International Isotopes Inc. Announces Third Quarter and Nine Months 2010 Financial Results

IDAHO FALLS, Idaho, Nov. 8, 2010 /PRNewswire-FirstCall/ -- International Isotopes Inc. (OTC Bulletin Board: INIS) announces financial results for the third quarter and nine-months ending September 30, 2010.  

Revenue for the three-month period ended September 30, 2010, was $1,783,047, as compared to $1,323,907 for the same period in 2009, an overall increase of $459,140 or approximately 35%.  All business segments reported increases in revenues for the period with the exception of the Radiochemical Products and the Transportation segments which reported decreases in revenue of 4% and 43%, respectively and the Fluoride Products segment which at the present time produces little to no revenue.

The Company recorded $551,728 in bulk cobalt sales for the three-month period ended September 30, 2010, and no bulk cobalt sales during the same period in 2009.  Bulk cobalt sales in the amount of $551,728 were recorded for the nine-month period ended September 30, 2010 and $494,661 during the same period in 2009.  The timing of bulk cobalt sales can create large variations in period-to-period revenue comparisons and these bulk cobalt sales represent a material dollar amount and therefore, management believes that a presentation of total revenue excluding bulk cobalt sales provides meaningful information to the investor.  The following tables present a period-to-period comparison of the Company's total revenue by segment, as well as a period-to-period comparison of total revenue by segment excluding bulk cobalt sales.

Gross profit for the three-month period ended September 30, 2010, was $618,860 compared to $464,428, for the same period in 2009.  This represents an increase of $154,432, or approximately 33%.  This increase in gross profit is due to the increase in total sales.  The overall cost of product materials, as a percentage of revenues, remained relatively constant from period to period.  Gross profit for the nine-month period ended September 30, 2010 was $1,731,461, compared to $2,134,220, for the same period in 2009.  This represents a decrease of $402,759 or approximately 19% and is a result of the small decrease in revenue coupled with increased material costs during this same period.  

Operating expenses increased to $2,239,548 for the three-month period ended September 30, 2010, compared to $1,956,964 for the same period in 2009.  This represents an increase of $282,584 or approximately 14%.  Operating expenses were $6,076,597 for the nine-month period ended September 30, 2010, compared to $4,954,872 for the same period in 2009.  This represents an increase of $1,121,725 or approximately 23%.   This increase in operating expense for both periods is generally attributable to the increase in research and development costs generated by work related to the continued planning and licensing of the uranium de-conversion facility. The following tables show a year to year comparison of total operating expenses for the three and nine-month periods:

Net loss for the three-month period ended September 30, 2010, was $1,764,385, as compared to $1,508,645 for the same period in 2009.  This is an increase in loss of $255,740, or 17%.  Net loss for the nine-month period ended September 30, 2010, was $4,736,317, as compared to $2,855,206 for the same period in 2009, an increase in loss of $1,881,111, or 66%.  For both periods the loss is largely attributable to the increases in research and development costs related to the planned depleted uranium de-conversion and fluorine extraction processing facility.

Steve T. Laflin, President and CEO of International Isotopes Inc. said, "Our plans to construct the nation's first environmentally friendly, 'green' commercial depleted uranium de-conversion and fluorine extraction processing facility continue to proceed on schedule.  Additional significant progress has been made on the project during the past quarter.  During this period our main focus has been on continued support of the Nuclear Regulatory Commission (NRC) licensing process and furthering engineering detail, design, and documentation of the facility in order to solicit bids for our selection of a design and build contractor for the project.   We expect to have bids from several major contractors in November and will work closely with them to evaluate the best overall lead contractor for this project.

"During the past quarter we also announced completion of a contract agreement with URENCO.  Under the terms of the agreement, URENCO USA will perform a detailed review of the INIS Integrated Safety Analysis (ISA) that was submitted to the NRC as part of the licensing process and work with INIS in the preparation of the State of New Mexico permits.  We believe URENCO USA's experience and expertise in licensing and permitting will provide us with an opportunity to lower our costs and help us avoid possible schedule delays related to licensing issues during the construction phase of this 'green technology' project.

"Lastly, in order to continue to fund this effort we have been actively seeking investors for the project and we were pleased to announce the successful completion of a $5.8 million dollar private placement on November 1, 2010.   This raise was the largest the Company has completed and will go a long way in the continued funding of this major project effort.

"Looking ahead into the fourth quarter and next year, we will continue to incur significant losses as we continue our efforts on the planned uranium de-conversion facility but also anticipate completing significant additional milestones for the project and its related product sales.  We remain convinced this project opportunity should provide a good return to our shareholders in the future.

"Our core business segments have not continued to grow at the same level as they have in the past and we believe this is largely the result of the world-wide economic conditions.  We are confident, however, that these segments should improve in the fourth quarter and next year.  We also intend to take steps to further reduce our base operating costs and improve operating margins."

About International Isotopes Inc.

International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, high purity fluoride gases, and a variety of cobalt-60 products such as teletherapy sources.  The Company also provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, life sciences, and industrial applications and provides a host of analytical, measurement, recycling, and processing services 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, but not limited to statements with respect to the future performance of our business segments, ability to improve operating margins, the response of prospective contractors on the uranium de-conversion and FEP facility, our ability to avoid unplanned costs and delays in the NRC license process, continued funding for completion of the uranium de-conversion and FEP facility, future schedules for the project completion and financial return for our shareholders.  Information contained in such forward-looking statements is based on current expectations and is subject to change.  These statements involve a number of 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 expressed or implied by these forward-looking statements.  Other factors, which could materially affect such forward-looking statements, can be found in International Isotopes, Inc.'s filings with the Securities and Exchange Commission at www.sec.gov, including our annual report on Form 10-K for the year ending December 31, 2009.  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. undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

For more information, please visit the Company web site:  www.intisoid.com

SOURCE International Isotopes Inc.