ERBA Diagnostics, Inc. (NYSE MKT: ERB), a fully integrated in vitro diagnostics company, reported its financial results for the quarter ended March 31, 2013. Sanjiv Suri, Interim Chief Executive Officer of ERBA Diagnostics, said, “I am pleased to report a continuation in the first quarter of 2013 of the turnaround we are experiencing, with a significant year-over-year improvement from an operating loss to positive operating income, resulting from our recent acquisition of Drew Scientific. Our expenses from recurring operations have continued to stabilize through the first quarter of 2013. We have seen growth in reagent sales in the first quarter of 2013. For the remainder of 2013, we plan to continue to streamline our operations as well as to continue to implement a number of new initiatives in an effort to grow sales and product range, organically. We are also exploring potential acquisitions, both in the United States and internationally. These efforts are backed by our previously reported stock purchase agreement and warrant with our principal stockholder, ERBA Diagnostics Mannheim GmbH, which has already provided us with $11.95 million of equity funding and which has agreed to provide us with another $3.50 million pursuant to the stock purchase agreement and which has the right to provide us with an additional $14.55 million pursuant to the warrant.”
Financial Highlights for the Quarter Ended March 31, 2013
Net revenues increased by $2,435,000 to $6,708,000 in the first quarter of 2013 from $4,273,000 in the first quarter of 2012. This net increase was attributed to the net revenues of $3,472,000 for Drew Scientific for the first quarter of 2013 offset by other factors from recurring operations resulting in a decrease of $1,037,000. This decrease of $1,037,000 consisted of a decrease in net revenues from legacy domestic operations of $602,000, to $2,261,000 in the first quarter of 2013 from $2,863,000 in the first quarter of 2012, and a decrease in net revenues from European operations of $435,000, including the effect of exchange rate fluctuations of the United States dollar relative to the Euro, to $975,000 in the first quarter of 2013 from $1,410,000 in the first quarter of 2012.