Oct 26 2010
MiMedx Group, Inc. (OTC Bulletin Board: MDXG), an integrated developer, manufacturer and marketer of patent protected biomaterial-based products, announced today its results for the third quarter ended September 30, 2010.
Results for Third Quarter Ended September 30, 2010
The Company recorded revenues during the quarter of approximately $108,000, as compared to $0 revenue for the same period in 2009 and $322,000 in the second quarter of this year. The Company recorded a net loss of $2.9 million, or $0.05 per diluted common share, for the quarter, as compared to a net loss of $4.5 million, or $0.11 per diluted common share, for the same period in 2009 and a net loss of $2.7 million, or $0.04 per diluted common share, in the second quarter of 2010. Stockholder's equity as of September 30, 2010, was $5.7 million, compared to $6.1 million as of December 31, 2010, and $2.5 million as of September 30, 2009.
Parker H. "Pete" Petit, Chairman and CEO, stated, "The Company continues to make substantial progress on commercializing its two biomaterials, HydroFix™ and CollaFix™. The year to date revenues from our first HydroFix™ product introduced earlier this year have exceeded $500,000; however, our third quarter results did not meet management's expectations due primarily to a shortfall in our European sales. European revenues were impacted by an unexpected illness and family medical problem experienced by our European sales representative, which resulted in almost six weeks of downtime that could not be covered by our U.S. based staff due to critical local priorities. In addition, our European revenues were also impacted by a delay in anticipated additional European regulatory approval."
"On a positive note," Mr. Petit continued, "for the second successive quarter, the number of HydroFix™ implants has more than doubled in the U.S., which demonstrates that physicians are using our product. Based upon current near-term revenue projections, the Company has decided to raise at least one more round of financing to take us through to what we hope will be our EBITDA breakeven point in 2011. The Company expects to raise $5 million through the issuance of common stock and warrants through a Private Placement offering. The Company intends to use the funds for working capital purposes, including, without limitation, to support expansion of our distribution channels and to fund our product development and regulatory approval processes."
Bill Taylor, President and COO commented, "We remain extremely positive on the potential of our two bio-materials, HydroFix™ and CollaFix™. There are a number of products in the regulatory pipeline that are expected to serve as catalysts for 2011 revenue growth. Additionally, in the third quarter, we added three new sales representative groups in the U.S., and outside of the U.S. we added one new distributor."
SOURCE MiMedx Group, Inc.