Volume 3, Fiscal 2007, Aug 2007
Financial Results
We have just released our strong third quarter unaudited results for fiscal 2007, covering the period from 1 October 2006 to 30 June 2007. Pyng achieved record sales of $ 1.36 million, a 38% increase over the previous year. Our year-to-date revenue is now $3.4 million, a 63% increase over our prior year. Our sales and gross margin continues to be strong resulting in net income for the first three quarters of $275 thousand or 8% of sales and 2.8 cents per share.
Our year-to-date cash flow from operating activities was $605 thousand, an increase of 68% over prior year. Our balance sheet remains strong with working capital of $ 1.38 million and no debt.
We are pleased with our strong financial results and believe that our revenue growth reinforces the strength of our core product: FAST1™ Intraosseous Infusion System. Our diversification strategy is working, with the US now representing 91% of our total year-to-date revenue, versus 98% in our prior year. Our UK distributor is still our third largest distributor with sales from the UK Ministry of Defense, and our major US distributor now represents only 75% of our total world-wide sales compared to 86% in our prior year.
Full financial results are available on SEDAR.
FAST1™ Secures First Purchase Order in Asia
Pyng established our first Asian distributor in the fall of 2006 with MidMed Pty in Australia, which is realizing sales in all markets. In January, we retained Business Asia Consultants (BAC) as our contract region manager to expand into twelve of the continental Asian countries, including China and Japan. We contracted with Jyton to pursue our regulatory filing with the Chinese regulatory agency, a process due to complete in early 2008.
Larry Kronick, principal for BAC, had expected initial sales, in our third quarter from his established distributors. As anticipated, in May we announced our first order with Goodwin Health Care Ltd, a leading supplier of EMS and hospital products in Hong Kong. With lower regulatory hurdles in Hong Kong, the city is a strategic point of entry to the rest of China.
Strategic Planning Process
The Pyng management team completed the company’s first strategic planning process in late June and has reviewed the outcome with our Board of Directors. The strategic plan calls for significant diversification and expansion into all markets, including a broader product offering, a focus on new clinical markets, and entry into new geographic markets.
Intraosseous infusion is a vibrant, growing industry. The FAST1™ is central to the resuscitative care of patients and provides a compelling foundation around which to build a suite of products. Our intention is to leverage the increasing acceptance of our strong core product and our very successful domestic and international distribution, to become a world class company in the field of resuscitative care.
Pyng Achieves Top 10 Ranking in 2007 TSX Venture 50 and Moves Up to Tier One Status
For the second time in just three years, Pyng was selected in the Top 10 of the 2007 TSX Venture 50, in the Life Sciences sector. The award is a ranking of the top 10 Canadian public venture capital companies in 5 industry sectors listed on TSX Venture Exchange. The rigorous TSX-V selection process, conducted by a New York-based market research firm, analyzed revenue, return on investment, trading volume and market capitalization growth for the year ending December 31, 2006. Pyng qualified for this prestigious award amongst a competitive field of 629 qualifying companies.
Pyng also moved up from Tier Two to Tier One status during the quarter, which is indicative of our growing financial performance.
Record-Breaking Sales Revenue and Unit Volume in Third Quarter of Fiscal 2007
Our third quarter shattered all expectations for volume growth, with $1,356 thousand booked in revenue. This record exceeded any quarter in Pyng’s history and represented growth of 38% versus the prior year third quarter, a historically strong revenue quarter. The 2007 third quarter also marked the milestone of shipping our 100,000th FAST1™ Intraosseous Infusion System.
