IDAHO FALLS, Idaho,
Aug. 15, 2012 /PRNewswire/
-- International Isotopes Inc. (OTC Bulletin Board: INIS)
announces financial results for the second quarter and six-months
ended June 30, 2012.
Revenue for the three months ended June
30, 2012 was $2,042,949, as
compared to $2,614,744 for the same
period in 2011, an overall decrease of $571,795, or approximately 22%. Revenue for
the six months ended June 30, 2012,
was $3,992,292, as compared to
$5,028,059 for the same period in
2011, a decrease of $1,035,767, or
approximately 21%.
The Company's three most significant business segments are
Radiochemical Products, Nuclear Medicine Standards, and Cobalt
Products. All three segments are seeing some decline in
2012. Revenue from the sale of radiochemical products for the
three months ended June 30, 2012 was
$405,118, compared to $475,901 for the same period in 2011, a decrease
of $70,783, or approximately 15%.
Revenue from the sale of radiochemical products for the
six-month period ended June 30, 2012,
was $787,033, compared to
$917,201 for the same period in 2011.
This is a decrease in revenue of $130,168, or approximately 14%. Sales of
radiochemical product decreased in the latter part of 2011 after
the Company received a warning letter from the U.S. Food and Drug
Administration (FDA) for violations of Current Good Manufacturing
Practices (CGMP), and have been slow to regain previous sales
levels. The Company has completed an upgrade of manufacturing
processes to meet all CGMP requirements and believes the
combination of increased marketing, strong customer service, and
competitive pricing will improve the strength of sales for the
remainder of 2012.
Revenue from nuclear medicine standard products for the three
months ended June 30, 2012 was
$1,074,124, compared to $1,186,399 for the same period in 2011.
This represents a decrease of $112,275, or approximately 9%. Revenue from
nuclear medicine standard products for the six months ended
June 30, 2012 was $2,202,129 compared to $2,579,556 for the same period in 2011, a
decrease of $377,427 or approximately
15%. The Company believes this decline is the result of
medical facilities delaying the replacement of imaging and
calibration sources due to budgetary constraints and also a decline
in the number of operating nuclear medicine clinics.
The Company expects revenue within this segment to remain at this
pace for the balance of the year.
Revenue from the sale of cobalt products for the three months
ended June 30, 2012 was $484,098, compared to $821,409 for the same period in 2011, a decrease
of $337,311, or approximately
41%. Revenue from the sale of cobalt products for the six
months ended June 30, 2012 was
$833,430, compared to $1,234,244 for the same period in 2011. This
represents a decrease of $400,814, or
approximately 32%. The Company did not record any bulk cobalt
sales for the six-month period ended June
30, 2012, but did record $502,533 of bulk cobalt sales for the same period
in 2011. Because each bulk cobalt sale represents a material
dollar amount, these sales can create significant variations in
period-to-period comparisons. Therefore, management believes that a
comparison of total revenue excluding bulk cobalt sales provides
meaningful information to investors because of these large
period-to-period variations. This information does have limitations
as an analytical tool and should not be considered in isolation or
as a substitute for total revenue. The following table
presents a period-to-period comparison of total revenue by segment,
as well as a period-to-period comparison of total revenue by
segment excluding bulk cobalt sales.
