Pyng Medical Corp. Reports Second Quarter Fiscal 2015 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 26, 2015) - Pyng Medical Corp. (TSX VENTURE:PYT) today announced financial and operating results for the three and six months ended March 31, 2015. All amounts are in Canadian dollars unless stated otherwise.

The Company reported total sales of $1,650,528 for the three months ended March 31, 2015, up 13% compared with $1,466,392 for the second quarter of fiscal 2014. The sales increase was mainly driven by higher TPOD sales resulting from the stronger demand from the international market. The gross margin also increased to $848,637 from $665,612 reported a year ago as a result of higher sales and operating efficiency improvements. As a result, gross margin as a percentage of sales increased to 51% from 46% reported for the second quarter of fiscal 2014. Operating expenses increased 18% to $1,014,701 this year from $860,482 reported last year, primarily due to the higher foreign exchange loss, sales and marketing, and product development expenses.

The Company reported a net loss of $166,064 for this quarter, equal to a loss of $0.007 per share, compared to a net loss of $194,870, or loss of $0.008 per share reported one year ago. Earnings before interest, depreciation, amortization and taxes ("EBITDA") from continuing operations were negative $3,790, a decrease of $25,336 from $21,546 reported for the second quarter of fiscal 2014.

For the six months period, total sales of $3,164,603 were recorded, up 5% from $3,003,295 for the comparative period last year. The gross margin increased to $1,512,290 this year from $1,378,536 for last year. Operating expenses went up 8% to $1,787,397 this year as compared to $1,653,989 reported for comparative period of last year. This increase reflected the higher foreign exchange loss resulting from the continuous weakening of the Canadian dollar, higher sales and marketing, and product development costs this year.

As at March 31, 2015, the Company had a cash balance of $279,101, an increase of $125,877 compared with the balance of $153,224 as at September 30, 2014. During the quarter ended March 31, 2015, the Company restructured the promissory note signed with its major manufacturing partner and paid back total principal of $58,339 on its promissory notes. The Company continues to pursue debt and/or equity financing to help fund its working capital needs. There can be no assurance that these initiatives will be successful.