LOS ANGELES--(BUSINESS WIRE)-- HemaCare Corporation (OTCBB:HEMA) announced today that the Company generated first quarter revenue of $7.0 million and a net loss of $390,000, or $(0.04)/share, compared to first quarter 2010 revenue of $7.8 million and a net loss of $204,000, or $(0.02)/share.
Commenting on the results, HemaCare’s Chief Executive Officer, Pete van der Wal, stated, “Our reported loss in the 2011 first quarter, due entirely to continuation of challenging conditions for our Blood Services segment, obscured gratifying gains for our other lines of business. In particular, revenues derived from our cellular therapy and research products activities rose significantly in the quarter when compared to the prior year period, increasing from $100,000 in the 2010 first quarter to $350,000 in the 2011 first quarter, and now comprise over 5% of total sales. We continue to expect a greater contribution from these activities over the balance of this year and into 2012, based in part on our expanded cell collection service agreement with Dendreon Corporation, maker of Provenge, a novel prostate cancer treatment. We further expect such activities will produce significantly higher profit margins to the Company than those generated by our Blood Services segment.”
ABOUT HEMACARE CORPORATION
HemaCare Corporation is a leading provider of human biological products and services for use in research studies, medical device qualifications, validations, and the development of cellular therapies. HemaCare's customers include biotechnology companies, research organizations, and academic institutions. Together with its subsidiaries, the company engages in the collection, processing, and distribution of blood products in the United States. HemaCare provides its products and services to healthcare providers, hospitals, and research related organizations. The company was founded in 1978 and is based in Van Nuys, California. It trades on the OTC Bulletin Board under the symbol “HEMA”.
This press release also contains “forward-looking statements” under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Statements herein that are not historical facts are forward-looking statements pursuant to the safe harbor provisions referenced above. You may also identify forward-looking statements by use of the words “anticipates,” “expects,” “intends,” “plans” and similar expressions. The forward-looking statements in this press release include statements that HemaCare expects its revenues from its cellular therapy and research products activities to increase in future periods and produce higher profit margins than those generated by the Company’s blood services segment. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified. Such risks and uncertainties include, without limitation, the following: lower than expected revenues from services the Company expects to provide to Dendreon Corporation; a reduction in operating margins occasioned by costs increasing more rapidly than market prices, the reduced demand for blood products, declining blood donations, the loss of customers or the inability to pass on cost increases due to increased competition, an increase in operating costs due to changes in industry regulations and standards, a decrease in reimbursement rates; our competitive position may decline due to the potential adverse effect from changes in the healthcare industry, including consolidations, which could affect access to customers, our inability to attract, retain and motivate management and other skilled employees, an increased emphasis by our competitors on customer service may diminish the advantages we enjoy from our service-focused operations, and our competitors’ not-for-profit status gives them advantages in acquiring customers; and the other risks and uncertainties discussed from time to time in the documents HemaCare files with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlined in the forward-looking statements contained herein. The Company undertakes no obligation to update any of these forward-looking statements to reflect actual results or events or circumstances after the date hereof.
Condensed Consolidated Statement of Operations
|For the Three
|Statements of Operations:||2011||2010|
|General and administrative expenses||$1,235,000||$1,580,000|
|Loss before income taxes and discontinued operations||($368,000||)||($192,000||)|
|Provision for income taxes||10,000||-|
|Loss before discontinued operations||($378,000||)||($192,000||)|
|Loss from discontinued operations, net of tax||($12,000||)||($12,000||)|
|Basic and diluted loss per share||($0.04||)||($0.02||)|
|Weighted average shares outstanding – basic||9,713,000||10,050,000|
|Weighted average shares outstanding – diluted||9,713,000||10,050,000|
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$2,854,000||$2,298,000|
|Other current assets||4,207,000||4,297,000|
|Liabilities and Shareholders' Equity:|
|Total liabilities and shareholders' equity||$10,083,000||$9,843,000|
Pete van der Wal, Chief Executive Officer
KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Stem Cells Health Biotechnology Medical Devices Research Medical Supplies Science