- Total Revenue Increases 10% Year-Over-Year
- Delivers Improved Gross Margins, Achieves Annual Cost Savings Target Early, and Reduces Cash Burn Over 55%
IRVINE, Calif., April 15, 2025 (GLOBE NEWSWIRE) — Biomerica, Inc. (Nasdaq: BMRA), (the “Company”) a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the third quarter of fiscal 2025 ended February 28, 2025.
Key Highlights:
1. Fortel® PSA Screening Test Approved by UAE Ministry of Health & Prevention:
Biomerica’s Fortel® Prostate Specific Antigen (PSA) Screening Test has received regulatory approval from the United Arab Emirates Ministry of Health & Prevention (MOHAP). The Fortel® test offers fast, accurate PSA results in just 10 minutes using a simple finger-prick blood sample. By enabling earlier detection of prostate cancer and other prostate conditions, this easy-to-use diagnostic tool aims to enhance preventative care, reduce pressure on healthcare systems, and support improved patient outcomes.
2. inFoods® IBS Clinical Trial Results Published in Gastroenterology:
New clinical data published in Gastroenterology, the leading peer-reviewed journal for gastrointestinal medicine, demonstrated that patients with Irritable Bowel Syndrome (IBS) experienced statistically significant reductions in abdominal pain and bloating when following a personalized diet therapy plan guided by Biomerica’s inFoods® IBS test. Unlike other IBS products, inFoods® IBS uniquely identifies specific foods that trigger elevated Immunoglobulin G (IgG) responses—a marker of inflammation linked to IBS symptoms—using a 95% confidence interval for each food in the panel. IBS affects an estimated 10%–15% of adults in the U.S. and contributes to reduced quality of life and productivity. The findings support the role of personalized food-guided therapy as a meaningful intervention for IBS management.
3. CE-IVDR Certification Achieved for Food Intolerance Products Targeting Ulcerative Colitis:
Biomerica’s new food intolerance products targeting Ulcerative Colitis have been awarded CE-marking under the European Union’s In Vitro Diagnostic Medical Devices Regulation (IVDR), a stringent regulatory framework designed to enhance diagnostic safety and performance across Europe. This IVDR certification highlights Biomerica’s continued leadership in developing non-invasive, personalized diagnostic tools for chronic gastrointestinal conditions. The newly approved tests will help meet the increasing demand for individualized approaches to managing diseases such as Ulcerative Colitis, which affects millions globally.
4. Achieved Full-Year Cost Savings Target Nine Months Into Fiscal 2025:
Biomerica reached its annual cost savings target ahead of schedule, delivering approximately $1.1 million in savings — representing 16% of annual operating expenses within the first nine months of fiscal 2025.
Financial Highlights for the Third Quarter of Fiscal 2025
Biomerica’s third quarter results reflect continued execution against its strategic priorities, delivering year-over-year revenue growth, expanded gross margins, and substantial reductions in both operating expenses and cash burn.
Revenue and Sales Performance: For the fiscal third quarter of 2025, Biomerica reported net sales of $1.10 million, a 10% increase from $1.00 million recorded in the same quarter of the previous year. This growth reflects continued demand for Biomerica’s product offerings and reinforces the appeal of our diverse product portfolio.
Cost Management and Margin Enhancement: Gross margin improved from negative 15% in the third quarter of fiscal 2024 to positive 2% in the current quarter, reflecting a favorable product mix and lower direct labor and overhead costs, achieved through strategic workforce reductions and operational efficiency initiatives.
Operating expenses decreased 37% year-over-year to $1.20 million in the third quarter of fiscal 2025, down from $1.90 million in the same period last year, driven by the Company’s continued focus on operational efficiencies and disciplined cost management.
Biomerica continued to make significant progress with its cost-saving initiatives, targeting an annual expense reduction of 16% to 23%. Impressively, the Company has already achieved approximately $1.1 million in savings within the first nine months of fiscal 2025, representing 16% of annual operating expenses and reaching the lower end of its full-year target range ahead of schedule.
Reduced Net Losses & Improved Cash Burn: Operating loss improved to ($1.20) million in the third quarter of fiscal 2025, compared to ($2.00) million in the prior year. Net loss also narrowed to ($1.20) million from ($1.90) million in the same period last year, both representing a 37% year-over-year improvement.
Liquidity and Capital Resources: As of February 28, 2025, Biomerica’s cash and cash equivalents totaled $3.06 million, an increase from $2.37 million at the end of the second quarter of fiscal 2025. This increase was primarily driven by proceeds from the Company’s successful utilization of its At-The-Market (ATM) equity program.
Importantly, excluding ATM proceeds, the Company’s underlying quarterly cash burn improved to approximately $800,000, compared to $1.8 million in the same period of the prior year representing a reduction of more than 55% and highlighting the tangible impact of the Company’s cost-saving initiatives.
“Our third quarter results reflect the meaningful progress we’ve made in strengthening our financial foundation while continuing to serve customers and grow our business,” said Zack Irani, CEO of Biomerica. “We are particularly pleased with the significant reduction in our cash burn and operating expenses, which positions us well as we continue to focus on driving revenue growth and moving closer to achieving cash flow break-even.”
| Selected Financial Results | Three Months Ended | Three Months Ended | |||||||
| February 28, 2025 | February 29, 2024 | ||||||||
| ($ in millions, except percentages) | |||||||||
| Revenue | $1.10 | $1.00 | |||||||
| Gross margin | 2% | -15% | |||||||
| Operating expenses | $1.20 | $1.90 | |||||||
| Operating loss | ($1.20) | ($2.00) | |||||||
| Net Loss | ($1.20) | ($1.90) | |||||||
About Biomerica (NASDAQ: BMRA)
Biomerica, Inc. (www.biomerica.com ) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians’ offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company’s products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.
About inFoods®
The inFoods IBS test involves a simple blood collection procedure and is designed to assess a patient’s above normal immunoreactivity to specific foods. Instead of difficult to manage broad dietary restrictions, physicians can now use the inFoods IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. Further information about Biomerica’s patented inFoods® Technology Platform can be found at: https://biomerica.com/inFoods/our-technology/. The inFoods IBS clinical study was performed at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. – a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for improvement in the Abdominal Pain Intensity (API) responder endpoint of >30%, for IBS patients in the treatment diet arm had a statistically significant improvement over patients in the placebo diet arm (p-value of 0.0246). The improvement for patients in the treatment arm versus the placebo arm is considered clinically significant and is similar and, in some cases, better than the current drugs in the market.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company’s current and future cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company’s need for raising additional capital; the Company’s expected sales growth for the Company’s inFoods IBS product, Hp Detect product and other existing products; and diversification of the Company’s revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC, and available on the SEC’s website (www.sec.gov). The Company is under no obligation to update any forward-looking statements after the date of this release.
Corporate Contact:
Zack Irani
949-645-2111
investors@biomerica.com
Source: Biomerica, Inc.
