PURE Bioscience Reports Fourth Quarter and Fiscal Year 2011 Results

Conference Call begins Today at 4:30 p.m. Eastern time

SAN DIEGO--(BUSINESS WIRE)-- PURE Bioscience (NASDAQ: PURE), creator of the patented silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fourth quarter and fiscal year ended July 31, 2011 (“fiscal 2011”).

Revenue for fiscal 2011 was $464,000, compared with revenue of $1,436,000 for the year ended July 31, 2010 (“fiscal 2010”). The net loss for fiscal 2011 was $8,349,000, or $0.22 per share, compared with a net loss of $6,760,000, or $0.20 per share, in fiscal 2010.

For the fourth quarter of fiscal 2011, revenue was $244,000, compared with revenue of $324,000 for the fourth quarter of fiscal 2010. The net loss for the fourth quarter of fiscal 2011 was $2,031,000, or $0.05 per share, compared with a net loss of $1,673,000, or $0.05 per share, for the fourth quarter of fiscal 2010.

As of July 31, 2011, the Company had cash and cash equivalents of approximately $1.8 million.

Michael L. Krall, President and CEO, stated, “In the fiscal fourth quarter and recent weeks, we focused on initiatives in three important areas, namely 1) gaining regulatory approvals, 2) introducing PURE-branded products, and 3) developing business in key vertical markets. While much work remains to be done, I’m pleased with the progress in each of these areas. For example, Health Canada approved PURE™ Hard Surface for use in food premises and healthcare facilities; and we received an expanded EPA registration adding additional pathogens, including Hepatitis B, Hepatitis C and multiple drug-resistant bacteria, as well as reducing virus kill times to as quick as 30 seconds. We obtained NSF International registration for use of PURE Hard Surface as a no-rinse sanitizer in food processing areas, and we secured GRAS designation for SDC when used on food processing equipment. Each of these regulatory milestones expands and accelerates our market opportunities in the healthcare, institution and food markets.

“Following the introduction of PURE Hard Surface, during the fourth quarter we took direct control of SDC-based product sales through a restructuring of our sales, marketing and distribution strategy and operation. During the quarter we made valuable inroads for PURE Hard Surface in key new markets, including the food processing industry, which has been plagued with landmark safety issues this year. Because of its zero toxicity profile and impressive efficacy against so many dangerous pathogens, the application of SDC in this market is truly unique,” continued Krall.

“We’ve also bolstered our management team with the addition of key executives in finance and sales. In short, we are executing our strategy from a focused position of strength with new regulatory approvals, products, market awareness and experienced management that we believe will yield timely and significant results in the coming quarters,” added Krall.

Conference Call

The Company will host a conference call today beginning at 4:30 p.m. Eastern time to review and discuss the financial results and its business outlook, and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 877-407-8033 (domestic) or 201-689-8033 (international) a few minutes before the call start time. The call is being webcast and can be accessed at www.purebio.com. Investors can also access the webcast at www.InvestorCalendar.com. The webcast will be available for replay through October 31, 2012. A replay of the conference call will be accessible until midnight December 31, 2011 by dialing 877-660-6853 or (International) 201-612-7415, and entering the Account #: 286 and the Conference ID #: 381842.

About PURE Bioscience, Inc.

PURE Bioscience, Inc. develops and markets technology-based bioscience products that provide solutions to numerous global health challenges, including Staph (MRSA). PURE’s proprietary high efficacy/low toxicity bioscience technologies, including its silver dihydrogen citrate-based antimicrobials, represent innovative advances in diverse markets and lead today’s global trend toward industry and consumer use of “green” products while providing competitive advantages in efficacy and safety. Patented SDC is an electrolytically generated source of stabilized ionic silver, which formulates well with other compounds. As a platform technology, SDC is distinguished from competitors in the marketplace because of its superior efficacy, reduced toxicity and the inability of bacteria to form a resistance to it. PURE is headquartered in El Cajon, California (San Diego metropolitan area). Additional information on PURE is available at www.purebio.com.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project,” "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company’s cash position and liquidity requirements, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

-Financial tables follow-

PURE Bioscience, Inc.

Consolidated Statements of Operations
         
 
Year Ended
July 31,
2011 2010
Revenue
Net product sales $ 454,180 $ 1,416,137
License fees   10,000     20,000  
Total revenue   464,180     1,436,137  
 
Operating costs and expenses
Cost of goods sold 131,390 465,094
Selling, general and administrative 6,520,160 5,861,976
Research and development 2,179,508 1,927,183
Impairment of capitalized assets   -     92,745  
Total operating costs and expenses   8,831,058     8,346,998  
 
Loss from operations (8,366,878 ) (6,910,861 )
 
Other income (expense)
Interest income 7,768 33,312
Other income, net   10,000     117,265  
Total other income (expense)   17,768     150,577  
 
Net loss $ (8,349,110 ) $ (6,760,284 )
 
Basic and diluted net loss per share $ (0.22 ) $ (0.20 )
 
Shares used in computing basic
and diluted net loss per share   37,323,434     34,547,943  
 

PURE Bioscience, Inc.

Consolidated Balance Sheets
         
July 31,
2011 2010
Assets
Current assets
Cash and cash equivalents $ 1,793,629 $ 2,192,543
Accounts receivable, net 50,235 332,493
Inventories, net 860,501 752,438
Prepaid expenses   100,040     146,307  
Total current assets 2,804,405 3,423,781
 
Property, plant and equipment, net 426,382 696,974
Patents, net   1,917,110     1,872,882  
 
Total assets $ 5,147,897   $ 5,993,637  
 
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 676,491 $ 329,281
Accrued liabilities 257,683 243,898
Deferred revenue   -     10,000  
Total current liabilities 934,174 583,179
 
Deferred rent   5,608     16,045  
Total liabilities   939,782     599,224  
 
Commitments and contingencies
 
Stockholders' equity
Preferred stock, $0.01 par value:
5,000,000 shares authorized, no shares issued - -
Common stock, $0.01 par value:
100,000,000 shares authorized
40,034,659 issued and outstanding at July 31, 2011, and
35,488,317 issued and outstanding at July 31, 2010 400,347 354,883
Additional paid-in capital 57,417,337 50,299,989
Accumulated deficit   (53,609,569 )   (45,260,459 )
Total stockholders' equity   4,208,115     5,394,413  
 
Total liabilities and stockholders' equity $ 5,147,897   $ 5,993,637  



CONTACT:

PURE Bioscience Investor Contact:
LHA
Don Markley, Senior Vice President
(310) 691-7100
[email protected]
or
PURE Bioscience Media Contact:
Gutenberg Communications
Michael Gallo
(212) 239-8594
[email protected]

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:   Health  Biotechnology  Infectious Diseases  Manufacturing  Chemicals/Plastics

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