Human Pheromone Sciences Announces First Quarter Results
May 15 2008 - 10:10AM
PR Newswire (US)
Results Impacted by Downturn in U.S. Beauty Market SAN JOSE,
Calif., May 15 /PRNewswire-FirstCall/ -- Human Pheromone Sciences,
Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS" or "the Company")
today announced results for the first quarter ended March 31, 2008.
Net revenues of $266,000 represented a 20% decrease from the
revenues of $334,000 in the prior year period, and resulted in a
net loss of $63,000 ($.02 per share) as compared with net income of
$24,000 ($.01 per share) for the same period of 2007. At March 31,
2008, the Company reflected cash balances of $1,397,000 compared
with $1,437,000 in cash at December 31, 2007, a $40,000 reduction
in the quarter. There was no bank indebtedness at either period and
current liabilities were the same at both periods, excluding
deferred revenue changes. According to a Company spokesperson, the
results were in line with Company forecasts, and reflected the
overall downturn in the U.S. Fragrance and Beauty Market sales
during the period. "We had anticipated the weakness of revenues in
our largest consumer product segment, and, as such, had undertaken
the program to expand the markets for the use of our patented
technology in other consumer product arenas. Some of the shortfall
in the basic beauty area was offset by revenues received under our
licensing agreement signed last year with Schwarzkopf & Henkel,
in the hair care market, which was expanded in the current quarter,
and recognition of revenue from our license agreement with Johnson
& Johnson entered into in September 2006. It is apparent that
such diversification is the way to hedge against a potential
continued decline in a single market that represented our initial
focus in the Fragrance and Beauty business," the spokesperson
noted. As previously stated, the Company's focus in 2008 is the
generation of additional licensing and supply activities, and
increasing product development spending for additional compounds
that have been identified and isolated and are now in advanced
stages of development. "Generating additional revenues under new
licensing agreements will not only grow our business, but will
reduce the effect of erratic purchasing patterns by our current
major licensee. With respect to the new compounds in which we are
investing, we are excited about the results we have seen to date,
the patent we have filed on the initial compound and the potential
for other novel compounds," a Company spokesperson indicated. Human
Pheromone Sciences, Inc. is a technology-based company, whose
proof-of concept products included prestige-priced fragrances and
toiletries and environmental products sold under the Natural
Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks.
These products contain mood-enhancing compounds, whose efficacy has
been validated at leading universities around the world, and whose
use is covered under United States and foreign patents. The Company
is also involved in research and product development efforts on new
compounds that have been previously identified as stimulating the
emotional centers of the human brain. Further information is
available on line at http://www.erox.com/. The statements in this
news release may contain forward-looking statements that involve
risks and uncertainties that could cause results to differ from
predicted results. Further information on factors that could affect
the Company's results is detailed in the Company's annual report to
shareholders on Form 10-KSB for the year ended December 31, 2007,
and Form 10-Q for the quarter ended March 31, 2008, as filed with
the Securities and Exchange Commission. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements. Tables follow HUMAN PHEROMONE SCIENCES,
INC. Condensed Balance Sheets (Dollars in thousands) March 31,
December 31, 2008 2007 (Unaudited) Assets Cash and cash equivalents
$ 1,397 $ 1,437 Accounts receivable 83 194 Inventories, net 45 25
Other current assets 35 40 Property and equipment, net 3 3 Total $
1,563 $ 1,699 Liabilities and shareholders' deficit Accounts
payable $ 52 $ 28 Other current liabilities 118 141 Deferred income
- current 512 518 Deferred income - non-current 469 566 Common
stock 20,992 20,963 Accumulated deficit (20,580) (20,517) Total $
1,563 $ 1,699 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements
of Operations (Unaudited) (Dollars in thousands, except per-share
data) Three months ended March 31, 2008 2007 Net revenues $ 266 $
334 Cost of goods sold 81 107 Research and development 14 12
Selling, general and administrative 244 208 Income (loss) from
operations (73) 7 Other income 11 18 Provision for income taxes 1 1
Net income (loss) $ (63) $ 24 Income (loss) per share, basic $
(0.02) $ 0.01 Income (loss) per share, fully diluted $ (0.02) $
0.01 Weighted average common shares outstanding-Basic 4,152 4,152
Weighted average common shares outstanding-Fully diluted 4,152
4,782 Net income (loss) per share is based on the weighted average
number of common shares and common equivalents outstanding during
each period. Certain common stock equivalents are excluded when
their effect would be anti- dilutive. DATASOURCE: Human Pheromone
Sciences, Inc. CONTACT: William P. Horgan, Chairman, CEO of Human
Pheromone Sciences, Inc., +1-408-938-3030 Web site:
http://www.erox.com/
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