Biomerica Reports Second Quarter Fiscal 2025 Financial Results
- Total Revenue Increases 5% Year-Over-Year
- Achieves Sustained Revenue Growth, Improved Gross Margins, and Significant Cost Savings
IRVINE, Calif., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Biomerica, Inc. (NASDAQ:BMRA), (the "Company") a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the second quarter of fiscal 2025 ended November 30, 2024.
Key Highlights:
- Direct-to-Consumer Launch of inFoods® IBS Test
Patients can now order the inFoods® IBS test directly from www.infoodsIBS.com without the need for a doctor's visit. With a simple, at-home finger-prick blood sample, this non-invasive and personalized test identifies trigger foods that cause IBS symptoms such as bloating and gastrointestinal discomfort. Physician oversight ensures a safe and convenient path to symptom relief, helping patients regain control of their lives. - Three Key Patents Secured for inFoods® Technology
Biomerica received notices of allowance for patents addressing Gastroesophageal Reflux Disease (GERD), Crohn's Disease, and Ulcerative Colitis. These patents cover markets under the European Patent Organization (EPO), including Germany, the UK, France, Italy, and Spain, as well as over 30 additional countries. Together, these address multi-billion-dollar market opportunities: GERD ($4.0 billion+), Crohn's Disease ($2.5 billion+), and Ulcerative Colitis ($1.9 billion+). - Expanding Distribution Partnerships
Biomerica is in discussions with multiple potential distribution partners in the U.S. and internationally to broaden the availability of inFoods® IBS and expand its market reach.
Financial Highlights for the Second Quarter of Fiscal 2025
Biomerica continued to deliver improved financial performance, demonstrating revenue growth, disciplined cost management, and progress toward profitability.
Revenue and Sales Performance: For the fiscal second quarter of 2025, Biomerica reported net sales of $1.64 million, a 5% increase from the $1.57 million recorded in the same quarter of the previous year. This growth in sales, driven by sustained demand from both new and existing customers, underscores the appeal of Biomerica's diverse product range.
Cost Management and Margin Enhancement: Biomerica continued to make significant progress with its cost-saving initiatives, targeting an annual expense reduction of 16% to 23%. To date, these efforts have delivered savings of approximately $670 thousand, keeping the Company on track to achieve its projected annual savings of $1.0 million to $1.4 million.
During the same quarter, gross margins improved from 21% in Q2FY2024 to 27%, reflecting a favorable shift in the sales mix toward the Over-the-Counter (OTC) and Contract Manufacturing sectors and reduced direct labor costs due to strategic workforce reductions. Operating expenses saw a substantial decrease, dropping 26% year-over-year to $1.43 million in the quarter, down from $1.93 million, largely due to efficiencies from workforce reductions and streamlined operations.
Reduced Operating and Net Losses: The Company also experienced notable progress in reducing operating and net losses for the fiscal second quarter of 2025, with the operating loss decreasing by 39% to $990,000 from $1.6 million, and the net loss reducing by 37% to $950,000 from $1.5 million, driven by strategic cost savings and operational enhancements.
Liquidity and Capital Resources: Cash and cash equivalents decreased from $2.82 million at the end of the first quarter to $2.37 million at the end of the second quarter, allowing financial flexibility to execute strategic initiatives.
"Our fiscal second quarter results demonstrate meaningful progress in aligning our operations with our strategic priorities," said Zack Irani, CEO of Biomerica. "We remain focused on achieving cash flow break-even and are actively pursuing several near-term opportunities that could make this a reality."
| Selected Financial Results | Three Months Ended | Three Months Ended | ||
| November 30, 2024 | November 30, 2023 | |||
| ($ in millions, except percentages) | ||||
| Revenue | $1.64 | $1.57 | ||
| Gross margin | 27 | % | 21 | % |
| Operating expenses | $1.43 | $1.93 | ||
| Operating loss | ($0.99 | ) | ($1.61 | ) |
| Net Loss | ($0.95 | ) | ($1.51 | ) |
About Biomerica (NASDAQ: BMRA)
Biomerica, Inc. (www.biomerica.com ) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.
About inFoods®
The inFoods IBS test involves a simple blood collection procedure and is designed to assess a patient's above normal immunoreactivity to specific foods. Instead of difficult to manage broad dietary restrictions, physicians can now use the inFoods IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. Further information about Biomerica's patented inFoods® Technology Platform can be found at: www.infoodsibs.com. The inFoods IBS clinical study was performed at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for improvement in the Abdominal Pain Intensity (API) responder endpoint of >30%, for IBS patients in the treatment diet arm had a statistically significant improvement over patients in the placebo diet arm (p-value of 0.0246). The improvement for patients in the treatment arm versus the placebo arm is considered clinically significant and is similar and, in some cases, better than the current drugs in the market.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company's current and future cash position, balance sheet, cost savings, cash flow break even, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected sales growth for the Company's inFoods IBS product, Hp Detect product and other existing products; and diversification of the Company's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC, and available on the SEC's website (www.sec.gov). The Company is under no obligation to update any forward-looking statements after the date of this release.
Corporate Contact:
Zack Irani
949-645-2111
[email protected]
Source: Biomerica, Inc.
