By a News Reporter-Staff News Editor at Marketing Weekly News -- Guided Therapeutics, Inc. (OTCBB: GTHP) (OTCQB: GTHP) announced its operating results for the second quarter and six months ended June 30, 2014.
Revenue and other income for the second quarter ended June 30, 2014 was approximately $212,000, including approximately $201,000 in sales of LuVivaŽ devices and disposables and $11,000 from contract and grant income. Revenue for the quarter ended June 30, 2013 was comprised of product sales of approximately $116,000 and contract and grant income of approximately $222,000. Revenue for the six month period ending June 30, 2014 was approximately $353,000, including approximately $323,000 in sales of LuViva devices and disposables and $30,000 from contract and grant income. For the six month period ended June 30, 2013, sales of LuViva devices and disposables were approximately $248,000, and contract and grant income was $389,000, from our prior agreements with Konica Minolta and our prior grant with the National Cancer Institute, both of which ended in 2013.
With increased efforts underway to market LuViva, sales and marketing expenses increased to $345,000 and $628,000 for the second quarter and first six months of 2014, respectively, from $195,000 and $359,000 in the comparable periods of 2013. The additional sales and marketing resources were shifted from research and development expenses, which declined to $624,000 and $1.2 million in the second quarter and first six months of 2014, respectively, from $834,000 and $1.6 million in the comparable periods of 2013.
The net loss attributable to common stockholders for the second quarter of 2014 was approximately $2.2 million, or $0.03 per share, compared to approximately $2.9 million, or $0.04 per share, in the second quarter of 2013. For the six month period ended June 30, 2014, the net loss attributable to common stockholders was approximately $3.8 million, or $0.05 per share, compared to $4.7 million, or $0.07 per share, in the year ago period.
Cash on hand at June 30, 2014 was approximately $485,000, as compared to approximately $613,000 at December 31, 2013. Net inventory on hand at the end of the quarter was approximately $1.1 million. In the second quarter, the Company sold $3 million in 6% Senior Convertible Notes due 18 months from the date of issuance in a private placement to an accredited investor. Management believes that this financing, along with the Company's anticipated future sales and committed funds, should be sufficient to support existing operations through the third quarter of 2014. The Company will be required to raise additional funds through public or private financing, new collaborative relationships or grants, if available.
"LuViva revenues continue to build, with an increase of 65% sequentially from the first quarter, on the shipment of units and disposables to Nigeria, Turkey, Mexico and the U.K.," said Gene Cartwright, Chief Executive Officer of Guided Therapeutics. "This keeps us on track to generate product sales in the low- to mid-range of our projections of $1 million to $3 million for 2014. To support the anticipated demand we see for LuViva looking out into 2015, over the remainder of the year we intend to hire additional assembly staff in anticipation of doubling our production capacity of LuViva units.
"In addition to shipping product to Turkey under the $3.0 millionTurkish Ministry of Health order in the quarter, our distributor, I.T.E.M. Medical Technologies Group, brought its service team to Atlanta for engineering and maintenance certification, the first dealer to complete such training. This training will be important as the rollout in Turkey and surrounding countries covered by I.T.E.M. accelerates over the next few quarters.
"During the quarter we also initiated a number of new evaluations. In the U.K., evaluations are underway in London and Scotland to support future reimbursement and we have two evaluations underway in France. In addition, with our recent marketing approval in Mexico, we shipped two units in the quarter to be used in public hospital clinical evaluations, as demo units and for evaluations in private clinics. LuViva continues to be very well received and we believe that we have a great opportunity in developing markets including Turkey, Nigeria, Kenya and Mexico, where cervical cancer remains a leading cause of cancer deaths in women. We continue to work diligently to turn these evaluations into orders and remain optimistic we will continue to make progress over the next few months."
"Turning to the U.S. market, in July we announced the filing of our amended PMA application for LuViva, which we believe addresses the remaining questions the FDA had about our application," added Cartwright. "We also extended additional protections to the technology behind LuViva with the award of another U.S. patent that further strengthens the foundation on which we can build shareholder value." Conference Call Guided Therapeutics will hold a conference call at 11:00 a.m. EDT Thursday, August 14, 2014, to discuss its financial results and corporate developments. Interested parties are invited to listen to the call live over the Internet at http://www.guidedinc.com/investors.htm. The live call is also available by dialing (888) 466-4462 or for international callers (719) 325-2491 and referencing Conference ID 2118503.
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