THOROFARE, N.J., Nov. 13, 2014 (GLOBE NEWSWIRE) -- Akers Biosciences, Inc. (Nasdaq:AKER), (the "Company" or "ABI"), a leading designer and manufacturer of rapid diagnostic screening and testing products, reports its financial results for the third quarter ended September 30, 2014 and for the nine months ended September 30, 2014. The Form 10-Q containing the financial statements is available for viewing on the Company's website at www.akersbiosciences.com or www.sec.gov.
- Revenue for the period ended September 30, 2014 totaled $453,313 (Q3 2013: $344,709), a 32% increase from the same period in 2013, primarily driven by sales of PIFA Heparin/PF4 Rapid Assay products in the US
- US sales of PIFA Heparin/PF4 Rapid Assay products increased by 39% with distribution now being performed by Cardinal Health, Medline Industries, Fisher HealthCare and Typenex – supported by ABI's account executives
- Net loss attributable to shareholders of $1,124,320 (Q3 2013: $544,370) as a result of hiring additional expanded personnel, capital market commitments and marketing activities
- Gross profit margin in third quarter of 64% continues to be substantially ahead of 2013's average of 47%
- Company had total current assets at the end of the third quarter of $14,312,949 (September 30, 2013: $3,369,382) of which $10,206,992 was held in the form of marketable securities (September 30, 2013)
- EBITDA: Net loss of $1,055,913 for the third quarter (Q3 2013: $454,857)
- Revenue for the nine months ended September 30, 2014 totaled $2,980,389 (2013: $3,006,377)
- The Board is confident of a strong fourth quarter, contingent on the materialization of international product orders in the pipeline; as well as of a continuing upward trend in PIFA Heparin/PF4 Rapid Assay product sales
"Our revenues during this early commercialization phase are expected to continue to be staggered as we receive initial stocking orders from new distributors in new territories. The effect is that some quarters' sales are more positively impacted than others due to the timing of product shipments for initial stocking orders to new markets. As such, the Board is confident of a strong fourth quarter, contingent on the materialization of international product orders in the pipeline; as well as of a continuing upward trend in PIFA Heparin/PF4 Rapid Assay product sales. The performance for the full year will thus depend on when a number of significant contracts, as referred to above, are shipped," stated Raymond F. Akers, Jr. PhD, Co-founder and Executive Chairman of the Board.
"Domestic sales of our current flagship PIFA Heparin/PF4 Rapid Assay products are driving sales at present while we establish the foundations for the international sales push," continued Dr. Akers. "The addition of new sales and marketing partners for PIFA Heparin/PF4 Rapid Assay products in the second quarter has delivered a measurable increase in trials and adoption in the third quarter."
"Moving forward, a major emphasis is being placed on positioning the Company to commence volume sales of core products from the PIFA (which uses selective filtration of micro-particles in response to antibody/antigen binding), MPC (which permits the rapid determination of biomarkers in breath condensate), and REA (which detects blood and urine metabolites through enzymatic chemistries) technology platforms in the largest international markets. Progress is evident in the Company's recent establishment of a Joint Venture Agreement in China, the signing of marketing and distribution agreements in India, the Middle East, Australia and Singapore, the appointment of a senior international sales and marketing executive entirely dedicated to creating distribution channels outside of the US, and the first international volume orders last quarter for Tri-Cholesterol 'Check' tests."
"Domestically we are working with our four distribution partners to open up new PIFA Heparin/PF4 Rapid Assay customers and to convert new customer trials into sales. We are also accelerating development of the VIVO product line (from the MPC technology platform) in order to gain greater exposure to the large Health and Wellness segment which exists in the US. Clinical development of the Company's other mass market products of the future in the field of diagnosis of medical conditions through biomarkers in exhaled breath is ongoing," continued Dr. Akers. "This includes the development of breath tests for biomarkers indicating lung cancer, COPD, asthma, and ketone acids for diabetic health."
Results of Operations
ABI's total revenue for the three months ended September 30, 2014 was $453,313, a 32% increase from the same period in 2013. Product revenue totaled $359,980 (2013: $261,376) while the Company's license fee revenue increased to $93,333 (2013: $83,333) for the period.
