Cryo-Cell International, Inc. Reports Results for Fiscal 2007
Consolidated revenues for the fiscal year ended November 30, 2007 wereapproximately $17.5 million, up 2% from approximately $17.2 million for thefiscal year ended November 30, 2006. The Company reported a net loss infiscal 2007 of approximately ($5.0 million), or ($0.43) per basic commonshare, compared to net loss of approximately ($2.8 million), or ($0.24) perbasic common share, in fiscal 2006. The increase in the net loss in fiscal2007 resulted from a 9% increase in cost of sales, a 12% increase inmarketing, general and administrative expenses and a 12% increase in researchand development expenses in fiscal 2007 over fiscal 2006.
The increase in cost of sales during the 2007 period was in part due toexpenses associated with the Company's introduction of umbilical cord blood(U-Cord) service enhancements, including return shipping by a medical courierfor all new U.S. customers, and an increase in cord blood collectionreimbursements. Marketing, general and administrative expenses primarilyrepresent expenses associated with previously announced strategic initiativesto strengthen the resources allocated to sales and marketing. Also, includedin marketing, general and administrative expenses in fiscal 2007 wasapproximately $874,000 in professional fees associated with a proxy contestand subsequent claim filed by a dissident shareholder group and approximately$266,000 in stock option compensation which is the result of the Company'sadoption of FASB Statement No. 123 (R).
In addition, expenses in fiscal 2007 included approximately $545,000 inresearch and development expenses related to the Company's expenses for itsefforts to commercialize its technology for the procurement, isolation,processing and cryopreservation of maternal placental stem cells (MPSCs), andfor the commercialization of the Company's new C'elle(SM) menstrual stem celltechnology.
The Company recognized approximately $951,000 in licensee income for thefiscal year ended November 30, 2007, compared to approximately $927,000 forthe fiscal year ended November 30, 2006. Licensee income for the twelvemonths ended November 30, 2007 and November 30, 2006 included approximately$255,000 and $149,000, respectively, of non-recurring income recognized on thepayment of the second installment for the India license agreement. Theremaining $696,000 and $778,000 for the twelve month periods representsroyalty income from license agreements outside the United States and the saleof sublicense agreements.
As of November 30, 2007, the Company had approximately $4.4 million inavailable cash, cash equivalents, marketable securities and other investments,and no long-term debt.
In a major strategic development on November 1, 2007, the Companyannounced its discovery of novel stem cell technology and its launch of theC'elle (pronounced "C-L") service, the world's first-ever commercial serviceallowing women to cryopreserve their own menstrual stem cells. C'ellemenstrual stem cells are adult stem cells but with many properties associatedwith both embryonic stem cells and mesenchymal stem cells (a highly potentadult stem cell in therapeutic use today derived from connective tissue).C'elle menstrual stem cells have demonstrated the capability in preliminaryresearch to differentiate into other cell types, such as nervous system,heart, bone, fat and cartilage cells. The Company believes C'elle menstrualstem cells will have a significant impact on regenerative medicine. TheC'elle service is based on Cryo-Cell's intellectual property, for which patentapplications are pending, related to the procurement, processing, isolation,cryo-preservation and composition of matter relate
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