EANS-Adhoc: Oxygen Biotherapeutics Reports Second Quarter FY2012 Financial
Results.
-Management to host teleconference to discuss financial results on December 19-
--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------
quarterly report
17.12.2011
MORRISVILLE, NC, December 16, 2011 Oxygen Biotherapeutics, Inc. (NASDAQ and
SIX Swiss Exchange: OXBT), a development stage biomedical company focused on
developing oxygen-rich intravenous and topical products, today announced results
for the Second Quarter Fiscal Year (FY) 2012 ended October 31, 2011. Oxygen´s
management will host a live teleconference on Monday, December 19, 2011 at 11
a.m. to discuss the results.
Highlights (through Dec. 14, 2011)
Closed registered direct financing for up to $7.5 million in gross proceeds
Board member Dr. Ronald Blanck named Chairman of the Board of Directors
CFO Michael B. Jebsen named President and interim Chief Executive Officer
Voluntarily withdrew listing on the SIX Swiss Stock Exchange effective in
January 2012 due to low trading activity as part of an overall cost-reduction
effort
Second-Quarter Results
Oxygen Biotherapeutics reported net revenue of $95,159 for the second quarter of
fiscal 2012, compared to $27,126 for the comparable quarter in the previous
fiscal year. The increase was due primarily to direct cost reimbursements for
work performed under our preclinical Oxycyte® PFC studies funded by the U.S.
Army partially offset by a decrease in product sales. The decrease in product
sales was due to a reduction in the size of our sales force during the quarter
as we continue to focus selling efforts in specific geographical markets.
Gross margin as a percent of revenue for the period ended October 31, 2011 was
62%, compared to 75% for the three months ended October 31, 2010 due primarily
to changes in the product sales mix.
Total operating expenses for the period ended October 31, 2011, were $2,149,387
compared to $2,083,863 for the same period in 2010. The increase in operating
expenses in the quarter was due primarily to an increase in general and
administrative costs; partially offset by decreases in marketing and sales
expenses and research and development costs.
The increase in general and administrative expenses for the three months ended
October 31, 2011 was driven primarily by an increase in legal fees, consulting
costs and the severance accrual for a retired director; partially offset by a
decrease in compensation expense, travel related expenses, and amortization of
intangible assets.
The decrease in marketing and sales expenses for the three months ended October
31, 2011 was driven primarily by a reduction in costs incurred for direct
advertising, partially offset by an increase in the costs incurred for
compensation.
The decrease in research and development expenses for the three months ended
October 31, 2011 was driven primarily by a reduction in compensation and
contract research organization (CRO) costs; partially offset by an increase in
consulting costs and Oxycyte PFC development costs.
For the second quarter ended October 31, 2011, the Company reported a net loss
of $2,929,923, or $0.12 per share, compared to a net loss of $2,051,937, or
$0.09 per share for the same period in the prior year.
Six-Month Results
Net revenue for the six months ended October 31, 2011 was $120,032 compared to
total revenue of $32,236 for the same period in fiscal year 2011. This increase
was primarily due to grant revenues earned in the current quarter. Product
revenue also increased slightly for the six months ended October 31, 2011
compared to the same period in the prior year due to shipments to our
distributor in Mexico.
Gross profit for the six month period ended October 31, 2011 was 48% as compared
to 75% for the six months ended October 31, 2010. This decrease was primarily
due to sales through distribution channels.
For the six-month period ending October 31, 2011 the company had total operating
expenses of $4,602,337 compared to $5,112,174 for the same period in 2010. This
decrease was primarily due to reduced research and development costs and a
slight reduction in general and administrative expenses; partially offset by
increased costs for marketing and sales expenses.
The decrease in research and development expenses for the six months ended
October 31, 2011 was driven primarily by a reduction in CRO, compensation and
product development costs; partially offset by an increase in consulting costs.
The decrease in general and administrative expenses for the six months ended
October 31, 2011 was driven primarily by a decrease in compensation expense,
travel related expense, and amortization of intangible assets; partially offset
by an increase in legal fees, consulting costs and the severance accrual for a
retired director.