|
|
|
|
|
|
|
|
|
For the
six months
ended June 30,
|
|
% of Total
Sales
|
|
For the
six months
ended June 30,
|
|
% of Total
Sales
|
Sale of
Product
|
2012
|
|
2012
|
|
2011
|
|
2011
|
Radiochemical Products
|
$787,033
|
|
20%
|
|
$917,201
|
|
18%
|
Cobalt
Products (including bulk cobalt sales)
|
833,430
|
|
21%
|
|
1,234,244
|
|
25%
|
Nuclear
Medicine Standards
|
2,202,129
|
|
55%
|
|
2,579,556
|
|
51%
|
Radiological Services
|
65,883
|
|
2%
|
|
134,250
|
|
3%
|
Fluorine
Products
|
-
|
|
0%
|
|
-
|
|
0%
|
Transportation
|
103,817
|
|
2%
|
|
162,808
|
|
3%
|
Corporate
revenue
|
-
|
|
0%
|
|
-
|
|
0%
|
Total Segments
|
$3,992,292
|
|
100%
|
|
$5,028,059
|
|
100%
|
|
|
|
|
|
|
|
|
Radiochemical Products
|
$787,033
|
|
20%
|
|
$917,201
|
|
20%
|
Cobalt
Products (excluding bulk cobalt sales)
|
833,430
|
|
21%
|
|
731,711
|
|
16%
|
Nuclear
Medicine Standards
|
2,202,129
|
|
55%
|
|
2,579,556
|
|
57%
|
Radiological Services
|
65,883
|
|
2%
|
|
134,250
|
|
3%
|
Fluorine
Products
|
-
|
|
0%
|
|
-
|
|
0%
|
Transportation
|
103,817
|
|
2%
|
|
162,808
|
|
4%
|
Corporate
revenue
|
-
|
|
0%
|
|
-
|
|
0%
|
Total Segments
|
$3,992,292
|
|
100%
|
|
$4,525,526
|
|
100%
|
Gross profit for the three months ended June 30, 2012 was $656,953, compared to $999,221 for the same period in 2011. This
represents a decrease of $342,268, or
approximately 34%. Cost of sales decreased to $1,385,996 for the three months ended
June 30, 2012 from $1,615,523 for the same period in 2011. This is a
decrease of $229,527, or
approximately 14%, and is tied directly to the decrease in sales
for the same period comparison. Gross profit for the six months
ended June 30, 2012 was $1,327,693, compared to $1,918,258, for the same period in 2011.
This represents a decrease of $590,565, or approximately 31%. The decrease in
gross profit for the six months is tied directly to the decrease in
sales for this same period comparison; however, an additional
factor in the reduction of gross profit percentage was the impact
of changes in the Department of Energy contracting for cobalt
production activities. Gross profit of cobalt products for
the three months ended June 30, 2012
was $257,774, compared to
$452,197 for the same period in 2011,
a difference of $194,423, or
approximately 43%.
Operating expense decreased to $1,194,329 for the three months ended
June 30, 2012, from $2,549,481 for the same period in 2011, a
decrease of $1,355,152, or
approximately 53%. Operating expense was $2,471,264 for the six months ended June 30, 2012, compared to $5,046,367 for the same period in 2011, a
decrease of $2,575,103 or
approximately 51%. The decreases in operating expense
were largely attributable to the decrease in research and
development costs related to engineering design and licensing of
the proposed de-conversion facility. Those costs were
previously treated as research and development expense, but once it
became reasonably certain the NRC would likely issue the license to
build and operate the planned depleted uranium de-conversion
facility, the Company began to capitalize these costs rather than
expensing them.
Operating expense within most of the Company business segments
was reduced during the three and six months ended June 30, 2012, with the exception of the cobalt
segment. Operating expense in the cobalt product segment
increased by $51,380, or
approximately 85%, for the three months ended June 30, 2012. Operating expense in this segment
increased by $126,540, or
approximately 105% for the six-month period ended June 30, 2012, compared to the same period in
2011. These increases are due to additional costs incurred as a
result of contract requirements imposed by the DOE National
Isotopes Development Center, Isotopes Business Office and
additional contract charges by the prime-operating contractor for
the DOE's advanced test reactor in Idaho
Falls, ID.
The net loss for the three months ended June 30, 2012 was $515,132, compared to $1,670,186 for the same period in 2011.
This is a decrease in loss of $1,155,054, or approximately 69%. The net
loss for the six months ended June 30,
2012, was $1,105,379 as
compared to $3,385,198 for the same
period in 2011, a decrease in loss of $2,279,819, or approximately 67%. The
decrease in net loss for both periods is the combined result of
decreased operating expense for most segments, capitalizing
research and development expense, and a reduction in interest
expense for the period comparisons.
