American Bio Medica Announces Second Quarter 2009 Results

KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- August 12, 2009 -- American Bio Medica Corporation (NASDAQ: ABMC) today announced unaudited financial results for the three and six month periods ending June 30, 2009.

Net sales for the second quarter of 2009 were $2,808,000, compared to $3,465,000 for the second quarter of 2008, representing a decrease of $657,000, or 19%. For the six months ended June 30, 2009, net sales were $5,063,000, compared to $6,764,000 for the six months ended June 30, 2008, representing a decrease of $1,701,000, or 25%.

The Company reported an operating loss of $170,000 in the second quarter of 2009, compared to an operating loss of $34,000 in the second quarter of 2008. Net loss for the second quarter of 2009 was $219,000, or $(0.01) per share, compared to a net loss of $64,000, or $0.00 per share in the second quarter of 2008. Operating loss for the first half of 2009 was $374,000, compared to an operating loss of $196,000 in the first half of 2008. Net loss for the first half of 2009 was $471,000, or $(0.02) per share, compared to a net loss of $264,000, or $(0.01) per share in the first half of 2008.

ABMC Chief Executive Officer Stan Cipkowski stated, "Second quarter sales turned out a little better than we had expected. This was primarily due to our new Rapid TOX Cup II product and renewed efforts in the criminal justice market, along with a bit of new life in the workplace market. Though expenses were on target based on the massive cuts we made over the past nine months, manufacturing inefficiencies related to reduced demand continue to negatively impact gross margin and cause expected losses. Although it is still too soon to know what the second half of 2009 will bring, I am hopeful that the increasing trend in sales will continue."

Conference Call

The Company will host a conference call and webcast to discuss the 2009 Second Quarter results on Thursday, August 13, 2009 at 11:00 a.m. (EST). Investors and interested parties are invited to participate. The call will be broadcast live, in listen-only mode, over the internet at www.abmc.com/investor/. Listeners are requested to be online at least 15 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 in the event by phone by dialing 877-737-1669, 10-15 minutes prior to the start time (to allow time for registration) and reference the passcode ABMC. International callers should dial 302-709-8008 and use the same passcode. The call will be available for replay at www.abmc.com/investor/ for 30 days.

For more information on American Bio Medica Corporation or its 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, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, product development, compliance with regulatory requirements, intellectual property rights, our dependence on key personnel, third party sales and suppliers, our non-compliance with the continued listing requirements of the Nasdaq Stock Market, our history of recurring net losses and our ability to continue as a going concern. 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, quarterly reports on Form 10-Q, and other periodic reports 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 months ended June 30, 2009				For the three months ended June 30, 2008				For the six months ended June 30, 2009				For the six months ended June 30, 2008
Net sales		$	2,808			$	3,465			$	5,063			$	6,764
Cost of goods sold			1,652				1,847				2,988				3,719
Gross profit			1,156				1,618				2,075				3,045
Operating expenses:
Research and development			106				178				208				316
Sales and marketing			572				716				1,070				1,484
General and administrative			648				758				1,171				1,441
Total operating expenses			1,326				1,652				2,449				3,241
Operating loss			(170	)			(34	)			(374	)			(196	)
Other expense			(49	)			(30	)			(97	)			(68	)
Loss before tax			(219	)			(64	)			(471	)			(264	)
Income tax
Net loss after tax		$	(219	)		$	(64	)		$	(471	)		$	(264	)
Basic & diluted loss per common share		$	(0.01	)		$	0.00			$	(0.02	)		$	(0.01	)
Weighted average shares outstanding–basic & diluted			21,744,768				21,744,768				21,744,768				21,744,768

American Bio Medica Corporation Balance Sheets (in thousands)
			June 30,				December 31,
			2009				2008
			(Unaudited)
Assets
Current assets:
Cash and equivalents		$	587			$	201
Accounts receivable, net of allowance of $105,000 at both June 30, 2009 and December 31, 2008			1,453				1,161
Inventory-net of reserve for slow moving and obsolete inventory of $308,000 at both June 30, 2009 and December 31, 2008			4,461				5,552
Prepaid expenses and other current assets			122				97
Total current assets			6,623				7,011
Property, plant and equipment – net			1,813				1,961
Debt issuance costs			100				117
Other assets			51				47
Total assets		$	8,587			$	9,136
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,389			$	1,568
Accrued expenses and other current liabilities			484				544
Wages payable			319				230
Line of credit			575				431
Current portion of long term debt			1,036				1,098
Current portion of unearned grant			10				10
Total current liabilities			3,813				3,881
Other long-term liabilities			200				207
Long term debt			758				760
Unearned grant			30				30
Total liabilities			4,801				4,878
COMMITMENT AND CONTINGENCIES
Stockholders' equity:
Common stock			217				217
Additional paid-in capital			19,279				19,279
Accumulated deficit			(15,710	)			(15,238	)
Total stockholders’ equity			3,786				4,258
Total liabilities and stockholders' equity		$	8,587			$	9,136

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