Another earnings mover today from the SmallCap space is Chembio Diagnostics (OTC:CEMI) which announced its third quarter results before the bell and has seen volume skyrocket. In late trading, shares of Chembio Diagnolstics were up 30 percent at $0.31 per share on heavy volume of more than 2.4 million shares compared to its average daily volume of only 51,000 shares. Chembio has a market cap of $19 million and a 52-week range between $0.16 and $0.39 per share.
Total revenues were $4.51 million for the three months ended September 30, 2010, which compares to total revenues of $4.36 million for the three months ended September 30, 2009, a 3.2% increase. The Company recorded net income of approximately $0.17 million, or less than $0.01 per share, for the three months ended September 30, 2010, compared to net income of approximately $0.31 million, or less than $0.01 per share, for the three months ended September 30, 2009. Chembio had cash and cash equivalents of $1.34 million as of September 30, 2010.
The Company reported that based on its current backlog, it expects to realize at least a 75% increase in sales to Africa in 2010 over 2009 sales. Including fourth quarter shipments anticipated to Alere, Brazil and Africa, the Company anticipates fourth quarter 2010 total revenues will exceed fourth quarter 2009 total revenues by more than 50% which would result in 2010 total revenues exceeding 2009 total revenue by more than 15%.
Chembio's President, Lawrence A. Siebert stated, "We are finishing the year with great momentum, and have already achieved a 33% increase in our gross margin for the nine months of 2010 over 2009, to over $5.6 million. This increase is comprised of improved product margins as well as increased contract development, grant, milestone, royalty and license revenues. This has enabled us to fund our development and clinical programs, including our clinical trials for our DPP HIV Screening Assay for use with oral fluid and blood samples.”
“The QTDP grants will significantly enhance operating income in the fourth quarter of 2010 while enabling us to accelerate our clinical and development programs. During the recent quarter we also improved our working capital position, with our cash position significantly improved over the close of each of the previous 2010 quarters, as well as over the position as of December 31, 2009. As mentioned we have also considered the possible sale of the Company to a strategic buyer, although we have not entered into any agreements concerning this at this time."
Chembio develops, manufactures, licenses and markets proprietary rapid diagnostic tests in the growing $7 billion point-of-care testing market. Chembio's two FDA PMA-approved, CLIA-waived, rapid HIV tests are marketed in the U.S. by Alere North America, Inc. (formerly Inverness Medical Innovations, Inc.) Chembio markets its HIV STAT-PAK line of rapid HIV tests internationally to government and donor-funded programs directly and through distributors.
For more information visit: http://www.chembio.com/
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