Pyng Medical Continued Success on Revenue Growth and Diversification Strategy
October 16, 2006
Pyng Medical Corp. (TSX: PYT) is pleased to announce FY2006 sales of $3,088,448 (FY2005 $2,797,744), a 10% sales increase.
Fourth quarter sales were $ 979,300 (FY2005 $840,328), an increase of 17%. Q4 and Q3 sales were stronger and showed a marked increased over the previous 2 quarters and the same periods last fiscal.
We are also please to announce that we have sold and shipped our 75,000th unit of F.A.S.T.1™ in September 2006.
As has been the case with all Canadian corporations dealing in the USA, changes to the US/CDN dollar exchange rates compared to FY2005 depressed Pyng revenues. The actual increase in revenue experienced was due to a significant increase in F.A.S.T.1™ unit sales of 15% offsetting the decline in the US dollar exchange. Also of significance was the increase in the sales of training systems, 30% for some distributors, boding well for future system sales. Pyng Medical continues to be profitable with strong cash position in spite of these exchange rate issues.
All of our recently newly appointed USA distributors have started to make a contribution to revenue, particularly in Q4, as their sales activities yield results. Their appointment was to address the opportunities created by the changes to the ILCOR guidelines. These changes have created increased opportunities for the F.A.S.T.1™, particularly in the civilian market to address medical conditions such as cardiac arrests. The American Heart Association estimates that Emergency Medical Services (EMS) treats 107,000 to 240,000 cardiac arrests in the United States annually, a significant opportunity for Pyng’s F.A.S.T.1™.
Sales in Europe also increased, particularly in Germany and the UK. These increases resulted from both the military and civilian sectors. Increased European sales are part of Pyng’s sales diversification strategy and to avoid future dependence on the US/CDN exchange rate.
Pyng Medical staff will attend MEDICA in November 2006, one of Europe’s premier medical shows. The primary purpose of this attendance is to appoint additional distributors in European and other key global markets.
For more information please read our October 2006 newsletter on items such as the annual revenue opportunity created by the ILCOR changes and the F.A.S.T.1™ advantages. We encourage everyone to enroll in our newsletter to stay informed on Pyng Medical Corp’s latest developments. To enroll please visit our web page at http://www.pyng.com/newsletters.htm.
For further information please contact Pyng Medical Corp. at 1-604-303-7964 or visit our web site at www.pyng.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products