This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ERBA Diagnostics, Inc. Reports Second Quarter 2012 Financial Results

About ERBA Diagnostics, Inc.

ERBA Diagnostics, Inc. ( www.erbadiagnostics.com), headquartered in Miami, Florida, is a fully integrated in vitro diagnostics company that develops, manufactures and distributes in the United States and internationally, proprietary diagnostic reagents, test kits and instrumentation, primarily for autoimmune and infectious diseases, through its three subsidiaries: Diamedix Corporation (U.S.), Delta Biologicals S.r.l. (Europe) and ImmunoVision, Inc. (U.S.).

Safe Harbor Statement

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of ERBA Diagnostics, Inc., including, without limitation: the risks and uncertainties related to the transactions contemplated by ERBA Diagnostics’ stock purchase agreement with ERBA Diagnostics Mannheim GmbH, including that the transactions contemplated to be consummated at the future closings under the stock purchase agreement may not be consummated on the contemplated terms, in the time frame anticipated, or at all, that the warrants may not be exercised, in whole or in part, by ERBA Diagnostics Mannheim, that ERBA Diagnostics Mannheim has the sole discretion regarding its decision of whether or not, and if so when, to exercise the warrants, in whole or in part, and such decision will be based upon considerations ERBA Diagnostics Mannheim deems to be appropriate, which may include, among other things, the future market price of ERBA Diagnostics’ common stock, which is subject to volatility and a number of other factors, many of which may be beyond ERBA Diagnostics’ control, and that, when deciding whether or not, and if so when, to exercise the warrants, in whole or in part, ERBA Diagnostics Mannheim’s interest may conflict with ERBA Diagnostics’ interests; ERBA Diagnostics’ ability to successfully improve its financial condition, results of operations and cash flows; ERBA Diagnostics’ ability to successfully maintain its cost containment efforts and reduced expenses; ERBA Diagnostics’ ability to continue to maintain a stabilized level of expenses; ERBA Diagnostics’ ability to continue to achieve growth in the level of reagent sales; ERBA Diagnostics’ ability to successfully achieve sales growth; ERBA Diagnostics’ ability to successfully maintain stability in its cash flows and liquidity position; ERBA Diagnostics’ ability to successfully grow its business, sales and product range in the United States and other markets, whether organically or through acquisitions, during the anticipated time frame or at all; ERBA Diagnostics’ ongoing initiatives to reduce manufacturing costs, manage operating expenses, increase sales in the United States and other markets and otherwise improve its operating results and performance may not be successful or result in the positive financial impact expected, whether in the time frame anticipated, or at all; ERBA Diagnostics may not be successful in identifying or consummating acquisitions or other strategic opportunities and any identified and consummated acquisition or other strategic opportunity may not be successfully integrated and may not result in synergies, operational efficiencies or other benefits anticipated and may not otherwise improve ERBA Diagnostics’ financial condition, operating results or cash position; economic, competitive, political, governmental and other factors affecting ERBA Diagnostics and its operations, markets and products; the success of ERBA Diagnostics’ technological, strategic and business initiatives; ERBA Diagnostics’ ability to achieve cost advantages from its own manufacture of instrument systems, reagents and test kits; voting control of ERBA Diagnostics’ common stock by ERBA Diagnostics Mannheim; conflicts of interest with ERBA Diagnostics Mannheim and with ERBA Diagnostics’ officers, employees and other directors, including, without limitation, directors that are also executive officers of ERBA Diagnostics Mannheim; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. In addition to the risks and uncertainties set forth above, investors should consider the economic, competitive, governmental, technological and other risks and uncertainties discussed in ERBA Diagnostics’ filings with the Securities and Exchange Commission, including, without limitation, the risks and uncertainties discussed under the heading “Risk Factors” in such filings.

