005--
2004 Operating Highlights
-- Highest margin products grow to 50% of corporate revenues, show year-to-year increase of 37%.
-- Operating expenses reduced by nearly $2 million.
-- Gross profit margin exceeds 60%.
Paradigm Medical Industries, Inc. (OTCBB:PMED.OB)(OTCBB:PMEDW.OB) today announced a significant improvement in its 2004 financial performance. While revenues were stable, at $3.062 million, gross profit increased by $872,000, to $1.8 million, representing a margin of more than 60%. Operating expenses declined by nearly $2 million, in line with the Company's goal of "significantly" reducing costs and overheads.
The Company reported a net profit of $10,000 (including extraordinary items), compared with a loss of $3.4 million, or $(0.14) per share, in 2003.
"We are encouraged by our financial performance in 2004. The Company accomplished two key goals--reducing our costs by up to $2 million, and upgrading our product mix," said Paradigm Medical's Chief Executive Officer, John Y. Yoon. "We are planning for even lower operating costs as a percentage of sales for 2005, and expect our product portfolio to improve markedly."
Mr. Yoon continued: "Sales of our Ultrasound Biomicroscope (UMB) devices and Blood Flow Analyzer (BFA) accounted for 50% of total revenues in 2004, up from 36% in 2003. UBM sales increased by 39% and BFA revenues rose by 35%. These products generate gross profit margins that exceed the Company's average."
Paradigm Medical reported an operating loss of $392,000 in 2004, compared with an operating loss of $3.1 million in 2003.
"We stepped up our research and development spending toward the end of 2004 and are committing more capital for marketing and selling in anticipation of launching our fourth-generation UBM device, the P60," Mr. Yoon added. "We were recently awarded the CE Mark for the P60, which enables us to market the product in Western Europe and parts of the Pacific Rim. We also have filed a 510(k) for the P60 with the U.S. Food and Drug Administration."
Mr. Yoon noted that "business conditions were tough throughout 2004, especially late in the year. However, we began to see some solid improvement in orders in the spring."
Paradigm Medical Industries, Inc., currently develops, manufactures and markets surgical and diagnostic high-tech, proprietary equipment and consumable products for the medical industry. The Company's corporate headquarters are located at 2355 South 1070 West, Salt Lake City, Utah 84119. Call (801) 977-8970 or visit us at our web site www.paradigm-medical.com.
This press release contains statements that, if not verifiable historic fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm and its business. The predictions embodied in these statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.
Contacts
Paradigm Medical Industries, Inc.
John Y Yoon, 801-977-8970 (CEO)
