PURE Bioscience Reports Fiscal 2018 Third Quarter and Nine-Month Financial Results
SAN DIEGO--(BUSINESS WIRE)--Jun 13, 2018--PURE Bioscience, Inc. (), creator of the patented non-toxic silver dihydrogen citrate ( SDC ) antimicrobial, today reported financial results for the fiscal third quarter and nine-month period ended April 30, 2018.
Q3: Summary of Results of OperationsRevenues for the fiscal third quarter ended April 30, 2018 increased 15% to $390,000, compared with revenues of $338,000 in the prior year fiscal third quarter. The increase was due to new customer adoption. Core food safety revenues for the fiscal third quarter ended 2018 increased 35% as compared with food safety revenues in the fiscal third quarter ended 2017. Net loss for the fiscal third quarter in 2018 was $1.69 million, as compared with $1.74 million for fiscal third quarter in 2017. Net loss, excluding derivative expense, and share-based compensation, for the third fiscal quarter in 2018 was $1.1 million, as compared with $1.3 million for the third quarter in 2017. Net loss per share was ($0.02) as compared with ($0.03) for the fiscal third quarter ended 2018 and 2017. Gross margin was 57% during the third quarter of fiscal 2018 as compared with 61% during the same period in fiscal 2017. The decrease in gross margin percentage was primarily attributable to the sale of lower margin formulations and packaging configurations of our products during the quarter ended April 30, 2018, as compared with the prior period.
Nine Months: Summary of Results of OperationsRevenues for the nine-months ended April 30, 2018 decreased 4% to $1.27 million compared with prior year nine-month revenues of $1.32 million. Core food safety revenues for the nine months ended 2018 decreased 8% as compared with food safety revenues in the nine months ended 2017. The decline in both total and food safety revenues was due to timing of product orders, as the initial system-wide stocking order from Chipotle occurred in fiscal 2017 Q1. Food safety revenues were up 44% year over year, excluding the Chipotle initial stocking order from Q1 2017. Net loss for the nine months ended April 30, 2018, was $6.1 million compared with $4.4 million for the nine month period in 2017. Net loss, excluding derivative income, inducement expense and share-based compensation, for the nine months ended April 30, 2018 was $3.7 million, as compared with $3.9 million for the nine month period in 2017. Net loss per share was ($0.09) as compared with ($0.07) for the nine months ended fiscal 2018 and 2017. Gross margin was 63% during the first nine months of fiscal 2018 as compared with 60% during the same nine-month period in fiscal 2017. The increase in gross margin percentage was primarily attributable to the sale of higher margin formulations and packaging configurations of our products during the nine months ended April 30, 2018 as compared with the prior period.
Hank R. Lambert, CEO, said that, “We’ve experienced a robust start to fiscal Q4 and look forward to ending our year with strong upward momentum. Chipotle reorders for PURE ® Hard Surface disinfectant have begun to ramp, normalizing inventory turn. Our core food safety revenues have shown consistent double digit quarterly growth, thereby validating our strategic focus and the game changing nature of our SDC-based solutions. Taylor Farms has expanded use of PURE Control ® in two of its produce processing plants – and is executing on its plan for implementation into its 14 plant network. In addition, we continue to generate growing sales of PURE Hard Surface as a truck sanitization solution into the Sysco food transportation network, a new vertical launched earlier this fiscal year.
“Addressing the expense side of the business, we’ve taken steps to significantly reduce our overhead. This combination of revenue momentum and expense control fuels our confidence that we will achieve a cash flow breakeven annual revenue run rate of approximately $7 million in calendar Q1 2019,” concluded Lambert.
2018 Fiscal Third Quarter Financial Results Conference Call
The Participant Dial-In Number for the conference call is 1-631-891-4304. Participants should dial in to the call at least five minutes before 1:30pm PDT (4:30pm ET) on June 13, 2018. The call can also be accessed “live” online at http://public.viavid.com/index.php?id=129853.
A replay of the recorded call will be available for 90 days on the Company’s website ( http://www.purebio.com/investors/events-presentations/ ). You can also listen to a replay of the call by dialing 1-844-512-2921 (international participants dial 1-412-317-6671) starting June 13, 2018, at 7:30pm ET through June 20, 2018 at 11:59pm ET. Please use PIN Number 10004941.
About PURE Bioscience, Inc.
PURE Bioscience, Inc. is focused on developing and commercializing our proprietary antimicrobial products primarily in the food safety arena -- providing solutions to the health and environmental challenges of pathogen and hygienic control. Our technology platform is based on patented stabilized ionic silver, and our initial products contain silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent, which offers 24-hour residual protection and formulates well with other compounds. As a platform technology, SDC is distinguished from existing products in the marketplace because of its superior efficacy, reduced toxicity and it mitigates bacterial resistance. PURE is headquartered in El Cajon, California (San Diego metropolitan area). Additional information on PURE is available at www.purebio.com.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause our actual results to differ materially from any forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s failure to implement or otherwise achieve the benefits of its proposed business initiatives and plans; acceptance of the Company’s current and future products and services in the marketplace, including the Company’s ability to convert successful evaluations and tests for PURE Control into customer orders and customers continuing to place product orders as expected and to expand their use of the Company’s products; the Company’s ability to raise the funding required to support its continued operations and the implementation of its business plan; the ability of the Company to develop effective new products and receive required regulatory approvals for such products, including the required data and regulatory approvals required to use its SDC-based technology as a direct food contact processing aid in raw meat processing and to expand its use in OLR poultry processing; competitive factors, including customer acceptance of the Company’s SDC-based products that are typically more expensive than existing treatment chemicals; dependence upon third-party vendors, including to manufacture its products; and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission (the SEC), including its Form 10-K for the fiscal year ended July 31, 2017 and Form 10-Q for the third fiscal quarter ended April 30, 2018. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
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