Press releases
ADVITECH REPORTS ITS 2008 FIRST QUARTER RESULTS
30 May 2008
TSX VENTURE EXCHANGE: AVI For immediate release
QUEBEC CITY, QUEBEC - May 30, 2008 - Advitech Inc. ("Advitech" or the "Company") (TSX Venture Exchange: AVI) announces today its financial results for the first quarter ended March 31, 2008.
FIRST Quarter OF 2008 Financial RESULTS:
- The Company's revenues were $77,298 for the quarter ended March 31, 2008, compared to $53,315 for the corresponding quarter in 2007, a 45.0% increase driven by Dermylex® sales.
- Net loss amounted to $442,920 for the quarter ended March 31, 2008, compared to a net loss of $397,925 for the corresponding quarter in 2007, an increase of 11.3%.
Mr. Christian Labbé, Finance Director at Advitech, commented, "The net loss increase is the result of higher operating expenses directly related to the addition of two senior sales and marketing executives and a slightly lower gross margin resulting from the absence in the first quarter of 2008 of royalty revenues whereby a $50,000 non-recurring royalty was generated in the first quarter of 2007 by a Company's discontinued product. However the gross margin generated by Dermylex® has remained the same."
FINANCIAL POSITION:
- As at March 31, 2008, the Company had a cash position of $1,034,086, compared to $1,158,459 as at December 31, 2007, a $124,373 decrease resulting mostly from the operating activities during the first quarter of 2008.
- In May 2008, the Company entered into an agreement with its financial institution for a $500,000 term loan which is secured by the Company's assets and by a guarantee from Investissement Québec.
"The psoriasis market demand is concentrated during the fall to winter period with the direct result that most of our revenues are taking place in the last two quarters of the year, as seen in 2006 and 2007. As indicated in a previous press release, we are forecasting higher revenues in 2008 compared to 2007, and with the addition of new product lines, currently in their launching phase, we expect that our yearly sales cycle should be, for fiscal year 2009, more evenly distributed over the four quarters" commented Mr. Renaud Beauchesne, President and Chief Executive Officer at Advitech.
Selected financial information
Quarters ended March 31
Income Statements
| 2008 | 2007 |
Total revenues | $77,298 | $53,315 |
Net loss | $(442,920) | $(397,925) |
Net loss per share, basic and diluted | $(0.01) | $(0.01) |
Selected financial information
Balance Sheets
| As at March 31, 2008 | As at December 31, 2007 |
Cash and cash equivalents | $1,034,086 | $1,158,459 |
Other current assets | $649,111 | $902,944 |
Long-term assets | $183,725 | $180,609 |
|
|
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Current liabilities | $460,309 | $422,629 |
Long-term liabilities | $1,729,034 | $1,710,064 |
Shareholders' equity | $(322,421) | $109,319 |
The first quarter of 2008 financial statements as well as the management's discussion and analysis of results of operations and financial condition are available on the Company's website at www.advitech.com.
ABOUT ADVITECH INC. www.advitech.com:
Advitech is a health sciences and technology company with a mission to discover and commercialize proprietary and evidence-based natural health products. Effective and safe, these products play a role in the prevention of immune-mediated inflammatory disorders, such as psoriasis and inflammatory bowel disease. Advitech produces Dermylex® for the treatment of mild-to-moderate psoriasis.
Advitech has drawn up a research program to develop new applications related to wound healing. This development is derived from both its XP-828L and IM technological platforms.
ABOUT DERMYLEX® www.dermylex.com :
Dermylex®, developed by Advitech, is an oral natural health product formulated to improve mild-to-moderate psoriasis symptoms. Two clinical trials, including a 112-day, multi-center, double-blind, placebo-controlled trial with 84 patients, clinically proved the efficacy and safety of Dermylex® for that type of psoriasis. Dermylex® is currently available in Canada and the U.S. (as BioDerm, Dermalyx®), as well as in France and Belgium (as Psopax®).
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This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Advitech Inc.
Renaud Beauchesne, MBA | Serge Comeau |
President and Chief Executive Officer | Investor's relations |
418-686-7498, ext. 228 | 514-862-4160 |