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International Isotopes Inc. Announces 2018 Year End Financial Results
IDAHO FALLS, Idaho, March 20, 2019 /PRNewswire/ -- International Isotopes Inc. (OTCQB: INIS) (the "Company") announces its financial results for the fiscal year ended December 31, 2018. The Company reported total revenue in 2018 of $10,368,823 compared to $7,420,390 in 2017, which represents an increase of approximately 40%. The details of the performance of the Company's significant business segments are discussed below.
Cobalt products sales accounted for approximately 20% of the Company's total revenue in 2018 and approximately 7% in 2017. Revenue in this segment increased by about 302% in 2018, as compared to 2017. The significant increase in revenue is attributed to the resumption of cobalt product sales resulting from the Company's acquisition of cobalt from an alternate supplier. In 2015, the Company executed a ten-year production purchase agreement with the U.S. Department of Energy (DOE) for bulk cobalt produced in the Advanced Test Reactor (ATR), and material has been undergoing irradiation since that time. The Company expects to begin receiving and processing cobalt under that agreement later in 2019 and will start recognizing additional sales revenue at that time. From that time forward, the Company expects cobalt sales revenue to continue at a fairly steady pace. Cobalt products were historically the Company's largest revenue segment prior to a supply interruption in 2014 as previously disclosed.
Revenue from the Company's Radiological Services segment increased by approximately 67% in 2018, compared to in 2017. This segment accounted for approximately 22% of total revenue in 2018, and approximately 18% in 2017. The increase in revenue in the segment is attributable to contracts awarded to the Company by the DOE and International Atomic Energy Agency (IAEA) for field service work involving the decommissioning of dis-used therapy devices. The Company already has contracts in place with the DOE and expects to see continued strong revenue within this segment in 2019.
Sales of nuclear medicine standards accounted for approximately 37% and 44% of the Company's total revenue in 2018 and 2017, respectively. Revenue in this segment increased by approximately 17% in 2018, as compared to 2017. All of the revenue within this segment results from our sales to RadQual LLC (RadQual). The Company attributes the increase in revenue within the segment to the management change in RadQual brought about by a change in member ownership of RadQual and the Company assuming overall management responsibility for RadQual. The Company anticipates that sales to RadQual will continue to grow in the coming year through increases in the distributor network and through the introduction of new products.
Sales of radiochemical products accounted for approximately 21% of the Company's total revenue in 2018, reduced from approximately 31% of total revenue in 2017. Revenue in this segment decreased by approximately 2% as compared to 2017. This decrease in revenue is primarily the result of supply interruptions that occurred early in the year. The Company expects to see improved revenue performance within this segment during 2019 as the result of the anticipated commercial launch of a new generic drug product.
Cost of revenue for 2018 was $5,678,530 as compared to $4,182,705 in 2017, an increase of approximately 36%. Total operating costs and expenses decreased approximately 6% in 2018 compared to 2017 as a result of decreased general and administrative expense. The decrease in general and administrative expense was attributed to decreased legal expense related to a one-time arbitration proceeding which concluded in 2017.
Net loss was $844,576 in 2018, compared to a net loss of $3,757,284 in 2017. This is a reduction in net loss of approximately 78%. The reduction in net loss was the result increased revenues, decreased costs of production, and decreased operating expenses. The Company believes it will continue to see similar improvements in performance in 2019.
Steve Laflin, Chief Executive Officer of the Company, stated, "I am very pleased with our overall financial performance in 2018 and I believe each of our business segments has excellent potential for continued improvements in performance in 2019. The long-awaited resumption of cobalt products sales was a very important aspect to our improved performance last year and I expect to see that positive trend continuing into 2019 and beyond due to the restart of cobalt production from the ATR. We have been able to obtain additional contacts for radiological field service work with the DOE which should continue the positive trend in revenue performance for the radiological services segment in 2019. Strong domestic demand, the introduction of new products, and increased international sales should all contribute towards continued improvement in revenue growth for the nuclear medicine segment. During 2019, we also expect to see some positive improvements in financial performance in the radiochemical segment as a result of the anticipated commercial launch of a new generic drug product and other business initiatives that are under development within this segment."
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About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, a variety of Cobalt-60 products, and provides a wide selection of radioisotopes and radiochemical for medical applications, calibration, and clinical research. The Company also provides radiological services including source installation/removal, and decommissioning of various radiation units on a contract basis to clients.
International Isotopes Inc. Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements with respect to revenue expectations for the future within our business segments, our ability to launch new products, the timing for the start of commercial sales of new products, increased contract opportunities for services, and our long term revenue outlook. Information contained in such forward-looking statements is based on current expectations and is subject to change. These statements involve several risks, uncertainties and other factors that could cause actual results, performance or achievements of International Isotopes Inc. to be materially different from any future results, performance or achievements of the Company expressed or implied by these forward-looking statements. Other factors, which could materially affect such forward-looking statements, can be found in the Company's filings with the Securities and Exchange Commission at www.sec.gov, including its Annual Report on Form 10-K for the year ended December 31, 2018. Investors, potential investors, and other readers, are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and International Isotopes, Inc. and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
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