TYRATECH, INC. • ANNUAL REPORT 2011 • PAGE 10
Chairman's Statement and
Operational Review
(CONTINUED)
2011 Financial Results
Our financial results for 2011 marked a significant milestone for TyraTech. We increased our product revenue by over
100% from 2010 levels and increased our gross margin on product sales by US$1.7 million. Further, we earned US$1.4
million in milestone revenue through the delivery of important new products to our primary commercial insect
control partner in the US. This, combined with maintaining our lower operating expenses, reduced our net loss to
US$2.7 million, an improvement of US$3.4 million over 2010 results.
We will continue to focus on controlling our cost structure whilst advancing our product development programs in
order to ensure we have high value products to deliver to new markets or partners.
Outlook
While we expect 2012 revenues to decrease from 2011 levels due to lower demand from our primary insect control
customer, we continue to remain positive about our medium and long-term prospects due to the potential of the
Company's technology, as evidenced by the advances we have made in our product development pipeline
and the increasing interest in our products from high calibre global partners, including a major global consumer
products company and a major US retailer, both of which we are presently in discussions with. The US$3.8 million
of new capital which we raised in February 2012 provides us with the necessary resources to continue to advance
our products whilst we continue negotiations with our existing and new partners. And although uncertainty remains
over the timing and amounts of revenues and cash flows which would be generated from these opportunities, we
remain confident that we can deliver a successful result with our current financial resources.
In addition, we are further evaluating each of the markets in which we have developed products or have a
development pipeline, in order to focus our resources on those opportunities with the greatest potential returns to
shareholders. Accordingly, the Company may seek to obtain value for some areas of application of its technology
in order to reinvest in others.
Alan Reade
Executive Chairman
June 28, 2012
