SOURCE: Biomerica

April 17, 2007 08:19 ET

Biomerica Announces Third Quarter Financial Results

Diagnostic Revenues Up 36%, Net Income Up 63% for the 9 Months Ended February 28, 2007

NEWPORT BEACH, CA -- (MARKET WIRE) -- April 17, 2007 --Biomerica, Inc. (OTCBB: BMRA) today reported stand-alone results of diagnostic net sales of $1,311,609 for the third quarter fiscal 2007 ended February 28, 2007, compared to stand-alone results of diagnostic net sales of $998,070 in fiscal 2006, an increase of $313,539 or 31.4%. Stand-alone results of diagnostic net sales for the first nine months of fiscal 2007 were $3,797,051 compared to stand-alone results of diagnostic net sales of $2,792,222 for the first nine months in fiscal 2006, an increase of $1,004,829 or 36%.

Biomerica announced stand-alone results of diagnostic net income for the nine months ended February 28, 2007, of $264,521 versus a net income of $162,285 in the previous fiscal year during the same period, an increase of $102,236, or 63.0%. The stand-alone results for the three months ended February 28, 2007 of diagnostic net income was $121,370, compared to stand-alone results of diagnostic net income of $29,615 in the same quarter the previous fiscal year, an increase of $91,755, or 309.8%.

As disclosed in the Company's 8-K filed on December 5, 2005, the Company's subsidiary's (Lancer Orthodontics) financial statements are no longer consolidated with Biomerica's financial statements, effective December 1, 2005. Therefore consolidated net sales for the nine months of fiscal 2007 are lower (see financials below).

"We expect continued growth in our diagnostic business," stated Zackary Irani, Biomerica CEO. "As we close the ninth consecutive quarter of profitability, we look forward to new product introductions in the upcoming months that should enhance our product lines."

About Biomerica (OTCBB: BMRA)

Biomerica, Inc. (http://www.biomerica.com) is a global medical technology company based in Newport Beach, CA. The Company's diagnostics division manufactures and markets advanced diagnostic products used at home, in hospitals, and in physicians' offices for the early detection of significant medical conditions and serious diseases.

Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Biomerica) contains statements that are forward-looking, such as statements relating to intended improvements to the Company's financial performance, continued growth in business, launch dates, expansion, expected orders, leading market positions, anticipated future sales revenues of the company, success of product(s) and new product introductions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. The potential risks and uncertainties include, among others, fluctuations in the Company's operating results due to its new business model and expansion plans, the Company's ability to raise additional capital, the competitive environment in which the Company will be competing, and the Company's dependence on strategic relationships. The Company is under no obligation to update any forward-looking statements after the date of this release.

The following financial statements reflect the operating results of Biomerica as reported in the Company's Form 10-QSB filed on April 16, 2007. The full financial statements and management's discussion and analysis are available in the above-mentioned Form 10-QSB.

The deconsolidation of Lancer Orthodontics from Biomerica occurred December 1, 2005. Therefore, the three and nine months ended February 28, 2007 include ONLY the results of operations for Biomerica and the results for the nine months ended February 28, 2006 include operations of nine months of Biomerica and six months of Lancer Orthodontics.

                             BIOMERICA, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                    AND COMPREHENSIVE LOSS (UNAUDITED)

                           Nine Months Ended       Three Months Ended
                             February 28,               February 28,
                          2007        2006           2007         2006
                      ------------ ------------  ------------ ------------

Net sales             $  3,797,051 $  5,717,260  $  1,311,609 $    998,070

   Cost of sales        (2,427,578)  (3,820,715)     (836,204)    (649,468)
                      ------------ ------------  ------------ ------------
   Gross profit          1,369,473 $  1,896,545  $    475,405 $    348,602
                      ------------ ------------  ------------ ------------

Operating Expenses:
   Selling, general
    and administrative     943,601    1,866,470       308,403      272,890
   Research and
    development            170,759      193,360        71,246       38,779
                      ------------ ------------  ------------ ------------
                         1,114,360    2,059,830       379,649      311,669
                      ------------ ------------  ------------ ------------

Operating income
 (loss) from
 continuing operations     255,113     (163,285)       95,756       36,933
                      ------------ ------------  ------------ ------------

Other Expense (income):
   Interest expense         22,626       36,751         6,385        7,248
   Other income, net       (40,040)     (45,575)      (40,005)        (730)
                      ------------ ------------  ------------ ------------
                           (17,414)      (8,824)      (33,620)       6,518
                      ------------ ------------  ------------ ------------

Income (loss) from
 continuing operations,
 before minority
 interest in net loss
 of consolidated
 subsidiaries and
 income taxes              272,527     (154,461)      129,376       30,415

Minority interest in
 net losses of
 consolidated subsidiary        --      251,670            --           --
                      ------------ ------------  ------------ ------------

