Exhibit 99.1
IVAX DIAGNOSTICS RELEASES SECOND QUARTER RESULTS
IVAX Diagnostics Reports Record Revenues and Profit
MIAMI—(BUSINESS WIRE)—August 12, 2004—IVAX Diagnostics, Inc. (AMEX:IVD) reported net revenues for the second quarter of 2004 of $5,006,000, an 11.5% increase over the $4,491,000 for the same period of 2003. Net income for the second quarter of 2004 was $205,000 compared to a net loss of $108,000 for the second quarter of 2003.
Giorgio D’Urso, CEO and president of IVAX Diagnostics, said, “We are pleased to have achieved record revenues and profitability for the second quarter of 2004. This represents our second consecutive quarter of profitability and the net income of $205,000 during the second quarter represents a greater than ten-fold increase over our net income of $19,000 during the first quarter of 2004. For the future, our new PARSEC™ System, presented at the 2004 American Association for Clinical Chemistry (AACC) Annual Meeting and Clinical Lab Exposition held in Los Angeles July 27-29, presents many new opportunities. We were encouraged by the level of interest expressed in the PARSEC™ System, which we believe will allow us to expand our core autoimmune and infectious disease products and enter new testing areas and technologies.”
Phillip Frost, M.D., IVAX Diagnostics’ Chairman said, “We are pleased to see the continued increase in profitability resulting from our core diagnostic activities. We believe that the successful introduction of the PARSEC™ System will set the course for continued growth, not only internally, but also through strategic relationships and acquisitions as well.”
About IVAX Diagnostics, Inc.
IVAX Diagnostics, Inc., headquartered in Miami, Florida, develops, manufactures and markets proprietary diagnostic reagents, instrumentation and software in the United States and Italy through its three subsidiaries: Diamedix Corporation, Delta Biologicals S.r.l. and ImmunoVision, Inc. IVAX Corporation (AMEX:IVX, LSE:IVX.L) owns approximately 72% of IVAX Diagnostics, Inc.
Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of IVAX Diagnostics, Inc., including, without limitation: risks and uncertainties regarding the PARSEC™ System, including, without limitation, that the PARSEC™ System may not be available when or perform as expected; that IVAX Diagnostics may not expand its core autoimmune and infectious disease products or enter into new testing areas or technologies; that improved financial performance or results may not occur; that IVAX Diagnostics may not experience internal or external growth; that IVAX Diagnostics may not enter into strategic relationships or acquisitions; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. In addition to the risk factors set forth above, investors should consider the economic, competitive, governmental, technological and other factors discussed in IVAX Diagnostics’ filings with the Securities and Exchange Commission.
IVAX DIAGNOSTICS, INC.
RESULTS OF OPERATIONS
(Unaudited)
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| | | Three Months
| | | Six months
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Period Ended June 30,
| | 2004
| | 2003
| | | 2004
| | 2003
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Net revenues | | $ | 5,005,699 | | $ | 4,491,466 | | | $ | 9,737,889 | | $ | 8,935,034 | |
Cost of sales | | | 2,035,932 | | | 1,769,506 | | | | 3,919,191 | | | 3,780,635 | |
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Gross profit | | | 2,969,767 | | | 2,721,960 | | | | 5,818,698 | | | 5,154,399 | |
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Operating expenses: | | | | | | | | | | | | | | |
Selling | | | 1,362,005 | | | 1,391,493 | | | | 2,761,870 | | | 2,676,721 | |
General and administrative | | | 1,179,166 | | | 1,273,980 | | | | 2,264,717 | | | 2,438,425 | |
Research and development | | | 316,464 | | | 343,775 | | | | 634,830 | | | 690,501 | |
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Total operating expenses | | | 2,857,635 | | | 3,009,248 | | | | 5,661,417 | | | 5,805,647 | |
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Income (loss) from operations | | | 112,132 | | | (287,288 | ) | | | 157,281 | | | (651,248 | ) |
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Other income: | | | | | | | | | | | | | | |
Interest income | | | 42,133 | | | 90,413 | | | | 84,133 | | | 141,620 | |
Other income, net | | | 75,760 | | | 112,172 | | | | 25,812 | | | 150,983 | |
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Total other income, net | | | 117,893 | | | 202,585 | | | | 109,945 | | | 292,603 | |
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Income (loss) before provision for income Taxes | | | 230,025 | | | (84,703 | ) | | | 267,226 | | | (358,645 | ) |
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Provision for income taxes | | | 25,421 | | | 23,063 | | | | 43,549 | | | 36,481 | |
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Net income (loss) | | $ | 204,604 | | $ | (107,766 | ) | | $ | 223,677 | | $ | (395,126 | ) |
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Basic earnings (loss) per common share | | $ | 0.01 | | $ | 0.00 | | | $ | 0.01 | | $ | (0.01 | ) |
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Diluted earnings (loss) per common share | | $ | 0.01 | | $ | 0.00 | | | $ | 0.01 | | $ | (0.01 | ) |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | |
Basic | | | 27,631,155 | | | 27,538,703 | | | | 27,651,345 | | | 27,528,945 | |
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Diluted | | | 28,446,942 | | | 27,538,703 | | | | 28,465,373 | | | 27,528,945 | |
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IVAX DIAGNOSTICS, INC.
CONDENSED BALANCE SHEETS
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| | | June 30, 2004
| | | December 31, 2003
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| | | (Unaudited) | | | | |
| ASSETS | | | | | | | | |
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Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 12,554,278 | | | $ | 15,464,839 | |
Accounts receivable, net of allowances for doubtful accounts of $2,919,757 in 2004 and $2,897,833 in 2003 | | | 6,999,146 | | | | 6,676,910 | |
Inventories | | | 4,486,070 | | | | 4,473,062 | |
Other current assets | | | 2,115,654 | | | | 1,649,360 | |
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Total current assets | | | 26,155,148 | | | | 28,264,171 | |
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Property, plant and equipment, net | | | 2,174,137 | | | | 2,128,029 | |
Goodwill, net | | | 6,704,303 | | | | 6,683,461 | |
Equipment on lease | | | 969,335 | | | | 1,205,593 | |
Other assets | | | 71,661 | | | | 84,240 | |
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Total assets | | $ | 36,074,584 | | | $ | 38,365,494 | |
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
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Current liabilities: | | | | | | | | |
Accounts payable | | $ | 1,442,666 | | | $ | 810,694 | |
Accrued expenses and other current liabilities | | | 2,700,707 | | | | 3,119,941 | |
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Total current liabilities | | | 4,143,373 | | | | 3,930,635 | |
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Other long-term liabilities | | | 530,790 | | | | 471,577 | |
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Commitments and contingencies | | | | | | | | |
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Shareholders’ equity: | | | | | | | | |
Common stock, $0.01 par value, authorized 50,000,000 shares, issued and outstanding 27,019,829 in 2004 and 27,659,329 in 2003 | | | 270,198 | | | | 276,593 | |
Capital in excess of par value | | | 41,010,041 | | | | 43,582,346 | |
Accumulated deficit | | | (8,877,427 | ) | | | (9,101,104 | ) |
Accumulated other comprehensive loss | | | (1,002,391 | ) | | | (794,553 | ) |
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Total shareholders’ equity | | | 31,400,421 | | | | 33,963,282 | |
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Total liabilities and shareholders’ equity | | $ | 36,074,584 | | | $ | 38,365,494 | |
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Contact: | | Duane M. Steele |
| | | IVAX Diagnostics, Inc. |
| | | 305-324-2338 |
| | | www.ivaxdiagnostics.com |
