American Bio Medica Reports Fiscal Year End 2005 Results
KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- March 27, 2006 -- American Bio Medica Corporation (NASDAQ: ABMC) today announced financial results for the fourth quarter and the fiscal year ended December 31, 2005.
Net sales for fiscal 2005 were $13.0 million compared to $12.2 million for the same period last year, representing an increase in sales of 6.6%. Operating loss in fiscal 2005 was $340,000 compared to an operating income of $346,000 in fiscal 2004. The Company reported a net loss of $376,000, or $(0.02) compared to a net income of $266,000, or $0.01 per share, for fiscal 2004.
Net sales for the fourth quarter of 2005 were $2.70 million, a slight decrease from net sales of $2.72 million for the fourth quarter of 2004. Operating loss for the fourth quarter of 2005 was $564,000, compared to an operating loss of $59,000 for the fourth quarter of 2004. Net loss for the fourth quarter was $559,000, or $(0.03) per share, compared to a net loss of $69,000, or $0.00 per share for the fourth quarter last year.
A significant portion of the operating loss for the fourth quarter was attributed to inventory adjustments including the replacement of certain products due to technology upgrades and an increase in the inventory reserve for slow moving and obsolete inventory.
ABMC Chief Executive Officer, Stan Cipkowski, stated, "This is a very exciting time for ABMC. We've had some modest sales growth in the past year but more importantly have positioned the company to achieve significant growth over the next two years. I believe that beginning in the second quarter of this year we will see the results of our expanded relationships with certain existing customers as well as the initiation of new strategic relationships that will open new markets for ABMC."
Conference Call
The Company will host a conference call and webcast to discuss the FY2005 and Fourth Quarter results on Monday, March 27, 2006 at 2:00 p.m. (EST). Investors and interested parties are invited to participate. The call will be broadcast live over the internet at www.abmc.com/investor/. The webcast will be listen-only mode. Listeners are requested to be online at least fifteen minutes early to register, as well as to download and install any complimentary audio software that might be required. To ask questions, you are invited to participate by phone. Within North America, dial 1-866-321-6651 and internationally dial 1-416-642-5212. The call will be available for replay at www.abmc.com/investor/ for 30 days.
For more information on ABMC or its drug testing products, please visit www.abmc.com
About American Bio Medica Corporation
American Bio Medica Corporation is a biotechnology company that develops, manufactures and markets accurate, cost-effective immunoassay diagnostic test kits, including some of the world's most effective point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC's Rapid Drug Screen(R), Rapid One(R), Rapid TEC(R), RDS(R) InCup(TM) and Rapid TOX(TM) products test for the presence or absence of drugs of abuse in urine, while OralStat(R) tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader(TM) is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.
This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, the following: continued acceptance of the Company's products, increased levels of competition in our industry, the acceptance of new products, inherent risks associated with product development and intellectual property rights, the Company's dependence on key personnel, third party sales and suppliers. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled "Risk Factors" in the Company's annual report on Form 10-KSB for the fiscal year ended December 31, 2004, and quarterly reports on Form 10-QSB on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares.
(financial tables follow)
American Bio Medica Corporation
Income Statements
(in thousands, except earnings per share)
Three Months Year
Ended December 31, Ended December 31,
--------------------------------------------
(unaudited) (unaudited) (unaudited)
----------- ----------- ----------- --------
2005 2004 2005 2004
----------- ----------- ----------- --------
Net Sales $ 2,700 $ 2,722 $13,015 $12,241
Cost of goods sold 1,727 1,354 6,970 5,647
----------- ----------- ----------- --------
Gross profit 973 1,368 6,045 6,594
----------- ----------- ----------- --------
Operating expenses:
Research and development 162 95 683 606
Selling and marketing 644 703 3,184 2,818
General and
administrative 731 629 2,518 2,584
Employee severance 0 0 0 240
--------------------------------------------
Total operating expenses 1,537 1,427 6,385 6,248
----------- ----------- ----------- --------
Operating income (loss) (564) (59) (340) 346
Other income / (expense) -
net 0 4 (35) (31)
----------- ----------- ----------- --------
Income (loss) before
provision for income
taxes (564) (55) (375) 315
Provision for income taxes 5 (14) (1) (49)
----------- ----------- ----------- --------
Net income (loss) $ (559) $ (69) $ (376) $ 266
=========== =========== =========== ========
Dilutive earnings per
share $ (0.03) $ 0.00 $ (0.02) $ 0.01
Weighted average shares
outstanding 21,360 21,282 21,310 21,187
Fully diluted shares
outstanding 21,828 21,397 21,432 21,743
(balance sheets follow)
American Bio Medica Corporation
Balance Sheets
(in thousands)
December 31, December 31,
2005 2004
------------ ------------
ASSETS
Current Assets:
Cash and equivalents $ 446 $ 995
Receivables 1,370 1,108
Inventories 4,444 4,338
Prepaid expenses 109 121
------------ ------------
Total current assets 6,369 6,562
Property and equipment - net 1,562 1,808
Other assets 7 5
------------ ------------
Total assets $ 7,938 $ 8,375
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,510 $ 1,534
Wages Payable 177 243
Note Payable 7 44
Current portion of long term debt and
unearned grant 39 33
------------ ------------
Total current liabilities 1,733 1,854
Long term debt 592 629
Long term portion of unearned grant 60 54
------------ ------------
Total liabilities $ 2,385 $ 2,537
------------ ------------
Stockholders' Equity:
Common stock 214 213
Paid-in capital 18,853 18,763
Accumulated deficit (13,514) (13,138)
------------ ------------
Total stockholders' equity 5,553 5,838
------------ ------------
Total liabilities and stockholders' equity $ 7,938 $ 8,375
============ ============
CONTACT: ABMC
Stan Cipkowski, 800-227-1243, Ext 106
or
BPC Financial Marketing
John Baldissera, 800-368-1217
SOURCE: American Bio Medica Corporation
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