SAN JOSE, Calif., May 15 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the first quarter ended March 31, 2006. Net sales of $266,000, represented a 111% increase from the sales of $126,000 in the prior year period, and resulted in a net loss of $70,000 ($.02 per share) as compared with a net loss of $281,000 ($.07 per share) for the same period of 2005. At March 31, 2006, the Company reflected cash balances of $329,000 and accounts receivable of $134,000 compared with $452,000 in cash and $11,000 in accounts receivable at December 31, 2005. There was no bank indebtedness outstanding at either date. "The first quarter increase in net sales reflected strength in both the U.S. and International markets, with increases of 209% and 53%, respectively, in the first three months of 2006 as compared with the prior year period. The domestic gain was attributable to increased purchases of the Company's use- patented mood enhancing compounds by current customers; the growth outside the United States was a result of sales to a new customer in Latin America and increased sales to a distributor in the Far East. While we are very pleased to see current customers increasing their purchases, attracting additional clients continues to be a focus for the current year," noted a Company spokesperson. The 75% reduction in the net loss was attributable to the increase in sales and an 80% gross margin this year, compared to a 67% prior year margin. In addition, selling, general and administrative expenses decreased by $66,000 (20%), despite the incurrence of $34,000 in non-recurring expenses in the current year quarter. 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 http://www.erox.com/. The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause results to differ from predicted results. Further information on factors that could affect the Company's results is detailed in the Company's annual report to shareholders on Form 10-KSB for the year ended December 31, 2005, and Form 10-QSB for the quarter ended March 31, 2006, as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Unaudited) (Dollars in thousands) March 31, December 31, 2006 2005 Assets Cash and cash equivalents $329 $452 Accounts receivable 134 11 Inventories, net 47 70 Other current assets 15 18 Property and equipment, net 6 8 Total $531 $559 Liabilities and shareholders' deficit Accounts payable $88 $21 Other current liabilities 88 119 Common stock 20,814 20,809 Accumulated deficit (20,459) (20,390) Total $531 $559 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months ended March 31, 2006 2005 Net revenues $266 $126 Cost of goods sold 53 41 Research and development 24 46 Selling, general and administrative 260 326 Loss from operations (71) (287) Other income 1 6 Net loss $(70) $(281) Earnings (loss) per share, basic and fully diluted:$(0.02) $(0.07) Weighted average common shares outstanding-basic and fully diluted 4,152 4,152 Net income (loss) per share is based on the weighted average number of common shares and common equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti- dilutive. DATASOURCE: Human Pheromone Sciences, Inc. CONTACT: William P. Horgan, Chairman, CEO of Human Pheromone Sciences, Inc., +1-408-938-3030 Web site: http://www.erox.com/

Copyright