ABMC Reports Third Quarter Results
KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- Nov. 1, 2006 -- American Bio Medica Corporation (NASDAQ:ABMC) today announced the unaudited results for the three and nine months ending September 30, 2006.
The Company reported 2006 third quarter net sales of $3,564,000 compared to $3,570,000 in the same quarter in 2005. Net sales for the third quarter of 2006 were relatively unchanged from the third quarter of 2005. For the nine months ended September 30, 2006, net sales were $10,657,000, an increase of $342,000, or 3.3%, when compared to net sales of $10,315,000 reported for the first nine months of 2005.
The Company reported an operating loss of $4,000 for the third quarter of 2006 and operating income of $144,000 for the nine months ending September 30, 2006, compared to operating loss of $25,000 for the third quarter and operating income of $223,000 for the nine months ended September 30, 2005.
Net loss for the third quarter of 2006 was $16,000, or $0.00 per share. This third quarter net loss compares to a net loss of $39,000, or $0.00 per share, for the same period last year. For the first nine months of 2006, the Company reported net income of $92,000 or $0.00 per share, compared to $183,000 or $0.01 per share for the same period a year ago.
Commenting on the financial results, ABMC Chief Executive Officer Stan Cipkowski stated, "Certain orders that we expected in the third quarter were delayed and unfortunately they were not received in time to positively impact our third quarter sales. These orders have already started coming in and based on other expected orders for the fourth quarter, we remain confident that we will have a strong fourth quarter that will bring us closer to our financial objectives."
Cipkowski added, "We continue to deal with price pressure in our markets caused by foreign manufacturers and we are pleased that as a result of ABMC's continued efforts to control manufacturing and operating cost increases, our operating results did improve when comparing quarter over quarter numbers even with this pressure."
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 For the For the nine For the nine
three three months ended months ended
months ended months ended September September
September September 30, 2006 30, 2005
30, 2006 30, 2005
------------ ------------ ------------ ------------
Net Sales $ 3,564 $ 3,570 $ 10,657 $ 10,315
Cost of goods sold 1,890 1906 5,567 5,244
---------------------------------------------------
Gross profit 1,674 1,664 5,090 5,071
---------------------------------------------------
Operating
expenses:
Research and
development 145 188 456 520
Selling and
marketing 817 859 2,362 2,540
General and
administrative 716 642 2,128 1,788
---------------------------------------------------
Total
operating
expenses 1,678 1,689 4,946 4,848
---------------------------------------------------
Operating
income/loss (4) (25) 144 223
---------------------------------------------------
Other income/
(expense) (12) (14) (47) (34)
---------------------------------------------------
Income before
provision for
income taxes (16) (39) 97 189
Income taxes 0 0 5 6
---------------------------------------------------
Net income/loss $ (16) $ (39) $ 92 $ 183
===================================================
Basic and diluted
income per common
share $ 0.00 $ 0.00 $ 0.00 $ 0.01
===================================================
Weighted average
shares
outstanding -
basic 21,459,768 21,309,225 21,483,150 21,293,010
Dilutive effect of
stock options and
warrants 70,246 35,413 104,565 64,514
---------------------------------------------------
Weighted average
shares
outstanding -
fully diluted 21,530,014 21,344,638 21,587,715 21,357,524
===================================================
American Bio Medica Corporation
Balance Sheets
(in thousands)
September 30, December 31,
2006 2005
(Unaudited)
------------- -------------
Assets
------------------------------------------
Current Assets:
Cash and equivalents $ 906 $ 446
Accounts receivable, net of allowance of
$105,000 at both September 30, 2006 and
December 31, 2005 1,425 1,370
Inventory, net of reserve for slow
moving and obsolete inventory of
$250,000 at both September 30, 2006 and
December 31, 2005 3,977 4,444
Prepaid and other current assets 248 109
------------- -------------
Total current assets 6,556 6,369
Property, plant and equipment - net 1,606 1,562
Other Assets 57 7
------------- -------------
Total assets $ 8,219 $ 7,938
============= =============
Liabilities and Stockholders' Equity
------------------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 1,356 $ 1,510
Wages payable 213 177
Line of credit 103 0
Current portion of mortgages and notes
payable 23 36
Current portion of unearned grant 10 10
Current portion of sublicense 50 0
Other liabilities 29 0
------------- -------------
Total current liabilities 1,784 1,733
Long term portion of mortgages and notes
payable 575 592
Long term portion of unearned grant 60 60
Other long term liabilities 50 0
------------- -------------
Total liabilities 2,469 2,385
------------- -------------
Stockholders' Equity:
Common stock 215 214
Paid-in capital 18,958 18,853
Accumulated deficit (13,423) (13,514)
------------- -------------
Total stockholders' equity 5,750 5,553
------------- -------------
Total liabilities and stockholders' equity $ 8,219 $ 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
|
