SOURCE: Remedent, Inc.

November 15, 2010 08:00 ET

Remedent Reports Profits in Second Quarter

Remedent to Host a Conference Call to Discuss Results at 12:00 PM EST, Monday, November 15, 2010

DEURLE, BELGIUM--(Marketwire - November 15, 2010) - Remedent, Inc. (OTCBB: REMI), an international company specializing in research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the second quarter ended on September 30, 2010 (in US Dollars).

Net sales for the three months ended September 30, 2010 increased 74% to $3.1 million compared to $1.8 million for the same year ago quarter. Net sales for the six months ended September 30, 2010, increased 67% to $6.5 million from $3.9 million for the same year ago quarter. The increase in sales was mainly due to increased sales in the Asian GlamSmile facilities in Beijing and Hong Kong. Our sales also increased as a result of the launch of new, higher margin, OTC products.

Profit for the three months ended September 30, 2010 prior to outside shareholders' participation totaled approximately $359 thousand compared with losses of $1.2 million for the same year ago quarter. Profit for the six months ended September 30, 2010 prior to outside shareholders' participation totaled approximately $926 thousand compared with losses of $1.7 million for the same year ago quarter.

Profits attributed to Remedent common stockholders for the three months ended September 30, 2010 were $201 thousand compared to losses of $839 thousand for the same year ago quarter. Profits attributed to Remedent common stockholders for the six months ended September 30, 2010 were $513 thousand compared to losses of $1.4 million for the same year ago quarter.

Cash and cash equivalents totaled $2.47 million at September 30, 2010 compared to $613 thousand as reported at March 31, 2010.

Management Commentary

"The shifting of our business model from wholesale (B2B) model via a distributor to a direct retail model is beginning to bear fruit as previously mentioned during prior conference calls. During the current and prior quarter we included our retail Asian operations of approximately $1.3 million gross revenues as we are continuing to open new Spa locations in both Europe and Asia during the next quarter and in the remainder of our financial year. Sales in all our Spa locations continue to exceed our expectations as sales continue to climb," said Guy De Vreese the CEO of Remedent.

Conference Call Information

Remedent will host a conference call on Monday, November 15, 2010 at 12:00 p.m. Eastern Standard time (9.00 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 the call, dial the appropriate number 5-10 minutes prior to the start time.

Date: Monday, November 15, 2010
Time 12:00 p.m. Eastern time (9:00 a.m. Pacific time).
Dial in number: 800 732-8711
Passcode: 7930049

The replay of the call will be available through December 15, 2010. The dial in number for the replay is 888-203-1112 and the replay pass code is 7930049

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. 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

                            For the three months     For the six months
                                    ended                   ended
                                September 30,            September 30,
                              2010        2009        2010         2009
                           ----------  ----------  ----------  -----------
Net sales                  $3,101,553  $1,780,301  $6,538,312  $ 3,941,104
Cost of sales                 793,942   1,302,237   1,708,279    2,398,244
                           ----------  ----------  ----------  -----------
  Gross profit              2,307,611     478,064   4,830,033    1,542,860
                           ----------  ----------  ----------  -----------
Operating Expenses
      Research and
       development            111,994      54,522     177,539       81,120
      Sales and marketing     394,014     137,076     906,990      488,011
      General and
       administrative       1,255,597   1,102,634   2,408,309    2,145,398
      Depreciation and
       amortization           183,025     177,914     384,227      351,358
                           ----------  ----------  ----------  -----------
  TOTAL OPERATING EXPENSES  1,944,630   1,472,146   3,877,065    3,065,887
                           ----------  ----------  ----------  -----------
INCOME (LOSS) FROM
 OPERATIONS                   362,981    (994,082)    952,968   (1,523,027)
                           ----------  ----------  ----------  -----------
OTHER INCOME (EXPENSES)
      Warrants issued              --    (159,888)         --     (159,888)
      Interest expense        (34,446)    (39,207)    (89,337)     (63,853)
      Interest income          72,987      25,160     111,847       91,158
                           ----------  ----------  ----------  -----------
  TOTAL OTHER INCOME
   (EXPENSES)                  38,541    (173,935)     22,510     (132,583)
                           ----------  ----------  ----------  -----------

NET INCOME (LOSS) BEFORE
 INCOME TAXES AND
 NON-CONTROLLING INTEREST     401,522  (1,168,017)    975,478   (1,655,610)
PROVISION FOR INCOME TAXES    (42,946)         --     (49,175)          --
                           ----------  ----------  ----------  -----------

