Hydron Technologies, Inc. Reports Third Quarter Results and Announces Completion of Private Placement Financing
November 13 2003 - 2:03PM
PR Newswire (US)
Hydron Technologies, Inc. Reports Third Quarter Results and
Announces Completion of Private Placement Financing POMPANO BEACH,
Fla., Nov. 13 /PRNewswire-FirstCall/ -- Hydron Technologies, Inc.
(BULLETIN BOARD: HTEC) announced today that the Company had net
sales of $295,423 and a net loss of $163,572 ($.02 per share) for
the quarter ended September 30, 2003, as compared to net sales of
$305,281 and a net loss of $204,049 ($.04 per share) for the
quarter ended September 30, 2002. The Company also reported net
sales of $860,641 and a net loss of $528,959 ($.08 per share) for
the nine months ended September 30, 2003, as compared to net sales
of $1,187,686 and a net loss of $596,547 ($.12 per share) for the
nine months ended September 30, 2002. Catalog net sales for the
three months ended September 30, 2003, were $244,635, a decrease of
$44,085, or 15% from catalog net sales of $288,720 for the three
months ended September 30, 2002. Catalog sale for the nine-month
period ended September 30, 2003 were $789,506, a decrease of
$130,285, or 14%, from Catalog net sales of $919,791 for the nine
months ended September 30, 2002. The decrease in catalog net sales
was primarily the result of fewer promotions to existing customers.
Non-catalog net sales, including television retailers, contract
sales and international, for the three months ended September 30,
2003 were $50,788, an increase of $34,227, or 207%, from
non-catalog net sales of $16,561 for the three months ended
September 30, 2002. Non-catalog sales for the nine-month period
ended September 30, 2003 were $71,135, a decrease of $196,760, or
73%, from non-catalog net sales of $267,895 for the nine months
ended September 30, 2002. This decrease is primarily due to timing
of private label orders and a decrease in sales to retail stores.
The Company's overall gross profit margin for the three months
ended September 30, 2003 was 74%, as compared to 81% for the three
months ended September 30, 2002. The decrease in gross profit
margins for the period reflects a shift in product mix as
non-catalog sales, which have lower margins, represent a larger
portion of the sales mix versus the same quarter last year. Total
operating expenses for the three months ended September 30, 2003
were $381,030, a decrease of $69,527, or 15%, from total operating
expenses of $450,557 for the three months ended September 30, 2002.
The decrease was principally due to decreased royalty expense,
lower depreciation, sales commissions, warehousing costs and
administrative expenses. The net loss for the three months ended
September 30, 2003 was $163,572, a decrease of $40,477, or 20%, as
compared to a net loss of $204,049 for the three months ended
September 30, 2002. The decrease in the net loss resulted from
stringent cost controls and the factors discussed above. Hydron
also announced today the completion of a non-brokered Private
Placement financing raised $1,105,000 to finance the development of
its tissue oxygenation technology. The Company has accepted
Subscription Agreements for 2,210,000 shares of Common and
2,210,000 Warrants to purchase an equal number of shares during the
next five years, at an exercise price of $1.00 per share at a unit
cost of $.50. On October 15, 2003 the Company paid the non-interest
bearing bridge loan from the Company Chairman and another Director
and the Directors reinvested the proceeds into the Private
Placement offering. The proceeds of the placement will be added to
the Company's working capital and enable Hydron Technologies to
expand its research and product development program related to
Hydron's patent pending skin and tissue oxygenation technology. The
Company expects the U.S. Patent Office to issue the patent within
the next 30 days. Mr. Terrence McGrath, the Company's Chief
Operating Officer, said, "Hydron's primary focus is the advancement
of its oxygenation technology. The oxygenation technology enables
the infusion of oxygen, using microbubble laden fluids, into skin
and tissue topically, without using the bloodstream. This unique
technology provides Hydron the opportunity to develop products
ranging from medical treatments for wounds and burns and
development of over-the- counter products for diaper rash, scar
reduction and cosmeceutical skin care products. Mr. McGrath stated,
"With the closing of the private placement, Hydron is now in a
position to accelerate its research program to include development
of marketable products and efficacy testing of medical treatments.
Hydron will also seek strategic alliances to pursue certain medical
applications associated with the oxygen project. Hydron
Technologies, Inc. markets a broad range of personal care products
and is committed to the research and development of products and
medical applications associated with its proprietary tissue
oxygenation technology. The Company markets its skin care products
through Hydron's direct-to-consumer catalog and on the Internet at
http://www.hydron.com/. Catalogs are available by calling
1-800-4-HYDRON (1-800-449-3766). Except for historical information,
all of the expectations and assumptions contained in the foregoing
are forward-looking statements involving risks and uncertainties.
For additional information regarding the risks associated with the
Company's business, refer to Hydron Technologies, Inc. reports
filed with the SEC. DATASOURCE: Hydron Technologies, Inc. CONTACT:
Terrence S. McGrath, COO of Hydron Technologies, +1-954-861-6416
Web site: http://www.hydron.com/
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