Medis Technologies Reports Third Quarter Results
NEW YORK, Nov. 14 /PRNewswire/ -- Medis Technologies Ltd. (Nasdaq: MDTL) reported third quarter earnings today noting that non-cash items primarily resulting from accounting treatment relating to its June 2000 acquisition of the shares of Medis El Ltd., which it did not already own, had a material effect on this quarter's financial statement. It reported a net loss attributable to common shareholders for the three months ended September 30, 2000 of $18,125,000 or $1.36 per share compared to $4,011,000 or $.41 per share for the comparable period in 1999. Net cash used in operating activities for the nine months ended September 30, 2000 was $3,923,000 compared to $2,405,000 for the comparable period in 1999. No operating revenues were recognized in either the three-month and nine-month period ended September 30, 2000.
Commenting on the earnings report, Robert K. Lifton Chairman and CEO of Medis noted: "The accounting treatment of our acquisition of Medis El shares, options of Medis El employees, officers and directors transferred to Medis Technologies options, warrants issued to consultants and other non-cash items significantly impacted our financial statements both in creating 'additional paid in capital' and in increasing 'amortization of intangible assets' and non-cash 'compensation expense.' We anticipate that as our non-cash write-offs continue over the forthcoming years, the impact on earnings will ultimately diminish. Meanwhile, we continue to operate at a satisfactory cash 'burn rate' despite the increase in our development activities in fuel cells for portable electronic devices, the toroidal engine and compressor and the CellScan.
"Finally, I'd like to use this opportunity of our quarterly report to welcome as our new auditors the firm of Arthur Andersen which as one of the world's largest accounting firms offers us the benefit of its widespread offices and relationships in Israel and other parts of the globe," Lifton concluded.
This press release as well as the November 6 shareholder's letter can be accessed on Medis' interim web site at http://www.medistechnologies.com. Medis' new website under the same address is expected to go live by December 2000.
Medis Technologies is involved in the development of highly advanced proprietary technology products primarily related to sources of clean energy for the 21st Century. Its business strategy is to license, sell or joint venture with large international corporations. The Company's product pipeline, in varying stages of development, includes fuel cell technology, highly electrically conductive polymers, the toroidal engine and compressor, Stirling cycle linear compressor, reciprocating electrical machines, direct current regulating device and water technologies. The Company has also developed the CellScan with may applications relating to disease detection and cure.
This report may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties, including, but not limited to, the successful completion of product development, the success of product tests, commercialization risks, availability of financing and results of financing efforts. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC.
|<< PREVIOUS||NEXT >>|
blog comments powered by Disqus