ORCHARD PARK, N.Y., Oct. 30 /PRNewswire-FirstCall/ -- MINRAD
International, Inc. today announced its financial results for the
quarter ended September 30, 2006. The Company generated revenue of
$5,278,000 for the quarter and $10,449,000 for the nine month
period ending September 30, 2006. This compared to revenue of
$1,423,000 in the same quarter of 2005 and $5,879,000 for the nine
month period ending September 30, 2005. 3rd Quarter Nine Months
Ended September 30, $ Thousands 2006 2005 % 2006 2005 % United
States 4,358 412 958% 6,111 1,938 215% International 920 1,011
(9%)% 4,338 3,941 10% Total 5,278 1,423 271% 10,449 5,879 78% Sales
in Q3 2006 increased to $5,278,000 an increase of 271% over the
third quarter of 2005. The primary increase in sales was due the
increase of sales in the United States to our U.S. distributor.
Sales to our U.S. anesthesia and analgesia distributor in Q3 2006
were $4,025,000. For the third quarter of 2006, the Company
experienced a loss available to common of $(1,687,000), or $(0.04)
per common share. This compares with a loss available to common of
$(1,731,000), or $(0.06) per common share for the third quarter in
2005. For the nine month period ending September 30, 2006 the
Company experienced a loss of $(4,261,000), or $(0.12) per common
share. The loss available to common for the same period in 2005 was
$(10,938,000), or $(0.39) per common share. In the second quarter
of 2005 there were non cash dividends of $6,599,000 related to the
preferred stock offering in that time period. The operating loss
for the third quarter of 2006 of $(1,829,000) compares to a loss of
$(1,119,000) for the same period in 2005. For the nine month period
ending September 30, 2006 the operating loss increased to
$(4,019,000) from $(1,985,000) for the same period in 2005. The
increased operating loss for the quarter and for the nine month
period are a result primarily of increases in headcount related
costs due to increases in our sales force and research and
development staffs and changes in our finance and administration
staff. In addition there is approximately $400,000 in option
expense recognized in the third quarter of 2006 which is not
included in 2005. Contact: Timothy Sheehan, VP - Corporate
Development (716) 855-1068 http://www.minrad.com/ About the Company
MINRAD International, Inc. is an interventional pain management
company with real-time image guidance and anesthesia and analgesia
product lines. The real-time image guidance products facilitate
minimally invasive surgery especially for pain management and have
broad applications in orthopedics, neurosurgery, and interventional
radiology. These devices enable medical professionals to improve
the accuracy of interventional procedures and reduce radiation
exposure. MINRAD International also manufactures and markets
generic inhalation anesthetics for use in connection with human and
veterinary surgical procedures. The company is developing a
drug/drug delivery system for conscious sedation, which, similar to
nitrous oxide in dental surgery, provides a patient with pain
relief without loss of consciousness. Additional information can be
found at the company's website, http://www.minrad.com/ . * * * * *
* * * * * The information contained in this news release, other
than historical information, consists of forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may involve risks and uncertainties that
could cause actual results to differ materially from those
described in such statements. Factors that may cause actual results
to differ materially from those expressed or implied by its
forward-looking statements include, but are not limited to, Minrad
International's limited operating history and business development
associated with being a growth stage company; its dependence on key
personnel; its need to attract and retain technical and managerial
personnel; its ability to execute its business strategy; the
intense competition it faces; its ability to protect its
intellectual property and proprietary technologies; its exposure to
product liability claims resulting from the use of its products;
general economic and capital market conditions; financial
conditions of its customers and their perception of its financial
condition relative to that of its competitors; as well as those
risks described under the heading "Risk Factors" of Minrad
International's Form 10-KSB, filed with the Securities and Exchange
Commission on March 29, 2006. Although Minrad International, Inc.
believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. MINRAD INTERNATIONAL,
INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS 3RD
QUARTER ENDED SEPTEMBER 30, 2006 (UNAUDITED) COMPARED TO 3RD
QUARTER ENDED SEPTEMBER 30, 2005 (UNAUDITED) IN THOUSANDS
Three-Month Periods Ended September 30, September 30, 2006 2005
Revenue $5,278 $1,423 Cost of goods sold 3,214 898 Gross profit
2,064 525 Operating expenses: Sales and marketing 1,613 425
Research and development 836 536 Finance and administrative 1,444
683 Total operating expenses 3,893 1,644 Operating loss (1,829)
(1,119) Interest expense: Stockholders and affiliates -- (436) Bank
and other -- (4) Interest Income 304 -- Total non-operating income
(expenses) 304 (440) Net Loss (1,525) (1,559) Less Preferred Stock
Dividends Cash dividends (162) (172) Non cash dividends -- -- Net
loss available for common stockholders $(1,687) $ (1,731) Net Loss
per share basic and diluted $(0.04) $(0.06) Weighted average common
shares outstanding basic and diluted 41,563 28,467 MINRAD
INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2006 (UNAUDITED)
COMPARED TO NINE-MONTH PERIOD SEPTEMBER 30, 2005 (UNAUDITED) IN
THOUSANDS Nine-Month Periods Ended September 30, September 30, 2006
2005 Revenue $10,449 $5,879 Cost of goods sold 6,121 3,380 Gross
profit 4,328 2,499 Operating expenses: Sales and marketing 3,183
1,121 Research and development 1,856 1,304 Finance and
administrative 3,308 2,059 Total operating expenses 8,347 4,484
Operating loss (4,019) (1,985) Interest expense: Stockholders and
affiliates -- (1,961) Bank and other (153) (194) Interest Income
418 -- Total non-operating income(expenses) 265 (2,155) Net Loss
(3,754) (4,140) Less Preferred Stock Dividends Cash dividends (324)
(199) Non cash dividends (183) (6,599) Net loss available for
common stockholders $(4,261) $(10,938) Net Loss per share basic and
diluted $(0.12) $(0.39) Weighted average common shares outstanding
basic and diluted 34,810 28,358 MINRAD INTERNATIONAL, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) IN THOUSANDS
September 30, December 31, 2006 2005 ASSETS Current assets: Cash
and cash equivalents $ 9,937 $ 670 Investments 10,778 -- Accounts
receivable 6,521 3,459 Interest Receivable 88 -- Inventories, net
6,898 3,860 Prepaid expenses and other current assets 1,588 962
Total current assets 35,810 8,951 Net property and equipment 4,130
1,069 Other assets 281 163 Total assets $40,221 $10,183 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Bank demand note
payable $ -- $2,720 Accounts payable 1,564 2,542 Dividends payable
170 170 Accrued expenses 2,276 405 Total current liabilities 4,010
5,837 Stockholders' equity 36,211 4,346 Total liabilities and
stockholders' equity $40,221 $10,183 MINRAD INTERNATIONAL, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) IN
THOUSANDS Nine Months Nine Months Ended Ended September 30,
September 30, 2006 2005 Cash flows from operating activities: Net
cash used by operating activities $ (9,632) (8,752) Net cash used
by investing activities (13,353) (272) Net cash provided by
financing activities 32,252 10,482 Net increase in cash and cash
equivalents 9,267 1,458 Cash-and cash equivalents - Beginning of
period 670 3 Cash and cash equivalents - End of period $9,937
$1,461 DATASOURCE: MINRAD International, Inc. CONTACT: Timothy
Sheehan, VP - Corporate Development of MINRAD International, Inc.,
+1-716-855-1068, or Web site: http://www.minrad.com/
Copyright
