GENT, BELGIUM--(Marketwire - Jul 15, 2011) - Remedent, Inc. (
Net sales for the fourth quarter increased 17% to $2.8 million from $2.4 million in the same year ago quarter. The increase in sales is attributable to increased sales in Asia.
Loss from operations in the fourth quarter was a loss of $933,000 compared to a loss of $462,330 in the same year ago quarter.
Net sales for the year increased by $4.25 million, 52% to $12.5 million in the year ended March 31, 2011 as compared to $8.25 million of sales in the year ended March 31, 2010. Net loss for the year ended March 31, 2011 was $1.5 million or $(.08) per share, as compared with a loss of $2.4 million, or $(0.12) per share for the year ended March 31, 2010.
Cash and Cash equivalents totaled $1.6 million at March 31, 2011 as opposed to $614,000 at March 31, 2010.
Management Commentary:
"Our investment in our Chinese operations continues to exceed our expectations. For the year ended March 31, 2011, Glamsmile Asia generated approximately $850,000 in net income prior to tax. We anticipate further growth in China as a new fourth studio is expected to open in Wenzhou, China in September 2011.
"Our net loss for the year was negatively impacted by an impairment loss of $750,000 for Soca Networks Singapore, an investment made in a production facility to produce our Glamsmile veneers. The investment was made in two installments of $375,000 each, with the last payment being made in March 2008. Since management believes that the time-frame for recovery cannot be predicted with any certainty and as a result we took a 100% impairment allowance at year-end. In addition to this, our results were also impacted by the write off of approximately $100,000 for certain patents which are unrelated to our veneer market and current strategic plan. In addition, our results also reflect a deferred revenue of $475,250 for an advance payment we received for veneers. Upon delivery of the veneers, the cost of goods sold will be recorded and the revenue recognized.
"For the remainder of the fiscal year, management intends to focus its efforts and resources on expanding and developing its Chinese operations, where it sees growth and potential. This focus may include changing the name of our entity from Remedent, Inc. to Glamsmile Inc., and seeking additional board members who have relevant experience with our business, particularly in the dental market in Asia. In addition, management intends to focus on reducing current and future corporate overhead expenses, by consolidating some of its operations and repositioning the strategy of its USA and European operations on establishing revenue streams through royalty agreements for its products.
"We certainly are looking forward to getting Glamsmile Asia positioned as one of the leading dental brands luxury brands in China as well as the neighboring nearby other emerging Asian markets," said Guy De Vreese, the CEO of Remedent.
Conference Call Information:
Remedent will host a conference call on Tuesday, July 19, 2011 at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time) to discuss these results and its strategic plans for the future. A question and answer session will follow management's presentation.
To participate in this call, dial the appropriate number 5-10 minutes prior to the start time.
Date: Tuesday, July 19, 2011
Time: 10:00 a.m. Eastern Time. (7:00 a.m. Pacific Time)
Dial in Number: 1-866-226-1792
A telephone replay of the call will be available until August 15, 2011
Toll Free Replay Number: 1-800-408-3053
Replay Password: 6787766
About Remedent
Remedent, Inc. specializes in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products. The company serves the professional dental industry with breakthrough technology for dental veneers. 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.
