Pennsylvania -- (MARKET WIRE) -- April 16, 2007 -- Preliminary Results for Year Ended 31 December 2006
Strong Revenue Growth as Installed Base Nearly Trebles
MALVERN, PENNSYLVANIA, AND STAFFORD, UK, 16 April 2007 - PuriCore (LSE: PURI), the life sciences company focused on the development and commercialisation of its novel, safe antimicrobial technology, today announces its inaugural annual results for the year ended 31 December 2006.
Financial Highlights
- Floated on the LSE in June, raising $54.9 million (gross)
- Revenue up 24% to $15.9 million (2005: $12.8 million)
- Year-end cash of $43 million (including restricted cash of $5.3
million) (2005: $953,000 million)
- Future lease revenue under contract at year end of $15.8 million
- R&D investment increased by 29% to $2.1 million (2005: $1.6 million)
- Sales and marketing spend increased by 43% to $6.2 million (2005: $4.4
million)
- 2006 net loss of $17.8 million ($15.4 million excluding the effect of
share based payment expenses for the issuance of share options to
employees and directors)
Operational Highlights
- Year-end installed base of Sterilox Systems up 187%
- Supermarket installed base up 269% to approximately 1,400 systems
- Nearly 90% of all supermarket installations are leased
- Global Sterilox Endoscopy installed base up 20% to approximately 220
systems
- 100% customer retention of Sterilox Endoscopy customers with expiring
leases
Recent Developments
- Signed exclusive distribution agreement with Minntech Corporation to
expand Sterilox Endoscopy UK product portfolio
- Entered a marketing partnership with BHT Hygienetechnik to enhance
Sterilox Endoscopy UK product portfolio
- Received US FDA 510(k) clearance for the Sterilox Endoscopy System
Greg Bosch, Chief Executive Officer of PuriCore, said:
"Following the successful flotation, PuriCore has focused on establishing a solid position in its primary markets. We are now poised to leverage our
strengths both operationally and technically to lead in our core markets and to expand into new strategic geographies and markets. The Company is
well-positioned to capitalize on these opportunities and to deliver future
growth for our shareholders."
About PuriCore
PuriCore (London Stock Exchange: PURI) is a life sciences company focused on developing and commercializing proprietary products that safely, effectively, and naturally kill contagious pathogens. PuriCore's technology provides a solution to a broad range of markets that depend upon controlling contamination, including food safety, medical device disinfection, wound management, and hospitality. The Company's proprietary technology mimics the human body's production of the natural antimicrobial hypochlorous acid, which is highly effective in killing bacteria, viruses, and fungal spores. Deploying hypocholous acid solutions as soaks, sprays, mists, and in other forms, PuriCore's technology is designed to limit the spread of infectious disease,
including major public health threats of M. tuberculosis, MRSA, E.coli,
norovirus, avian influenza, HIV, polio virus, Helicobater pylori, and
Legionella. PuriCore is headquartered in Malvern, Pennsylvania, with offices in Stafford, UK.
To receive additional information on PuriCore, please visit our web site at
www.puricore.com, which does not form part of this press release.
Chairman and CEO Review
We consider 2006 a breakthrough year for PuriCore. We completed a major
transformation from private to public company and achieved major market
penetration. Revenues increased 24%, and the installed base of Sterilox Systems in the Food Safety and Endoscopy businesses grew strongly, increasing 187% from 561 Systems in 2005 to 1,608 Systems.
Growth in the Sterilox Food Safety business was particularly robust in 2006. By year end, PuriCore had an installed base of approximately 1,400 Sterilox Food Safety Systems in US retail supermarkets, in line with market expectations. In 2006, more than 1,000 Sterilox Food Safety Systems were installed (307 installations in 2005). Of these, 939 were under long-term lease agreements and 72 were capital sales.
In the Endoscopy business, the UK NHS budget constraints impacted growth.
Nonetheless, the installed base of Sterilox Endoscopy Systems increased 20%, and PuriCore retained 100% of its customers with expiring rental contracts.
Translating Vision to Reality
PuriCore's Corporate Vision is to be a global leader in advancing human health through the control of infectious pathogens. This Vision drives our overriding Core Purpose 'to generate life sciences solutions for a safer, healthier world.'
