American Bio Medica Announces Second Quarter 2007 Results
KINDERHOOK, N.Y.--(BUSINESS WIRE)--Aug. 9, 2007--American Bio Medica Corporation (NASDAQ:ABMC) today announced unaudited financial results for the three and six month periods ending June 30, 2007.
Net sales for the second quarter of 2007 were $3,436,000 compared to $3,670,000 in the same quarter in 2006, representing a decrease of $234,000, or 6.4%. For the six months ended June 30, 2007, net sales were $6,611,000, a decrease of $482,000, or 6.8%, over $7,093,000 for the six months ended June 30, 2006. The Company attributes the decline in sales primarily to decreases in contract manufacturing sales and outside sales, which were partially offset by increases in national account sales and international sales. Although contract manufacturing sales were down $406,000 for the first half of 2007, the Company does not expect a decline in contract manufacturing sales for the full fiscal year 2007.
The Company reported an operating loss of $376,000 for the second quarter of 2007, and $650,000 for the first half of 2007. This compares to operating income of $116,000 for the second quarter of 2006 and $148,000 for the first half of 2006. The Company attributes this reduction in operating results in the first half of 2007 to increases in cost of goods, general & administrative costs and research and development costs which were partially offset by a decrease in selling and marketing costs.
The increase in general & administrative costs was primarily the result of expenses associated with the Company's application to the US Food and Drug Administration for CLIA (Clinical Laboratory Improvement Amendments of 1988) waived status for its RDS(R), Rapid One(R) and Rapid TOX(TM) product lines. If the Company is granted CLIA waived status, the Company expects to see increased sales in markets such as the occupational and clinical (i.e. hospital and physician) markets.
Net loss was $413,000, or $0.02 per share, for the second quarter of 2007 and $710,000, or $0.03 per share, for the first half of 2007. This compares to net income of $97,000, or $0.00 per share, for the three months ended June 30, 2006 and net income of $108,000, or $0.01 per share, for the first six months of 2006.
Chief Executive Officer Stan Cipkowski stated, "Although the second quarter of 2007 started off great, it did not turn out as expected. Contract manufacturing sales continued to be down significantly for the first half of 2007 and we also saw some declines in our criminal justice market primarily as a result of government budget reductions." Cipkowski continued, "We continue to see increased sales through our laboratory relationship, and in the third quarter, orders received in contract manufacturing are ramping up nicely. Although the first half has been disappointing, with what is in the sales pipeline as of now, and with orders we expect to receive in the second half, I still believe we will achieve growth in sales and earnings in 2007."
For more information on ABMC or its drug testing products, please visit www.abmc.com.
Conference Call
The Company will host a conference call and webcast to discuss the Second Quarter results on Friday, August 10, 2007 at 11:00 a.m. (EDT). 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, Rapid TEC(R), RDS(R) InCup(R) and Rapid TOX 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(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 For the For the six For the six
three three months ended months ended
months ended months ended June 30, June 30,
June 30, June 30, 2007 2006
2007 2006
------------ ------------ ------------ ------------
Net Sales $ 3,436 $ 3,670 $ 6,611 $ 7,093
Cost of goods sold 1,974 1,897 3,890 3,677
---------------------------------------------------
Gross profit 1,462 1,773 2,721 3,416
---------------------------------------------------
Operating
expenses:
Research and
development 178 156 347 311
Sales and
marketing 825 847 1,516 1,630
General and
administrative 835 654 1,508 1,327
---------------------------------------------------
Total
operating
expenses 1,838 1,657 3,371 3,268
---------------------------------------------------
Operating
income/(loss) (376) 116 (650) 148
---------------------------------------------------
Other income /
(expense) (37) (19) (60) (34)
---------------------------------------------------
Income/(loss)
before provision
for income taxes (413) 97 (710) 114
Income taxes 6
---------------------------------------------------
Net income/(loss) $ (413) $ 97 $ (710) $ 108
===================================================
Basic
income/(loss) per
common share $ (0.02) $ 0.00 $ (0.03) $ 0.01
===================================================
Diluted
income/(loss) per
common share $ (0.02) $ 0.00 $ (0.03) $ 0.00
===================================================
Weighted average
shares
outstanding -
basic 21,736,526 21,317,735 21,728,193 21,338,635
Dilutive effect of
stock options and
warrants 145,233 138,935
---------------------------------------------------
Weighted average
shares
outstanding -
fully diluted 21,736,526 21,462,968 21,728,193 21,477,570
===================================================
American Bio Medica Corporation
Balance Sheets
(in thousands)
June 30, December 31,
2007 2006
(Unaudited)
------------ ------------
Assets
-------------------------------------------
Current Assets:
Cash and equivalents $ 360 $ 641
Accounts receivable, net of allowance of
$105,000 at both June 30, 2007 and
December 31, 2006 1,555 1,313
Inventory-net of reserve for slow moving
and obsolete inventory of $250,000 at
both June 30, 2007 and December 31, 2006 4,792 4,859
Prepaid and other current assets 242 165
------------ ------------
Total current assets 6,949 6,978
Property, plant and equipment - net 2,331 1,982
Other assets 57 57
------------ ------------
Total assets $ 9,337 $ 9,017
============ ============
Liabilities and Stockholders' Equity
-------------------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 1,445 $ 1,600
Wages payable 318 269
Line of credit 748 176
Current portion of mortgages and notes
payable 89 17
Other current liabilities 66 60
------------ ------------
Total current liabilities 2,666 2,122
Long term portion of mortgages and notes
payable 1,179 758
Other long term liabilities 115 100
------------ ------------
Total liabilities 3,960 2,980
------------ ------------
Stockholders' Equity:
Common stock 217 217
Additional Paid-in capital 19,268 19,218
Accumulated deficit (14,108) (13,398)
------------ ------------
Total stockholders' equity 5,377 6,037
------------ ------------
Total liabilities and stockholders' equity $ 9,337 $ 9,017
============ ============
CONTACT: American Bio Medica Corporation
Stan Cipkowski, 800-227-1243, Ext. 106
Chief Executive Officer
SOURCE: American Bio Medica Corporation
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