D. Medical Reports Second Quarter 2011 Financial Results
(firmenpresse) - TIRAT CARMEL, ISRAEL -- (Marketwire) -- 08/31/11 -- D. Medical Industries Ltd. (NASDAQ: DMED)(TASE: DMED) ("D. Medical" or the "Company"), a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery, today announced financial results for the three and six months ended June 30, 2011. Results were characterized by the Company's initial execution of its low risk and low cost strategy of introducing and promoting the "Spring" brand name to and across various target markets - including the United States, Canada, Europe, Mexico and the BRIC countries of Brazil, Russia, India and China - initially via the commercial roll out of its Spring Universal Infusion Sets.
Second Quarter Highlights:
Financial Results:
The unaudited selected consolidated financial statements presented below were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). A convenience U.S. dollar translation of NIS amounts is provided using the rate of NIS 3.415 to US$1.00, the representative rate of exchange as of June 30, 2011 as published by the Bank of Israel.
Sales for the six and three months ended June 30, 2011 amounted to NIS 840 thousand (US$ 246 thousand) and NIS 523 thousand (US$ 153 thousand), respectively. The increase of sales in the second quarter was mainly attributable to the increase in demand. Although first products rolled off the production line in China, the majority of the sold products were not yet supplied from this line.
Cost of sales for the six and three months ended June 30, 2011 amounted to NIS 6,025 thousand (US$ 1,764 thousand) and NIS 2,599 thousand (US$ 761 thousand), respectively. Cost of sales for the first and second quarters was mainly attributable to the preparation of the aforementioned UPG production line in China and the training of new staff.
R&D expenses for the six and three months ended June 30, 2011 amounted to NIS 7,946 thousand (US$ 2,327 thousand) and NIS 3,118 thousand (US$ 913 thousand), respectively.
General and Administration expenses for the six and three months ended June 30, 2011 amounted to NIS 6,137 thousand (US$ 1,797 thousand) and NIS 3,283 thousand (US$ 961 thousand), respectively. The increase in the second quarter of 2011 was due to the additional costs connected with the submission of the Company's annual reports and IR efforts.
D. Medical's comprehensive loss for the six and three months ended June 30, 2011 amounted to NIS 24,465 thousand (US$ 7,163 thousand), or NIS 2.73 (U.S. $0.80) per share and NIS 9,230 thousand (US$ 2,703 thousand), or NIS 1.13 (US$ 0.33) per share, respectively. Comprehensive loss includes loss from discontinued operations for the six and three months ended June 30, 2011 of NIS 3,683 thousand (US$ 1,078 thousand) and NIS 71 thousand (US$ 21 thousand). The discontinued operation is related to the sale the publicly held subsidiary, NextGen Biomed Ltd.
"The second quarter marked the completion of preparations for the commercial roll out of our Spring™ Universal Infusion Sets in the United States and Canada," said Efri Argaman, D. Medical's Chief Executive Officer. "Initial commercial activities are already taking place and the early interest shown by patients, doctors and Diabetes educators in this breakthrough product has been high. Accordingly, we remain hopeful that the business will start to generate meaningful and growing revenues toward the end of 2011."
As of June 30, 2011, D. Medical had cash and cash equivalents of NIS 14,926 thousand (US$ 4,371 thousand).
Main Events Subsequent to Quarter-End:
Conference Call
D. Medical will host a conference call to discuss these results today, August 31, at 8:30 a.m. (Eastern Daylight Time). Those wishing to access the live conference call by telephone should dial 877-312-5445 (within the United States) or 253-237-1128 (outside of the United States) several minutes prior to the beginning of the call. The call will also be webcast live and archived for 30 days on the company's website at under the "Events" tab in the Investors section.
About D. Medical
D. Medical is a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery. D. Medical has developed durable and semi-disposable insulin pumps, which continuously infuse insulin into a patient's body, using its proprietary spring-based delivery technology. D. Medical believes that its spring-based delivery mechanism is cost-effective compared to the motor and gear train mechanisms that drive competitive insulin pumps and also allows it to incorporate certain advantageous functions and design features in its insulin pumps. D. Medical has also developed an infusion set for insulin pumps and is focusing its research and development efforts on the development of next generation insulin pumps and a device that will combine a continuous glucose monitoring system and an insulin pump on the same patch. For more information, visit (corporate) and http://www.springnow.com (healthcare professionals, patients and care givers).
Forward-Looking Statements
This press release contains forward-looking statements (as defined by the Israeli Securities Law, 1968, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties. These statements include, forecasts, goals, uncertainties and assumptions and relate, inter alia, to D. Medical's future expectations in connection with its level of sales and cost of sales, manufacturing volumes, the cost-effectiveness of its spring-based design, target markets and timing of markets penetration. The forward-looking statements are based on D. Medical's current expectations and beliefs which are based on, among other things, its analysis of publicly available information and market research reports. All forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward- looking statements. Such risks and uncertainties include, but are not limited to, the impact of general economic conditions, competitive products, product demand, product performance, the performance of D. Medical's contract manufacturer and distributors, regulatory trends and approvals and healthcare reform legislation. If one or more of these risks and/or uncertainties materialize, or if the underlying assumptions prove to be incorrect, D. Medical's actual results, performance or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements or results which are based upon such assumptions. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or of any of them will transpire or occur, what impact it will have on D. Medical's results of operations or financial condition. D. Medical does not undertake to update any forward- looking statements.
To view the tables associated with this press release, please visit the following link:
Contacts:
Company Contact:
D. Medical Industries Ltd.
Amir Loberman
Chief Financial Officer
+972-73-2507100
North American Investor Contact:
Stephen Kilmer
T: 212-618-6347 or M: 905-906-6908
Israeli Investor Relations:
Iris Lubitch
972-775538007
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Datum: 31.08.2011 - 06:20 Uhr
Sprache: Deutsch
News-ID 1035567
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