SOURCE: Remedent, Inc.

November 17, 2009 02:10 ET

Remedent Reports Fiscal Second Quarter 2010 Results

Remedent to Reveal New Corporate Website on November 19 and Host a Conference Call at 11:00 a.m. ET

DEURLE, BELGIUM and LOS ANGELES, CA--(Marketwire - November 17, 2009) - Remedent, Inc. (OTCBB: REMI), an international company specializing in the research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the fiscal second quarter ended September 30, 2009 (in U.S. dollars).

Net sales in the second quarter decreased 36% to $1.8 million from $2.8 million in the same year-ago quarter.

Loss from operations in the second quarter was $994,000, as compared to a loss from operations of $359,000 in the same year-ago quarter, and was primarily attributable to the planned U.S. reorganization.

Net loss for the second quarter totaled $839,000 or $(0.04) per share (after minority interest and based on 20 million weighted average basic shares outstanding), as compared to a net loss of $4.7 million or $(0.25) per share (based on 19 million weighted average basic shares outstanding) in the same year-ago quarter. The net loss in the second fiscal quarter included a charge of $160,000 for warrants issued during the quarter, as compared the year-ago quarterly loss which included a $4.3 million charge for warrants issued.

Cash and cash equivalents totaled $1.7 million at September 30, 2009 as compared to $1.8 million at March 31, 2009.

Management Commentary
"This quarter followed a transitional quarter when we took more control over our future by establishing a new worldwide production facility in China," said Guy De Vreese, CEO of Remedent. "Our goal has been to prepare for increasing demand and improve margins, but still maintain or even improve the quality of our dental veneers. We achieved this in the second quarter and are now able to deliver veneers at exceptional thinness and durability, which are second to none in the industry. We have brought this new facility up to speed and are producing timely shipments with higher capacity.

"As I mentioned last quarter, we are beginning to emerge from a pivotal stage in our development with a new operational structure designed to leverage the proven potential of our unique veneer technology, as well as our revolutionary, patent-pending FirstFit™ system for crowns and bridges."

New Remedent Web Site
On November 19, Remedent will unveil a new corporate website at www.Remedent.com featuring its latest dental technologies. This includes GlamStrip for the single-motion application of dental veneers, and FirstFit, a revolutionary solution for dental bridges and crowns. The highly interactive website will feature new before and after images as well as engaging videos.

The site will also provide coverage of the FirstFit presentation at the Den-Mat Education Destination Seminar in Las Vegas, which was held on November 7. The presentation was conducted by Remedent's CEO, Guy De Vreese, with the Belgian inventor of FirstFit, Dr. Evelyne Jacquemyns, presenting live via webcast from one of Remedent's international GlamSmile locations in Dubai, UAE. The event represented the first official presentation of the new bridge and crown technology to dentists in the United States.

Teleconference Information
Remedent will host a conference call on Thursday, November 19, 2009 at 11:00 a.m. Eastern time to discuss these results. A question and answer session will follow management's presentation. To participate in the call, dial the appropriate number 5-10 minutes prior to the start time, request the Remedent conference call and provide the conference ID.

Date: Thursday, November 19, 2009
Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)
Dial-In Number: 1-800-895-1241
International: 1-785-424-1056
Conference ID#: 7REMEDENT

A simultaneous webcast and replay of the call will be accessible via this link: http://viavid.net/dce.aspx?sid=00006DEA.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call, please contact the Liolios Group at 1-949-574-3860.

A telephone replay of the call will be available from 2:00 p.m. Eastern time on the same day until December 19, 2009.

Toll-free replay number: 1-800-723-0394
International replay number: 1-402-220-2649
(No passcode required)

About Remedent
Remedent, Inc. specializes in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products. The company serves professional dental industry with breakthrough technology for dental veneers, bridges and crowns that are recognized worldwide for their technological superiority and ease-of-application. These products are supported by a line of professional veneer whitening and teeth sensitivity solutions. Headquartered in Belgium, Remedent distributes its products to more than 35 countries worldwide. For more information, go to www.remedent.com.

Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause Remedent's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," "projects," "project," to be uncertain and forward-looking. Actual results could differ materially because of factors such as Remedent's ability to achieve the synergies and value creation contemplated by our distribution and licensing agreements. For further information regarding risks and uncertainties associated with Remedent's business, please refer to the risk factors described in Remedent's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q.



