Longport, Inc. announces financial results for fourth quarter and year
20 April 2005
GLEN MILLS, Pa., USA. Longport, Inc. (OTCBB:LPTI), a medical technology
specialist in high resolution ultrasound imaging, has announced its
financial results for the fourth quarter and year ended December 31, 2004.
Revenues for the year ended December 31, 2004, were $2.5 million compared
to $500,000 for 2003. This increase is primarily due to the increase in
sales of the Company's scanner device of over $2.0 million. In addition, the
Company recorded approximately $150,000 of income from the sale of exclusive
marketing rights in the wound-care market but saw a reduction of contract
revenue of $248,000 as a state research grant ongoing in 2002 and 2003
ceased in mid-2003.
Total operating expenses for 2004 were $2.7 million compared to $1.4
million for 2003. This increase is primarily due to additional costs
associated with the increased sales activity (cost of sales increased by
approximately $880,000) as well as an increase of approximately $759,000 in
general and administrative costs associated with the additional activities
being conducted by the Company in 2004. The Company believed that there will
be additional costs in 2005 associated with clinical research studies
utilizing the Scanner for specific medical applications.
The Company recorded an impairment loss of roughly $165,000 related to an
investment made in 2000. Interest expense for 2004 was approximately
$178,000 as compared to around $130,000 for 2003. During the third quarter
of 2004, the Company repaid all of its long-term debt. The Company had a net
loss of $634,000 for 2004 compared to a net loss of $928,000 for 2003.
Michael Boyd, CEO of Longport, said, "These results show progress toward
profitability, and we are continuing to develop the infrastructure and
personnel to build upon the increased business activity. We have established
a multi-step plan that includes the hiring of a national Sales and Marketing
Director with significant sales distribution experience to further expand
our sales activities. We are pursuing direct sales opportunities that do not
conflict with existing distributors as well as seeking additional national
and regional distributors. To support those efforts and continue raising our
profile, we are attending selected national conferences."
Boyd added, "In the near future, we may seek an infusion of operating
capital via the issuance of short-term debt, and obtain additional equity
capital through the sale of common and/or preferred stock as well as the
exercise of existing warrants and options."
Revenues for the quarter ended December 31, 2004, were $585,000 compared
to just $120,000 in the same period prior year. Total operating expenses for
the fourth quarter of 2004 were $673,000 compared to $344,000 in the same
period of 2003. The loss for the fourth quarter of 2004 was $53,000 compared
to $199,000 in the last quarter of 2003.
Boyd concluded, "In March 2005, we terminated the US MedSys distribution
agreement, due to their non-compliance, including defaulting on their
purchasing obligation in the fourth quarter of 2004; subsequently, Longport
also failed to meet its revenue expectations in this quarter. The effects of
this situation will continue to be felt in the first and second quarters of
2005, until alternative distributors are put in place. We are also in
continuing discussions with US MedSys with respect to creation of new
distribution agreement. At this point, I can state that Longport's first
quarter 2005 revenue looks to be in the region of $375,000, but this is
predominated by the recognition of payments from the former US MedSys