Biomerica Reports 208% Increase In Q3 Fiscal 2021 Sales, Over Q3 Fiscal 2020

• Sales increase driven by first sales of COVID-19 Antigen Rapid Test in Europe after January 2021 CE Mark approval
  
  
• Awarded two new patents for InFoods diagnostic guided therapy technology, including the first Japanese patent
  
  
• InFoods IBS diagnostic-guided therapy clinical trial expecting top line trial results by the third calendar quarter of 2021
  

IRVINE, Calif., April 15, 2021 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), a global provider of advanced medical products, today announced its fiscal third quarter 2021 financial results for the three months ended February 28, 2021.

The Company reported consolidated sales of $3.62 million for the fiscal third quarter of 2021, compared to $1.18 million for the same period in fiscal 2020, an increase of 208%. The increase in revenues during the quarter was primarily due to sales of the Company’s 15-minute COVID-19 Antigen Rapid Test in Europe, after its January 2021 CE Mark approval, as well as increased sales for several of the Company’s other diagnostic products. For the nine months ended February 28, 2021, consolidated net sales for Biomerica increased 55% to $6.14 million compared to $3.97 million for the same period in fiscal 2020.

The Company’s cost of sales for fiscal third quarter 2021, included an exceptionally large inventory reserve of approximately $1.43 million. Gross margin excluding this exceptionally large inventory reserve would have been 38%. During the quarter the company increased its investment in research and development which is largely focused on several COVID-19 tests and ongoing development of the InFoods IBS product. The Company incurred higher general and administrative expenses, mainly due to higher reserves, and increased legal, personnel and consulting costs related to the Company preparing for anticipated growth related to the InFoods Technology, and possible commercialization of other products in the pipeline. Net loss for the fiscal third quarter 2021 was $1.84 million compared to a net loss of $0.86 million for the same period in fiscal 2020. During the fiscal third quarter, the Company recorded a receivables reserve of $0.29 million and recorded a non-cash charge of $0.24 million for stock-based compensation related to the annual equity (stock option) awards granted to its Board of Directors and senior managers. Excluding the exceptionally large inventory and receivables reserves, and the non-cash annual compensation charge, the Company would have reported a profit for the quarter.