Descrption:
NEW YORK, New York, June 15, 2006 -- Business Wire -- 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.” |