Pyng Medical Corp.
TSX VENTURE : PYT

Pyng Medical Corp.

August 23, 2011 18:02 ET

Pyng Medical Corp. Reports Third Quarter Fiscal 2011 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2011) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced its financial and operating results for the three months ended June 30, 2011. All amounts are in Canadian dollars unless stated otherwise.

For the third quarter 2011, the Company has realized significant sales growth resulting in total sales of $1,723,803, up 34% from the third quarter 2010. This increase was mainly attributed to the sales from U.S. military and civilian orders after the budget issue of the U.S. government was resolved. Gross margin as a percentage of sales of 65% was slightly higher than the prior year at 64% as a result of the strong sales and cost savings, despite continuing appreciation of Canadian dollar against the U.S. dollar, causing an unfavorable effect on the majority of sales dominated in U.S. dollars. Total operating expenses dropped to 53% of the sales from 72% for the same quarter last year.

The Company's net income also rose substantially to $210,555 for this quarter, equal to $0.01 per share, compared to a net loss of $92,990 or a loss of $0.01 per share one year earlier. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were $379,344, an increase of $322,446 as compared to $56,898 reported one year ago.

For the nine months period, the total sales climbed 13% to $5,054,810 from $4,455,042 for the comparable period last year. Meanwhile, operating expenses were down 14% to $2,909,352 from $3,377,924 incurred one year ago. The strong sales and numerous initiatives on cost saving and expense reduction have collectively contributed to an increase of $757,437 in net income to $420,136 from a net loss of $337,301 reported last year.

In addition to the improving profitability, the Company continued to maintain sufficient financial liquidity to support the profit growth and product development. As of June 30, 2011, the cash balance and working capital have increased to $305,743 and $1,183,316 respectively, as compared to the amounts of $282,993 and $761,255 as at September 30, 2010.

Full audited financial results for fiscal year ended September 30, 2010 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

  • Pyng Medical Corp.
    George Dorin
    Chief Financial Officer
    (604) 303-7964 ext. 219
    www.pyng.com