Second Quarter 2005 and Year to Date Financial Results:
- Revenue for the quarter ended June 30, 2005, was $4.0 million, as compared to $4.4 million for the quarter ended June 30, 2004.
The decline in revenue was primarily a result of the continued, although decreasing, concentration of the company's sales to the textile markets, adverse effects of competition in the textiles market and the inability of the company to expand its sales staff prior to raising capital in the latter half of 2004.
The company is endeavoring to transition its revenue base from the lower margin textile enzymes to higher margin areas such as enzymes for the pulp & paper, food and feed industries.
- Net loss for the quarter ended June 30, 2005, was $2.3 million, or $0.10 per share, as compared to a $1.1 million net loss, or $0.07 per share, for the quarter ended June 30, 2004.
The higher net loss was primarily a result of the company's increased selling, general and administrative expenses to meet increased financial reporting requirements of being a public company, expenses associated with hiring additional personnel to support new marketing initiatives for the company's Enzyme Business and a $340,000 provision for slow moving inventory items due to the decrease in textile industry net sales.
- Research and development expenses for the quarter ended June 30, 2005, were $1.0 million, as compared to $0.9 million for the quarter ended June 30, 2004. The increase was partially due to the hiring of additional R&D personnel and outside contract labor.
marketing@alchempro.com
