TyraTech Inc – Interim Results

TyraTech Inc., a natural life sciences company that harnesses the power of nature to improve human and animal health using a proprietary, novel technology that is both effective against insects and parasites and safe for people and pets, today announces its interim results for the six month period ended 30 June 2011.

Financial Highlights

• ·     Total revenues from continuing operations increased by 85% to US$5.0 million (2010: US$2.7 million);
• ·     Product sales increased by 103% to US$2.8 million (2010: US$1.4 million)
• ·     Collaborative revenue increased by 64%, due primarily to milestone revenue for the first half of US$1.4 million (2010: nil)
• ·     Gross profit increased to US$3.5 million (2010: $0.7 million)
• ·     Overall operating expenses from continuing operations increased 7% to US$4.1 million (2010: US$3.8 million);
• ·     Loss from continuing operations was significantly improved at US$0.5 million for the first half of 2011, (2010: US$3.1 million net loss); and
• ·     Cash and cash equivalents of US$1.6 million at 30 June 2011 (US$1.5 million at 30 June 2010 and US$3.3 million at 31 December 2010)

Operational Highlights:

• Delivery of three new innovative insect control products to Terminix;
• Over a 100% increase in the delivery of Terminix products in the six months ended 30 June 2011; and
• Continued product development efforts on our Kraft project as well as early efforts on additional products in existing and new categories

 

Alan Reade, Executive Chairman, released the folowing statement:

I am very pleased to report a most successful first half of 2011.

During this period we have successfully delivered three new products to our partner Terminix which have resulted in significant milestone payments and may result in an important new revenue stream in 2012.

The functional food project with our partner Kraft continues to make very good progress. The project has:

• A clearly defined regulatory strategy
• Selected final formulations
• Transferred technology to a manufacturing facility
• Initiated field trials

We have made good progress with the regulatory process for our household insecticide products for Europe and expect to have 3 new products registered by the end of the year. We are in the process of identifying potential distribution partners and hope to be in a position to launch in 2012.

We are also in the advanced stages of developing three new animal health products with a further two in the pipeline. Again we are we are in discussion with potential partners – although we have not ruled out more direct routes to market.

The relocation of the Company’s operations to the Research Triangle Park area has been successfully completed and we now have all our Research, Product Development and Commercial activities in one efficient location. We are already seeing important benefits from this with improved communications and faster decision making as well as expected financial benefits.

It can be seen from the financial results that we have significantly accelerated the speed and effectiveness of product development.  We have also managed to control costs and improve margins. We are very satisfied with the increase in product revenues – in this first six months we have more than doubled the product sales over the same period last year and our total revenues for the six months are 9% higher than the previous full year.

Cost control has allowed the good top line results to flow through to the bottom line with the loss from operations being reduced from US$3.1 million in 2010 to US$0.5 million in 2011.

We certainly have a challenging period in front of us. It is a period in which we have to balance continued cost control with speed to complete product development and registrations. We have to secure agreements with new partners in some areas (i.e. Europe) and make important strategic decisions in Animal Health particularly which route we take to the customer.