Corgenix Reports Second Quarter Fiscal 2011 Financial Results

Net loss for the quarter declines by 26%

DENVER--(BUSINESS WIRE)--Corgenix Medical Corporation (OTCBB: CONX), a worldwide developer and marketer of diagnostic test kits, today filed its second quarter Form 10-Q and reported its financial results. The report disclosed that the company’s revenues slightly declined during the quarter but were more than offset by decreases in operating expenses and interest expense, resulting in a smaller net loss for the period. Some of the results highlighted by the report are as follows:

• Revenues for the quarter decreased $173,503 or 8.9% vs. the prior year’s comparable quarter
• Total operating expenses decreased $93,630 or 8.8% vs. the prior year’s comparable quarter
• Interest expense decreased $50,297 or 52.2% vs. the prior year’s comparable quarter
• Operating loss for the quarter was $16,081 vs. operating income of $12,395 for the prior year’s comparable quarter
• Net loss decreased to $61,955 in the current quarter from $83,841 in the prior year’s comparable quarter

“This is the first reporting period after transitioning our international distribution operations to strategic partner the ELITech Group, so we saw the expected dip in revenues, which then filtered down through the statement of operations,” stated Douglass Simpson, Corgenix CEO and President. “The ELITech transition has been going relatively smoothly, and we are hopeful that once we get beyond the immediate implementation, international sales should rebound and then far exceed our historical performance.”

The company further noted that the financial performance for the quarter was not as strong as expected, with continued weakness in international and core product revenue. The company continues to believe that Fiscal Year 2011 revenues should be comparable to, if not slightly below, those of the prior fiscal year, even though there can be no assurance that this will be the case.

Second Quarter 2011 Conference Call Details

Corgenix invites all those interested in hearing management's discussion of second quarter results to join a shareholders conference call on Monday, February 14, 2011, at 4:00 p.m. EST (2:00 p.m. MST). Interested parties can join the call by dialing [phone]. International participants may access the call by dialing [phone]. The conference code is “CORGENIX.” A replay will be available for 30 days following the call by dialing [phone] for domestic participants and [phone] for international participants.

About Corgenix Medical Corporation

Corgenix is a leader in the development and manufacturing of specialized diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders, including the world's only non-blood-based test for aspirin effect. Corgenix diagnostic products are commercialized for use in clinical laboratories throughout the world. The company currently sells over 50 diagnostic products through a global distribution network. More information is available at www.corgenix.com.

Statements in this press release that are not strictly historical facts are “forward-looking” statements (identified by the words “believe,” “estimate,” “project,” “expect” or similar expressions) within the meaning of the Private Securities Litigation Reform Act of 1995. These statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products and services in the marketplace, competitive factors, changes in the regulatory environment, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon information currently known to management, and the Company does not undertake any obligation to publicly update or revise any forward-looking statements.

SUMMARY OF FINANCIAL HIGHLIGHTS ($000 of U.S. dollars except shares outstanding and per-share amounts)
CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES OPERATIONAL DATA
	Three Months Ended						Six Months Ended
	December 31, 2010			December 31, 2009			December 31, 2010			December 31, 2009
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	1,786		$	1,959		$	3,764		$	4,004
Gross profit		953			1,075			2,058			2,191
Total operating expenses		969			1,063		*2,314				2,094
Operating income (loss)		(16	)		12			(256	)		96
Net loss		(62	)		(84	)		(410	)		(91	)
Basic and diluted loss per share	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
Diluted shares outstanding		40,918,633			31,033,209			39,420,020			30,669,532

*Includes one-time $366,639 in Costs Associated with Exit or Disposal Activities

SUMMARY BALANCE SHEET DATA (in thousands)
	December 31, 2010 (unaudited)		June 30, 2010 (audited)
Cash	$	1,448	$	494
Working capital		3,176		2,146
Total assets		6,673		6,155
Long-term debt		433		485
Total stockholders’ equity		4,203		3,157