November 14, 2006 - 3:21 PM EST
Human Pheromone Sciences Announces Third Quarter Results
Threefold Growth in Net Revenues Results in Operating and Net Income
SAN JOSE, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ('HPS' or 'the Company') today announced results for the third quarter ended September 30, 2006. Net revenues of $365,000, more than tripled the net revenues of $91,000 in the prior year period, and resulted in net income of $49,000 ($.01 per share) as compared with a net loss of $198,000 ($.05 per share) for the same period of 2005. For the nine months ended September 30, 2006, net revenues were $815,000, a 134% increase from the $348,000 reported in the prior year period, and resulted in a net loss of $177,000 ($.04 per share) as compared with a net loss of $727,000 ($.18 per share) for the same period of 2005. At September 30, 2006, the Company's cash and accounts receivable aggregated $2,027,000 as compared with $463,000 at December 31, 2005.
The Company indicated that the $274,000 growth in revenue in the quarter was primarily attributable to a significant increase in pheromone purchases by the Company's largest customers in this area and $57,000 in revenue attributable to a Licensing Agreement signed by the Company in August of 2006. The balance of cash received by the Company under the License Agreement, $1,693,000 is reflected in the financial statements as deferred income, to be amortized over future quarters. 'The increase in net revenues shows continued consumer acceptance of the efficacy of our currently patented human pheromone technology in the fragrance market, and new interest in its potential in additional consumer markets worldwide. In addition, we are pleased by the progress being made and third party interest in new technology being developed and tested by the Company,' a spokesperson indicated.
Human Pheromone Sciences, Inc. is a technology-based company, whose proof-of concept products included prestige-priced fragrances and toiletries and environmental products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. These products contain mood-enhancing compounds, whose efficacy has been validated at leading universities around the world, and whose use is covered under United States and foreign patents. The Company is also involved in research and product development efforts on new compounds that have been previously identified as stimulating the emotional centers of the human brain. Further information is available on line at www.erox.com.
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