                      REMEDENT, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS


                                             September 30,
                                                 2009          March 31,
                                              (unaudited)        2009
                                             -------------   -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                    $   1,686,372   $   1,807,271
  Accounts receivable, net of allowance
   for doubtful accounts of $37,474
   at September 30, 2009 and $33,966
   at March 31, 2009                               880,956       3,208,120
Inventories, net                                 2,081,658       1,937,946
Prepaid expenses                                 1,387,059       1,310,900
                                             -------------   -------------
    Total current assets                         6,036,045       8,264,237
                                             -------------   -------------
PROPERTY AND EQUIPMENT, NET                      1,246,287       1,024,999
OTHER ASSETS
Long term investments and advances                 750,000         750,000
Patents, net                                       129,447         163,106
                                             -------------   -------------
    Total assets                             $   8,161,779   $  10,202,342
                                             =============   =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion, long term debt              $      73,109   $      78,798
Line of Credit                                     728,400         660,200
Accounts payable                                 1,091,131       1,398,420
Accrued liabilities                                754,450       1,590,360
Income taxes payable                                37,964          39,339
                                             -------------   -------------
    Total current liabilities                    2,685,054       3,767,117
Long term debt less current portion                316,535         100,542
                                             -------------   -------------
    Total liabilities                            3,001,589       3,867,659
                                             -------------   -------------

EQUITY:
REMEDENT, INC. STOCKHOLDERS' EQUITY
  Preferred Stock $0.001 par value
   (10,000,000 shares authorized,
   none issued and outstanding)                         --              --
  Common stock, $0.001 par value;
   (50,000,000 shares authorized,
   19,995,969 shares issued and
   outstanding at September 30, 2009
   and March 31, 2009)                              19,996          19,996
  Treasury stock, at cost; 723,000 shares
   at September 30, 2009 and March 31, 2009       (831,450)       (831,450)
Additional paid-in capital                      24,468,843      24,106,055
Accumulated deficit                            (18,604,242)    (17,216,028)
  Accumulated other comprehensive (loss)
   (foreign currency translation adjustment)      (522,266)       (640,595)
                                             -------------   -------------
    Total Remedent, Inc. stockholders'
     equity                                      4,530,881       5,437,978
Non-controlling interest                           629,309         896,705
                                             -------------   -------------
    Total stockholders' equity                   5,160,190       6,334,683
                                             -------------   -------------
    Total liabilities and equity             $   8,161,779   $  10,202,342
                                             =============   =============





                      REMEDENT, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)


                                               For the three months ended
                                                     September 30,
                                                 2009            2008
                                             -------------   -------------

Net sales                                    $   1,780,301   $   2,771,079
Cost of sales                                    1,302,237         785,453
                                             -------------   -------------
  Gross profit                                     478,064       1,985,626
                                             -------------   -------------
Operating Expenses
    Research and development                        54,522          47,415
    Sales and marketing                            137,076         840,207
    General and administrative                   1,102,634       1,273,723
    Depreciation and amortization                  177,914         183,111
                                             -------------   -------------
  TOTAL OPERATING EXPENSES                       1,472,146       2,344,456
                                             -------------   -------------
INCOME (LOSS) FROM OPERATIONS                     (994,082)       (358,830)
                                             -------------   -------------
OTHER INCOME (EXPENSES)
    Warrants issued                               (159,888)     (4,323,207)
    Interest expense                               (39,207)        (44,836)
    Interest income                                 25,160          39,845
                                             -------------   -------------
  TOTAL OTHER INCOME (EXPENSES)                   (173,935)     (4,328,198)
                                             -------------   -------------

NET LOSS                                        (1,168,017)     (4,687,028)

LESS: NET LOSS ATTRIBUTABLE TO
 NON-CONTROLLING INTEREST                         (329,234)              -
                                             -------------   -------------

NET LOSS ATTRIBUTABLE TO REMEDENT, INC.
 Common Stockholders                         $    (838,783)  $  (4,687,028)
                                             =============   =============

LOSS PER SHARE
  Basic and fully diluted                    $       (0.04)  $       (0.25)
                                             =============   =============
WEIGHTED AVERAGE SHARES OUTSTANDING
  Basic and fully diluted                       19,995,969      18,968,717
                                             =============   =============

Contact Information

  • Company Contacts:
    Stephen Ross
    Chief Financial Officer
    Remedent, Inc.
    Tel 310-922-5685
    Email Contact

    Investor Relations:
    Ron Both
    Managing Director
    Liolios Group, Inc.
    Tel 949-574-3860
    Email Contact