Corgenix Reports Fiscal 2011 Financial Results

Fourth quarter revenues surge; revenues for fiscal year down 3.8%; company receives $500,000 third tranche investment from ELITech

DENVER--(BUSINESS WIRE)--Corgenix Medical Corporation (OTC BB: CONX.OB), a worldwide developer and marketer of diagnostic test kits, today filed its fiscal year Form 10-K and reported financial results. The report disclosed that the company’s operating results have advanced for the fiscal year ended June 30, 2011. Some of the key results in the report are as follows:

• Net sales for the year were $7,941,576 vs. $8,258,170 for the prior year.
• Operating income, exclusive of the one-time costs associated with the exit of Corgenix-U.K., for the fiscal year was $350,098 vs. operating income of $328,471 for the prior year.
• Net income, exclusive of the one-time costs associated with the exit of Corgenix-U.K., for the year was $92,997 vs. net income of $2,391 for the prior year.
• Total operating expenses, exclusive of the one-time costs associated with the exit of Corgenix-U.K., decreased $319,191 or 8.2% to $3,579,094 vs. $3,898,285 for the prior year.

On September 16, 2011, the company also reported that it received $500,000 from Wescor, a wholly owned subsidiary of the ELITech Group, pursuant to the third tranche under the Common Stock Purchase Agreement.

“The fiscal year results were generally in line with our expectations due to the transitional nature of the year,” commented Doug Simpson, Corgenix President and CEO. “On the revenue side we anticipated a drop-off in international sales as most of that business shifted from retail to wholesale due to the new ELITech relationship, and we made up most of that shortfall in the other revenue segments.”

“There were several other key accomplishments in Fiscal 2011 positioning us for accelerated growth in revenues and profitability,” Simpson said. “We significantly improved our distribution network, restructured our debt, reduced operating expenses, and expanded our contract manufacturing and contract R&D sectors, all of which should result in much stronger financials going forward.”

Corgenix management believes that fiscal 2012 will be a record year, with sales approaching or exceeding $10 million, along with a positive bottom line, increased EBITDA and internally generated cash flow.

Fiscal 2011 Conference Call Details

Corgenix invites all those interested in hearing management’s discussion of fiscal year results to join a shareholders conference call today, Friday, September 23, 2010, at 4:00 p.m. EDT (2:00 p.m. MDT). 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 U.S. 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 and has significant experience advancing products through the FDA process. 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   CORGENIX MEDICAL CORPORATION AND SUBSIDIARIES OPERATIONAL DATA
	Fiscal Year Ended	Fiscal Year Ended
	June 30, 2011	June 30, 2010
Net sales	$7,941,576	$8,258,170
Gross profit	$3,929,192	$4,226,756
Total operating expenses	$4,065,156	$3,898,285
Operating income (loss)	($135,964)	$ 328,471
Net income (loss)	($393,065)	$ 2,391
EBITDA	$ 787,255	$ 815,981
Basic and diluted loss per share	($0.01)	$ 0.00*
Weighted average shares outstanding	40,152,793	30,848,468

*Less than $0.01 per share

SUMMARY BALANCE SHEET DATA (in thousands)
	June 30, 2011	June 30, 2010
Cash	$ 1,095	$ 494
Working capital	3,317	2,146
Total assets	6,953	6,155
Long-term debt	600	485
Total stockholders’ equity	4,194	3,157