Income from continuing
 operations, before
 income taxes              272,527       97,209       129,376       30,415

Income tax expense           8,006        2,400         8,006          800
                      ------------ ------------  ------------ ------------

Net income from
 continuing operations     264,521       94,809       121,370       29,615

Discontinued operations:
   Income from
    discontinued
     operations, net       (27,869)          --            --           --
                      ------------ ------------  ------------ ------------
Net income                 292,390       94,809       121,370       29,615

Other comprehensive
 loss, net of tax:
   Unrealized loss on
    available-for-sale
    securities             (36,868)    (240,100)       (8,662)    (236,286)
                      ------------ ------------  ------------ ------------

Comprehensive income
 (loss) income        $    255,522 $   (145,291) $    112,708 $   (206,671)
                      ============ ============  ============ ============

Basic net income per
 common share:

   Net income from
    continuing
    operations        $        .04 $        .01  $        .02 $        .00
   Net income from
    discontinued
    operations                 .00          .00           .00          .00
                      ------------ ------------  ------------ ------------
Basic net income
 per common share     $        .04 $        .01  $        .02 $        .00
                      ============ ============  ============ ============
Diluted net income
 per common share
   Net income from
    continuing
    operations        $        .04 $        .01  $        .02 $        .00
   Net income from
    discontinued
    operations                 .00          .00           .00          .00
                      ------------ ------------  ------------ ------------

Diluted net income
 per common share     $        .04 $        .01  $        .02 $        .00
                      ============ ============  ============ ============

Weighted average number
 of common and common
 equivalent shares:
   Basic                 5,925,860    5,753,831     5,939,214    5,752,912
                      ============ ============  ============ ============
   Diluted               6,368,245    6,617,955     6,371,192    6,604,035
                      ============ ============  ============ ============


PRO FORMA STATEMENT OF OPERATIONS BY COMPANY (UNAUDITED)


                                      Nine Months Ended
                                      February 28, 2006
                                      -----------------
                                Intercompany      Pro-forma
                       Actual   Eliminations       Lancer       Biomerica
                   -----------   -----------     -----------   -----------
NET SALES          $ 5,717,260            --     $(2,925,038)  $ 2,792,222
COST OF SALES        3,820,715        15,780(1)   (2,190,495)    1,646,000
                   -----------   -----------     -----------   -----------
GROSS PROFIT         1,896,545       (15,780)(1)    (734,543)    1,146,222
                   -----------   -----------     -----------   -----------

OPERATING EXPENSES:
SELLING, GENERAL
 AND ADMIN           1,866,470            --      (1,029,059)      837,411
RESEARCH AND
 DEVELOPMENT           193,360            --         (42,470)      150,890
                   -----------   -----------     -----------   -----------

TOTAL OPERATING
 EXPENSES            2,059,830            --      (1,071,529)      988,301
                   -----------   -----------     -----------   -----------

   OPERATING INCOME
   (LOSS)             (163,285)      (15,780)(1)     336,986       157,921

OTHER EXPENSE
 (INCOME)
  Interest              36,751            --         (14,456)       22,295
  Other expense
   (income)            (45,575)      (15,780)(2)      33,096       (28,259)
                   -----------   -----------     -----------   -----------
                        (8,824)      (15,780)(2)      18,640        (5,964)
                   -----------   -----------     -----------   -----------
INCOME (LOSS) FROM
 OPERATIONS BEFORE
 INTEREST IN NET
 INCOME (LOSS) OF
 CONSOLIDATED
 SUBSIDIARIES AND
 INCOME TAXES         (154,461)           --         318,346       163,885

MINORITY INTEREST
 IN NET LOSS
 (INCOME) OF LANCER    251,670      (319,146)(3)          --            --
                                      67,476 (4)
                   -----------   -----------     -----------   -----------

INCOME (LOSS) FROM
 OPERATIONS BEFORE
 INCOME TAXES           97,209      (251,670)        318,346       163,885
                   -----------   -----------     -----------   -----------

INCOME TAX EXPENSE       2,400            --            (800)        1,600
                   -----------   -----------     -----------   -----------

NET INCOME (LOSS)  $    94,809   $  (251,670)    $   319,146   $   162,285
                   ===========   ===========     ===========   ===========

(1) To record the charge for rent by Lancer at the manufacturing facility
in
    Mexico which was eliminated in consolidation.
(2) To record the income from Biomerica received by Lancer for rent at the
    Mexico facility, which was eliminated in consolidation.
(3) To de-consolidate Lancer's loss.
(4) Elimination of Biomerica's portion of Lancer's operations as if the
    termination of the voting agreement occurred May 31, 2005.

Contact Information

  • Contact:
    Zackary Irani
    949-645-2111