INCOME FROM CONTINUING
 OPERATIONS BEFORE
 NON-CONTROLLING INTEREST,
 NET OF TAX                   358,576  (1,168,017)    926,303   (1,655,610)

LESS: NET INCOME (LOSS)
 ATTRIBUTABLE TO
 NON-CONTROLLING INTEREST     157,351    (329,234)    412,888     (267,396)
                           ----------  ----------  ----------  -----------

NET INCOME (LOSS)
 ATTRIBUTABLE TO REMEDENT,
 INC. Common Stockholders  $  201,225  $ (838,783) $  513,415  $(1,388,214)
                           ==========  ==========  ==========  ===========

INCOME (LOSS) PER SHARE
     Basic                 $     0.01  $    (0.04) $     0.03  $     (0.07)
                           ==========  ==========  ==========  ===========
     Fully diluted         $     0.01  $    (0.04) $     0.02  $     (0.07)
                           ==========  ==========  ==========  ===========
WEIGHTED AVERAGE SHARES
 OUTSTANDING
     Basic                 19,995,969  19,995,969  19,995,969   19,995,969
                           ==========  ==========  ==========  ===========
     Fully diluted         33,595,142  33,999,738  33,989,738   33,999,738
                           ==========  ==========  ==========  ===========




REMEDENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

                          For the three months       For the six months
                                 ended                    ended
                              September 30,            September 30,
                        ------------------------- ------------------------
                            2010         2009         2010         2009
                        ------------ -----------  -----------  -----------
Net Income (Loss)
 Attributable to
 Remedent Common
 Stockholders           $    201,225 $  (838,783) $   513,415  $(1,388,214)
OTHER COMPREHENSIVE
 INCOME (LOSS):
  Foreign currency
   translation
   adjustment                154,529      60,761      (23,119)     118,329
                        ------------ -----------  -----------  -----------
Total Other
 Comprehensive income
 (loss)                      355,754    (778,022)     490,296   (1,269,885)
LESS: COMPREHENSIVE
 INCOME (LOSS)
 ATTRIBUTABLE TO
 NON-CONTROLLING
 INTEREST                     12,721      13,836       (3,143)      56,084

                        ------------ -----------  -----------  ----------- 
COMPREHENSIVE INCOME
 (LOSS) ATTRIBUTABLE TO
 REMEDENT Common
 Stockholders           $    343,033 $  (791,858) $   493,459  $(1,325,969)
                        ============ ===========  ===========  ===========




REMEDENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

                                                September 30,  March 31,
                                                    2010         2010
                                                ------------  ------------
                                                (unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                       $  2,471,552  $    613,466
  Accounts receivable, net of allowance for
   doubtful accounts of $33,854 at September
   30, 2010 and $65,845 at March 31, 2010          1,631,444       806,931
Inventories, net                                   2,141,487     2,161,692
Prepaid expenses                                   1,000,860       920,487
                                                ------------  ------------
  Total current assets                             7,245,343     4,502,576
                                                ------------  ------------
PROPERTY AND EQUIPMENT, NET                        1,447,324     1,735,719
OTHER ASSETS
Long term investments and advances                   750,000       750,000
Patents, net                                         243,355       246,992
Goodwill                                             699,635       699,635
                                                ------------  ------------
  Total assets                                  $ 10,385,657  $  7,934,922
                                                ============  ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion, long term debt                 $    124,026  $    215,489
Line of Credit                                     1,984,708       674,600
Accounts payable                                   1,720,255     1,932,684
Accrued liabilities                                1,125,260       491,536
Due to related parties                               265,857       268,484
                                                ------------  ------------
  Total current liabilities                        5,220,106     3,582,793
Long term debt less current portion                  458,236       425,882
                                                ------------  ------------
  Total liabilities                                5,678,342     4,008,675
                                                ------------  ------------

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 September 30,
   2010 and March 31, 2010)                           19,996        19,996
    Treasury stock, at cost; 723,000 shares at
     September 30, 2010 and March 31, 2010          (831,450)     (831,450)
Additional paid-in capital                        24,829,833    24,742,201
Accumulated deficit                              (19,052,527)  (19,565,943)
Accumulated other comprehensive (loss) (foreign
 currency translation adjustment)                   (671,819)     (650,059)
Obligation to issue shares                            97,500        97,500
                                                ------------  ------------
  Total Remedent, Inc. stockholders' equity        4,391,533     3,812,245
Non-controlling interest                             315,782       114,002
                                                ------------  ------------
  Total stockholders' equity                       4,707,315     3,926,247
                                                ------------  ------------
  Total liabilities and equity                  $ 10,385,657  $  7,934,922
                                                ============  ============

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