THOROFARE, N.J., May 14, 2014 (GLOBE NEWSWIRE) -- Akers Biosciences, Inc. (AIM:AKR.L) (Nasdaq:AKER), (the "Company" or "ABI"), a leading designer and manufacturer of rapid diagnostic screening and testing products, reports its financial results for the first quarter ended March 31, 2014.
First Quarter Highlights:
- Completed IPO on NASDAQ Capital Market, raising approximately $15 million in gross proceeds in an underwritten offering
- Revenue for the period ended March 31, 2014 totaled $1,173,919, primarily driven by sales of CHUBE disposable alcohol breathalyzers and PIFA Heparin/PF4 Rapid Assay products
- Net loss of $595,600 mainly due to costs associated with NASDAQ IPO
- Gross margin of 45% achieved in the first quarter of 2014 due to increase in average product selling price
- EBITDA: Net loss of $526,540
"The first quarter of 2014 saw the achievement of a transformational event in the closing of the Company's fully underwritten offering on January 28, 2014, and the admission of the Company's shares for trading on NASDAQ," said Raymond F. Akers, Jr. PhD, Co-founder and Executive Chairman of the Board. "The Company received approximately $15 million in gross proceeds, before underwriting discounts, commissions and offering expenses which allows us to focus exclusively on the rapid commercialization of our product portfolio."
Dr. Akers continued, "not only did the successful NASDAQ IPO equip the Company with the necessary financial resources to execute its business plan, it also had the effect of broadening our shareholder base which spans two continents (with our dual stock market listings in both the United Kingdom and the United States)."
"Key to the achievement of our commercialization strategy," added Dr. Akers, "is the expansion of our internal sales organization and further development of our sales channels. I am pleased to state that we have made significant progress already this year in both of these areas with the recruitment of Edwin C. Hendrick as Executive Vice President, Sales and Marketing and the expansion of distribution agreements with third party distributors.
"Mr. Hendrick is a recognized leader in product positioning and the development and execution of sales and marketing strategies in the medical device industry. In a career in healthcare that began with Abbott Diagnostics and now spans nearly 25 years, he has led the commercial aspects of diagnostic and healthcare services companies ranging in size from $10 million to $1 billion in revenues. In every case, Mr. Hendrick contributed to more than doubling or tripling revenues and profitability of those businesses, leading to successful sales of his past three companies to industry leaders. We are building out the team of sales executives under Mr. Hendrick's leadership and look forward to continuing our strategic recruitment program."
ABI's total revenue for the three months ended March 31, 2014, was $1,173,919 compared to $571,473 in the three months ended December 31, 2013. Revenue for the three months ended March 31, 2014 was primarily driven by the sales of alcohol breathalyzer products and of the Company's PIFA Heparin/PF4 Rapid Assay products.
ABI's gross profit margin, as a percentage of product revenue, continued to improve, increasing to 45% for the three months ended March 31, 2014. The improvement in gross profit margin was derived from an increase in the average selling price of products in the three months ended March 31, 2014.
General and administrative expenses for the three months ended March 31, 2014 totaled $653,682. The initial public offering on the NASDAQ Capital Market and the related regulatory requirements led to significant increases in expenses for professional services, stock market and investor relations activities, staffing and management fees during the quarter.
Sales and marketing expenses for the three months ended March 31, 2014 totaled $211,098. The Company had significant declines in royalties and external sales commissions that were somewhat offset by increases in internal sales commissions and consulting fees for the exploration of additional markets for our products during the period.
The Company's dedicated technical sales account executives have moved away from a direct selling model for PIFA Heparin/PF4 Rapid Assay products to one that works in tandem with over 300 sales representatives of ABI's US distribution partners, Cardinal Health and Fisher HealthCare. This reorganization and need to dedicate time and resources to building relationships with distributor representatives hampered domestic sales growth in the short term but has set the stage for an enhanced selling effort in 2014.
For the three months ended March 31, 2014, the Company generated a net loss of $595,600. A significant portion of the loss is attributable to the increased costs for professional services related to regulatory compliance and reporting associated with the NASDAQ IPO, completed in January 2014.
Earnings before interest, depreciation, taxes and amortization was a loss of $526,540 for the three months ended March 31, 2014.
"The successful NASDAQ IPO on January 28, 2014 provided financial stability and, with that, the opportunity to exclusively focus on the execution of our business plan. The first quarter of 2014 has seen the Company begin to put its capital to work through investment in sales and marketing capabilities and product development initiatives," added Dr. Akers. "We look forward to updating shareholders on our progress periodically."
The Form 10-Q containing the financial statements for the first quarter of 2014 is available for viewing on the Company's website at www.akersbiosciences.com or www.sec.gov.
Conference Call Information:
| Wednesday, May 14, 2014 at 10:15 a.m. Eastern time | |
| Domestic: | 1-877-941-2321 |
| International: | 1-480-629-9666 |
| Conference ID: | 4683752 |
| Webcast: http://ir.akersbiosciences.com/events.cfm | |
| Replays - Available through May 28, 2014 | |
| Domestic: | 1-877-870-5176 |
| International: | 1-858-384-5517 |
| Conference ID: | 4683752 |
ABOUT AKERS BIOSCIENCES, INC.
Akers Biosciences develops, manufactures, and supplies rapid, point of care screening and testing products designed to bring healthcare information both rapidly and directly to the consumer or healthcare provider. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of several proprietary platform technologies. The Company's state-of-the-art rapid diagnostic assays can be performed virtually anywhere in minutes when time is of the essence. The Company has aligned with major healthcare companies and high volume medical products distributors to maximize product offerings, and to be a major worldwide competitor in diagnostics.
Additional information on the Company and its products can be found on our website at www.akersbiosciences.com. Follow us on Twitter @AkersBio.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target," "intend" and "expect" and similar expressions, as they relate to Akers Biosciences, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.