Corgenix Reports Record Quarterly Sales Results

Revenues up 48.6% for third quarter, on pace for record revenue year; margins shrink—resulting in a net loss

DENVER--(BUSINESS WIRE)--Corgenix Medical Corporation (OTC BB: CONX.OB), a worldwide developer and marketer of diagnostic test kits, today filed its third quarter Form 10-Q and reported its financial results. The report disclosed that the company’s revenues increased substantially, both for the quarter and year to date. However, due to the current product mix, gross margins decreased resulting in a slightly larger net loss for the quarter. Some of the results highlighted by the report are as follows:

• Revenues for the quarter increased $888,409 or 48.6% vs. the prior year’s comparable quarter
• Revenues for the nine months increased $1,368,084 or 24.5% vs. the prior year’s comparable nine months
• Interest expense decreased $38,955 or 71.8% vs. the prior year’s comparable quarter

“Our dramatic sales growth in the third quarter has now assured us of a record revenue year,” said Douglass Simpson, Corgenix President and CEO. “Our efforts going forward will be to maintain this growth rate but with an increased focus on margin contribution to move us to net profitability.” Corgenix further noted that although the company realized record revenues for the quarter, its bottom line worsened due to decreased margins on the product mix. The company continues to expect that Fiscal Year 2012 revenues will set a record for the Company’s annual revenues, currently expected to be approximately $9.1 million. However, given the decreased margins, the company is not currently forecasting positive net income for the current year. As is always the case, there can be no such assurance that these results will be realized.

Third Quarter 2012 Conference Call Details

Corgenix invites all those interested in hearing management's discussion of third quarter results to join a shareholders conference call on Monday, May 14, 2012, 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. 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						Nine months ended
	March 31, 2012			March 31, 2011			March 31, 2012			March 31, 2011
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Total revenues	$	2,717		$	1,829		$	6,961		$	5,593
Gross profit		1,013			887			2,997			2,822
Total operating expenses		1,183			998			3,219			3,189
Operating loss		(170	)		(111	)		(221	)		(367	)
Net loss		(185	)		(165	)		(321	)		(575	)
Basic and diluted loss per share	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Diluted shares outstanding		45,996,598			40,900,832			44,180,380			39,906,418

SUMMARY BALANCE SHEET DATA (in thousands)
	March 31, 2012 (unaudited)		June 30, 2011 (audited)
Cash	$	1,013	$	1,095
Working capital		3,826		3,317
Total assets		6,493		6,953
Long-term debt		501		600
Total stockholders’ equity		4,781		4,194