Global Med Technologies(R), Inc. Reports Record Q4 and 2005 Year End Revenues
March 31 2006 - 10:00AM
PR Newswire (US)
- Q4 Revenues Increased 36.8%; 2005 Revenues Over 2004 Up 62.8% -
DENVER, March 31 /PRNewswire-FirstCall/ -- Global Med
Technologies(R), Inc. (OTC:GLOB) (BULLETIN BOARD: GLOB) has
reported its sixth consecutive quarter of double-digit growth. The
Company posted record revenues of $3.115 million for the fourth
quarter which totaled $11.204 million for the year ended December
31, 2005. Revenues increased 36.8% to $3.115 million for the three
months ended December 31, 2005 compared with $2.277 million for the
comparable quarter in 2004. Revenues for 2005 increased 62.8% to
$11.204 million versus $6.884 million for 2004. For 2005, the
Company posted a net loss of $10.819 million. During 2005, the
Company recognized $10.847 million in non-cash expenses. The
primary source of these non-cash charges related to a one-time
charge of $9.340 million in expenses incurred as a result of the
Company's accounting for certain derivatives embedded in the
Company's Series A Convertible Preferred Stock and the related
warrants in the Company's 2005 financing. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO )
"Global Med had its best year ever. The Company generated $10.9
million in billings and $10.5 million in receipts from its
customers," commented Global Med's President and COO, Thomas F.
Marcinek. "These numbers are up significantly from the prior year's
levels of $8.1 million in billings and $7.98 million in receipts."
Michael I. Ruxin, M.D., Chairman and CEO of Global Med
Technologies, Inc., commenting on last year's results, stated, "Due
to recent accounting interpretations at the SEC that affect the
Company's 2005 financing the Company, took a one time, non-cash
charge of $9.340 million to the P&L. However, the non-GAAP
results are also presented below denoting a profit of $575 thousand
for 2005 if certain non-recurring charges are backed out." Dr.
Ruxin continued, "We believe that now that the financing and the
one time charges are behind us, Global Med can go forward into 2006
with the potential of its continued annual double digit growth.
Global Med now has a $4.9 million backlog in addition to the
expected $5.5 million in maintenance revenue for 2006. With Global
Med's unencumbered balance sheet to support its robust pipeline of
business, Management believes the Company is well-positioned to be
profitable in 2006." On March 29, 2006, the Company renegotiated
certain terms of its Series A Convertible Preferred Stock ("Series
A") and the related warrants with its new investors. As a result of
these renegotiated terms, the Series A, which was classified as
mezzanine equity until March 28, 2006, will be classified as equity
as of March 29, 2006. As a result of this reclassification,
shareholders equity will be increased by $9.975 million, the value
of the Series A, and also by the liability associated with the
derivative financial instruments which was $15.267 million as of
December 31, 2005. As a result of this reclassification, the
Company currently believes that its stockholders' deficit of
$25.833 million as of December 31, 2005 will be reduced to less
than $1 million as of March 31, 2006. The following tables provide
certain details related to the Company's operations for the years
ended December 31, 2005 and 2004: Global Med Technologies, Inc.
(OTC:GLOB) (BULLETIN BOARD: GLOB) Selected Results Year Ended In
(000s) (Unaudited) December 31, 2005 December 31, 2004 Revenues
$11,204 $6,884 Operating expenses (1) $7,687 $5,029 Summary
judgment (2) $1,004 -- Loss from operations $(870) $(582) Notes
receivable allowance (3) $(529) -- Financing costs, net (4)
$(9,340) -- Net loss $(10,819) $(766) NON-GAAP RECONCILIATION
SCHEDULE The following tables represent comparisons of certain
GAAP-based and non-GAAP based information. Selected Results Year
Ended In (000s) except per share information (Unaudited) GAAP(5)
NON-GAAP(6) December 31, 2005 December 31, 2005 Revenues 11,204
$11,204 Summary judgment (2) $1,004 -- Accelerated option vesting
(7) $521 -- Income (loss) from operations $(870) $655 Notes
receivable allowance (3) $(529) -- Financing costs, net (4)
$(9,340) -- Net income (loss) $(10,819) $575 The NON-GAAP schedules
above exclude certain charges which the Company believes are
non-recurring in nature. The Company does not believe that the
summary judgment expense, the notes receivable allowance expense,
the financing costs or the option acceleration expense represent
charges that will be recurring. Therefore, the Company believes the
preparation of a non-GAAP table that shows these charges excluded
from the income statement may be helpful to investors in
determining what the current year's and future year's results may
or would look like for the Company. The Company traditionally
discloses to investors in its financial statement press releases
certain information related to non-recurring type revenues or
expenses that have a material impact on the financial statements.
(1) Operating expenses exclusive of summary judgment expenses. (2)
The Company is appealing the summary judgment in a lawsuit. The
$1.004 million amount represents a cash payment made by the Company
to the Superior Court of the State of California in the County of
El Dorado that is being held in escrow. This cash payment is
composed of legal fees and costs and is not a judgment against the
Company. This payment was expensed by the Company during the fourth
quarter ended December 31, 2005. (3) During the fourth quarter, the
Company created an allowance for certain notes receivables and
accrued interest that were outstanding during the year. (4) This
represents non-cash expenses and gains, on a net basis, recognized
as a result of certain embedded derivatives associated with the
Series A Convertible Preferred Stock and the related warrants.
These expenses are non-recurring in nature. (5) These numbers
represent GAAP-based numbers. (6) These numbers exclude certain
charges which the Company believes will not be recurring. (7)
Represents costs associated with accelerating the option vesting on
certain options that were outstanding as of December 31, 2004.
About Global Med Technologies, Inc. Global Med Technologies, Inc.
is an international e-Health, medical information technology
company, providing information management software products and
services to the healthcare industry. Its Wyndgate Technologies
division is a leading supplier of information management systems to
U.S. and international blood centers and hospital transfusion
centers. Current clients of Wyndgate's products and services manage
more than 3 million units of blood, or over 22% of the U.S. blood
supply, each year. Wyndgate's products are being used in Canada and
sub-Saharan Africa, and are being implemented in the Caribbean.
Together, the SafeTrace Tx*(R) advanced transfusion management
system and the SafeTrace(R) donor management system provide
Vein-to-Vein(R) tracking from donor collection to patient
transfusion. For more information about Global Med's products and
services, please call 800-WYNDGATE or visit
http://www.globalmedtech.com/, http://www.peoplemed.com/ and
http://www.wyndgate.com/. Statements in this press release that are
not strictly historical are "forward-looking" statements within the
meaning of the Safe Harbor provisions of the federal securities
laws. Forward-looking statements involve risks and uncertainties,
including, but not limited to, continued acceptance of the
Company's products and services in the marketplace, regulatory and
competitive factors, new products and technological changes, the
Company's dependence upon third-party suppliers, and other risks
detailed from time to time in the Company's Form 10-KSB and other
regularly filed reports. The results of operations for the quarter
or year ended December 31, 2005 are not necessarily indicative of
the results that may be expected for any other future period.
*Patent Pending
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO
http://photoarchive.ap.org/ DATASOURCE: Global Med Technologies,
Inc. CONTACT: Michael I. Ruxin, M.D., Chairman and CEO of Global
Med Technologies(R), Inc., +1-303-238-2000; or Investor Relations,
Paul Short, President of Investment Strategies, LLC,
+1-304-523-3252, for Global Med Technologies(R), Inc. Web site:
http://www.peoplemed.com/ Web site: http://www.wyndgate.com/ Web
site: http://www.globalmedtech.com/
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