ABMC Reports First Quarter 2009 Results
KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- May 13, 2009 -- American Bio Medica Corporation (NASDAQ: ABMC) announced today its financial results for the three months ended March 31, 2009.
Net sales for the first quarter of 2009 were $2,255,000 compared to net sales of $3,299,000 in the first quarter of 2008, representing a decrease of $1,044,000, or 31.6%. Operating loss for the first quarter of 2009 was $204,000 compared to an operating loss of $162,000 in the first quarter of 2008. The Company reported a net loss of $252,000 in the first quarter of 2009 compared to a net loss of $199,000 in the first quarter of 2008.
ABMC Chief Executive Officer, Stan Cipkowski, stated, "Our story hasn't changed much since March when we reported results for our 2008 fiscal year. We continue to experience decreased sales in our core markets. Workplace drug testing continues to be affected by historically high unemployment rates in the United States, and government sales continue to be affected by budget cuts and price pressures from foreign manufacturers."
Cipkowski added, "We are encouraged by recent news that employers cut fewer jobs in April, which could indicate that the worst of the recession has passed; we hope this means we will start to see sales in the workplace market begin to rebound sometime in 2009. We have also been making progress in garnering new accounts to make up for sales declines with our current customers. At the same time, we have started selling a new version of our Rapid TOX Cup product in the government market with some early success stories. It is our hope that we can stabilize sales in our core markets while keeping costs in line with sales levels; if we can do that, we can get through this economic crisis."
Conference Call
The Company will host a conference call and webcast to discuss the First Quarter 2009 results on Thursday, May 14, 2009 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 North America, dial 800-533-7619 and internationally dial 785-830-1923. 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®, Rapid ONE®, Rapid TEC®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® products test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ tests for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader® 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, regulatory approvals 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-K for the fiscal year ended December 31, 2008, and quarterly reports on Form 10-Q 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.
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AMERICAN BIO MEDICA CORPORATION
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Statements of Operations
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(in thousands, except loss per share)
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(unaudited)
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For the three
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For the three
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months ended
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months ended
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March 31, 2009
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March 31, 2008
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Net sales
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$
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2,255
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$
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3,299
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Cost of goods sold
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1,336
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1,872
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Gross profit
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919
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1,427
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Operating expenses:
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Research and development
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101
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138
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Selling and marketing
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498
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768
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General and administrative
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524
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683
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Total operating expenses
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1,123
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1,589
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Operating loss
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(204
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)
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(162
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)
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Other expense, net
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(48
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)
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(37
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)
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Loss before tax
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(252
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)
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(199
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)
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Income tax
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Net loss after tax
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$
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(252
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)
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$
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(199
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)
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Basic & diluted loss per common share
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$
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(0.01
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)
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$
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(0.01
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)
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Basic & diluted weighted average shares outstanding
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21,744,768
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21,744,768
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American Bio Medica Corporation
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Balance Sheets
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(in thousands)
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March 31,
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December 31,
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2009
(unaudited)
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2008
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ASSETS
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Current Assets
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Cash and equivalents
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$
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592
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$
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201
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Accounts receivable-net of allowance for doubtful accounts
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of $105,000 at both March 31, 2009 and December 31, 2008
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1,391
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1,161
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Inventory, net of reserve for slow moving and obsolete
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inventory of $308,000 at both March 31, 2009 and December 31, 2008
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5,021
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5,552
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Prepaid expenses and other current assets
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107
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97
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Total current assets
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7,111
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7,011
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Property, plant and equipment, net
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1,897
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1,961
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Debt issuance costs
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109
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117
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Other assets
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44
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47
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Total assets
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$
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9,161
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$
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9,136
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Accounts payable
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$
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1,540
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$
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1,568
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Accrued expenses and other current liabilities
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661
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544
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Wages payable
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263
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230
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Line of credit
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621
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431
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Current portion of long-term debt and unearned grant
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1,077
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1,108
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Total current liabilities
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4,162
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3,881
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Other long-term liabilities
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204
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207
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Long-term debt
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759
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760
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Unearned grant
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30
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30
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Total liabilities
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5,155
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4,878
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Stockholders' Equity:
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Common stock
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217
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217
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Additional paid-in capital
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19,279
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19,279
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Accumulated deficit
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(15,490
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)
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(15,238
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)
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Total stockholders’ equity
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4,006
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4,258
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Total liabilities and stockholders' equity
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$
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9,161
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$
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9,136
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Contact:
American Bio Medica Corporation
Stan Cipkowski, 800-227-1243, Ext 106
Chief Executive Officer
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