The increase in marketing and sales expenses for the six months ended October
31, 2011 compared to the same period in the prior was driven primarily by an
increase in the costs incurred for compensation offset by a slight reduction in
costs for direct advertising.
The Company reported a net loss of $5,798,992, or $0.25 per share for the six
month period ended October 31, 2011, compared to a net loss of $5,054,236, or
$0.22 per share for the same period in 2010.
As of October 31, 2011, the Company had cash and cash equivalents totaling
$2,004,257, up from $951,944 at April 30, 2011.
"The company is making significant strides toward meeting our objectives despite
having a quarter impacted by management and board changes. We have secured our
cGMP manufacturer for Oxycyte PFC emulsion which will allow us to scale up our
manufacturing process and ensure we are able to support not only our TBI trial,
but also our partners as they continue to progress through their preclinical
studies under ongoing Material Transfer Agreements and Cooperative Research and
Development Agreements. Our recent closing of a $7.5 million registered direct
financing will allow us to focus on developing our product candidates well into
calendar year 2012. We are continuing to evaluate all of our existing
development programs to ensure all of our Company´s resources are allocated as
efficiently and effectively as possible in our efforts to control our overhead
and further reduce our costs," said Michael Jebsen, Chief Financial Officer and
Interim Chief Executive Officer.
end of ad-hoc-announcement
================================================================================
Conference Call
Management will host a conference call on Monday, December 19, 2011 at 11 a.m.
EST. To access the live teleconference dial (800) 510-0178 (U.S. and Canada) or
(617) 614-3450 (international.) The participant passcode is 89311217. A live
webcast will be available on our web site
http://www.oxybiomed.com/investors.htm.
A replay of the webcast will be available on the Oxygen Biotherapeutics website,
or by phone for a limited time. To access the replay by phone, call (888)
286-8010 (U.S. and Canada) or (617) 801-6888 (international) for a limited time.
The passcode for the replay is 96461628.
About Oxygen Biotherapeutics, Inc.
Headquartered in Morrisville, NC, Oxygen Biotherapeutics, Inc. is developing
medical and cosmetic products that efficiently deliver oxygen to tissues in the
body. The company has developed a proprietary perfluorocarbon (PFC) therapeutic
oxygen carrier product called Oxycyte® that is being formulated for both
intravenous and topical delivery. The company has commercialized its DERMACYTE®
line of oxygen-rich skin care products. In addition, the company is focused on
PFC-based oxygen carriers for use in traumatic brain injury, decompression
sickness, and topical wound healing. See www.oxybiomed.com, or
www.DermacyteUS.com for more information.
Caution Regarding Forward-Looking Statements
This news release contains certain forward-looking statements by the company
that involve risks and uncertainties and reflect the company's judgment as of
the date of this release. These statements include the expansion of development
of the Oxycyte and DERMACYTE product lines and the timing of the introduction of
those new products. The forward-looking statements are subject to a number of
risks and uncertainties including matters beyond the company's control that
could lead to delays in new product introductions and customer acceptance of
these new products, and other risks and uncertainties as described in our
filings with the Securities and Exchange Commission, including in the current
reports on Form 10-Q and Form-10K. The company disclaims any intent or
obligation to update these forward-looking statements beyond the date of this
release. This caution is made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.
Further inquiry note:
Ellen Corliss
Vice President, Corporate Communications
& Investor Relations
Oxygen Biotherapeutics, Inc
One Copley Pkwy, Suite 490
Morrisville, NC 27560
Direct Telephone: +1 919 855 2112
Direct Fax: +1 919 806 4417
Email: e.corliss@oxybiomed.com
end of announcement euro adhoc
--------------------------------------------------------------------------------
issuer: Oxygen Biotherapeutics Inc.
One Copley Parkway, Suite 490
US-27560 Morrisville, NC
phone: +1 (919) 855 21 12
FAX: +1 (919) 806 44 17
mail: e.corliss@oxybiomed.com
WWW: www.oxybiomed.com
sector: Biotechnology
ISIN: US69207P2092
indexes: SSIRT
stockmarkets: Nasdaq: New York, Main Standard: SIX Swiss Exchange
language: English