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LED Medical Diagnostics (TSXV:LMD) released its financial results for the third quarter. The company increased revenues by 86 percent for the first nine months of the year as compared to the first nine months of 2013.
LED Medical Diagnostics (TSXV:LMD) released its financial results for the third quarter. The company increased revenues by 86 percent for the first nine months of the year as compared to the first nine months of 2013. As of September 30, the company had a net working capital of $2,357,635 including $815,036 in cash.
As quoted in the press release:
The Company reported revenue of $1,628,643 for the three months ended September 30, 2014 as compared to $911,387 for the three months ended September 30, 2013. Operating loss was $1,977,051 for the three months ended September 30, 2014, as compared to a net loss of $260,326 for the three months ended September 30, 2013.
The Company’s calculated gross margin2 was 36% for the three months ended September 30, 2014, which is lower than the 64% gross margin during the three months ended September 30, 2013. Total operating expenses for the three months ended September, 2014 were $2,577,852 as compared to $840,383 for the three months ended September 30, 2013.
EBITDA3 for the three months ended September 30, 2014 was negative $1,623,618 compared to negative $139,816 for the three months ended September 30, 2013.
Included in the Company’s net loss of $2,693,861 for the three months ended September 30, 2014 is $777,504 in mark to market adjustments on Canadian dollar denominated warrants. Exclusive of the mark to market adjustment, the Company’s net loss would be $1,916,357 for the third quarter of fiscal 2014. Included in the Company’s net loss of $1,959,503 for the three months ended September 30, 2013, is a loss of $2,065,653 in mark to market adjustments on Canadian dollar denominated warrants resulting in the Company’s net income of $106,150 exclusive of the mark to market adjustment loss.
LED Medical CEO, David Gane, said:
I am pleased to announce revenue growth of 86% to $4,273,818 during the nine months ended September 30, 2014 as compared to the same prior year period. We provided annual revenue guidance of $9.0 million to $11.0 million which the Company is working diligently to achieve. Revenue growth in 2014 is a direct result of optimizing our VELscope distribution channel and by adding new third party digital imaging product lines to complement our VELscope product offering. We have made a substantial investment in our Company which includes inventory as at September 30, 2014 to fulfil the anticipated sales orders to be received in the fourth quarter of fiscal 2014.
Click here to read the LED Medical Diagnostics (TSXV:LMD) press release
