SOURCE: Remedent, Inc.

Remedent, Inc.

February 23, 2009 16:05 ET

Remedent Reports Record Fiscal Third Quarter 2009 Results

Record Net Sales of $4.8 Million, Up 127% Over Same Year-Ago Period

DEURLE, BELGIUM and LOS ANGELES, CA--(Marketwire - February 23, 2009) - Remedent, Inc. (OTCBB: REMI), an international company specializing in the research, development, and manufacturing of oral care and cosmetic dentistry products, reported financial results for the company's fiscal third quarter ended December 31, 2008 (in U.S. dollars).

Fiscal Third Quarter 2009 Financial Results

Net sales totaled a record $4.8 million, an increase of 127% from $2.1 million in the same year-ago quarter. The increase in net sales is primarily due to the increased sales by the company's professional dental division.

Income from operations was a loss of $467,000, as compared to a loss of $1.1 million in the same period a year ago. The loss includes $300,000 in non recurring one-time charges, as well as $200,000 in losses attributed to the OTC division in the third quarter. Prior to the one-time charges, the company’s professional division yielded an operating profit of approximately $50,000 in the third quarter.

Comprehensive net income (after foreign currency translation adjustment) was $2.1 million or $0.11 per basic and fully diluted shares (based on 19.3 million basic and fully diluted shares), which compares to a comprehensive net loss in the same year-ago quarter of $1.0 million or $(0.06) per basic and fully diluted shares (based on 18.6 million basic and fully diluted shares). The increase in net income includes approximately $2.8 million from the sale of a portion of the company's over-the-counter retail product business.

Fiscal Third Quarter 2009 Operational Highlights

Near the end of the third fiscal quarter, Remedent reported the restructuring of its OTC retail division and effectively sold approximately half of the business for a total consideration of approximately $6.0 million (EUR 4.7 million), including a cash payment of approximately $1.4 million (EUR 1 million).

The divestiture eliminates the need to fund this division's future overhead and allows Remedent to focus on its core professional cosmetic dentistry business -- all of which positions the company for profitability in calendar 2009.

Management Commentary

"This represented a milestone quarter for Remedent," said Guy De Vreese, CEO of Remedent. "We are now at a pivotal stage in our development, having entered our fourth fiscal quarter with a new operational structure designed to leverage the tremendous potential of our unique veneer technology. Our net sales have reached record levels, totaling more than $11.2 million for the first nine months of the fiscal year, as compared to $7.5 million for all of fiscal 2007. Our new relationship with Den-Mat Holdings has dramatically strengthened our position as a leader in the dental veneer space. We are also realizing early success in our expansion into markets in China and Australia. These factors have helped put us on course for strong growth and profitability over the coming quarters."

Teleconference Information

Remedent will host a conference call tomorrow, Tuesday, February 24 at 11:00 a.m. Eastern time to discuss the third quarter 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: Tuesday, February 24, 2009
Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)
Dial-In Number: 1-866-952-1906
International: 1-785-424-1825
Conference ID#: 7REMEDENT

A simultaneous Internet webcast and replay of the call will be accessible via this link: http://viavid.net/dce.aspx?sid=00005E7F.

A telephone replay of the call will be available after 2:00 p.m. Eastern time on February 25, 2009 and until March 13, 2009:

Toll-free replay number: 1-800-283-8217
International replay number: 1-402-220-0868
(No passcode required)

If you have any difficulty connecting with the conference call or webcast, please contact the Liolios Group at 949-574-3860.

About Remedent

Remedent, Inc. specializes in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products. The company serves the dental community with unique veneer, teeth whitening and sensitivity products that are recognized for their technological superiority and ease-of-application. Headquartered in Belgium, and with offices in California and Singapore, Remedent distributes its products to more than 35 countries worldwide.

Statement under the Private Securities Litigation Reform Act of 1995

This press release may include "forward-looking statements" that are subject to risks and uncertainties. Forward-looking statements include information about possible or assumed future results of the operations or the performance of the Company and its future plans and objectives. Various future events or factors may cause the actual results to vary materially from those expressed in any forward-looking statements made in this press release. For a discussion of these factors and risks, see the company's annual report on Form 10-K for the most recently ended fiscal year.