ERBA DIAGNOSTICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
 
(Unaudited)
       
 
 
 
Period Ended June 30,

Three months

Six months

2012

2011

2012

2011

 
Net revenues $ 4,314,869 $ 4,374,998 $ 8,584,159 $ 8,509,355
Cost of sales   2,110,415     2,015,080     4,257,366     4,034,222  
Gross profit   2,204,454     2,359,918     4,326,793     4,475,133  
 
Operating expenses:
Selling and marketing 992,734 1,508,527 1,979,627 2,734,016
General and administrative 1,105,355 1,577,071 2,164,742 2,924,072
Research and development   242,305     434,867     437,848     985,102  
Total operating expenses   2,340,394     3,520,465     4,582,217     6,643,190  
 
(Loss) from operations   (135,940 )   (1,160,547 )   (255,424 )   (2,168,057 )
 
Other income (expense):
Interest income (expense) (9,330 ) (3,829 ) (21,996 ) (7,220 )
Gain (loss) on foreign currency transactions (188,870 ) 2,197 (103,194 ) 11,379
Other income (expense), net   2,895     17,548     (1,417 )   27,558  
Total other income (expense), net   (195,305 )   15,916     (126,607 )   31,717  
 
(Loss) before income taxes (331,245 ) (1,144,631 ) (382,031 ) (2,136,340 )
 
(Provision)/benefit for income taxes   (27,435 )   377,146     (55,104 )   348,838  
 
Net (loss) (358,680 ) (767,485 ) (437,135 ) (1,787,502 )

Other comprehensive income (loss) foreign currency translation

adjustments

  (115,333 )   31,286     (33,622 )   255,768  
Comprehensive loss $ (474,013 ) $ (736,199 ) $ (470,757 ) $ (1,531,734 )
 
Net (loss) per share-basic and diluted $ (0.01 ) $ (0.02 ) $ (0.01 ) $ (0.05 )
 
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING:
Basic   34,892,653     27,763,532     34,642,103     27,707,023  
Diluted   34,892,653     27,763,532     34,642,103     27,707,023  
 
ERBA DIAGNOSTICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
  June 30,   December 31,
2012 2011
(Unaudited) (Audited)

ASSETS

 

Current assets:

Cash and cash equivalents $ 3,629,302 $ 3,653,244
Accounts receivable, net of allowances for doubtful
accounts of $694,011 and $716,599, respectively 5,804,470 5,950,621
Inventories, net 3,767,094 3,830,295
Other current assets   401,248     231,992  
Total current assets 13,602,114 13,666,152
 
Property, plant and equipment, net 1,324,466 1,456,940
Equipment on lease, net 540,445 674,504
Product license 282,936 282,936
Goodwill 870,290 870,290
Restricted deposits 117,661 127,859
Other assets   105,740     128,203  
Total assets $ 16,843,652   $ 17,206,884  
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 
Current liabilities:
Accounts payable $ 1,952,674 $ 2,345,838
Accrued license payable 125,765 129,490
Revolving line of credit 609,541 736,566
Accrued expenses and other current liabilities 1,834,632 1,744,221
Capital lease obligation, current   62,085     79,186  
Total current liabilities   4,584,697     5,035,301  
 
Other long-term liabilities:
Capital lease obligation, long-term 65,249 21,287
Deferred tax liabilities 460,422 428,676
Other long-term liabilities   971,769     994,348  
Total other long-term liabilities   1,497,440     1,444,311  
 
Commitments and contingencies
 
Shareholders’ equity:
Common stock, $0.01 par value, authorized 100,000,000 shares,
issued and outstanding 34,991,554 and 34,391,554, respectively 349,915 343,915
Additional paid -in capital 46,534,037 46,035,037
Accumulated deficit (35,420,950 ) (34,983,815 )
Accumulated other comprehensive loss   (701,487 )   (667,865 )
Total shareholders’ equity   10,761,515     10,727,272  
Total liabilities and shareholders’ equity $ 16,843,652   $ 17,206,884  
 




3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,919.59 +80.85 0.48%
S&P 500 1,981.60 +9.86 0.50%
NASDAQ 4,527.5140 +19.2020 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs