TearLab Corporation, Reports Q3-10 Financial Results

SAN DIEGO, Nov. 11, 2010 (GLOBE NEWSWIRE) -- TearLab Corporation (Nasdaq:TEAR) (TSX:TLB) today reported its consolidated financial results for the quarter ended September 30, 2010. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles.

For the three months ended September 30, 2010, TearLab's net revenues were $210,000 as compared to $263,000 for the same period in 2009. The Company's loss for the third quarter of 2010 was approximately $2.2 million, or $0.15 per share. This compares to a loss of $0.7 million, or $0.07 per share, for the third quarter of 2009, which was positively impacted by a $0.6 million, or $0.06 per share, income tax recovery.

For the nine months ended September 30, 2010, TearLab's net revenues were $903,000 as compared to $603,000 for the same period in 2009. The Company's loss for the first three quarters of 2010 was approximately $5.8 million, or $0.42 per share. This compared to a loss of $2.7 million, or $0.27 per share, for the first three quarters of 2009, which was positively impacted by a $2 million, or $0.20 per share, income tax recovery. 

"We achieved the second of our three major milestones in the third quarter – reimbursement for our TearLab® Osmolarity Test in the U.S. at a rate of $24.01 per eye," commented Elias Vamvakas, TearLab's Chief Executive Officer.

Mr. Vamvakas continued, "We are very excited about this important accomplishment and continue to wait for the realization of our third and final major milestone – receipt of CLIA waiver certificate. We believe the combination of reimbursement and CLIA waiver is key to both driving the widespread use and commercial success of the TearLab® Osmolarity System in the U.S. and to maximizing penetration of the European and Canadian markets." 

Conference Call and Webcast Information

TearLab will hold a conference call to discuss these results today, November 11, at 8:30am Eastern Time at 877-303-6310, website at www.tearlab.com under the "webcasts" link in the Investor Relations section. For those wishing to listen to a recording of the call via telephone, a replay will be made available as soon as possible after the conclusion of the live call and will remain posted for a period of seven days. To listen to the recording, simply telephone (Toll free) 800-642-1687 or Toll 706-645-9291 and enter reservation #18561749 when prompted.

About TearLab Corporation

TearLab Corporation ( www.tearlab.com) develops and markets lab-on-a-chip technologies that enable eye care practitioners to improve standard of care by objectively and quantitatively testing for disease markers in tears at the point-of-care. The TearLab Osmolarity Test, for diagnosing Dry Eye Disease, is the first assay developed for the award-winning TearLab Osmolarity System. Headquartered in San Diego, CA, TearLab Corporation's common shares trade on the NASDAQ Capital Market under the symbol 'TEAR' and on the Toronto Stock Exchange under the symbol 'TLB'.

Forward-Looking Statements

This press release may contain forward-looking statements. These statements relate to future events and are subject to risks, uncertainties and assumptions about TearLab. Examples of forward-looking statements in this press release include building clinician interest in the TearLab™ Osmolarity System in Europe and Canada, seeking CLIA waiver, the potential impact of a CLIA waiver on the commercial success and widespread use of the TearLab™ Osmolarity System in the U.S., Europe and Canada, the intention to launch the TearLab™ Osmolarity System to a broader market in the U.S. if CLIA waiver is granted, and the future commercial adoption of the TearLab™ Osmolarity System. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. Many factors may cause our actual results to differ materially from any forward-looking statement, including the factors detailed in our filings with the Securities and Exchange Commission and Canadian securities regulatory authorities, including but not limited to our annual and quarterly reports on Forms 10-K and 10-Q. We do not undertake to update any forward-looking statements.
TearLab Corp.
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in U.S. dollars except number of shares)
(Unaudited)
($ 000's)
 
  Three months ended
  September 30,
  2010 2009
     
Revenue    
TearLab $ 210 $ 263
Cost of goods sold    
TearLab (excluding amortization of intangible assets) 105 139
Gross profit (loss) 105 124
Operating expenses    
General and administrative 886 566
Clinical , regulatory and research & development  270 229
Sales and marketing 371 117
Amortization of intangible assets 304 304
Total operating expenses 1,831 1,216
Loss from operations (1,726) (1,092)
Other income (expense)    
Interest income 6
Changes in fair value of warrant obligations (264) 13
Interest expense (52) (41)
Amortization of deferred financing charges, warrants & beneficial conversion values (121) (135)
Other income (loss) 1 (18)
Total other income (expense) (430) (181)
Loss from continuing operations before income taxes (2,156) (1,273)
Income tax recovery 618
Net loss $ (2,156) $ (655)
Weighted average shares outstanding - basic and diluted 14,765,794 9,866,685
Loss per share – basic and diluted $ (0.15) $ (0.07)
 
 
TearLab Corp.
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in U.S. dollars except number of shares)
(Unaudited)
($ 000's)
 
  Nine months ended
  September 30,
  2010 2009
     
Revenue    
TearLab 903 $  603
Cost of goods sold    
TearLab (excluding amortization of intangible assets) 492 388
Gross profit 411 215
Operating expenses    
General and administrative 2,876 2,460
Clinical , regulatory and research & development  1,036 868
Sales and marketing 992 500
Amortization of intangible assets 911 911
Total operating expenses 5,815 4,739
Loss from operations (5,404) (4,524)
Other income (expense)    
Interest income 16 2
Changes in fair value of warrant obligations 209 44
Interest expense (157) (41)
Amortization of deferred financing charges, warrants & beneficial conversion values (414) (135)
Other income (loss) (26) 8
Total other income (expense) (372) (122)
Loss from continuing operations before income taxes (5,776) (4,646)
Income tax recovery 1,968
Net loss $ (5,776) $ (2,678)
Weighted average shares outstanding - basic and diluted 13,871,553 9,845,155
Loss per share – basic and diluted $ (0.42) $ (0.27)
 
 
TearLab Corp.
CONSOLIDATED BALANCE SHEETS
(expressed in U.S. dollars)
( $ 000's)
 
  September 30, 2010 December 31, 2009
  (Unaudited)  
ASSETS    
Current assets    
Cash and cash equivalents $ 3,713 $ 106
Accounts receivable, net 175 149
Inventory, net 411 196
Prepaid expenses 203 338
Other current assets 40 55
Total current assets 4,542 844
Fixed assets, net 130 140
Patents and trademarks, net 200 220
Other non-current assets 8 176
Intangible assets, net 7,443 8,353
Total assets $ 12,323 $ 9,733
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities    
Accounts payable $ 252 $  448
Accrued liabilities 1,103 1,093
Due to stockholders 31 38
Deferred revenue 143 151
Obligations under warrants 531 3
Notes payable and accrued interest 1,794 1,243
Total current liabilities 3,854 2,976
     
Stockholders' equity    
Capital stock    
Preferred Stock, par value $0.001, authorized 10,000,000, zero issued and outstanding at both September 30, 2010 and December 31, 2009
Common stock, par value $0.001 per share, authorized 40,000,000, issued and outstanding: September 30, 2010 – 14,765,794; December 31, 2009 – 9,866,685 15 10
Additional paid-in capital 386,273 378,790
Accumulated deficit (377,819) (372,043)
Total stockholders' equity 8,469 6,757
Total liabilities and stockholders' equity $ 12,323 $ 9,733
CONTACT:  Kilmer Lucas Inc.          Investors:          Stephen Kilmer, President            (905) 690-2400 Ext. 21            stephen@kilmerlucas.com           Media:          Leonard Zehr, Managing Director            (905) 690-2400 Ext. 41            len@kilmerlucas.com

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