Digital Angel Corporation (DOC), an advancing technology company focused on locating, tracking, and monitoring high-value assets, announced financial results for its third quarter ended September 30, 2007.
Revenue for the third quarter of 2007 was $20.3 million, a 64.0% increase, compared to revenue of $12.4 million in the third quarter of 2006. The net loss reported was $1.3 million, or $0.03 loss per share, in the third quarter of 2007 compared to a net loss of $1.4 million, or $0.03 loss per share, in the third quarter of 2006. Revenue for the second quarter of 2007 was $19.5 million and the net loss was $2.7 million, or $0.06 loss per share.
Barry M. Edelstein, interim President and Chief Executive Officer, added “We reported record revenue in the third quarter, an achievement driven by organic growth in our animal applications business, primarily due to an increase in sales of approximately $2.6 million to Schering-Plough, our exclusive distributor in the U.S. of our companion pet implantable microchips, and incremental sales of $4.5 million from McMurdo, which we acquired in April 2007. McMurdo, a business that is committed to saving lives, continues to exceed our expectations.”
“Our core businesses continue to perform well and we believe our merger with Applied Digital, which we announced in August 2007, will further enhance stockholder value. We believe the merger will enable us to cut general and administrative costs by more than $2 million per year, eliminate the holding company structure, and create a more focused, streamlined business. We will focus on our core strengths of RFID identification of animals and GPS search and rescue beacons, and at the appropriate time will continue to divest non-strategic entities. We believe the combined company, which will have a direct ownership in VeriChip Corporation, will be stronger financially. As part of this transaction, the board of directors also initiated a search for a new CEO to lead the combined company. We have worked closely with Korn/Ferry and are in the final stages of the executive recruiting effort. We expect to complete the merger and announce a new chief executive officer in December.”
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