Human Pheromone Sciences Announces Third Quarter Results
13 November 2004 - 7:28AM
PR Newswire (US)
Human Pheromone Sciences Announces Third Quarter Results Signs
Research and Development Pact SAN JOSE, Calif., Nov. 12
/PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (NASD:
EROX) ("HPS" or "the Company") today announced results for the
third quarter ended September 30, 2004 and that it had entered into
an agreement with the University of Utah to conduct research and
development programs on a series of compounds previously identified
and isolated by scientists working on behalf of the Company. As a
result of the April 14, 2003 sale of its REALM(R) and innerREALM(R)
trademarks and related assets, the reported financial data for the
periods include information for on-going operations, disposed
operations and net gain on sale of assets. Net revenues of
$300,000, represented a 32% increase from the sales of $227,000 in
the prior year period, and resulted in an operating loss from
on-going operations of $131,000 ($.03 per share) as compared with
an operating loss from on-going operations of $108,000 ($.03 per
share) for the same period of 2003. For the nine months ended
September 30, 2004, net revenues were $708,000, a 40% increase from
the revenues of $506,000 in the prior year period, and resulted in
an operating loss from on-going operations of $494,000 ($.12 per
share) as compared with an operating loss from on-going operations
of $406,000 ($.11 per share) for the same period of 2003. The
Company indicated that is was very pleased by the increase in
revenue for the period, with the growth attributable to increased
pheromone sales domestically, higher private label business outside
the United States and to the launch of its new Demeter Natural
Attraction line in the U.S. in April 2004. Gross margin improved
over the prior year in both the quarter and six months as a result
of lower product costs. Product development, package development
and introduction expenses for these new products were the primary
factors in the increase in selling, general and administrative
expenses in both periods of 2004. The Company noted that these
figures were in line with its plans. The Company has already
established dedicated laboratories at the University, staffed by
its own scientists who have been involved in the research of mood
enhancing compounds for many years, and have published their
results in peer-reviewed scientific journals. "For the past fifteen
years, these scientists have been conducting basic research to
identify naturally-occurring mood-enhancing compounds, and the
Company has invested millions of dollars to conduct this basic
research. We are now focused on testing these products on humans to
validate the efficacy of these proprietary compounds," a Company
spokesperson indicated. The Company noted that it will seek the
broadest patent protection available for any of the compounds whose
efficacy is validated in these human studies. 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 REALM(R), innerREALM(R),
EROX(R) and Natural Attraction(R) trademarks. These products
contain synthesized human pheromones covered under U.S. and foreign
patents. Scientific and consumer studies have shown that the
Company's human pheromones positively impact on the moods,
attitudes and emotions of wearers. Further information is available
on line at http://www.naturalattraction.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, 2003 and quarterly report on Form 10-QSB for the quarter and
nine months ended September 30, 2004 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)
September 30, December 31, 2004 2003 Assets Cash and cash
equivalents $1,363 $1,950 Accounts receivable, net 93 38
Inventories 83 52 Other current assets 44 19 Property and
equipment, net 20 9 Total $1,603 $2,068 Liabilities, convertible
redeemable preferred stock and shareholders' deficit Accounts
payable $66 $23 Other current liabilities 114 150 Convertible
redeemable preferred stock -- 150 Common stock 20,809 20,659
Accumulated deficit (19,386) (18,914) Total $1,603 $2,068 HUMAN
PHEROMONE SCIENCES, INC. Condensed Statements of Operations
(Unaudited) (Dollars in thousands, except per-share data) Three
months Nine months ended September 30, ended September 30, 2004
2003 2004 2003 Net sales and revenues $300 $227 $708 $506 Cost of
goods sold 44 73 117 157 Research and development 27 11 43 18
Selling, general and administrative 364 276 1,053 803 (Loss) from
operations (135) (133) (505) (472) Other income 4 24 11 32 Tax
benefit from ongoing operations -- 1 -- 34 (Loss) from continuing
operations (131) (108) (494) (406) Net income from disposed
operations -- -- -- 79 Net gain on sale of assets 21 (8) 22 1,218
Net income (loss) $(110) $(116) $(472) $891 Basic earnings (loss)
per share: From on-going operations $(0.03) $(0.03) $(0.12) $(0.11)
From disposed operations $0.00 $0.00 $0.00 $0.02 From assets to be
sold $0.01 $0.00 $0.01 $0.33 Net income (loss) $(0.02) $(0 .03)
$(0.11) $0.24 Diluted earnings (loss) per share: From on-going
operations $(0.03) $(0.03) $(0.12) $ (0.09) From disposed
operations $0.00 $0.00 $0.00 $0.02 From assets to be sold $0.01
$0.00 $0.01 $0.26 Net income (loss) $(0.02) $(0.03) $(0.11) $0.19
Weighted average number of shares outstanding - Basic 4,152 4,028
4,121 3,717 Weighted average number of shares outstanding -
Assuming dilution 4,152 4,028 4,121 4,731 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.realmfragrances.com/
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