Last Update: 9:10 AM ET Feb 22, 2007
SALT LAKE CITY, Feb 22, 2007 (BUSINESS WIRE) -- Paradigm Medical Industries, Inc. (OTCBB: PMED.OB/PMEDW.OB), a leading innovative producer of ultrasound devices for the ophthalmic and medical industries, reported today it expects improving results for the fourth quarter of 2006, ending December 31.
Revenues (unaudited) are projected to reach $595,000, an increase of more than 50% from the last quarter of 2005. This would bring full-year 2006 sales to $2.2 million, even with the year-ago level.
"The Company got off to a slow start this year, but began to gain momentum during the second half," said Paradigm Medical's Chief Executive Officer, Raymond Cannefax. "Moreover, our final-quarter revenues will be up more than 40% from the prior three months."
Mr. Cannefax continued, "Paradigm Medical substantially improved its product mix and controlled its fixed costs throughout the year, and it all began to come together during the last quarter. The Company will have a dramatic improvement in gross profit, with the margin hitting close to 65%."
According to the Company, operating expense was reduced by 16% in the quarter, to roughly $456,000. This will result in Paradigm Medical showing an operating loss of $(124,000) for the fourth quarter versus an operating loss of $(256,000) in the year-earlier period.
"We're not happy reporting a loss, but are satisfied that the programs initiated to improve performance and reduce costs are working," Mr. Cannefax noted.
"Paradigm Medical has been able to dramatically reduce its operating expense during the last year, particularly as we've streamlined the product portfolio into high-value-added, proprietary devices; launched a global-oriented sales and marketing effort; revitalized the management team; and received regulatory approval for several key Ultrasound products. We believe everything is in place for the Company to improve its financial performance in 2007 and beyond," Mr. Cannefax added.
"There will likely be some modest increase in operating expense in 2007, due to expansion of the sales and marketing efforts and several new-product introductions following regulatory approval in the U.S. and other regulatory agencies, particularly in state-of-the-art Ultrasound devices. Nonetheless, we believe the growth in revenues and margins will be sufficient to offset slightly higher expenses.
"Our business plan for 2007 and beyond is decidedly more growth oriented than mainly cost-containment oriented," Mr. Cannefax said. "We had to be defensive in recent years. We are now eager and ready to become more growth aggressive. We will, however, continue our efforts to keep our costs in close check."
Paradigm Medical Industries, Inc. (Salt Lake City, UT), currently develops, manufactures and markets high-tech, proprietary diagnostic equipment and consumable products for the medical industry. The Company is a leading developer of Ultrasound devices, and has been dubbed "The UBM Company" (Ultrasound BioMicroscope). Contact us at 801-977-8970 or visit us at www.paradigm-medical.com.
This press release contains statements that, if not verifiable historic fact, may be viewed as forward-looking statements that could predict future events and outcomes with respect to Paradigm and its business. The predictions embodied in these statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.
SOURCE: Paradigm Medical Industries, Inc.
Paradigm Medical Industries, Inc. Raymond Cannefax, CEO, 801-977-8970 Copyright Business Wire 2007 |
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