SOURCE: Remedent, Inc.

Remedent, Inc.

August 14, 2009 07:30 ET

Remedent Reports Fiscal First Quarter 2010 Results

DEURLE, BELGIUM and LOS ANGELES, CA--(Marketwire - August 14, 2009) - Remedent, Inc. (OTCBB: REMI), an international company specializing in the research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the fiscal first quarter ended June 30, 2009 (in U.S. dollars).

Net sales in the first quarter totaled $2.2 million, a decrease of 41% from $3.6 million in the same year-ago quarter. The decrease in revenue is attributed to delays in establishing a new, state-of-the-art manufacturing and production facility in Beijing, China, which in turn resulted in delays in fulfilling certain orders from the company's international distributors. The new facility is designed to address increasing demand and improve gross margins, while sustaining the high quality of GlamSmile dental veneers. Management expects the new facility will be in full operation by the third fiscal quarter.

Loss from operations in the first quarter was $529,000, as compared to income from operations of $348,000 in the same year-ago quarter, and was attributable to the decrease in year-over-year net sales.

Net loss for the first quarter totaled $549,000 or $(0.03) per share (after minority interest and based on 20.0 million weighted average basic shares outstanding), as compared to income of $331,000 or $0.02 per share (based on 18.6 million weighted average basic shares outstanding) in the same year-ago quarter.

Net comprehensive loss in the first quarter after foreign currency translation adjustment was $492,000 or $(0.02) per share, compared to net comprehensive income of $358,000 or $0.02 per share in the same year-ago quarter.

Cash and cash equivalents totaled $1.6 million at June 30, 2009, a decrease of 12% from $1.8 million at March 31, 2009.

Management Commentary

"This first quarter of our fiscal year represents a transitional quarter as we took more control over our future by establishing a new worldwide production facility in China," said Guy De Vreese, CEO of Remedent. "Our goal was to prepare for increasing demand and improve margins, but still maintain or even improve the quality of our dental veneers. We achieved this during the quarter, and are now able to deliver veneers at exceptional thinness and durability which are second to none in the industry. However, delays in ramping up production resulted in loss or delays in shipping international orders during the quarter. We are now effectively bringing this new facility up to speed and we expect to be producing timely shipments at higher capacity by the third fiscal quarter.

"During the first quarter, we were also focused on advancing the development and market introduction of our revolutionary, patent-pending FirstFit™ system for crowns and bridges, which we announced to the world in June. Our FirstFit development effort culminated with the expansion of our distribution agreement with Den-Mat Holdings to include FirstFit. As the world's largest producer of dental veneers, Den-Mat's complete adoption of our GlamSmile technology in August of 2008 has solidified our position as a world leader in the dental veneer space. Den-Mat will now champion the market introduction of FirstFit in the United States through their network of more than 10,000 dentists.

"As I mentioned last quarter, we are beginning to emerge from a pivotal stage in our development, with a new operational structure designed to leverage the proven potential of our unique veneer technology. In addition to Den-Mat in the United States, we are also realizing increasing demand from our markets in China and Australia. We are also finding ways to reduce our costs and improve margins, like our new 'in-house' production facility, while preparing for strong growth. We believe our wide-ranging progress throughout the year, while at times facing setbacks, has kept us on course for continued market expansion in fiscal 2010."

Teleconference Information

Remedent will host a conference call on Friday, August 14, 2009 at 9:00 a.m. Eastern time to discuss these results. A question and answer session will follow management's presentation. To participate in the call, dial the appropriate number 5-10 minutes prior to the start time, request the Remedent conference call and provide the conference ID.

Date: Friday, August 14, 2009
Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)
Dial-In Number: 1-800-862-9098
International: 1-785-424-1051
Conference ID#: 7REMEDENT

A simultaneous webcast and replay of the call will be accessible via this link: http://viavid.net/dce.aspx?sid=000068A3.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call, please contact the Liolios Group at 1-949-574-3860.

A telephone replay of the call will be available from 12:00 p.m. Eastern time on the same day until September 14, 2009.

Toll-free replay number: 1-800-727-6189
International replay number: 1-402-220-2671
(No passcode required)

About Remedent

Remedent, Inc. specializes in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products. The company serves professional dental industry with breakthrough technology for dental veneers, bridges and crowns that are recognized worldwide for their technological superiority and ease-of-application. These products are supported by a line of professional veneer whitening and teeth sensitivity solutions. Headquartered in Belgium, Remedent distributes its products to more than 35 countries worldwide. For more information, go to www.remedent.com.

Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause Remedent's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," "projects," "project," to be uncertain and forward-looking. Actual results could differ materially because of factors such as Remedent's ability to achieve the synergies and value creation contemplated by our distribution and licensing agreements. For further information regarding risks and uncertainties associated with Remedent's business, please refer to the risk factors described in Remedent's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q.


