Hydron Technologies, Inc. Reports Fourth Quarter Results

Hydron Technologies, Inc. Reports Fourth Quarter Results 


POMPANO BEACH, Fla., April 14  /PRNewswire-FirstCall/ -- Hydron Technologies,
Inc.  (BULLETIN BOARD: HTEC)  announced today that the Company had net sales of
$257,961 for the quarter ended December 31, 2003, a decrease of 31.3% over net
sales $375,266 for the quarter ended December 31, 2002. The Company also
reported a net loss of $407,897 ($.05 per share) for the quarter ended December
31, 2003, representing an increase of 32.3% from the net loss of $308,289 ($.05
per share) for the quarter ended December 31, 2002. Net sales for 2003 were
$1,219,710; a decrease of 27.0%, from net sales of $1,671,641 for 2002. The
Company also reported a net loss for 2003 of $936,856 ($.13 per share)
representing an increase of 3.5% from the net loss of $904,840 ($.17 per share)
for 2002.

During 2003, direct marketing catalog sales decreased by $164,499 or 14.3% from
$1,146,989 in 2002 to $982,490 in 2003. The Company did not promote to
historical customer lists from QVC and HSN as it did in 2002. These activities
were part of the termination agreements that expired in 2002. As a result, the
promotional costs as well as the sales dollars were below those seen in 2002.

Private label sales in 2003 were $57,056, a decrease of $74,152 or 56.5% from
such sales of $131,208 in 2002. These sales tend to fluctuate from year to year
as purchase orders cover more than one year's supply and every product in the
line is not purchased every year. In addition, new product introductions are
not necessarily made by the private label customers every year. A new product
was introduced in 2002, but not in 2003. Sales to retail stores were less than
1% of sales in 2003. Retail store sales decreased $194,584 or 96.8% from
$201,010 in 2002 to $6,426 in 2003, primarily reflecting minimal follow-up
orders by retail stores after heavily discounted introductory offers in 2002.

The Company's overall gross profit margin decreased slightly to 52.0% of net
sales for 2003 versus 54.3% for 2002. This reflects changes to the relative mix
of higher margin catalog sales versus lower margin private label sales.

Selling, general and administrative expenses in 2003 were $1,178,211,
representing a decrease of $251,959 or 17.6% from SG&A expenses of $1,430,170
in 2002. Costs were reduced associated with sales commissions, legal fees,
employee expenses, warehousing and marketing expenses.

The Company had a net loss of $936,856, representing an increase of $32,016 or
3.5% from the net loss of $904,840 for 2002, primarily a result of the reduced
sales for the year.

Mr. Terrence McGrath, the Company's Chief Operating Officer, said, "Throughout
2003, the Company continued to shift its primary focus to the development of
its tissue oxygenation technology. In November 2003 Hydron received a US patent
for the method of oxygenating skin and tissue topically, using microbubbles of
pure oxygen suspended in fluid. This technology has important medical
applications for improving medical treatments and quality of life for burn
victims, chronic wound care, radiation-induced injury, decubitus and pressure
ulcers (bed sores), skin grafts and frostbite."

McGrath added, "The Company continues to develop its oxygenation property.
Additional patent applications have been filed related to the method of topical
tissue oxygenation and related devices. Further, the Company has also added
expert clinical and regulatory consultants and will pursue approval from the
FDA to allow the use of its oxygenation technology for a number of medical
applications."

McGrath further added, "In December, Hydron completed a private placement
offering, raising $1.1 million, to accelerate its research and development
program surrounding this oxygenation technology. Hydron's chairman, Richard
Banakus, director Ronald J. Saul and fifteen accredited investors demonstrated
their confidence in the future of the Company and its technology through their
investment."

  Financial Highlights

                               Three months              Twelve months
                             ended December 31          ended December 31
                            2003        2002*         2003        2002*
  Net Sales             $257,961     $375,266   $1,219,710   $1,671,641
  Gross profits           25,151       74,559      634,524      908,283
  Selling, general &
   administrative
   expenses              331,468      383,100    1,469,818    1,814,151
  Net loss             (407,897)    (308,289)    (936,856)    (904,840)
  Net loss per share     $(0.05)      $(0.05)      $(0.13)      $(0.17)

  Weighted average
   shares outstanding  8,203,179    5,699,593    7,340,766    5,201,369



* Restated to reflect shipping amounts billed to customers in sales and
shipping cost incurred in cost of sales. In prior years these amounts were
reflected as a net cost in selling, general and administrative expenses

Hydron Technologies, Inc. conducts research and development of products and
medical applications associated with its proprietary tissue oxygenation
technology. The Company also markets skin care products through Hydron's
direct-to-consumer catalog and on the Internet at http://www.hydron.com/.
Catalogs are available by calling 1-800-4-HYDRON (1-800-449-3766). Except for
historical information, all of the expectations and assumptions contained in
the foregoing are forward-looking statements involving risks and uncertainties.
For additional information regarding the risks associated with the Company's
business, refer to Hydron Technologies, Inc. reports filed with the SEC. 

DATASOURCE: Hydron Technologies, Inc.



CONTACT:  Terrence S. McGrath, Chief Operating Officer, Hydron

Technologies, Inc., [phone], or 



Web site:  http://www.hydron.com/

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