EXHIBIT 99.1
[ROCKWELL MEDICAL TECHNOLOGIES, INC. LOGO]
COMPANY PRESS RELEASE
Contact: Thomas Klema
(248) 960-9009
ROCKWELL MEDICAL TECHNOLOGIES, INC. REPORTS 35% INCREASE IN SALES REVENUE FOR
SECOND QUARTER OF 2003
WIXOM, MICHIGAN, August 7, 2003 -- Rockwell Medical Technologies, Inc. (Nasdaq:
RMTI), a leading, innovative hemodialysis concentrate manufacturer in the
healthcare industry, reported today that its second quarter 2003 sales were
$3,454,000, an increase of 35% over the second quarter of 2002. The Company's
net loss was ($93,230) in the second quarter of 2003, which was a $285,000
improvement over the second quarter of 2002. Second quarter loss per share
narrowed to ($.01), a $.04 per share improvement over the second quarter of
2002. The Company generated positive EBITDA in the second quarter of 2003.
Sales in the first half of 2003 increased 37.5% compared to the first half of
2002. Gross profit margin increased 5.7 percentage points to 15.2%. Net loss in
the first half of 2003 was reduced to ($180,000), reflecting a $545,000
improvement compared to the first half of 2002. Loss per share for the six
months ended June 30, 2003 improved to ($.02) as compared to ($.10) for the
first six months of 2002.
The improvement in operating results was due to increased sales volume and
improved operating efficiencies. The Company realized substantial growth from
its Dri-Sate(R) Dry Acid Concentrate product line with sales revenue up 38%
compared to the first half of 2002. Increased ancillary product sales, driven by
increased sales of blood tubing, also contributed to the sales increase in 2003.
Mr. Robert L. Chioini, Chairman, CEO, and President of Rockwell Medical
Technologies, Inc. stated, "We are pleased with the progress we have made in the
first half of 2003. We have continued to experience a substantial increase in
sales revenue, improvement in our gross profit margin and progress in the
development and approval strategy of our dialysate iron product. Going forward,
we have solid customer commitments and contracts that we expect will result in
steady improvement in our sales growth during the second half of the year. We
anticipate this continued development will enable Rockwell to achieve a
profitable level of operations in its core concentrate business."
Rockwell has licensed patents that give the Company exclusive, worldwide rights
to manufacture, market and distribute dialysate solutions containing water
soluble iron that can be administered to hemodialysis and peritoneal dialysis
patients with renal failure. During Phase II clinical trials the iron compound
ferric pyrophosphate, delivered to hemodialysis patients via dialysate, was well
tolerated and proved to be effective at iron maintenance therapy without causing
the serious side effects present with current intravenous (IV) iron products.
The Company is required to obtain FDA approval to market its dialysate iron
product. The Company estimates the IV iron market to be approximately $270
million.
Rockwell Medical Technologies, Inc. is an innovative leader in manufacturing,
marketing and delivering high-quality dialysis solutions, powders and ancillary
products to hemodialysis providers. Hemodialysis is a process that duplicates
kidney function for patients whose kidneys have failed to work properly and
suffer from end-stage renal disease (ESRD). There are an estimated 350,000
dialysis patients in the United States and the incidence of ESRD has increased
6-8% on average each year over the last decade. Rockwell's products are used to
cleanse the ESRD patient's blood and replace nutrients in the bloodstream.
Rockwell offers the patent-protected Dri-Sate(R) Dry Acid Mixing System, Liquid
Concentrate, SteriLyte(R) Liquid Bicarbonate, Powder Bicarbonate, Blood Tubing
Sets, Fistula Needles and a wide range of ancillary dialysis items. Visit
Rockwell's website at www.rockwellmed.com for more information.
Certain statements in this press release with respect to Rockwell's business and
operations, including the statements regarding the Company's ability to achieve
a profitable level of operations and the potential of the Company's proprietary
dialysate iron product, constitute "forward-looking statements" within the
meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements reflect management's
expectations and are based upon currently available information. Management of
Rockwell believes the expectations reflected in the forward-looking statements
made in this press release are based upon reasonable assumptions. However,
certain factors could occur that might cause actual results to vary. These
include, but are not limited to, general economic conditions, economic
conditions in the hemodialysis industry, competitive factors, failure to obtain
FDA approval, and other factors discussed in Rockwell's reports filed with the
Securities and Exchange Commission. The forward-looking statements should be
considered in light of these risks and uncertainties.
ROCKWELL MEDICAL TECHNOLOGIES, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND JUNE 30, 2002
(WHOLE DOLLARS)
(Unaudited)
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2003 JUNE 30, 2002
------------- ------------- ------------- ------------
SALES ............................. $ 3,453,554 $ 2,562,594 $ 6,888,291 $5,007,924
Cost of Sales ..................... 2,881,154 2,298,477 5,843,091 4,532,156
----------- ----------- ----------- ----------
GROSS PROFIT .................... 572,400 264,117 1,045,200 475,768
Selling, General and 608,592 618,365 1,128,827 1,146,234
Administrative................... ----------- ----------- ----------- ----------
OPERATING LOSS .................. (36,192) (354,248) (83,627) (670,466)
Interest Expense, net ............. 57,038 24,550 96,396 54,546
----------- ----------- ----------- ----------
NET LOSS ........................ $ (93,230) $ (378,798) $ (180,023) $ (725,012)
=========== =========== =========== ==========
Average shares outstanding ........ 8,488,283 7,804,934 8,488,283 7,547,469
BASIC AND DILUTED LOSS PER SHARE .. $ (.01) $ (.05) $ (.02) $ (.10)