Steve T. Laflin, President and
CEO of the Company said, " I am disappointed with our
financial results in the first six months of the year and the
Company is examining every way to make improvements. Through
this most recent quarter and for the first six months of 2012, our
revenue has continued to be impacted by the challenging world and
US economic conditions, a decline in nuclear medicine clinics, and
the adverse impact of government contracting on our cobalt
production activities. While we expect these pressures to
remain for the rest of 2012, the good news is, we do not expect a
further decline in revenue this year. We are also taking
aggressive steps to further reduce our operating expense and expand
the revenue producing capability of our core business
segments. While the impact of these actions may not be
immediately evident, we believe we are on track to bring the core
business segments in Idaho to
consistent profitability and see increasing revenue once again in
2013. We will continue to work towards resolving the contract
issues that have led to the significant increase in operating cost
for cobalt production and we have fully addressed the FDA issues
that led to the decline in radiochemical sales in 2011 and
2012.
"In addition to building strength in our core business segments
we intend to continue to support and advance the planned
environmentally friendly depleted uranium processing and fluorine
extraction project. Through the second quarter of this year
we have spent nearly $18 million on
this project and we are poised to receive the ever-important
Nuclear Regulatory Commission (NRC) construction and operating
license for this facility in October 2012. Possession of the
NRC forty-year license, our exclusive ownership of the fluorine
extraction process patents, and the opportunity for significant
revenue generation through the sale of products and services from
the new facility, puts the Company and our shareholders in an
excellent position to capitalize on this green technology and
unique business opportunity for the long term"
International Isotopes Inc.
|
|
Three
Months Ended June 30
|
Six Months
ended June 30
|
|
2012
|
2011
|
2012
|
2011
|
Sales
|
$
2,042,949
|
$2,614,744
|
$3,992,292
|
$5,028,059
|
Gross
Profit
|
$
656,953
|
$
999,221
|
$1,327,693
|
$1,918,258
|
Total
Operating Expense
|
$1,194,329
|
$2,549,481
|
$2,471,264
|
$5,046,367
|
Operating
(Loss)
|
($537,376)
|
($1,550,260)
|
($1,143,571)
|
($3,128,109)
|
Other
Income (Expense)
|
$11,974
|
($129,053)
|
$26,255
|
($248,960)
|
Net
(Loss)
|
($515,132)
|
($1,670,186)
|
($1,105,379)
|
($3,385,198)
|
Net (Loss)
Per Common
Share
|
$0.00
|
($
0.01)
|
$0.00
|
($0.01)
|
|
|
|
|
|
Weighted
Ave. Shares Outstanding
|
360,127,509
|
323,425,663
|
359,802,715
|
323,312,599
|
About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear
medicine calibration and reference standards, high purity fluoride
gases, and a variety of cobalt-60 products such as teletherapy
sources. The Company also provides a wide selection of
radioisotopes and radiochemicals for medical devices, calibration,
clinical research, life sciences, and industrial applications and
provides a host of analytical, measurement, recycling, and
processing services on a contract basis to clients
International Isotopes Inc. Safe Harbor
Statement
Certain statements in this press release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
including statements with respect to expectations for improving the
strength of sales, the impact of general economic conditions upon
the Company, the ability of the Company to reduce cost, future
revenue producing capability, the ability of the Company to reach
profitability, the Company's ability to raise funds to construct
the depleted uranium de-conversion facility, the receipt of the NRC
license for the facility, and the revenue potential of the depleted
uranium project. Information contained in such
forward-looking statements is based on current expectations and is
subject to change. These statements involve a number of
risks, uncertainties and other factors that could cause actual
results, performance or achievements of International Isotopes,
Inc. to be materially different from any future results,
performance or achievements expressed or implied by these
forward-looking statements. Other factors, which could materially
affect such forward-looking statements, can be found in
International Isotopes, Inc.'s filings with the Securities and
Exchange Commission at www.sec.gov, including our Annual Report on
Form 10-K for the year ended December
31, 2011. Investors, potential investors and other
readers are urged to consider these factors carefully in evaluating
the forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The
forward-looking statements made herein are only made as of the date
of this press release and the Company undertakes no obligation to
publicly update such forward-looking statements to reflect
subsequent events or circumstances.
FOR MORE INFORMATION CONTACT:
Jim Drewitz
Creative Options Communications
Investor and Public Relations
jim@jdcreativeoptions.com
www.jdcreativeoptions.com
Phone: 830-669-2466
For more information, please visit the Company web site:
www.internationalisotopes.com
SOURCE International Isotopes Inc.