Pyng Medical Corp.
TSX VENTURE : PYT

Pyng Medical Corp.

May 26, 2015 19:57 ET

Pyng Medical Corp. Reports Second Quarter Fiscal 2015 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 26, 2015) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced financial and operating results for the three and six months ended March 31, 2015. All amounts are in Canadian dollars unless stated otherwise.

The Company reported total sales of $1,650,528 for the three months ended March 31, 2015, up 13% compared with $1,466,392 for the second quarter of fiscal 2014. The sales increase was mainly driven by higher TPOD sales resulting from the stronger demand from the international market. The gross margin also increased to $848,637 from $665,612 reported a year ago as a result of higher sales and operating efficiency improvements. As a result, gross margin as a percentage of sales increased to 51% from 46% reported for the second quarter of fiscal 2014. Operating expenses increased 18% to $1,014,701 this year from $860,482 reported last year, primarily due to the higher foreign exchange loss, sales and marketing, and product development expenses.

The Company reported a net loss of $166,064 for this quarter, equal to a loss of $0.007 per share, compared to a net loss of $194,870, or loss of $0.008 per share reported one year ago. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were negative $3,790, a decrease of $25,336 from $21,546 reported for the second quarter of fiscal 2014.

For the six months period, total sales of $3,164,603 were recorded, up 5% from $3,003,295 for the comparative period last year. The gross margin increased to $1,512,290 this year from $1,378,536 for last year. Operating expenses went up 8% to $1,787,397 this year as compared to $1,653,989 reported for comparative period of last year. This increase reflected the higher foreign exchange loss resulting from the continuous weakening of the Canadian dollar, higher sales and marketing, and product development costs this year.

As at March 31, 2015, the Company had a cash balance of $279,101, an increase of $125,877 compared with the balance of $153,224 as at September 30, 2014. During the quarter ended March 31, 2015, the Company restructured the promissory note signed with its major manufacturing partner and paid back total principal of $58,339 on its promissory notes. The Company continues to pursue debt and/or equity financing to help fund its working capital needs. There can be no assurance that these initiatives will be successful.

Full audited financial results for fiscal year ended September 30, 2014 are available on SEDAR at www.sedar.com.

About Pyng Medical Corp.

Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide.

Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.

Neither the TSX Venture Exchange nor its Regulatory Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • George Dorin
    Chief Financial Officer
    Pyng Medical Corp.
    (604) 303-7964 x219
    www.pyng.com