                   REMEDENT, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED BALANCE SHEETS

                                                  June 30,      March 31,
                                                    2009          2009
                                                ------------  ------------
ASSETS                                          (unaudited)
CURRENT ASSETS:

Cash and cash equivalents                       $  1,598,294  $  1,807,271

    Accounts receivable, net of allowance for
     doubtful accounts of $36,188 at June 30, 2009
     and $33,966 at March 31, 2009                 3,373,343     3,208,120

Inventories, net                                   2,056,141     1,937,946

Prepaid expense                                    1,321,700     1,310,900
                                                ------------  ------------

    Total current assets                           8,349,478     8,264,237
                                                ------------  ------------

PROPERTY AND EQUIPMENT, NET                        1,001,394     1,024,999

OTHER ASSETS

Long term investments and advances                   750,000       750,000

Patents, net                                          75,092       163,106
                                                ------------  ------------

    Total assets                                $ 10,175,964  $ 10,202,342
                                                ============  ============

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

CURRENT LIABILITIES:

Current portion, long term debt                 $     59,414  $     78,798

Line of Credit                                     1,477,140       660,200

Accounts payable                                   1,508,368     1,398,420

Accrued liabilities                                  987,286     1,590,360

Income taxes payable                                  37,107        39,339
                                                ------------  ------------

    Total current liabilities                      4,069,315     3,767,117

Long term debt less current portion                  100,542       100,542
                                                ------------  ------------

    Total liabilities                              4,169,857     3,867,659
                                                ------------  ------------

EQUITY:

REMEDENT, INC. STOCKHOLDERS’ EQUITY

    Preferred Stock $0.001 par value (10,000,000
     shares authorized, none issued and
     outstanding)                                         --            --

    Common stock, $0.001 par value; (50,000,000
     shares authorized, 19,995,969 shares issued
     and outstanding at June 30, 2009 and March
     31, 2009)                                        19,996        19,996

    Treasury stock, at cost;
     723,000 at June 30, 2009 and March 31,
     2009                                           (831,450)     (831,450)

Additional paid-in capital                        24,207,505    24,106,055

Accumulated deficit                              (17,765,460)  (17,216,028)

Accumulated other comprehensive income (loss)
 (foreign currency translation adjustment)          (583,027)     (640,595)
                                                ------------  ------------

    Total Remedent, Inc. stockholders’ equity      5,047,564     5,437,978

Non-controlling interest                             958,543       896,705
                                                ------------  ------------

    Total stockholders’ equity                     6,006,107     6,334,683
                                                ------------  ------------

    Total liabilities and equity                $ 10,175,964  $ 10,202,342
                                                ============  ============




                REMEDENT, INC. AND SUBSIDIARIES
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                          (unaudited)



                                                For the three months ended
                                                          June 30,

                                                      2009         2008

                                                  -----------  -----------

Net sales                                         $ 2,160,803  $ 3,635,479
Cost of sales                                       1,096,007    1,269,424
                                                  -----------  -----------
  Gross profit                                      1,064,796    2,366,055
                                                  -----------  -----------
Operating Expenses
    Research and development                           26,598      124,948
    Sales and marketing                               350,935      671,299
    General and administrative                      1,042,764    1,130,313
    Depreciation and amortization                     173,444       91,261
                                                  -----------  -----------
  TOTAL OPERATING EXPENSES                          1,593,741    2,017,831
                                                  -----------  -----------
INCOME (LOSS) FROM OPERATIONS                        (528,945)     348,224
                                                  -----------  -----------
OTHER INCOME (EXPENSES)
    Interest expense                                  (24,647)     (35,343)
    Other income                                       65,998       17,621
                                                  -----------  -----------
  TOTAL OTHER INCOME (EXPENSES)                        41,351      (17,723)
                                                  -----------  -----------

NET (LOSS) INCOME                                    (487,594)     330,501

LESS: NET INCOME ATTRIBUTABLE TO THE
 NON-CONTROLLING INTEREST                              61,838           --
                                                  -----------  -----------

NET (LOSS) INCOME ATTRIBUTABLE TO
REMEDENT, INC. Common Stockholders                $  (549,432) $   330,501
                                                  ===========  ===========

INCOME (LOSS) PER SHARE
    Basic                                         $     (0.03) $      0.02
                                                  ===========  ===========
    Fully diluted                                 $     (0.03) $      0.01
                                                  ===========  ===========

WEIGHTED AVERAGE SHARES OUTSTANDING
    Basic                                          19,995,969   18,637,803
                                                  ===========  ===========
    Fully diluted                                  32,702,274   27,000,995
                                                  ===========  ===========

NET (LOSS) INCOME                                 $  (487,594) $   330,501

OTHER COMPREHENSIVE INCOME (LOSS)
    Foreign currency translation adjustment            57,568       27,592
                                                  -----------  -----------

TOTAL OTHER COMPREHENSIVE (LOSS) INCOME              (491,864)     358,093

LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO
 NON-CONTROLLING INTEREST                              42,248           --

                                                  ===========  ===========

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO
 REMEDENT INC., Common Stockholders               $  (534,112) $   358,093
                                                  ===========  ===========

Contact Information

  • Company Contacts:
    Stephen Ross
    Chief Financial Officer
    Remedent, Inc.
    Tel 310-922-5685
    Email Contact

    Investor Relations:
    Scott Liolios
    Ron Both
    Managing Director
    Liolios Group, Inc.
    Tel 949-574-3860
    Email Contact