Exhibit 99.1
NEWS
FOR IMMEDIATE RELEASE
---------------------
Contact: Zackary Irani
949-645-2111
BIOMERICA ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
O Diagnostic Revenues up over 19% for the 9 months ended
O February 28, 2006 --
NEWPORT BEACH, Calif., April 14, 2005 - Biomerica, Inc. (OTC BB: BMRA)
today announced its financial results for the quarter ended February 28, 2006.
As disclosed in the Company's 8-K filed on December 5, 2005, Lancer
Orthodontics' financial statements will no longer be consolidated with
Biomerica's financial statements, effective December 1, 2005. Today's
announcement is for the first quarter that Biomerica has reported its financial
statements on a stand-alone basis, unconsolidated from the financial statements
of Lancer.
Biomerica reported today stand-alone-results of diagnostic net sales of
$998,070 for the third quarter ended February 28, 2006, compared to stand-alone
results of diagnostic net sales of $872,996 for the comparable quarter ended
February 28, 2005. Stand-alone results of diagnostic net sales for the first
nine months ended February 28, 2006 totaled $2.79 million compared to $2.33
million in the previous year, an increase of over 19%.
Biomerica announced stand-alone-results of diagnostic net income for
the nine months ended February 28, 2006, of $162,285 versus a net loss of $3,590
in the previous fiscal year during the same period. The stand-alone results for
the three months ended February 28, 2006 of diagnostic net income was $29,615,
compared to stand-alone-results of diagnostic net income of $80,576 in the same
quarter the previous fiscal year.
"We expect to continue improving both the top line and bottom line in
our diagnostic business," stated Zackary Irani, Biomerica CEO. "We have several
new products that we plan to introduce in the upcoming months that should
enhance our product line significantly."
ABOUT BIOMERICA (OTC BB: BMRA)
Biomerica, Inc. (http://www.biomerica.com) is a global medical technology
company, based in Newport Beach, CA. The Company's diagnostics division
manufactures and markets advanced diagnostic products used at home, in
hospitals, and in physicians' offices for the early detection of significant
medical conditions and serious diseases.
# # #
Certain information included in this press release (as well as information
included in oral statements or other written statements made or to be made by
Biomerica) contains statements that are forward-looking; such as statements
relating to intended improvements to the Company's financial performance, launch
dates, expansion, expected orders, leading market positions, anticipated future
sales revenues of the company, success of product and new product offerings.
Such forward-looking information involves important risks and uncertainties that
could significantly affect anticipated results in the future, and accordingly,
such results may differ materially from those expressed in any forward-looking
statements made by or on behalf of Biomerica. The potential risks and
uncertainties include, among others, fluctuations in the Company's operating
results due to its new business model and expansion plans, the Company's ability
to raise additional capital, the competitive environment in which the Company
will be competing, and the Company's dependence on strategic relationships. The
Company is under no obligation to update any forward-looking statements after
the date of this release.
The following financial statements reflect the operating results of
Biomerica as reported in the Company's Form 10-QSB filed on April 14, 2006. The
full financial statements and management's discussion and analysis are available
in the above mentioned Form 10-QSB.
The following Consolidated Statement of Operations has been prepared on a
prospective basis. The deconsolidation of Lancer Orthodontics from Biomerica
occurred December 1, 2005. Therefore, the nine months ended February 28, 2006,
include the operations for Biomerica diagnostics for nine months but ONLY six
months of operations for Lancer Orthodontics. The nine months ended February 28,
2005, include nine months of operations of BOTH Biomerica diagnostics and Lancer
Orthodontics. The three months ended February 28, 2006 include ONLY the results
of operations for Biomerica diagnostics and the three months ended February 28,
2005 include three months of operations of BOTH Biomerica diagnostics and Lancer
Orthodontics.
BIOMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS (UNAUDITED)
Nine Months Ended Three Months Ended
February 28, February 28,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net sales ...................................................... $ 5,717,260 $ 6,691,509 $ 998,070 $ 2,344,536
Cost of sales ............................................. (3,820,715) (4,461,838) (649,468) (1,563,917)
----------- ----------- ----------- -----------
Gross profit .............................................. 1,896,545 $ 2,229,671 $ 348,602 $ 780,619
----------- ----------- ----------- -----------
Operating Expenses:
Selling, general and administrative ....................... 1,866,470 2,195,439 272,890 659,421
Research and development .................................. 193,360 203,816 38,779 61,309
----------- ----------- ----------- -----------
2,059,830 2,399,255 311,669 720,730
----------- ----------- ----------- -----------
Operating (loss) income from continuing operations ............. (163,285) (169,584) 36,933 59,889
----------- ----------- ----------- -----------
Other Expense (income):
Interest expense .......................................... 36,751 28,692 7,248 11,113
Other income, net ......................................... (45,575) (19,501) (730) 3,472
----------- ----------- ----------- -----------
(8,824) 9,191 6,518 14,585
----------- ----------- ----------- -----------
(Loss) gain from continuing operations, before minority interest
in net loss of consolidated subsidiaries and
income taxes ................................................ (154,461) (178,775) 30,415 45,304
Minority interest in net losses of consolidated subsidiary ..... 251,670 127,270 -- 27,170
----------- ----------- ----------- -----------
Income (loss) from continuing operations, before income taxes .. 97,209 (51,505) 30,415 72,474
Income tax expense ............................................. 2,400 1,938 800 338
----------- ----------- ----------- -----------
Net income (loss) from continuing operations ................... 94,809 (53,443) 29,615
72,136
Discontinued operations:
Income from discontinued operations, net ..................... -- 6,600 -- --
----------- ----------- ----------- -----------
Net income (loss) .............................................. 94,809 (46,843) 29,615 72,136
Other comprehensive (loss), net of tax
Unrealized (loss) on available-for-sale
securities .................................................. (240,100) (12,904) (236,286) (5,462)
----------- ----------- ----------- -----------
Comprehensive income (loss) .................................... $ (145,291) $ (59,747) $ (206,671) $ 66,674
=========== =========== =========== ===========
Basic net income (loss) per common share:
Net income (loss) from continuing operations .............. $ .01 $ (.01) $ .00 $ .01
Net income (loss) from discontinued operations ............ .00 .00 .00 .00
----------- ----------- ----------- -----------
Basic net income (loss) per common share ....................... $ .01 $ (.01) $ .00 $ .01
=========== =========== =========== ===========
Diluted net income (loss) per common share
Net income (loss) from continuing operations .............. $ .01 $ (.01) $ .00 $ .01
Net income (loss) from discontinued operations ............ .00 .00 .00 .00
----------- ----------- ----------- -----------
Diluted net income (loss) per common share ..................... $ .01 $ (.01) $ .00 $ .01
=========== =========== =========== ===========
Weighted average number of common and common equivalent shares:
Basic ..................................................... 5,753,831 5,752,431 5,753,912 5,752,431
=========== =========== =========== ===========
Diluted ................................................... 6,617,955 5,752,431 6,604,035 6,568,121
=========== =========== =========== ===========
BIOMERICA, INC.
STAND-ALONE STATEMENT OF OPERATIONS
(UNAUDITED)
Nine Months Ended Three Months Ended
February 28, February 28,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net sales ............................................... $ 2,792,222 $ 2,329,117 $ 998,070 $ 872,996
Cost of sales ...................................... (1,646,000) (1,398,084) (649,468) (525,115)
----------- ----------- ----------- -----------
Gross profit ....................................... 1,146,222 931,033 348,602 347,881
----------- ----------- ----------- -----------
Operating Expenses:
Selling, general and administrative ................ 837,411 797,983 272,890 220,377
Research and development ........................... 150,890 131,060 38,779 39,430
----------- ----------- ----------- -----------
988,301 929,043 311,669 259,807
----------- ----------- ----------- -----------
Operating income from continuing operations ............. 157,921 1,990 36,933 88,074
----------- ----------- ----------- -----------
Other Expense (income):
Interest expense ................................... 22,295 23,780 7,248 7,900
Other income, net .................................. (28,259) (12,400) (730) (402)
----------- ----------- ----------- -----------
(5,964) 11,380 6,518 7,498
----------- ----------- ----------- -----------
(Loss) income from continuing operations, before
income taxes ......................................... 163,885 (9,390) 30,415 80,576
Income tax expense ...................................... 1,600 800 800 --
----------- ----------- ----------- -----------
Net income (loss) from continuing operations ............ 162,285 (10,190) 29,615 80,576
Income from discontinued operations, net ................ -- 6,600 -- --
----------- ----------- ----------- -----------
Net income (loss) ....................................... $ 162,285 $ (3,590) $ 29,615 $ 80,576
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