Helix BioMedix 2011 revenue increases 122% to record $1.9 million

Helix BioMedix, Inc. (OTCQB: HXBM), a developer of bioactive peptides, today announced financial results for the year ended December 31, 2011.

2011 Financial and Business Highlights

  • Revenue for 2011 increased 122% to a record $1.9 million, compared to $852,000 for 2010.
  • The year-over-year increase in revenue reflected a 52% increase in licensing revenue and a 120% increase in peptide and consumer product sales to non-affiliates. In addition, consumer product sales to NuGlow Cosmaceuticals, LLC, an affiliated direct-response company, increased to $481,000 in 2011.
  • Net loss for 2011 decreased to $2.5 million compared to $7.7 million for 2010. Net loss for 2010 included $4.7 million in interest and other non-cash expenses for the company's then outstanding convertible debt.

Full Year 2011 Results

Total revenue was a record $1.9 million for 2011 compared to $852,000 for 2010. The 122% annual increase reflected significant growth in license revenue and product sales. License revenue in 2011 increased by 52% year-over-year to $731,000 as licensees continued to increase utilization of Helix BioMedix peptide technologies. Peptide and consumer product sales increased by 120% to $680,000 due to increased sales to existing customers and the expanded revenue base for consumer products sold under Helix BioMedix proprietary brands. In addition, sales to NuGlow Cosmaceuticals, LLC, an affiliated company, grew to $481,000 in 2011, reflecting the first full year of revenue from NuGlow, compared to $63,000 for three months in 2010, as NuGlow's products gained increasing acceptance among target consumers.

Commenting on the results, R. Stephen Beatty, President and Chief Executive Officer of Helix BioMedix, stated, "Helix BioMedix achieved another year of record revenue in 2011, driven by strong momentum in all of our business lines. Peptide utilization by our license partners continued to expand, while our ongoing focus on consumer products contributed strongly to our growth during the year. Additionally, the increase in NuGlow product sales and the introduction of our Apothederm skin care line in early 2011 both helped strengthen sales of our branded and private label products."

Gross margin for 2011 was 61%, compared to 69% for 2010. The decrease in gross margin reflected the larger revenue contribution from peptide and consumer product sales in 2011, which grew faster than the higher margin license fees.

Total operating expenses were $3.6 million for 2011, compared to $3.5 million for 2010. Marketing and business development expenses increased during 2011 due to expanded advertising and marketing programs established to promote brand awareness and generate consumer product sales. Research and development as well as general and administrative expenses decreased during 2011 compared to the previous year due primarily to reduced consulting fees, compensation and general corporate expenses.

Net loss for 2011 was $2.5 million, or $(0.05) per share, compared to a net loss of $7.7 million, or $(0.28) per share, for 2010. The decrease in net loss for 2011 compared to the prior year reflected higher revenue combined with a reduction of $4.7 million in interest and other expenses related to the company's convertible debt that was converted or repaid in the fourth quarter of 2010. Additionally, the company's 2011 net loss per share was based on 49.7 million weighted-average shares outstanding whereas the 2010 net loss per share was based on 27.1 million weighted-average shares outstanding in 2010. The increase in weighted average shares outstanding in 2011 resulted from the conversion of debt into common stock and additional issuance of equity in the fourth quarter of 2010.

As of December 31, 2011, cash and cash equivalents were $1.7 million, compared to $4.0 million at December 31, 2010, due primarily to cash used in operations during the year. In March 2012, a $2.0 million letter of credit with JP Morgan Chase Bank, N.A. was established on the company's behalf by its largest stockholder, which bears interest at a rate of 0.75% per annum and has a maturity date of July 1, 2013. JP Morgan Chase Bank has the option to extend the letter of credit without amendment until July 1, 2014.

Beatty concluded, "I am pleased with our results for 2011 in light of the uncertain economic conditions we faced. The momentum generated in 2010 enabled us to achieve a stronger market position in 2011 and our disciplined financial and operational management served us well. Looking to 2012, we will strive to further leverage our market opportunities by broadening our distribution channels and customer base as well as continuing expansion of our leading edge intellectual property portfolio."


 Helix BioMedix, Inc.


The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
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