Igia Announces Annual Financial Results
Revenues up 125%. Tactica plan - effective.
New York, NY, June 21, 2006 --(PR.com)-- IGIA, INC., (OTC: IGAI.OB), a designer, developer, and worldwide direct marketer and distributor of innovative personal and home care items, announced today its financial results for fiscal year ended February 28, 2006. IGIA reported revenues of $25,532,151 for fiscal year ended February 28, 2006; a 125.5% increase compared to $11,324,450 in revenues for fiscal year ended February 28, 2005. Gross profit for fiscal 2006 was $16,163,879 or a 63.3% gross margin, compared to a fiscal 2005 loss of $234,146 or a (2.1%) gross loss.
Revenue was $12,795,116 for the six months ended February 28, 2006, which was the period that IGIA began using funds raised from a $3,000,000 financing, compared to revenue of $2,752,467 for the six months ended February 28, 2005. Gross profit was $3,827,085 the six months ended February 28, 2006, compared to a gross loss of $7,147,201 for the six months ended February 28, 2005.
Increased revenue and gross profit reflect IGIA’s focus on selling its products directly to consumers through responses to its television infomercials. IGIA significantly increased purchases of television advertising to generate the fiscal 2006 results. IGIA aired product infomercials on major television networks and cable stations nationwide, including CNBC, USA Network, COURT TV, SCI FI Channel and TV Guide Channel, achieving potential viewership at times exceeding 89 million households. Media advertising expense for fiscal 2006 was $11,178,572, compared to $613,867 for fiscal 2005.
For fiscal 2006, IGIA’s net loss was $17,158,737 or $0.92 per share, compared to $16,197,364 or $0.90 per share in fiscal 2005. Contributing to IGIA’s fiscal 2006 loss was charges of $10,186,135 or $0.55 per share, consisting of a $6,549,037 non-cash charge for financing activities and a $3,637,098 charge for reorganizing operations of our subsidiary, Tactica International, Inc., under a reorganization plan that became effective on March 28, 2006.
Avi Sivan, CEO of IGIA, Inc., stated, “We are pleased to be focusing on direct response sales, the foundation of our business, and view our future with renewed optimism. Looking forward, we see opportunities internationally to leverage our product lines in proven markets where we were successful in the past.”
About IGIA
IGIA, Inc., through its wholly-owned subsidiaries Tactica International, Inc., Shopflash, Inc. and Kleenfast, Inc., is a designer, developer, and worldwide direct marketer and distributor of innovative personal and home care items. Its globally recognized portfolio of brands includes IGIÁ®, Milinëx, Wind Storm™ and the registered proprietary As Seen On TV™ logo. The IGIÁ name ranks amongst the most recognizable personal care brands as cited by an industry publication. In addition, IGIA markets and sells products through TV infomercials, mass-market retailers, specialty retailers, catalogs and through http://www.igia.com.
This press release contains forward-looking statements. The words or phrases “may,” “intends,” “expects,” “estimate,” “indicate,” “plans,” “anticipates,” “could,” “if,” “will,” “should” or similar expressions are intended to identify “forward-looking statements.” Actual results could differ materially from those projected in forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include: (a) whether IGIA and/or Tactica will obtain additional financing to adequately operate and resolve post-petition administrative expense claims following Tactica’s reorganization plan becoming effective on March 28, 2006; (b) whether IGIA will have adequate credit card activity processing capacity and terms with major credit card companies and a credit card processor upon which IGIA’s direct response sales operation is dependent; (c) other factors set forth in IGIA’s periodic reports and registration statements filed with the Securities and Exchange Commission, which may be reviewed by accessing the SEC’s EDGAR system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. IGIA cautions readers not to place undue reliance on such statements. Unless otherwise required by applicable law, IGIA does not undertake, and IGIA specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
Contact info:
Paul Greenfield
General Counsel
(212) 575-0500 x134
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Revenue was $12,795,116 for the six months ended February 28, 2006, which was the period that IGIA began using funds raised from a $3,000,000 financing, compared to revenue of $2,752,467 for the six months ended February 28, 2005. Gross profit was $3,827,085 the six months ended February 28, 2006, compared to a gross loss of $7,147,201 for the six months ended February 28, 2005.
Increased revenue and gross profit reflect IGIA’s focus on selling its products directly to consumers through responses to its television infomercials. IGIA significantly increased purchases of television advertising to generate the fiscal 2006 results. IGIA aired product infomercials on major television networks and cable stations nationwide, including CNBC, USA Network, COURT TV, SCI FI Channel and TV Guide Channel, achieving potential viewership at times exceeding 89 million households. Media advertising expense for fiscal 2006 was $11,178,572, compared to $613,867 for fiscal 2005.
For fiscal 2006, IGIA’s net loss was $17,158,737 or $0.92 per share, compared to $16,197,364 or $0.90 per share in fiscal 2005. Contributing to IGIA’s fiscal 2006 loss was charges of $10,186,135 or $0.55 per share, consisting of a $6,549,037 non-cash charge for financing activities and a $3,637,098 charge for reorganizing operations of our subsidiary, Tactica International, Inc., under a reorganization plan that became effective on March 28, 2006.
Avi Sivan, CEO of IGIA, Inc., stated, “We are pleased to be focusing on direct response sales, the foundation of our business, and view our future with renewed optimism. Looking forward, we see opportunities internationally to leverage our product lines in proven markets where we were successful in the past.”
About IGIA
IGIA, Inc., through its wholly-owned subsidiaries Tactica International, Inc., Shopflash, Inc. and Kleenfast, Inc., is a designer, developer, and worldwide direct marketer and distributor of innovative personal and home care items. Its globally recognized portfolio of brands includes IGIÁ®, Milinëx, Wind Storm™ and the registered proprietary As Seen On TV™ logo. The IGIÁ name ranks amongst the most recognizable personal care brands as cited by an industry publication. In addition, IGIA markets and sells products through TV infomercials, mass-market retailers, specialty retailers, catalogs and through http://www.igia.com.
This press release contains forward-looking statements. The words or phrases “may,” “intends,” “expects,” “estimate,” “indicate,” “plans,” “anticipates,” “could,” “if,” “will,” “should” or similar expressions are intended to identify “forward-looking statements.” Actual results could differ materially from those projected in forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include: (a) whether IGIA and/or Tactica will obtain additional financing to adequately operate and resolve post-petition administrative expense claims following Tactica’s reorganization plan becoming effective on March 28, 2006; (b) whether IGIA will have adequate credit card activity processing capacity and terms with major credit card companies and a credit card processor upon which IGIA’s direct response sales operation is dependent; (c) other factors set forth in IGIA’s periodic reports and registration statements filed with the Securities and Exchange Commission, which may be reviewed by accessing the SEC’s EDGAR system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. IGIA cautions readers not to place undue reliance on such statements. Unless otherwise required by applicable law, IGIA does not undertake, and IGIA specifically disclaims any obligation to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
Contact info:
Paul Greenfield
General Counsel
(212) 575-0500 x134
###
Contact
Igia
Alexander Shmarkatyuk
212-575-0500
www.igia.com
Alexander Shmarkatyuk
212-575-0500
www.igia.com
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