for the rpbif.ob fans on the board...thanks dr bio.
whats up with the five letter name with the ob at the end?
Response Biomedical Reports 2005 Financial Results
Vancouver, British Columbia, May 1, 2006 – Response Biomedical Corporation (TSX–V: RBM, OTCBB: RPBIF) today reported financial results for the year ended December 31, 2005. Amounts, unless specified otherwise, are expressed in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP). Select operational and financial results are outlined below and should be read in conjunction with the Company’s audited consolidated financial statements and related MD&A which can be found at www.responsebio.com, SEDAR (Canada) www.sedar.com, or EDGAR (US) www.sec.gov/edgar/searchedgar/webusers.htm.
In announcing the results, President and Chief Executive Officer Bill Radvak said, “2005 was a year in which we significantly expanded our opportunities to leverage the RAMP platform, increased traction in key markets and furthered our strategic partnerships. In early 2006, we significantly improved the Company’s financial position by closing a $12 million private placement. We are positioned to execute on our business strategy for RAMP in 2006, including exploiting opportunities we see in rapid clinical cardiovascular and infectious disease testing.”
Summary Fiscal 2005 Results
Total revenues for the year ended December 31, 2005 were $3.49 million compared to $2.68 million in 2004, an increase of 30%. Revenue from product sales for the year ended December 31, 2005 were $3.1 million compared to $2.1 million in 2004, an increase of 45% largely due to an increase in biodefense product sales of 87% to $1.64 million compared to $880,000 in 2004. The increase in biodefense product sales was primarily due to a growing customer base and growing acceptance of the Company’s products following completion in November 2004 of an 18–month study performed by AOAC International and funded by the U.S. Department of Homeland Security and the U.S. Department of Defense in which the RAMP Anthrax Test was the only handheld anthrax test to receive AOAC certification. Clinical cardiac product sales for the year ended December 31, 2005 increased 46% to $740,000 compared to $506,000 in 2004 due to timing of shipments to the Company’s distributor in China. Sales of the Company’s West Nile Virus products for the year ended December 31, 2005 decreased 5% to $707,000 compared to $741,000 in 2004 due to weather patterns that were less conducive to the spread of the disease. Revenue from contract service fees and collaborative research arrangements for the year ended December 31, 2005 were $401,000 compared to $550,000 in 2004, a decrease of 27%. This decrease was primarily due to the timing of the performance of services required to recognize service revenue from the Company’s collaborations with 3M Co., Shionogi & Co., Ltd. and General Dynamics Canada Ltd.
Gross margin for the year ended December 31, 2005 increased to 53% compared to 48% in 2004 due to improved efficiencies offset partially by a change in product mix.
For the year, the Company reported a loss of $8.4 million ($0.12 per share) compared to a loss of $4.9 million ($0.08 per share) in 2004. The increase in loss is primarily due to increased marketing and business development expenses incurred to penetrate the U.S. point–of–care cardiovascular market, increased research and development expenditures for new research and development projects, and license fees to Roche Diagnostics for rights to develop a RAMP NT–proBNP test.
The Company’s working capital deficiency as of December 31, 2005 was $2.9 million, a decrease of $6.0 million from working capital of $3.1 million as of December 31, 2004 principally attributable to cash used in operating activities during the year of $5.5 million, an increase in accounts payable and accrued liabilities of $1.5 million as the Company worked to complete financings that were closed subsequent to year–end, a decrease in inventories of $330,000 to conserve cash, and purchases of property plant and equipment of $535,000 made primarily to increased test manufacturing capacity. This was offset by gross proceeds received from the issuance of $1.56 million in convertible debentures less deferred financing and share issue costs, the use of its line of credit in the amount of $1.1 million, and the exercise of stock options for $141,000.
