Biomerica, Inc. engages in the development, manufacture, and marketing of medical diagnostic products designed for the early detection and monitoring of chronic diseases and medical conditions. It focuses on gastrointestinal diseases, food intolerances, diabetes, and certain esoteric tests. It operates through the following geographical segments: Europe, United States, Asia, South America, Middle East, and Other Foreign. The company was founded in September 1971 and is headquartered in Irvine, CA.
Consolidated net sales for Biomerica were $1,194,415 for the three months ended August 31, 2019 as compared to $1,272,870 for the same period in the previous year. This represents a decrease of $78,455, or 6.2%. The decrease was primarily due to decreased sales of approximately $91,000 in Europe which was due to lower sales to certain distributors and timing of certain orders. This was partially offset by an increase in Asia of approximately $15,000. Sales in the U.S. were down by approximately $28,000 from the prior year due to higher sales in the prior year of contract manufacturing.
For the three months ended August 31, 2019 as compared to August 31, 2018, cost of sales decreased as a percentage of sales from 73.5% of sales, or $935,647, to 69.2% of sales, or $827,111. Cost of sales as a percentage of sales decreased primarily due to product mix, lower material costs and capitalization of costs into inventory.
For the three months ended August 31, 2019 compared to 2018, selling, general and administrative costs were $506,397 as compared to $400,228, an increase of $106,169, or 26.5%. This was due to increased personnel costs in marketing and increased costs of CE mark certification and outside services in general and administrative.