-- Update on FDA Approved PURE Control® Food Safety Solution for Use as Direct Food Contact Processing Aid for Fresh Produce and Raw Poultry --
SAN DIEGO, CA (June 9, 2016) – PURE Bioscience, Inc. (OTCQB: PURE), creator of the patented silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal third quarter and nine- month periods ended April 30, 2016.
Hank R. Lambert, CEO, said that, “It is most gratifying to see our food safety-related revenues growing steadily, affirming that our focused strategy continues to gain momentum. In our most recent quarter, we experienced growing awareness of, and demand for, PURE Hard Surface with its unique, superior efficacy in eliminating Norovirus in restaurant environments and Listeria in food processing operations.
“We look forward to calendar Q3 and to recording the first sales of PURE Control to both fresh produce and raw poultry processors. In calendar Q4 this year, we anticipate growing revenue from these two processing aid markets, and to making strides toward achieving meaningful penetration of the combined $650 million markets. Our goal is to become a significant player in these large and growing markets – by providing leading edge food safety solutions to prevent foodborne illness, and thereby protecting both people and brands,” Lambert concluded.
Revenues from PURE’s core business, food safety, continued to gain traction, increasing 372% in the third fiscal quarter of 2016 as compared with the prior year. Consolidated revenues for the third fiscal quarter 2016 were $403,000, an increase of $294,000 from the third fiscal quarter 2015. Total operating costs and expenses, excluding cost of goods sold and share-based compensation, for the third fiscal quarter of 2016 and 2015, were $1.6 million and $1.4 million, respectively. The third fiscal quarter 2016 net income was $30,000 compared with a net loss of ($2.1) million for third fiscal quarter 2015. The adjusted net loss, excluding derivative income and share-based compensation, for third fiscal quarter 2016 and third fiscal quarter 2015 was ($1.7) and ($1.3) million, respectively.
Core food safety revenues in the nine months ended April 30, 2016 increased 223% as compared with food safety revenues in the same period in 2015. Consolidated revenues for the nine-month period were $765,000, compared with revenues of $499,000 for the nine months ended April 30, 2015. Total operating costs and expenses, excluding cost of goods sold and share-based compensation, were $4.5 million, and $4.3 million, respectively. The net loss for the nine months ended April 30, 2016 was $(13.7) million, or $(0.25) per share, compared with a net loss of ($5.8) million, or ($0.15) per share, for the nine months ended April 30, 2015. The adjusted net loss, excluding derivative expense and share-based compensation, for the nine months ended April 30, 2016 was ($4.0) million compared with prior year adjusted net loss of ($4.0) million. Cash and cash equivalents, reported as of April 30, 2016, was $5.4 million, an increase of $4.1 million over our fiscal year end cash balance of $1.3 million.
PURE is active in three markets in the food safety arena – (1) processing aids for produce and poultry, (2) food service, and (3) food manufacturing/processing. Revenues from food safety are growing steadily, representing approximately 48% of fiscal third quarter revenues.
Goals for this calendar year include:
The Participant Dial-In Number for the conference call is 1-631-891-4304. Participants should dial in to the call at least five minutes before 1:30pm PDT (4:30pm EDT) on June 9, 2016. The call can also be accessed “live” online at http://public.viavid.com/index.php?id=119761.
A replay of the webcast will be available on the Company’s website (http://www.purebio.com/about/investor_relations). Also, a replay of the conference call will be available by dialing 1-877-870-5176 (international participants dial 1-858-384-5517) starting June 9, 2016, at 7:30pm EDT through June 16, 2016 at 11:59pm EDT. Please use PIN Number 10001242.
PURE Bioscience, Inc. is focused on developing and commercializing our proprietary antimicrobial products primarily in the food safety arena -- providing solutions to the health and environmental challenges of pathogen and hygienic control. Our technology platform is based on patented stabilized ionic silver, and our initial products contain silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent, which offers 24-hour residual protection and formulates well with other compounds. As a platform technology, SDC is distinguished from existing products in the marketplace because of its superior efficacy, reduced toxicity and the inability of bacteria to form a resistance to it. PURE is headquartered in El Cajon, California (San Diego metropolitan area). Additional information on PURE is available at www.purebio.com.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s failure to implement or otherwise achieve the benefits of its proposed business initiatives and plans; acceptance of the Company's current and future products and services in the marketplace, including the Company’s ability to convert successful evaluations into customer orders; the ability of the Company to develop effective new products and receive required regulatory approvals for such products, including the required data and regulatory approvals required to use its SDC-based technology as a direct food contact processing aid in raw poultry and raw meat processing; competitive factors; dependence upon third-party vendors, including to manufacture its products; and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission (the SEC), including its Form 10-K for the fiscal year ended July 31, 2015, its Form 10-Q for the first quarter ended October 31, 2015 and its Form 10-Q for the second quarter ended January 31, 2016, and its Form 10-Q for the third quarter ended April 30, 2016. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
Hank Lambert, CEO Terri MacInnis, VP of IR Tom Hemingway
PURE Bioscience, Inc. Bibicoff + MacInnis, Inc. Redwood Investment Group
619-596-8600 ext.103 818-379-8500 714-978-4425