SAN JOSE, Calif., May 15 Human PheromoneSciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") todayannounced results for the first quarter ended March 31, 2008. Net revenues of$266,000 represented a 20% decrease from the revenues of $334,000 in the prioryear period, and resulted in a net loss of $63,000 ($.02 per share) ascompared with net income of $24,000 ($.01 per share) for the same period of2007. At March 31, 2008, the Company reflected cash balances of $1,397,000compared with $1,437,000 in cash at December 31, 2007, a $40,000 reduction inthe quarter. There was no bank indebtedness at either period and currentliabilities were the same at both periods, excluding deferred revenue changes.
According to a Company spokesperson, the results were in line with Companyforecasts, and reflected the overall downturn in the U.S. Fragrance and BeautyMarket sales during the period. "We had anticipated the weakness of revenuesin our largest consumer product segment, and, as such, had undertaken theprogram to expand the markets for the use of our patented technology in otherconsumer product arenas. Some of the shortfall in the basic beauty area wasoffset by revenues received under our licensing agreement signed last yearwith Schwarzkopf & Henkel, in the hair care market, which was expanded in thecurrent quarter, and recognition of revenue from our license agreement withJohnson & Johnson entered into in September 2006. It is apparent that suchdiversification is the way to hedge against a potential continued decline in asingle market that represented our initial focus in the Fragrance and Beautybusiness," the spokesperson noted. As previously stated, the Company's focusin 2008 is the generation of additional licensing and supply activities, andincreasing product development spending for additional compounds that havebeen identified and isolated and are now in advanced stages of development."Generating additional revenues under new licensing agreements will not onlygrow our business, but will reduce the effect of erratic purchasing patternsby our current major licensee. With respect to the new compounds in which weare investing, we are excited about the results we have seen to date, thepatent we have filed on the initial compound and the potential for other novelcompounds," a Company spokesperson indicated.
Human Pheromone Sciences, Inc. is a technology-based company, whoseproof-of concept products included prestige-priced fragrances and toiletriesand environmental products sold under the Natural Attraction(R), REALM(R),innerREALM(R) and EROX(R) trademarks. These products contain mood-enhancingcompounds, whose efficacy has been validated at leading universities aroundthe world, and whose use is covered under United States and foreign patents.The Company is also involved in research and product development efforts onnew compounds that have been previously identified as stimulating theemotional centers of the human brain. Further information is available online at http://www.erox.com.
The statements in this news release may contain forward-looking statementsthat involve risks and uncertainties that could cause results to differ frompredicted results. Further information on factors that could affect theCompany's results is detailed in the Company's annual report to shareholderson Form 10-KSB for the year ended December 31, 2007, and Form 10-Q for thequarter ended March 31, 2008, as filed with the Securities and ExchangeCommission. The Company undertakes no obligation to publicly release theresult of any revisions to these forward-looking statements.
Net income (loss) per share is based on the weighted average number ofcommon shares and common equivalents outstanding during each period. Certaincommon stock equivalents are excluded when their effect would be anti-dilutive.Tables follow HUMAN PHEROMONE SCIE