Urodynamix Technologies Ltd.

Urodynamix Technologies Ltd.

June 01, 2009 09:00 ET

Urodynamix Technologies Ltd. Reports Fiscal 2009 First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2009) - Urodynamix Technologies Ltd. (TSX VENTURE:URO) today reported its financial results for its fiscal first quarter ended March 31, 2009, reporting a strong increases in revenues over the prior year's first quarter. For Urodynamix's quarter ended March 31, 2009, the Company reported revenues of $271,281, a 1,269% increase from revenues of $22,382 for the first quarter ended March 31, 2008, and a 44% increase over full year fiscal 2008. In addition the Company increased its order backlog at March 31, 2009 to $92,576 compared to nil at the end of the comparative quarter March 31, 2008.

The increase in revenue resulted from the first commercial sales of the URO NIRS 2000 in the quarter. "We acknowledge the exemplary performance of the management team and the entire staff in helping to deliver a quarter of record breaking revenue; selling, building and shipping our first significant quarter of revenue," stated Barry Allen, President and CEO of Urodynamix Technologies Ltd. "We are focused on developing our existing sales channels and building new channels with new partners in new territories. We expect that these activities will result in growing quarter over quarter sales. As our installed base grows and we ship increased amounts of sensors we should see steady significant improvement in gross margin."

Gross margin at 37.1% of revenue decreased from 63.9% of revenue in the quarter to March 31, 2008. The decrease in gross margin was due to first run production costs, low volume production runs and introductory pricing for the URO NIRS 2000. The Company expects to be able to improve gross margins through pricing initiatives and programs to improve productivity and lower component costs.

Expenses for the three months ended March 31, 2009 were $758,853 compared to 758,909 for the comparative period of the prior year. An increase in marketing and selling expenses, the result of business development activities to support the URO NIRS 2000 introduction, was offset by a decrease in research and development expenses due to the timing of development activities and the completion of the URO NIRS 2000 commercialization program.

The net loss for the quarter ended March 31, 2009 was $655,238 or $0.01 per share basic and diluted, as compared to a net loss of $722,081 or $0.01 per share basic and diluted for the quarter ended March 31, 2008. The decrease in the loss was due primarily to the gross margin generated on sales in the quarter.

As of March 31, 2009, cash and cash equivalents decreased from $2,262,794 to $1,505,641 at December 31, 2008. Working capital at March 31, 2009 was $1,303,972 and the Company remains debt free.

About Urodynamix Technologies Ltd.

Urodynamix Technologies Ltd. is a Canadian medical device company developing and commercializing non-invasive medical technology based on proprietary applications of near-infrared spectroscopy (NIRS). The Company is currently focused on products that aid in the diagnosis and treatment of urinary incontinence, lower urinary tract symptoms, prostate cancer, benign prostatic hyperplasia, and traumatic increases in intra-abdominal pressure that cause abdominal compartment syndrome. Urodynamix's breakthrough medical technology has the potential to beneficially affect more than 200 million people worldwide.

Certain information contained in this press release may be forward-looking and is subject to unknown risks, which could cause actual results to differ materially from those set forth or implied herein. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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