Biomerica Reports First Quarter Fiscal 2025 Financial Results
Total Revenue Increases 6% Over Same Period Last Year
Cost-Saving Measures Now Implemented, Expected to Reduce Annual Expenses by 16% to 23%, Representing $1.0 to $1.4 Million Reduction
Biomerica's At-Home PSA Screening Test Receives Saudi Food and Drug Authority (SFDA) Approval for Early Detection of Prostate Cancer
IRVINE, Calif., Oct. 16, 2024 (GLOBE NEWSWIRE) -- Biomerica, Inc. (NASDAQ:BMRA), (the "Company") a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the first quarter of fiscal 2025 ended August 31, 2024.
Key Highlights:
Saudi FDA Approval for At-Home PSA Screening TestBiomerica's Fortel® Prostate (PSA) Screening Test has received approval from the SFDA. This at-home diagnostic tool enables men to detect early signs of prostate cancer using a simple finger-prick blood sample. Elevated PSA levels, a potential indicator of prostate conditions such as cancer, can be detected, with results available in just 10 minutes. This user-friendly test is poised to make early detection more accessible, contributing to improved prostate cancer outcomes globally.
inFoods® IBS Pilot with 1,100 Physician Group CompletedBiomerica's pilot program for its groundbreaking inFoods® IBS product, conducted with a select number of physicians from a large physician group comprising of 1,100 members, has been completed. We anticipate this large physician group will utilize the results of this study to evaluate a possible system-wide launch of inFoods® IBS across all physicians in the group. inFoods® IBS aims to identify individual food triggers for IBS symptoms, offering a personalized approach to symptom relief that has shown strong success in clinical studies and demonstrated significant potential in improving patient outcomes.
Potential Distribution Partnerships for inFoods® IBSBiomerica is actively engaging in discussions with several potential distribution partners, both within the United States and internationally, to expand the availability of inFoods® IBS.
Progress on H. pylori Product DistributionThe Company is in active discussions with major clinical laboratories and distributors for its hp+detect™ product. This diagnostic test offers significant cost savings for clinical labs and provides superior performance in detecting Helicobacter pylori, a leading cause of stomach ulcers and a risk factor for stomach cancer.
First Quarter Fiscal 2025 Financial Results
Biomerica delivered a 6% year-over-year revenue increase in the first quarter of fiscal 2025, with net sales rising to $1.8 million from $1.7 million in the prior year's quarter. This growth was primarily driven by a higher demand from new and existing customers as well as new contract manufacturing agreements.
During the fiscal quarter, we implemented our previously announced cost-savings plan, which is expected to reduce expenses by 16% to 23% representing $1.0 million to $1.4 million in savings for the current fiscal year. As part of this plan, we incurred one-time reduction-in-force (RIF) costs aimed at streamlining operations for long-term profitability. These RIF-related expenses impacted both gross margins and operating expenses for the period. Gross margin for the quarter was 16%, compared to 24% in the first quarter of fiscal 2024. Adjusting for the RIF costs, the gross margins were consistent with historical levels.
Operating expenses for the quarter were $1.7 million, a slight increase from $1.6 million in the prior year. The rise was primarily due to one-time severance costs ...
