News/Press Releases


American Bio Medica Announces First Quarter 2007 Results

KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- May 10, 2007 -- American Bio Medica Corporation (NASDAQ:ABMC) today announced unaudited financial results for the three month period ending March 31, 2007.

Net sales for the first quarter of 2007 were $3,175,000, compared to $3,423,000 for the same period last year, a decrease of $248,000 or a 7.2%. The Company reported that growth in national account sales and international sales was offset by a decrease in contract manufacturing sales of $291,000. While the Company saw a decrease in contract manufacturing sales on a comparative quarter to quarter basis, the Company does not expect to see a decline in contract manufacturing sales in fiscal year 2007 as compared to fiscal year 2006.

The Company reported an operating loss of $274,000 for the first quarter of 2007 compared to operating income of $32,000 in the first quarter of 2006. Net loss for the first three months of 2007 was $297,000, or $0.01 per share, compared to net income of $11,000, or $0.00 per share, for the first three months of 2006.

The Company also reported in the first quarter that they had launched the OralStat(R) EX, a new test system for the rapid detection of drugs of abuse in oral fluids and signed a purchase agreement with one of the world's largest clinical laboratories.

Chief Executive Officer Stan Cipkowski stated, "This was certainly a disappointing quarter but I'm pleased to report that April was an outstanding month and we are seeing increased sales of our products from our new laboratory relationship. Even with the results of the first quarter, I remain confident that growth in our current core markets and expansion into new markets directly and through our new laboratory relationship will make 2007 a year of growth in sales and earnings."

Conference Call

The Company will host a conference call and webcast to discuss the First Quarter results on Friday, May 11, 2007 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 1-866-214-7077 and internationally dial 1-416-915-9608. 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 tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader(R) 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, 2006, 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, 2007 March 31, 2006
                                         -------------- --------------

Net Sales                                  $     3,175    $     3,423
Cost of goods sold                               1,916          1,781
                                         -----------------------------
     Gross profit                                1,259          1,642
                                         -----------------------------
Operating expenses:
  Research and development                         169            154
  Sales and marketing                              692            811
  General and administrative                       672            645
                                         -------------- --------------
     Total operating expenses                    1,533          1,610
                                         -----------------------------

Operating income/(loss)                           (274)            32
                                         -----------------------------
Other income / (expense)                           (23)           (16)
                                         -----------------------------

     Income/(loss) before provision for
      income taxes                                (297)            16
Income taxes                                                       (5)
                                         -----------------------------

Net income/(loss)                          $      (297)   $        11
                                         =============================

                                         =============================
Basic & fully diluted income/(loss) per
 common share                              $     (0.01)   $      0.00
                                         =============================

Weighted average shares outstanding -
 basic                                      21,719,768     21,359,768
Dilutive effect of stock options and
 warrants                                                     150,372
                                         -----------------------------
Weighted average shares outstanding -
 fully diluted                              21,719,768     21,510,140
                                         =============================

                   American Bio Medica Corporation
                            Balance Sheets
                            (in thousands)
                                               March 31,  December 31,
                                                 2007        2006
                                              (Unaudited)
                                              ----------- ------------
                   Assets
---------------------------------------------
Current Assets:
    Cash and equivalents                       $     467     $    641
    Accounts receivable, net of allowance of
     $105,000 at both March 31, 2007 and
     December 31, 2006                             1,325        1,313
    Inventory-net of reserve for slow moving
     and obsolete inventory of $250,000 at
     both March 31, 2007 and December 31,
     2006                                          5,111        4,859
    Prepaid and other current assets                 228          165
                                              ----------- ------------
Total current assets                               7,131        6,978
Property, plant and equipment - net                2,326        1,982
Other assets                                          56           57
                                              ----------- ------------
Total assets                                   $   9,513     $  9,017
                                              =========== ============

    Liabilities and Stockholders' Equity
---------------------------------------------
Current Liabilities:
    Accounts payable and accrued liabilities   $   1,481     $  1,600
    Wages payable                                    266          269
    Line of credit                                   556          176
    Current portion of mortgages and notes
     payable                                         111           17
    Other current liabilities                         60           60
                                              ----------- ------------
Total current liabilities                          2,474        2,122
    Long term portion of mortgages and notes
     payable                                       1,183          758
    Other long term liabilities                      100          100
                                              ----------- ------------
Total liabilities                                  3,757        2,980
                                              ----------- ------------

Stockholders' Equity:
Common stock                                         217          217
Additional Paid-in capital                        19,234       19,218
Accumulated deficit                              (13,695)     (13,398)
                                              ----------- ------------
Total stockholders' equity                         5,756        6,037
                                              ----------- ------------
Total liabilities and stockholders' equity     $   9,513     $  9,017
                                              =========== ============

    CONTACT: American Bio Medica Corporation
             Stan Cipkowski, 800-227-1243, Ext 106
             Chief Executive Officer

    SOURCE: American Bio Medica Corporation