SOURCE: Pyng Medical Corp.

June 02, 2005 09:00 ET

Pyng Medical Corp. Reports Record Sales for Second Quarter

VANCOUVER, BC -- (MARKET WIRE) -- June 2, 2005 -- Pyng Medical Corp. (OTC BB: PYNGF) (TSX-V: PYT) is pleased to announce that the company achieved record sales for the second quarter, with invoiced sales of $591,225 for the fiscal period, a 54% increase in sales over the same quarter in fiscal 2004 (2004: $384,876). The Company also achieved record sales for the six months ended March 31, 2005, with invoiced sales of $1,014,634 a 51% increase in sales over the same period in fiscal 2004(2004: $671,526).

Pyng Medical Corp continues to report consistent increased sales for our flagship product the F.A.S.T.1™ System for Adult Intraosseous Infusion, now by far the largest selling Sternal IO System with over 44,000 units being delivered to-date.

Cost of sales for the second quarter was $208,096 (2004: $156,772) providing a Gross Margin of $383,128 or 65% (2004: $228,104 or 59%).

This significant improvement in gross margin can be attributed in part to successes in our ongoing engineering program to reduce component and manufacturing costs.

Net cash inflows from operating activities were $76,287 (2004: net cash inflows of $34,658), the highest net cash inflows from operating activities ever achieved by the company in a quarter. The Company generated EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) of $31,304 (2004: EBITDA of $37,977).

Total operating expenses of $357,968 for the quarter ended March 31, 2005, have increased compared to $222,272 for the quarter ended March 31, 2004.

On a percentage basis, operating expenses increased from 58% of sales in the quarter ended March 31, 2004, to 61% of sales in the quarter ended March 31, 2005. This is mainly due to the increased marketing efforts in North America and Europe and a concentrated effort in the U.S. civilian and markets.

A detailed financial and management analysis of this quarter and year to date performance can be found on SEDAR.

Michael W. Jacobs, Chairman, Pyng Medical Corp.

The Toronto Venture Exchange has neither reviewed nor approved of the contents of this News Release. Safe Harbor Statement: This release may contain certain forward-looking statements including without limitation, projections, assumptions, expectations, product development objectives, commercial introduction, and potential advantages of the F.A.S.T.1™ System. Actual events or results may differ from the Company's expectations as a result of risk factors discussed in Pyng Medical Corp. reports. Factors beyond the company's control may also change the company's expecations.

Contact Information

  • For further information please contact:
    Pyng Medical Corp.
    1-604-303-7964
    or visit our web site at www.pyng.com