Remedent, Inc. (Remedent), a dental devices company, has reported net sales of $4.8 million for the third quarter of fiscal 2009, up 127%, compared with the net sales of $2.1 million in the year-ago quarter. It has posted a net income of $2.4 million, or $0.13 per share, for the third quarter of fiscal 2009, compared with the net loss of $1 million, or $0.06 loss per share, in the year-ago quarter.
Fiscal third quarter 2009 financial results
Income from operations was a loss of $467,000, as compared to a loss of $1.1 million in the same period a year ago. The loss includes $300,000 in non recurring one-time charges, as well as $200,000 in losses attributed to the OTC division in the third quarter. Prior to the one-time charges, the company’s professional division yielded an operating profit of about $50,000 in the third quarter.
Comprehensive net income (after foreign currency translation adjustment) was $2.1 million or $0.11 per basic and fully diluted shares (based on 19.3 million basic and fully diluted shares), which against a comprehensive net loss in the same year-ago quarter of $1.0 million or $(0.06) per basic and fully diluted shares (based on 18.6 million basic and fully diluted shares). The increase in net income includes about $2.8 million from the sale of a portion of the company’s over-the-counter retail product business.
Fiscal Third Quarter 2009 Operational Highlights
Near the end of the third fiscal quarter, Remedent reported the restructuring of its OTC retail division and effectively sold about half of the business for a total consideration of about $6.0 million (EUR4.7 million), including a cash payment of about $1.4 million (EUR1 million).
The divestiture eliminates the need to fund this division’s future overhead and allows Remedent to focus on its core professional cosmetic dentistry business — all of which positions the company for profitability in calendar 2009.
“This represented a milestone quarter for Remedent,” said Guy De Vreese, chief executive officer of Remedent. “We are now at a pivotal stage in our development, having entered our fourth fiscal quarter with a new operational structure designed to leverage the tremendous potential of our unique veneer technology. Our net sales have reached record levels, totaling more than $11.2 million for the first nine months of the fiscal year, as compared to $7.5 million for all of fiscal 2007. Our new relationship with Den-Mat Holdings has dramatically strengthened our position as a leader in the dental veneer space. We are also realizing early success in our expansion into markets in China and Australia. These factors have helped put us on course for strong growth and profitability over the coming quarters.”