Helix BioMedix, Inc. (OTCQB: HXBM), a developer of bioactive peptides, today announced financial results for the company's first quarter ended March 31, 2011.
First Quarter 2011 Highlights
- Total revenue increased 413% to approximately $358,000, compared to approximately $70,000 in the same period in 2010 and approximately $358,000 in the fourth quarter of 2010.
- License fee revenue grew 369% and peptide and consumer product sales grew 307% compared to the prior year first quarter, reflecting the continued increasing use of Helix BioMedix peptides by customers.
- Consumer product sales to NuGlow Cosmaceuticals, LLC (NuGlow) were $51,000; deferred product sales to NuGlow increased to approximately $192,000 on the growth of NuGlow product sales.
- Net loss decreased to approximately $710,000, compared to a net loss of approximately $927,000 in the same period in 2010.
First Quarter 2011 Results
Revenue for the first quarter of 2011 was approximately $358,000, comparable to the level achieved in the fourth quarter of 2010 and representing a 413% increase over the approximately $70,000 reported revenue in the first quarter of 2010. The year-over-year revenue growth reflects a significant increase in licensing fees and improved peptide and consumer product sales.
At March 31, 2011, deferred gross profit derived from NuGlow, a related party, was approximately $87,000, generated from approximately $192,000 in deferred revenue, which will be recognized by Helix BioMedix when NuGlow delivers the associated products to its third-party customers.
Commenting on the results, R. Stephen Beatty, President and Chief Executive Officer of Helix BioMedix, stated, "The first quarter results reflect the successful implementation of our strategic plan to focus on commercialization of our portfolio. This sets the stage for continued success in 2011 as we further the implementation of our product plans."
Gross margin for the first quarter of 2011 was 66%, compared to 65% in the first quarter of 2010, reflecting primarily a larger contribution of higher margin license revenue combined with improved margin from peptide sales.
Licensing fees in the first quarter of 2011 were approximately $171,000, compared to approximately $37,000 for the same period in 2010. First quarter 2011 license revenue reflected the conversion of a key customer from bi-annual to quarterly royalty reporting, which will contribute to more consistent revenue recognition. Peptide and consumer product sales in the first quarter of 2011, including sales to NuGlow of approximately $51,000, increased to approximately $186,000, compared to approximately $33,000 for the same period last year when there were no related-party sales.
Net loss for the first quarter of 2011 was approximately $710,000, or $(0.01) per share, compared to a net loss of approximately $927,000, or $(0.04) per share, in the first quarter of 2010. The decrease in net loss per share for the first quarter of 2011 was, in part, attributable to an increase in the weighted average number of shares of common stock outstanding resulting from the amendment, conversion, and exercise of previously outstanding convertible notes payable and warrants and the consummation of an equity financing in the fourth quarter of 2010.
As of March 31, 2011, cash and cash equivalents were approximately $3.3 million, a decrease from approximately $4.0 million at December 31, 2010, due primarily to cash used in operations during the first quarter of 2011.
Beatty concluded, "We are enthusiastic about our outlook for 2011. Based on the strong first quarter results and increasing demand for our products, we anticipate continued growth in the year ahead from our skin care line, existing customer relationships and partnership with NuGlow. In response, we are furthering the development of new applications and increasing our sales and marketing efforts ahead of new product introductions. We look forward to reporting our progress with respect to the success of these initiatives."
Source: Helix BioMedix, Inc.