ULURU reports net loss of $1.3M for first-quarter 2010

May 14 2010

ULURU Inc. (NYSE Amex: ULU) today announced its financial results for the first quarter ended March 31, 2010.

For the first quarter of 2010, the Company reported a net loss of $1.3 million, or $0.02 per share, compared with a net loss of $3.1 million, or $0.05 per share, for the same period last year. At March 31, 2010, the Company held cash and cash equivalents of $2.2 million, compared with $1.9 million at December 31, 2009.

Commenting on the financial results Renaat Van den Hooff, President and CEO, stated, "During the first quarter we continued to execute our strategic plan with the hiring and training of dedicated sales representatives and expanding the independent sales representative (ISR) group, both of which are important elements of our sales strategy. While these ISRs are an important element of our sales strategy, the hiring of dedicated sales representatives is, as previously stated, important to gain greater control over our sales activities. We have now completed the hiring of three full-time, dedicated sales representatives in strategically important territories. Based on the success of this hiring program we expect that additional dedicated sales representatives will be hired as our sales base expands."

Mr. Van den Hooff continued, "Altrazeal sales were less than expected for the first quarter of 2010, primarily as a result of inventory building in the fourth quarter by McKesson Medical and the delayed impact of the new sales strategy. However, we are pleased to report that the impact of our revised selling strategy for Altrazeal has resulted in significantly greater sales in April 2010. We anticipate that sales will continue to show significant growth during the balance of the current quarter and year. Also of note for the first quarter of 2010 was a significant Aphthasol order by our domestic distributor Discus Dental."

Mr. Van den Hooff added, "From a regulatory perspective, we recently received verbal notification from the European Notified Body that the CE mark for Altrazeal is in its final administrative stage following a successful evaluation. We anticipate that this will generate momentum for future business partnerships in Europe."

Operating Results

Revenues

Revenue for the first quarter of 2010 was approximately $235,000, compared to approximately $169,000 for the first quarter of 2009. The increase of approximately $66,000 in revenue from the first quarter of 2009 compared to the first quarter of 2010 was due primarily to an increase of $138,000 in Aphthasol® product sales as we did not sell any Aphthasol® finished product to our domestic distributor during the first quarter of 2009.

Research and Development

Research and development expenses for the first quarter of 2010 were $286,000, including $31,000 in share-based compensation, compared to $775,000, including $42,000 in share-based compensation, for the first quarter of 2009. The decrease of approximately $490,000 in research and development expenses was primarily due to the Company's restructured business plan implemented in the second half 2009 which contributed to decreases in direct research costs of $148,000, scientific personnel costs of $210,000, clinical testing expenses for our wound care technologies of $58,000, regulatory consulting expenses of $56,000, and regulatory fees of $21,000.

Selling, General and Administrative

Selling, general and administrative expenses for the first quarter of 2010 were $0.8 million, including $123,000 in share-based compensation, compared to $2.2 million, including $759,000 in share-based compensation, for the first quarter of 2009. The decrease of approximately $1,408,000 in selling, general and administrative expenses was primarily due to the Company's restructured business plan which contributed to reduced costs associated with our sales and marketing efforts of approximately $636,000 due to lower head count and marketing expenses, a decrease of $635,000 in administrative compensation, lower consulting fees of $43,000, lower legal fees of $70,000, and decreased legal fees related to our patents of $56,000.

Other income and Other expenses

Interest and miscellaneous income for the first quarter of 2010 was $121 as compared to $14,554 for the first quarter of 2009. The decrease of approximately $14,000 is attributable to a decrease in interest income due to lower cash balances and interest yields in 2010.

Interest expense for the first quarter of 2010 was $7,988.