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Strong Public Health Sales and Operational Turnaround Result
In Small Profit for Quarter
BEAVERTON, Ore., Oct. 15 /PRNewswire/ -- Epitope, Inc. (Nasdaq: EPTO)
today announced preliminary results for the fourth quarter and fiscal year
ended September 30, 1998. These figures are preliminary and are subject to
potential year-end audit adjustments. The company plans to release audited
results by the end of November 1998.
The company stated that it expects to report 1998 sales of approximately
$3.3 million for the fourth quarter and approximately $9.8 million for the
full fiscal year. The company's preliminary results show a small profit in
the fourth quarter, and a loss for the 1998 fiscal year of approximately
$2 million, or $0.15 per share. The expected results represent a significant
improvement over results for 1997 when the company lost $1.9 million, or
$0.14 per share, on $1.5 million in sales in the fourth quarter, and
$4.1 million, or $0.30 per share on $9.4 million in sales for the full year.
The expected results for the 1998 fourth quarter would represent the
company's first operating profit in its history and reflect management's
successful revitalization of the company's strategic direction, a significant
reduction in costs, and increased control over cash use. The results would
also mark the company's first quarter of positive cash flow from operations.
Cash and cash equivalent balances ended the year at $5.6 million, as a result
of positive cash flow for the fourth quarter. The company ended the year with
no debt on its balance sheet.
The company noted that fiscal 1998 product revenues, which exclude
revenues from research grants and contracts, increased 21 percent over the
prior year. Particularly strong sales growth in the public health market, the
resolution of inventory problems in the life insurance market, and sales to
several new important international markets, including Argentina and Japan,
each contributed to the increase in revenues.
"We are pleased with the performance of our key product OraSure(R) in the
quarter. All indications suggest that sales volume for the product has picked
up in the domestic market as well as internationally. The consistent increase
in sales over the last few quarters and our substantial reduction in operating
costs during the year give us confidence in the strategy and products of the
company," said John W. Morgan, president and chief executive officer.
Epitope, Inc. develops and markets medical diagnostic products. The
company's principal products, including the OraSure oral specimen collection
device, focus on the use of oral fluid to detect HIV infection and other
conditions, and are marketed primarily in the life insurance and public health
sectors.
Statements in this press release about future sales levels or other future
events or performance are forward-looking statements. The company's actual
results could be significantly different. Factors that could affect results
include the extent of future use of oral testing and OraSure in the insurance
industry or other key markets; ability of the company to develop product
distribution channels; development of competing products; changes in federal
or state law or regulations; and loss of key personnel. Although
forward-looking statements help to provide complete information about the
company, readers should keep in mind that forward-looking statements are much
less reliable than historical information.
Source: EPITOPE Inc. Content of this page is copyright and reprinted here for educational and historical information. |
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