American Bio Medica Announces Second Quarter 2006 Results
KINDERHOOK, N.Y -- (BUSINESS WIRE) -- Aug. 1, 2006 -- American Bio Medica Corporation (NASDAQ:ABMC) today announced unaudited financial results for the three and six months ending June 30, 2006.
Net sales for the second quarter of 2006 were $3,670,000 compared to $3,614,000 in the same quarter in 2005, representing an increase of $56,000, or 1.6%. For the six months ended June 30, 2006, net sales were $7,093,000 - an increase of $357,000, or 5.3%, over $6,736,000 for the six months ended June 30, 2005. The Company attributes the growth in sales to increases in sales of its drugs of abuse testing kits and its contract manufacturing operations.
The Company reported operating income of $116,000 for the second quarter of 2006, and $148,000 for the first half of 2006. This compares to operating income of $168,000 for the second quarter of 2005 and $239,000 for the first half of 2005. The Company attributes this reduction in operating results in the first half of 2006 to increases in general and administrative expenses of $181,000.
Net income was $97,000, or $0.01 per share for the second quarter of 2006 and $108,000, or $0.00 per share, for the first half of 2006. This compares to net income of $148,000, or $0.01 per share, for the three months ended June 30, 2005 and net income of $222,000, or $0.01 per share, for the first six months of 2005.
Chief Executive Officer Stan Cipkowski stated, "We've had a lot of new account activity in the latter part of the second quarter and as a result of this activity, we believe we'll begin to see a positive impact on sales in the second half of 2006. Our sales organization has signed on several new national accounts and our existing customers are expanding their commitment to ABMC products. Based on this activity, I believe we are on track to see record sales in 2006."
For more information on American Bio Medica Corporation or its products, please visit www.abmc.com.
Conference Call
The Company will host a conference call and webcast to discuss the Second Quarter results on Wednesday, August 2, 2006 at 11:00 a.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 1-866-321-8231 and internationally dial 1-416-642-5213. The call will be available for replay at www.abmc.com/investor/ for 30 days.
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 For the
three three For the For the
months months six months six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
---------- --------- ---------- ----------
Net Sales $ 3,670 $ 3,614 $ 7,093 $ 6,736
Cost of goods sold 1,897 1,858 3,677 3,338
----------- ----------- ----------- -----------
Gross profit 1,773 1,756 3,416 3,398
----------- ----------- ----------- -----------
Operating expenses:
Research and
development 156 174 311 332
Selling and
marketing 847 924 1,630 1,681
General and
administrative 654 490 1,327 1,146
----------- ----------- ----------- -----------
Total operating
expenses 1,657 1,588 3,268 3,159
----------- ----------- ----------- -----------
Operating income 116 168 148 239
----------- ----------- ----------- -----------
Other (expense) (19) (15) (34) (11)
----------- ----------- ----------- -----------
Income before
provision for
income taxes 97 153 114 228
Income taxes (5) (6) (6)
----------- ----------- ----------- -----------
Net income $ 97 $ 148 $ 108 $ 222
=========== =========== =========== ===========
Basic and diluted
income per common
share $ 0.00 $ 0.01 $ 0.01 $ 0.01
=========== =========== =========== ===========
Weighted average
shares outstanding -
basic 21,317,735 21,284,768 21,338,635 21,284,768
Dilutive effect of
stock options and
warrants 145,233 7,397 138,935 71,550
----------- ----------- ----------- -----------
Weighted average
shares outstanding -
fully diluted 21,462,968 21,292,165 21,477,570 21,356,318
=========== =========== =========== ===========
American Bio Medica Corporation
Balance Sheets
(in thousands)
June 30, December 31,
2006 2005
(Unaudited)
----------- -----------
Assets
-------
Current Assets:
Cash and equivalents $ 591 $ 446
Accounts receivable, net of allowance of
$105,000 at both June 30, 2006 and December
31, 2005 1,811 1,370
Inventories-net of reserve for slow moving
and obsolete inventory of $250,000 at both
June 30, 2006 and December 31, 2005 3,706 4,444
Prepaid and other current assets 238 109
-------- --------
Total current assets 6,346 6,369
Property, plant and equipment - net 1,376 1,562
Other assets 107 7
-------- --------
Total assets $ 7,829 $ 7,938
======== ========
Liabilities and Stockholders' Equity
------------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 889 $ 1,510
Wages payable 180 177
Line of credit 230
Current portion of mortgages and notes
payable 23 36
Current portion of unearned grant 10 10
-------- --------
Total current liabilities 1,332 1,733
Long term portion of mortgages and notes
payable 582 592
Long term portion of unearned grant 60 60
Other long term liabilities 104
-------------------
Total liabilities 2,078 2,385
-------- --------
Stockholders' Equity:
Common stock 215 214
Paid-in capital 18,942 18,853
Accumulated deficit (13,406) (13,514)
-------- --------
Total stockholders' equity 5,751 5,553
-------- --------
Total liabilities and stockholders' equity $ 7,829 $ 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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