Med-Design Reports $3.3 Million in Income

The Med-Design Corp. in Ventura, which designs safety needle products for medical use, reported $3.3 million in net income for the fourth quarter of 1998, compared with a loss of $1.9 million in the same period in 1997.

Also for the quarter ended Dec. 31, revenue was $4.5 million, which came from the initial payment under the Becton, Dickinson and Co. licensing agreement. The company did not report any revenue in the fourth quarter of 1997.

For the full year, Med-Design reported revenue of $4.5 million, also the result of payment received from Becton Dickinson. Net income for 1998 was $882,889, compared with a net loss in 1997 of $5.2 million. The earnings-per-share for the year was 11 cents, compared with a 66-cent loss in 1997.

“We are very pleased that the Becton Dickinson agreement has resulted in Med-Design recognizing licensing revenue and net income for the first time in its corporate history,” said James Donegan, Med-Design chairman and chief executive. “Equally as important as the quarterly financial results are the product validation and increased capital that the Becton Dickinson agreement provides. The revenue generated by the licensing agreement of $4.5 million, combined with the $1.5-million preferred stock investment by Becton Dickinson, will enhance the company’s ability to expand its safety needle design and development program.”