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22 Sep 2008 07:00
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For immediate release |
22Β September 2008 |
TYRATECH, INC.
("TyraTech" or "the Company")
Trading UpdateΒ
TyraTech, Inc. (AIM: TYR), a leading independent novel pesticide company for human, animal and environmental health, today announces an update on trading.
TyraTech's commercial programmes are progressing well. However, due to the lengthy nature of commercial discussions with partners and customers, as well as TyraTech's disciplined approach to partner selection and deal negotiation, the Board anticipates that revenues and profits for the full year 2008 are unlikely to meet with current market expectations. The Company does, however, expect to report on positive progress from sales and partnership discussions before year end.
Revenue generating products and near term cash flowsΒ
TyraTech's lead insecticide product, Naturalsβ’ Crawling Insect Killer, has enjoyed growth in distribution outlets in theΒ USΒ via own label sales and a local distribution partner, SYSCO.
TyraTech's WasteSolver business is progressing well as evidenced by the growing customer pipeline and receipt of four signed orders plus a further four signed letters of intent. While sales of this product have been initially slower than expected due to the extended sales lead time necessary for farmers to evaluate the new waste management solution, customer feedback and the current order book confirm management's confidence in this product line.
Partnerships and milestones
TyraTech has diversified revenue streams which combine strong relationships with blue-chip partners and direct sales. The Company is actively involved in several partnership discussions with new partners covering consumer products, agriculture andΒ animal health, and has a signedΒ letter of intent in place with one significantΒ USΒ business for one of these key markets. The Board of TyraTech expects positive commercial progress and newsflow in the near to medium term on these discussions. However, despite real progress, signatures and timing of new partnerships and product launches have proved difficult to predict. In addition, whilst TyraTech reports that existing partner development programmes are progressing well, related milestones are now not expected until H1 2009.
Financials
The Company will announce its interim results onΒ 26 September 2008Β where revenue for the first half of the year is anticipated to be approximately $2.4 million with an operating loss of $9.8 million. The cash balance at the end of June 2008 was $14.9 million which the Board expects to be sufficient for the Company's current operations.Β
Based on recent progress in the pipeline, work with current and future partners and new scheduled product releases, TyraTech expects to report strong growth in 2009. The Company's revenues are also expected to continue growing throughout H2 2008.
Commenting on the announcement, Douglas Armstrong Ph.D., Chief Executive Officer of TyraTech, said:Β "TyraTech has a diversified business model with revenue potentially arising from a number of different sources. We continue to receive strong feedback from our customers, and have made progress across all markets. We are therefore confident we can deliver successfully on our current and new potential partnerships.
"While the business operations have progressed well, we have been disappointed at the speed of entry into certain markets. As a management team we remain positive that we can execute our business plan and strategy and that there is potential for high gross margins on products and up front and milestone payments from partnering and licensing deals. We trust to be able to evidence this progress through announcements for the rest of 2008 which will have a positive impact on 2009 revenues."
For further information please contact:
TyraTech Inc.
Keith Bigsby, Chief Financial Officer +1 (321) 409 7714
www.tyratech.com
Nomura Code Securities
Charles Walker +44 (0)20 7776 1200
www.nomuracode.com
Buchanan Communications
MaryίJane Johnson / Lisa Baderoon / Catherine Breen +44 (0) 20 7466 5000
About TyraTech
TyraTech's plan for the use of its technology is to develop selected proprietary active ingredients which can then be used across a wide variety of market segments, either by development partners or by TyraTech itself. TyraTech already has products or partnerships in the areas of professional and horticultural insect control, and for an insect/mosquito repellent. TyraTech also has an innovative partnership with Kraft to use its natural oils to develop functional foods for improving the health of the more than 2 billion people worldwide subject to intestinal parasitic infections.
TyraTech also has a separate technology with associated intellectual property that is the basis for the Sustainable Solutions business. This technology has been incorporated into specialised dairy farm equipment for processing cattle manure waste to a usable material for TyraTech to sell as a commercial plant growing medium. For more information please visit www.tyratech.com.
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