Biosensors International Group posted a weak first-quarter net income of US$4.2 million, way under the US$16.5 million over the same period a year ago. This was due mainly to the absence of a lump sum licensing payment.
But the group has anticipated a yearly revenue of US$90-100 million, mainly due to the sale of its drug-eluting stents. It does not waver on its goal of reaching profitability in the current fiscal year ending March the following year.
“We remain committed to our core goals and milestones for fiscal 2010”, said President and CEO Mike Kleine.
“We are striving for continued sales and clinical trial success with (flagship product) BioMatrix, increasing profitability through growth and cost management, introducing new products, advancing the R&D pipeline and participating in China’s explosive growth through JWMS (JW Medical Systems)”.
The group owned a 50 percent-owned subsidiary – the JWMS – with wide allotment networks in China. JWMS added US$3.1 million to the bottom line of Biosensor, which was above double the US$1.5 million it earned in the previous year.
Biosensors posted a 59 percent loss in revenue to US$23.8 million for the first quarter ending June 2009. Its previous top line was boosted by the non-recurring $40 million compensation from Terumo Corporation a year ago in replacement for future decreased revenue-sharing provision.
However, product revenue increased by 31 percent to US$22.4 million. Sales cost dropped 14 percent to US$6.9 million. Operating costs also slipped 26 percent to US$14.4 million, mainly due to the 50 percent decline in R&D costs to US$3.6 million.
The group has an unguaranteed liabilities of US$47.5 million as at June 30, an increase from a US$30 million exchangeable bond released in 2006 and is due in November 2009. The group’s cash equivalents and cash of US$59 million could deal the outstanding interest and debt. However, additional financing plans are on process and will be finished by end of September, it said.
The group’s net asset value has increased to US$10.49 cents, from US$9.81 cents at the end of March. Earnings per share fell US$0.40 cents, from US$1.56 cents.
The drug eluting stent industry will be the main development driver, while flat sales are likely for the care business and slower growth can be anticipated for other interventional cardiology goods, the group said.
“As product sales and licensing revenues continue to grow and restructuring efforts are completed, the company believes that it will be profitable on an overall basis for the fiscal year ending 31 March 2010, with operating results improving over the course of the year”, the group added.
Yesterday, shares of the group closed 1 cent up at 55.5 cents.