American Bio Medica Announces First Quarter 2006 Results
KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- May 4, 2006 -- American Bio Medica Corporation (NASDAQ:ABMC) today announced unaudited financial results for the three month period ending March 31, 2006.
Net sales for the first quarter of 2006 were $3,423,000, an increase of $301,000 or 9.6%, over the $3,122,000 for the same period last year. The Company reported operating income of $32,000, and net income of $11,000 or $0.00 per share for the first quarter, compared to operating income of $71,000, and net income of $74,000 or $0.00 per share for the same period a year ago.
The Company also reported that they filed for 510(k) clearance with the Food and Drug Administration for three new products during the first quarter. Also during the first quarter, the Company signed a non-exclusive sublicense agreement to license another party's patents and entered into a royalty agreement with one of their contract manufacturing customers.
Chief Executive Officer Stan Cipkowski stated, "I'm pleased with the overall first quarter sales growth and the fact that all of our business segments had contributed. Going forward we expect to continue to ramp up sales growth quarter over quarter as we launch programs with new strategic partners. Our continuing investment in new product development and sales and marketing has established ABMC as the premier point of collection drug test kit manufacturer with more product configurations testing for more drugs. Our sales organization is now one of the largest in our industry and I am confident that we will see a return on this investment in 2006."
Conference Call
The Company will host a conference call and webcast to discuss the First Quarter results on Thursday, May 4, 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 the United States, dial 1-866-322-1159 and internationally dial 1-416-640-3404. 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(R) 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, 2005, 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.
American Bio Medica Corporation
Statements of Operations
(in thousands, except earnings per share)
(unaudited)
For the three For the three
months ended months ended
March 31, March 31,
2006 2005
----------- -----------
Net Sales $3,423 $3,122
Cost of goods sold 1,781 1,479
----------- -----------
Gross profit 1,642 1,643
----------- -----------
Operating expenses:
Research and development 154 159
Sales and marketing 857 757
General and administrative 599 656
----------- -----------
Total operating expenses 1,610 1,572
----------- -----------
Operating income 32 71
----------- -----------
Other income / (expense) (16) 4
----------- -----------
Income before provision for income taxes 16 75
Income taxes 5 1
----------- -----------
Net income $11 $74
=========== ===========
Basic & fully diluted income per common share $0.00 $0.00
=========== ===========
Weighted average shares outstanding - basic 21,359,768 21,284,768
Dilutive effect of stock options and warrants 150,372 255,637
----------- -----------
Weighted average shares outstanding - fully
diluted 21,510,140 21,540,405
=========== ===========
American Bio Medica Corporation
Balance Sheets
(in thousands)
March 31, December 31,
2006 2005
(Unaudited)
----------- --------
Assets
------
Current Assets:
Cash and equivalents $526 $446
Accounts receivable, net of allowance of
$105,000 at both March 31, 2006 and December
31, 2005 1,417 1,370
Inventories-net of reserve for slow moving
and obsolete inventory of $250,000 at both
March 31, 2006 and December 31, 2005 3,929 4,444
Prepaid and other current assets 207 109
----------- --------
Total current assets 6,079 6,369
Property, plant and equipment - net 1,466 1,562
Other assets 7 7
----------- --------
Total assets $7,552 $7,938
=========== ========
Liabilities and Stockholders' Equity
------------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $761 $1,510
Wages payable 184 177
Line of credit 359
Current portion of mortgages and notes payable 23 36
Current portion of unearned grant 10 10
----------- --------
Total current liabilities 1,337 1,733
Long term portion of mortgages and notes
payable 590 592
Long term portion of unearned grant 60 60
----------- --------
Total liabilities 1,988 2,385
----------- --------
Stockholders' Equity:
Common stock 214 214
Paid-in capital 18,853 18,853
Accumulated deficit (13,502) (13,514)
----------- --------
Total stockholders' equity 5,565 5,553
----------- --------
Total liabilities and stockholders' equity $7,552 $7,938
=========== ========
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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