Infectious disease is a major global problem and is a great concern for
companies, healthcare providers, governments, and consumers. PuriCore has
employed its solid intellectual property and 10 years of knowledge and expertise to develop safe, effective solutions to fight the spread of infectious disease. PuriCore's Sterilox technology was recognised by the leading healthcare market research firm Frost & Sullivan as the recipient of its Technology Innovation Award in late 2005.
Our Sterilox Systems generate hypochlorous acid, the human body's own infection fighter. Hypochlorous acid is produced by human cells to fight invading pathogens. Using water, common salt, and electricity, PuriCore's propriety technology generates Sterilox Solutions-the same hypochlorous acid our bodies naturally produce. The Sterilox Solutions are deadly to dangerous bacteria, viruses, and fungi-all types including E. coli, norovirus, avian influenza virus, and MRSA-yet completely safe for humans and the environment.
The first six months of 2006 were spent building a foundation for our successful flotation on the London Stock Exchange in June; during the last half of the year, we continued to execute on our business plan and experienced growth in our core markets. PuriCore is now positioned for opportunity-for new market entry and new geographical exploration.
Building Market Positions
The June flotation strengthened our balance sheet, enabling us to execute our business plan in building the franchises, teams, and processes necessary to establish PuriCore as a leader in the control of infectious pathogens. We are the beneficiaries of a singular core platform technology that allows us to expand into many industries and geographies. This provides us with both opportunities for growth as well as leverage against cyclical market realities.
In 2006, we focused on our core businesses and initiated new market efforts:
Food Safety: By year end, PuriCore had garnered approximately 4% of the market for US retail supermarkets. The Company completed a national roll-out for a top-five US supermarket chain and concluded a new, three-year lease agreement calling for the installation of more than 200 further Sterilox Systems, generating cumulative revenue and cash flow totalling approximately $3.3 million. Of the approximately 1,400 Systems installed at year end, 88% were under long-term lease agreements. Several top-10 US supermarket chains are currently in late-stage trials.
Endoscopy: The UK Government's 2006 directive that it will not continue to
offset the over-budget expenditures of the NHS resulted in a delay in orders for Sterilox Systems. By year end, however, the Sterilox Endoscopy installed base had increased 20% globally, and the UK pipeline of prospective customers was robust. In addition, PuriCore retained 100% of its Sterilox Endoscopy customers with expiring leases and maintained an estimated 25% marketshare of NHS hospitals that have endoscopy departments.
Since the year end, PuriCore has expanded its presence and product portfolio in the UK through an exclusive distribution agreement with Minntech Corporation and a marketing partnership with BHT Hygienetechnik allowing PuriCore to expand its market penetration strategy into the UK asynchronous and large passthrough AER segments. In addition, PuriCore received US FDA regulatory clearance to market its Sterilox Endoscopy Systems in the US, the largest in the world.
New Markets: In 2006, PuriCore initiated efforts in therapeutic applications such as wound management as well as in the hospitality and bio-decontamination markets. PuriCore received US FDA clearance for the VASHE Wound Treatment System, a noninvasive wound-cleansing process, and the Aquatine Endodontic Cleanser. PuriCore focused its initial hospitality efforts on casino resorts in Las Vegas and has installed approximately 20 Sterilox Systems to date.
We spent much of 2006 establishing a stronghold in our primary markets and in positioning PuriCore for opportunity and growth. We established supply-chain processes, communications systems, human-capital tools, and internal systems and procedures, all designed to create an infrastructure able to support sustainable traction in our existing markets and in new geographies and markets.
Outlook
PuriCore is poised to widen its market position. Our primary directive is to penetrate further and establish leadership positions in our core markets: US Food Safety and UK Endoscopy. Simultaneously, we will begin to expand into new strategic geographies with these core businesses as well as into new markets based on our existing proprietary technology and experience. Looking ahead, we expect to employ the human therapeutic benefits of our Sterilox Solutions. In addition, the increasing proportion of recurring revenues, blended with capital sales, provides PuriCore with a more predictable and sustainable business model to serve better the long-term financial health of the Group.
With the development of PuriCore's internal structure, processes, and systems, we are well-positioned to execute our business plan and to build a global leadership position in the field of infection control. With PuriCore's stronger balance sheet, progress in both of our core markets, and our initiatives in other industry sectors, we look forward to delivering future growth for our shareholders.
Christopher P.J. Wightman Gregory T. Bosch
Chairman Chief Executive Officer
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