American Bio Medica Announces Third Quarter 2007 Results
KINDERHOOK, N.Y.--(BUSINESS WIRE)--Nov. 12, 2007--American Bio Medica Corporation (NASDAQ:ABMC) today announced unaudited financial results for the three and nine month periods ending September 30, 2007.
Net sales for the third quarter of 2007 were $3,912,000 compared to $3,564,000 in the same quarter in 2006, representing an increase of $348,000, or 9.8%. For the nine months ended September 30, 2007, net sales were $10,523,000, a decrease of $134,000, or 1.3%, compared to $10,657,000 for the nine months ended September 30, 2006. The Company attributes the increase in sales in the third quarter of 2007 to increases in national account sales and contract manufacturing sales that were offset somewhat by declines in other sales divisions.
The Company reported operating losses of $213,000 for the third quarter of 2007, and $863,000 for the first nine months of 2007. This compares to an operating loss of $4,000 for the third quarter of 2006 and operating income of $144,000 for the first nine months of 2006. The Company attributes this reduction in operating results in the third quarter of 2007 primarily to an increase in cost of goods due in large part to inventory disposals of expired products.
Net loss was $252,000, or $0.01 per share, for the third quarter of 2007 and $962,000, or $0.04 per share, for the first nine months of 2007. This compares to a net loss of $16,000, or $0.00 per share, for the three months ended September 30, 2006 and net income of $92,000, or $0.00 per share, for the first nine months of 2006.
Chief Executive Officer Stan Cipkowski stated, "As expected contract manufacturing sales increased in the third quarter of 2007 and that, along with increases in national account sales, which includes sales to our laboratory alliance, allowed us to report almost record sales for the third quarter of 2007. Our government sales are still down but we hope to recoup some of these lost sales with our new Rapid TOX Cup, launched a few weeks ago. We haven't yet made up the sales lost in the first half of 2007 but I am still confident that we will see increased sales when comparing year over year results."
Cipkowski added, "The operating loss is disappointing. We are keeping expenses very much in line, but unfortunately we have had some inventory disposals that have affected our cost of sales and gross margin. During 2006, we made somewhat unique product configurations in response to forecasts from a particular customer. The customer did not order this product, as our CLIA waiver application had not been approved. We had expected to receive the necessary CLIA waiver in time for the customer to order the product. This product expired in the third quarter of 2007 and had to be disposed of. To date we have not received the CLIA waiver although we do expect approval in the future."
Cipkowski added, "While I believe we are at the end of significant inventory disposals for this year, the inventory disposals, manufacturing inefficiencies as we ramp up our capacity to satisfy our laboratory partner's post-CLIA needs and the costs associated with applying for our CLIA waiver have negatively impacted our bottom line in 2007, and this will prevent ABMC from reporting improvement in 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 Third Quarter results on Tuesday, November 13, 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.
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), Rapid TOX(R) and Rapid TOX Cup(TM) products test for the presence or absence of drugs of abuse in urine, while OralStat(R) and Rapid STAT(TM) 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 For the
three three nine nine
months months months months
ended ended ended ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
----------- ----------- ----------- -----------
Net Sales $ 3,912 $ 3,564 $ 10,523 $ 10,657
Cost of goods sold 2,493 1,890 6,383 5,567
-----------------------------------------------
Gross profit 1,419 1,674 4,140 5,090
-----------------------------------------------
Operating expenses:
Research and
development 173 145 520 456
Selling and
marketing 818 811 2,334 2,273
General and
administrative 641 722 2,149 2,217
-----------------------------------------------
Total operating
expenses 1,632 1,678 5,003 4,946
-----------------------------------------------
Operating
income/(loss) (213) (4) (863) 144
-----------------------------------------------
Other income /
(expense) (39) (12) (99) (47)
-----------------------------------------------
Income/(loss) before
provision for income
taxes (252) (16) (962) 97
Income taxes 5
-----------------------------------------------
Net income/(loss) $ (252) $ (16) $ (962) $ 92
===============================================
Basic and diluted
income/(loss) per
common share $ (0.01) $ 0.00 $ (0.04) $ 0.00
===============================================
Weighted average
shares outstanding -
basic 21,744,768 21,459,768 21,733,779 21,483,150
Dilutive effect of
stock options and
warrants 70,246 104,565
-----------------------------------------------
Weighted average
shares outstanding -
fully diluted 21,744,768 21,530,014 21,733,779 21,587,715
===============================================
American Bio Medica Corporation
Balance Sheets
(in thousands)
September 30, December 31,
2007 2006
(Unaudited)
------------- ------------
Assets
--------------------------------------------
Current Assets:
Cash and equivalents $ 376 $ 641
Accounts receivable, net of allowance of
$105,000 at both September 30, 2007 and
December 31, 2006 2,066 1,313
Inventory-net of reserve for slow moving
and obsolete inventory of $250,000 at
both September 30, 2007 and December 31,
2006 4,216 4,859
Prepaid and other current assets 189 165
------------- ------------
Total current assets 6,847 6,978
Property, plant and equipment - net 2,293 1,982
Other assets 57 57
------------- ------------
Total assets $ 9,197 $ 9,017
============= ============
Liabilities and Stockholders' Equity
--------------------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 1,447 $ 1,600
Wages payable 406 269
Line of credit 803 176
Current portion of mortgages and notes
payable 119 17
Other current liabilities 60 60
------------- ------------
Total current liabilities 2,835 2,122
Long term portion of mortgages and notes
payable 1,137 758
Other long term liabilities 100 100
------------- ------------
Total liabilities 4,072 2,980
------------- ------------
Stockholders' Equity:
Common stock 217 217
Additional Paid-in capital 19,268 19,218
Accumulated deficit (14,360) (13,398)
------------- ------------
Total stockholders' equity 5,125 6,037
------------- ------------
Total liabilities and stockholders' equity $ 9,197 $ 9,017
============= ============
CONTACT: American Bio Medica Corporation
Stan Cipkowski, 800-227-1243, Ext 106
Chief Executive Officer
or
BPC Financial Marketing
John Baldissera, 800-368-1217
SOURCE: American Bio Medica Corporation
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