Guided Therapeutics Reports Record First Quarter 2016 Results

NORCROSS, Ga.–(BUSINESS WIRE)–Guided Therapeutics, Inc. (OTCQB:GTHP) today announced its operating
results for the first quarter ended March 31, 2016.
Sales Revenue, Cost of Sales and Gross Profit (Loss) from Devices and
Disposables: Sales revenue from the sale of LuViva devices and
disposables for the three months ended March 31, 2016, was $262,000, a
106% increase compared to the same period in 2015. Related costs of
sales and net realizable value expenses were approximately $68,000,
which resulted in a gross profit of approximately $194,000 for the first
quarter of 2016. For the same period in 2015, approximately $127,000 in
sales revenue was offset by approximately $107,000 in related costs of
sales, resulting in a gross loss on devices and disposables of
approximately $20,000. The increase from gross loss to gross profit was
due to increased sales of disposables with the Company’s primary
distributor, which carry a higher profit margin than device sales.
Research and Development Expenses: Research and development expenses
decreased to approximately $290,000 for the three months ended March 31,
2016, compared to $373,000 for the same period in 2015. The decrease, of
approximately $83,000, was primarily due to a slight decrease in payroll
expenses.
Sales and Marketing Expenses: Sales and marketing expenses were
approximately $117,000 during the three months ended March 31, 2016,
compared to $172,000 for the same period in 2015. The decrease was
primarily due to Company-wide expense reduction and cost savings efforts.
General and Administrative Expenses: General and administrative expenses
decreased to approximately $917,000 during the three months ended March
31, 2016, compared to approximately $963,000 for the same period in
2015. The decrease of approximately $46,000, or 5.0%, was primarily
related to lower compensation and option expenses incurred during the
same period.
Other Income: Other income for the three months ended March 31, 2016,
was approximately $23,000, compared to other income of approximately
$21,000 for the three months ended March 31, 2015.
Interest Expense: Interest expense decreased to approximately $158,000
for the three months ended March 31, 2016, as compared to approximately
$492,000 for the same period in 2015, primarily due to amortization of
debt discount and debt issuance costs that were higher for the same
period in 2015.
Fair Value of Warrants Expense: Fair value of warrants expense recovery
was approximately $1,395,000 for the three months ended March 31, 2016,
as compared to approximately $714,000 for the same period in 2015.
Net income was approximately $130,000 during the three months ended
March 31, 2016, compared to a net loss of $1,245,000 for the same period
in 2015, for the reasons outlined above. Preferred stock dividends was
approximately $470,000 during the three months ended March 31, 2016,
compared to $31,000 for the same period in 2015. Basic Net loss per
share, was $0.11 for the three months ended March 31, 2016, and $1.31
for the same period in 2015. Diluted Net loss per share, was $0.00 for
the three months ended March 31, 2016, and $1.31 for the same period in
2015.
Cash on hand at March 31, 2016, was approximately $56,000, as compared
to approximately $35,000 at December 31, 2015. Net inventory on hand at
the end of the quarter was approximately $1.3 million. The Company
continues to manage cash and liquidity with austerity.
“The first quarter was a record for shipping single-use disposable
LuViva cervical guides with almost 24,000 going to our Turkish
distributor,” said Gene Cartwright, Chief Executive Officer of Guided
Therapeutics. “We also shipped LuViva devices to Saudi Arabia and
Indonesia during the quarter, bringing to 10 the number of units in the
Middle East and 15 in Southeast Asia. As of the end of the first
quarter, we shipped a total of 97 LuViva devices and approximately
60,000 disposable cervical guides, worldwide.”
“During the first quarter, we received notification that the Health
Services Sector of Nairobi County, Kenya, has agreed to purchase an
additional five LuViva units for use in the agency’s cervical cancer
screening program. The planned purchase brings to six the number of
LuVivas ordered by Nairobi County, which is the largest population
center in East Africa with approximately 900,000 screening-aged women,”
Mr. Cartwright said.
“Finally, we expanded our distribution in Latin America to include the
Dominican Republic in the first quarter and subsequently shipped our
first unit there,” Mr. Cartwright said. “We continue to negotiate with
potential partners for distribution and manufacturing rights in China,
and are in late stage discussions with a partner for India.”
About Guided Therapeutics
Guided Therapeutics, Inc. (OTCQB:GTHP) is the maker of a rapid and
painless testing platform based on its patented biophotonic technology
that utilizes light for the early detection of disease at the cellular
level. The Company’s first product is the LuViva® Advanced Cervical
Scan, a non-invasive device used to detect cervical disease instantly
and at the point of care. In a multi-center clinical trial with women at
risk for cervical disease, the technology was able to detect cervical
cancer up to two years earlier than conventional modalities, according
to published reports. For more information, visit: www.guidedinc.com.
The Guided Therapeutics LuViva^® Advanced
Cervical Scan is an investigational device and is limited by federal law
to investigational use in the U.S. LuViva, the wave logo and “Early
detection, better outcomes” are registered trademarks owned by Guided
Therapeutics, Inc.
Forward-Looking Statements Disclaimer: A number of the matters and
subject areas discussed in this news release that are not historical or
current facts deal with potential future circumstances and developments.
The discussion of such matters and subject areas is qualified by the
inherent risks and uncertainties surrounding future expectations
generally and also may materially differ from Guided Therapeutics’
actual future experience involving any of or more of such matters and
subject areas. Such risks and uncertainties include those related to the
early stage of commercialization of products, the uncertainty of market
acceptance of products, the uncertainty of development or effectiveness
of distribution channels, the intense competition in the medical device
industry, the sufficiency of capital raised in prior financings and the
ability to realize their expected benefits, the uncertainty of future
capital to develop products or continue as a going concern, the
uncertainty of regulatory approval of products, and the dependence on
licensed intellectual property, as well as those that are more fully
described from time to time under the heading “Risk Factors” in Guided
Therapeutics’ reports filed with the SEC, including Guided Therapeutics’
Annual Report on Form 10-K for the fiscal year ended December 31, 2015,
and subsequent filings.