The biotech company Cryo-Cell International announced in its earnings report today that its net income for the first quarter of the 2009 fiscal year was $536,000, a significant increase from its net loss of $247,000 in the first quarter of the 2008 fiscal year. Total revenue as of February 28 was reported at $3.9 million for the year, with approximately $5.7 million in available cash, cash equivalents, marketable securities and other investments. By the end of the quarter, the company no longer had any long-term debt.
According to Mercedes Walton, chairwoman and CEO of Cryo-Cell, the company was able to reduce administrative, marketing and sales expenses over the previous year, while prospective clients increased 94%. Licensee income for the first quarter totalled approximately $338,000, compared to approximately $183,000 for the first quarter in 2008. As Ms. Walton explains, “We are clearly encouraged by Cryo-Cell’s performance in the first quarter of fiscal 2009, which represents the company’s second consecutive quarter of recurring profitability. Despite the weakness in the U.S. economy and its impact on discretionary consumer spending, Cryo-Cell is pleased to deliver first quarter 2009 earnings of $536,000 and gross margins of 71%. Cryo-Cell continues to make substantial progress both strategically and operationally. Our momentum is strong, and we anticipate that shareholder value will increasingly reflect the company’s solid performance and growing enterprise value, potentially driven in part by a loyal and emerging base of over 175,000 clients worldwid, Cryo-Cell’s expansive IP portfolio and an independently funded R&D pipeline, in addition to the company’s progressive global leadership in stem cell innovation.”
Cryo-Cell is one of the world’s largest cord blood banks, having collected over 175,000 cord blood specimens from newborns around the world since its founding in 1992. Headquartered in Florida, Cryo-Cell specializes in both the processing and cryogenic storage of adult stem cells from umbilical cord blood. Given the fact that prospective clients have increased 94% since last year, it would seem as though an increasing number of people are realizing the benefits of umbilical cord blood banking.