Forward-Looking Statements
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 the proposed transaction. 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. We undertake no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
| REMEDENT, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| For the years ended March 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| Net sales | $ | 12,581,708 | $ | 8,247,940 | |||||||
| Cost of sales | 3,947,699 | 4,322,680 | |||||||||
| Gross profit | 8,634,009 | 3,925,260 | |||||||||
| Operating Expenses | |||||||||||
| Research and development | 429,244 | 271,195 | |||||||||
| Sales and marketing | 2,220,686 | 1,352,260 | |||||||||
| General and administrative | 4,972,982 | 4,524,324 | |||||||||
| Depreciation and amortization | 779,883 | 726,499 | |||||||||
| TOTAL OPERATING EXPENSES | 8,402,795 | 6,874,278 | |||||||||
| OPERATING INCOME (LOSS) | 231,214 | (2,949,018 | ) | ||||||||
| NON-OPERATING (EXPENSE) INCOME | |||||||||||
| Impairment of long-term investments and advances | (750,000 | ) | -- | ||||||||
| Warrants issued pursuant to Distribution Agreements | -- | (168,238 | ) | ||||||||
| Interest expense | (260,235 | ) | (171,364 | ) | |||||||
| Interest income | 159,289 | 170,244 | |||||||||
| TOTAL OTHER INCOME (EXPENSES) | (850,946 | ) | (169,358 | ) | |||||||
| LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (619,732 | ) | (3,118,376 | ) | |||||||
| Income tax expense | (220,297 | ) | (14,242 | ) | |||||||
| NET INCOME (LOSS) | (840,029 | ) | (3,132,618 | ) | |||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | (707,146 | ) | (782,703 | ) | |||||||
| NET LOSS ATTRIBUTABLE TO REMEDENT INC. Common Stockholders | $ | (1,547,175 | ) | $ | (2,349,915 | ) | |||||
| LOSS PER SHARE | |||||||||||
| Basic and fully diluted | $ | (0.08 | ) | $ | (0.12 | ) | |||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||
| Basic and fully diluted | 19,995,969 | 19,995,969 | |||||||||
| Net Loss attributable to Remedent, Inc. common shareholders | $ | (1,547,175 | ) | $ | (2,349,915 | ) | |||||
| OTHER COMPREHENSIVE INCOME (LOSS): | |||||||||||
| Foreign currency translation adjustment | (184,890 | ) | (9,464 | ) | |||||||
| Total Other Comprehensive loss | (1,732,065 | ) | (2,359,379 | ) | |||||||
| LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 21,996 | 7,130 | |||||||||
| COMPREHENSIVE (LOSS) ATTRIBUTABLE TO REMEDENT, INC. common shareholders | $ | (1,710,069 | ) | $ | (2,366,509 | ) | |||||
| REMEDENT, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| March 31, 2011 | March 31, 2010 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 1,662,520 | $ | 613,466 | |||||
| Accounts receivable, net of allowance for doubtful accounts of $28,975 at March 31, 2011 and $65,845 at March 31, 2010 | 2,764,651 | 806,931 | |||||||
| Inventories, net | 2,164,046 | 2,161,692 | |||||||
| Prepaid expense | 762,953 | 920,487 | |||||||
| Total current assets | 7,354,170 | 4,502,576 | |||||||
| PROPERTY AND EQUIPMENT, NET | 1,401,735 | 1,735,719 | |||||||
| OTHER ASSETS | |||||||||
| Long term investments and advances | -- | 750,000 | |||||||
| Patents, net | 166,746 | 246,992 | |||||||
| Goodwill | 699,635 | 699,635 | |||||||
| Total assets | $ | 9,622,286 | $ | 7,934,922 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Current portion, long term debt | $ | 184,679 | $ | 215,489 | |||||
| Line of Credit | 2,160,674 | 674,600 | |||||||
| Short term loan | 400,000 | -- | |||||||
| Accounts payable | 1,744,253 | 1,932,684 | |||||||
| Accrued liabilities | 1,256,148 | 491,536 | |||||||
| Deferred revenue | 475,250 | -- | |||||||
| Due to related parties | 95,354 | 268,484 | |||||||
| Total current liabilities | 6,316,358 | 3,582,793 | |||||||
| Long term debt less current portion | 273,557 | 425,882 | |||||||
| Total liabilities | 6,589,915 | 4,008,675 | |||||||
| 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 March 31, 2011 and March 31, 2010 respectively) | 19,996 | 19,996 | |||||||
| Treasury stock, at cost; 723,000 shares outstanding at March 31, 2011 and March 31, 2010 respectively | (831,450 | ) | (831,450 | ) | |||||
| Additional paid-in capital | 24,855,883 | 24,742,201 | |||||||
| Accumulated deficit | (21,113,118 | ) | (19,565,943 | ) | |||||
| Accumulated other comprehensive income (loss) (foreign currency translation adjustment) | (834,949 | ) | (650,059 | ) | |||||
| Obligation to issue shares | 97,500 | 97,500 | |||||||
| Total Remedent, Inc. stockholders' equity | 2,193,862 | 3,812,245 | |||||||
| Non-controlling interest | 838,509 | 114,002 | |||||||
| Total stockholders' equity | 3,032,371 | 3,926,247 | |||||||
| Total liabilities and equity | $ | 9,622,286 | $ | 7,934,922 | |||||
Contact Information:
CONTACT:
Stephen Ross
310 922 5685
docktor99@aol.com