LED Medical Diagnostics Inc. Reports 2016 Third Quarter Results
- On July 12, 2016, the Company announced that its VELscope® Vx Enhanced Oral Assessment System with iPod touch integration received the Cellerant "Best of Class" Technology Award (formerly the Pride "Best of Class" Technology Award). The VELscope Vx has once again been designated as the leading device for the "oral screening" category, receiving the award for a sixth consecutive year - a distinction shared by only one other product among this year's winners.
- On August 11, 2016, the Company announced the results of a successful oral mucosal screening program which took place over many dates and locations in the greater Vancouver market in collaboration with London Drugs. The screenings incorporated the use of LED Medical Diagnostics' VELscope® Vx Enhanced Oral Assessment System, which was used adjunctively to the comprehensive oral exams to enhance the ability of the attending clinicians to visualize oral mucosal abnormalities that many not be apparent to the naked eye including oral cancer, pre-malignant dysplasia and infections.
- On September 28, 2016, the Company announced the launch of the RAYSCAN Alpha Plus, a next-generation extraoral imaging system that is the latest innovation from former Samsung Electronics subsidiary RAY Company ("RAY"). Building upon the award-winning RAYSCAN Alpha platform, the RAYSCAN Alpha Plus continues RAY Company's dedication to delivering high-quality imaging technologies combined with innovative features that innovative and unique in the industry.
- Net revenue for the three months ended September 30, 2016 was $2,488,725, which is an increase of 40% from the three months ended September 30, 2015. This revenue increase was largely due to timing of when imaging orders were received and could be shipped and by increased demand for VELscope and VELscope consumable sales.
- Gross margin in the third quarter of fiscal 2016 was 25% which was higher than the 18% gross margin in the same period in the prior year but lower than the previous second quarter of fiscal 2016 of 29%. Increase in gross margin over the same period in the prior year was due to the increased revenue contribution from the Companys proprietary VELscope product offering which has a higher gross margin than its imaging product offerings.
- The net loss before tax for the three months ended September 30, 2016 was $855,484 compared to the net loss before taxes for the three months ended September 30, 2015 of $1,361,773. The decrease of operating loss is mainly attributable to higher revenue levels and lower operating expense than in fiscal 2015.
- Net revenue for the nine months ended September 30, 2016 was $8.3 million which is an increase of 11% from the prior year period of $7.5 million.
- Gross margin for the nine months of fiscal 2016 was 27% which was slightly higher than the 26% gross margin in the same period in the prior year.
- The net loss before tax for the nine months ended September 30, 2016 was $3.9 million compared to the net loss before taxes in the prior year period of $4.0 million. The decrease of operating loss is mainly attributable to higher revenue levels and lower operating expense than in fiscal 2015.
Phone: 905.326.1888 ext 10
David Gane, CEO
Phone: 604-434-4614 x227
Forward Looking Statement
This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. The Company may be required to raise additional capital in the event that it does not achieve its FY16 guidance. Such forward-looking statements or information include statements regarding, but not limited to the Company's future growth strategy, its distribution strategy and product offerings, potential expansion of the Company's technology to other medical applications or markets, or the potential introduction of new technologies by the Company. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Corporation's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to competition risks, distributor risks, product development risks such as regulatory, design, intellectual property and other factors described in the Corporation's reports filed on SEDAR including its Annual Information Form and financial report for the year ended December 31, 2015. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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