Cost of sales for the three months ended September 30, 2014 increased by 72% compared to the same period in 2013 to $162,145 from $94,036 in 2013. Production costs of incremental product components transferred to inventory during the three months ended September 30, 2014 declined by 75% to $43,163 (2013: $171,454), resulting in the higher total cost of sales for the period. Overall, cost of sales, as a percentage of product revenue, was 45% and 36% for the three month periods ended September 30, 2014 and 2013.
ABI's gross profit margin, as a percentage of total revenue, was 64% for the three months ended September 30, 2014, substantially higher than the average 47% reported in fiscal 2013.
General and administrative expenses for the three months ended September 30, 2014, totaled $826,756, which was a 123% increase as compared to $370,737 for the three months ended September 30, 2013. The increase is related to personnel, professional services, stock market and investor relations activities, and travel.
Increases in professional services and stock market and investor relations activities are directly related to the maintenance of dual stock listings in the United States (NASDAQ) and Great Britain (London Stock Exchange). The dual listing requires us to maintain public relations, stock registrars, nominated advisors and legal counsel for both markets and requires additional accounting services to insure compliance with regulators.
Sales and marketing expenses for the three months ended September 30, 2014 totaled $358,650, which was a 183% increase as compared to $126,624 for the three months ended September 30, 2013. The increase was the result of general consulting services, sales commissions, and travel.
The increase in general consulting fees are for the development of sales and marketing programs for existing domestic and international markets, exploration of governmental opportunities, and the identification of additional international markets for our products.
For the three months ended September 30, 2014, the Company generated a net loss of $1.1 million. The loss is attributable to the increased costs for professional services related to regulatory compliance and reporting associated with the dual market listings, expansion of our sales and marketing efforts and compensation of our directors, officers and key employees through stock options.
"Our primary focus remains on expanding the domestic and international distribution of our PIFA Heparin/PF4 rapid assays," added Dr. Akers. "At the same time, we're continuing our initial commercialization tasks for METRON and VIVO, as well as development activities for our PIFA PLUSS® Infectious Disease single-use assays, Breath Ketone "Check", and Breath PulmoHealth "Check" products, including advancement of the steps required for FDA clearance or CE marking in the EU where necessary."
Dr. Akers continued, "we're in a strong financial position to execute on these and other initiatives, with our working capital position of $13.3 million expected to meet our cash needs for at least the next 36 months. This includes our steps to achieve commercialization of emerging products and possible subsequent generations of existing tests, which is an ongoing and evolving process. Complementing these activities is our effort to secure ISO certification of our quality management system, which would allow us to meet the regulatory requirements for product sales in large, international markets such as India. Overall, we're well positioned and see many successes on the horizon that will build on our growing number of accomplishments. We look forward to sharing these achievements with you in the coming months."
|Conference Call Information:|
|Thursday, November 13, 2014 at 10:30 a.m. Eastern time|
|(3:30 p.m. GMT)|
|Replays - Available through November 27, 2014|
ABOUT AKERS BIOSCIENCES, INC.
Akers Biosciences develops, manufactures, and supplies rapid, point of care screening and testing products designed to bring healthcare information both rapidly and directly to the consumer or healthcare provider. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of several proprietary platform technologies. The Company's state-of-the-art rapid diagnostic assays can be performed virtually anywhere in minutes when time is of the essence. The Company has aligned with major healthcare companies and high volume medical products distributors to maximize product offerings, and to be a major worldwide competitor in diagnostics.
Additional information on the Company and its products can be found on our website at www.akersbiosciences.com. Follow us on Twitter @AkersBio.
Cautionary Statement Regarding Forward-Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to Akers Biosciences, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
CONTACT: Akers Biosciences, Inc. Raymond F. Akers, Jr. PhD Executive Chairman of the Board Tel. +1 856 848 8698 RedChip Companies, Inc. (US Investor Relations) Jon Cunningham Tel. +1 407 644 4256 x107 finnCap (UK Nominated Adviser and Broker) Geoff Nash / Scott Mathieson (Corporate Finance) Steve Norcross (Broking) Tel: +44 (0)20 7220 0500 Vigo Communications (UK Investor Relations) Ben Simons / Alexandra Roper Tel. +44 (0)20 7016 9570 firstname.lastname@example.org
Source:Akers Biosciences, Inc.