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

                    For the three months ended  For the nine months ended
                            December 31,               December 31,
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------

Net sales           $  4,842,628  $  2,132,950  $ 11,249,186  $  4,453,899
Cost of sales          2,909,531     1,271,430     4,964,408     2,623,506
                    ------------  ------------  ------------  ------------
 Gross profit          1,933,097       861,520     6,284,778     1,830,393
                    ------------  ------------  ------------  ------------
Operating Expenses
   Research and
    development           52,006       172,108       224,379       247,665
   Sales and
    marketing            912,422       611,144     2,423,928       996,937
   General and
    administrative     1,268,500     1,087,313     3,672,536     2,891,165
   Depreciation and
    amortization         167,399        80,157       441,771       215,941
                    ------------  ------------  ------------  ------------

 TOTAL OPERATING
  EXPENSES             2,400,327     1,950,722     6,762,614     4,351,708
                    ------------  ------------  ------------  ------------

INCOME (LOSS) FROM
 OPERATIONS             (467,230)   (1,089,202)     (477,836)   (2,521,315)
                    ------------  ------------  ------------  ------------

OTHER INCOME
 (EXPENSES)

   Warrants issued
    pursuant to
    Distribution
    Agreement                 --            --    (4,323,207)           --
   Gain on
    disposition of
    OTC                2,830,953            --     2,830,953            --
   Interest expense     (168,659)      (16,588)     (250,175)      (71,802)
   Interest income       289,646         9,040       347,113       100,665
                    ------------  ------------  ------------  ------------

 TOTAL OTHER INCOME
  (EXPENSES)           2,951,940        (7,548)   (1,395,316)       28,863
                    ------------  ------------  ------------  ------------

NET INCOME (LOSS)   $  2,484,710  $ (1,096,750) $ (1,873,152) $ (2,492,452)
                    ============  ============  ============  ============

INCOME (LOSS) PER
 SHARE
  Basic and fully
   diluted          $       0.13  $      (0.06) $      (0.10) $      (0.14)
                    ============  ============  ============  ============

WEIGHTED AVERAGE
 SHARES OUTSTANDING
  Basic and fully
   diluted            19,332,760    18,602,115    19,045,368    17,557,700
                    ============  ============  ============  ============
Net Income (Loss)   $  2,484,710  $ (1,096,750) $ (1,873,152) $ (2,492,452)

OTHER
 COMPREHENSIVE
 INCOME (LOSS):
 Foreign currency
  translation
  adjustment            (409,200)       58,949      (622,874)       10,345
                    ============  ============  ============  ============
Comprehensive
 income (loss)      $  2,075,510  $ (1,037,801) $ (2,496,026) $ (2,482,107)
                    ============  ============  ============  ============






                     REMEDENT, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS

                                                December 31,    March 31,
                                                    2008          2008
                                                ------------  ------------
                                                        (unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                       $  2,569,888  $  1,728,281
 Accounts receivable, net of allowance for
  doubtful accounts of $28,310 at December 31,
  2008 and $32,181 at March 31, 2008               2,612,651     1,902,920
Inventories, net                                   1,936,603     1,360,709
Prepaid expense                                    1,582,502       970,173
                                                ------------  ------------
Total current assets                               8,701,644     5,962,083
PROPERTY AND EQUIPMENT, NET                          917,261       692,609
OTHER ASSETS                                         675,000       675,000
Patents, net                                         251,125       115,827
                                                ------------  ------------
TOTAL ASSETS                                    $ 10,545,030  $  7,445,519
                                                ============  ============


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion, long term debt                 $     20,072  $     58,583
Line of Credit                                       907,558       779,718
Accounts payable                                   1,444,087     2,002,439
Accrued liabilities                                1,043,501       781,737
Income taxes payable                                  10,989        15,121
                                                ------------  ------------
Total current liabilities                          3,426,207     3,637,598
                                                ------------  ------------
LONG TERM DEBT                                       178,392        94,754
MINORITY INTEREST                                    782,497            --
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
  and 18,637,803 shares issued and outstanding
  at December 31, 2008 and  March 31, 2008
  respectively)                                       19,996        18,638
Additional paid-in capital                        23,700,875    17,929,992

Accumulated other comprehensive income (loss)
 (foreign currency translation adjustment)          (595,224)       27,650
Accumulated deficit                              (16,136,263)  (14,263,113)
Treasury stock, at cost; 723,000 and 0 shares
 at December 31, 2008 and March 31, 2008
 respectively                                       (831,450)           --
                                                ------------  ------------
Total stockholders' equity                         6,157,934     3,713,167
                                                ------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $ 10,545,030  $  7,445,519
                                                ============  ============


Contact Information

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

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