Derma Sciences first-quarter net sales up 23% to $12,844,382

Derma Sciences, Inc. (Nasdaq: DSCI), a specialty medical device/pharmaceutical company focused on advanced wound care, reported financial and operating results today for the three months ended March 31, 2010.

Highlights for First Quarter 2010:

  • Net sales increased 23% to $12,844,382 versus $10,431,891 in first quarter 2009.  
  • Advanced wound care sales increased 70% to $2,281,564 versus $1,346,223 in first quarter 2009.
  • Net loss was reduced to $534,904 (or $0.09 per fully diluted share) versus a net loss of $758,080 (or $0.15 per fully diluted share) in first quarter 2009.  The net loss includes non-recurring charges for executive severance and retirement of debt totaling approximately $280,000.  Excluding these charges, the loss would have been approximately, $255,000 (or $0.05 per fully diluted share).
  • Improving financial performance, together with proceeds from the secondary public offering and modifications to loan covenants in the first quarter, have served to improve overall liquidity.  Cash on hand and available borrowing capacity on the Company's line of credit increased $1.5 million, to $3.8 million at March 31, 2010 from $2.3 million at December 31, 2009.  

Chairman and CEO Edward J. Quilty commented, "The first quarter of 2010 was a very busy and productive quarter for Derma Sciences.  We listed our stock on NASDAQ and completed our secondary public offering raising $4.5 million.  We utilized these proceeds to finalize the Worldwide MEDIHONEY® License Agreement which will serve as the catalyst for the expansion of our international business, to pay off our long-term debt and for general working capital purposes, thereby improving our overall liquidity.  The first quarter has historically been our toughest due to seasonality in our First Aid business and higher timing-related operating costs.  That having been said, the 2010 top-line sales growth and lower net loss exceeded our expectations, especially when you consider the incremental severance and debt extinguishment expense."

Mr. Quilty continued, "Looking ahead, we have a lot on our plate. We presently have 17 U.S. advanced wound care sales representatives on board and are well on our way to our objective of 20 representatives by the end of June, doubling the size of our selling organization in place at the end of 2009. Our XTRASORB™ and BIOGUARD™ line extensions are on schedule for launch this year, starting with XTRASORB™ Foam this month, and the filing of the 510K for our next MEDIHONEY® dressing is on track for third quarter 2010. We have hired a European-based Managing Director for Europe, Middle East, and Africa and have begun the process of expanding our international business using the worldwide rights to MEDIHONEY® as the platform.  Our Operating team is responding to our growth initiatives and remains focused on our goal of building a cost effective global supply chain for our products.  Enrollment in our Phase II trail for DSC127, our topical drug for wound healing with the first indication for diabetic foot ulcers, continues to progress and we expect to announce clinical data later this year.

Mr. Quilty concluded, "I am pleased with our progress to date.  We have worked hard to create a number of exciting growth opportunities for Derma Sciences, and I am happy to report that we are seeing, and I am confident will continue to see, the rewards of successfully executing our plan."  

Source:

 Derma Sciences, Inc.,

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