American Bio Medica Reports First Quarter 2008 Results
KINDERHOOK, N.Y.--(BUSINESS WIRE)--May 14, 2008--American Bio Medica Corporation (NASDAQ:ABMC) today announced financial results for the three months ended March 31, 2008.
Net Sales for the first quarter of 2008 were $3,299,000, compared to $3,175,000 for the first quarter of 2007, representing an increase of $124,000, or 3.9%. The Company attributed the sales growth to increases in national account and contract manufacturing sales.
The Company reported an operating loss of $162,000 in the first three months of 2008, compared to an operating loss of $274,000 for the first three months of 2007. Net loss for the first three months of 2008 was $199,000, or $0.01 per share, compared to a net loss of $297,000, or $0.01 per share, for the same three month period a year ago.
ABMC Chief Executive Officer, Stan Cipkowski, stated, "We had modest sales growth year over year in our core markets in the first quarter of 2008. We don't expect much more than 3 to 5% growth in those segments this year. Our opportunity for substantial sales growth is with our lab partner and will not be realized until we are granted CLIA waiver, which we hope to receive in the current quarter."
Cipkowski added, "We continue to focus on reducing costs and increasing gross margins. We have implemented a cost reduction plan and are cutting expenses. Gross margins are slowly improving as we continue to improve manufacturing efficiencies. Our objective is to get our core business to a break-even point and look to expansion with our lab partner for profitability."
Conference Call
The Company will host a conference call and webcast to discuss the First Quarter results on Thursday, May 15, 2008 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 North America, dial 1-866-709-4186 and internationally dial 1-904-596-2360. 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), Rapid TOX(R) and Rapid TOX Cup(R) 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. 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-KSB for the fiscal year ended December 31, 2007, 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
three three
months ended months ended
March 31, March 31,
2008 2007
------------ ------------
Net Sales $ 3,299 $ 3,175
Cost of goods sold 1,872 1,916
-------------------------
Gross profit 1,427 1,259
-------------------------
Operating expenses:
Research and development 138 169
Sales and marketing 768 692
General and administrative 683 672
-------------------------
Total operating expenses 1,589 1,533
-------------------------
Operating income/(loss) (162) (274)
-------------------------
Other income / (expense) (37) (23)
-------------------------
Loss before provision for income taxes (199) (297)
Income taxes
-------------------------
Net income/(loss) $ (199) $ (297)
=========================
Basic & fully diluted income/(loss) per
common share $ (0.01) $ (0.01)
=========================
Weighted average shares outstanding - basic 21,744,768 21,719,768
Dilutive effect of stock options and
warrants
-------------------------
Weighted average shares outstanding - fully
diluted 21,744,768 21,719,768
=========================
American Bio Medica Corporation
Balance Sheets
(in thousands)
December
March 31, 31,
2008 2007
(Unaudited)
----------- ---------
Assets
------------------------------------------------
Current Assets:
Cash and equivalents $ 377 $ 336
Accounts receivable, net of allowance of
$105,000 at both March 31, 2008 and
December 31, 2007 1,508 1,365
Inventory-net of reserve for slow moving and
obsolete inventory of $250,000 at both
March 31, 2008 and December 31, 2007 5,073 4,994
Prepaid and other current assets 177 181
----------- ---------
Total current assets 7,135 6,876
Property, plant and equipment - net 2,178 2,267
Other assets 7 7
----------- ---------
Total assets $ 9,320 $ 9,150
=========== =========
Liabilities and Stockholders' Equity
------------------------------------------------
Current Liabilities:
Accounts payable $ 1,639 $ 1,403
Accrued expenses 425 220
Wages payable 340 332
Patent sublicense current 50
Lines of credit 723 723
Current portion of long term debt 123 121
Current portion of unearned grant 10 10
----------- ---------
Total current liabilities 3,260 2,859
----------- ---------
Other liabilities 48 48
Long term debt 1,075 1,107
Unearned grant 40 40
---------------------
Total liabilities 4,423 4,054
COMMITMENT AND CONTINGENCIES
Stockholders' Equity:
Common stock 217 217
Additional Paid-in capital 19,267 19,267
Accumulated deficit (14,587) (14,388)
----------- ---------
Total stockholders' equity 4,897 5,096
----------- ---------
Total liabilities and stockholders' equity $ 9,320 $ 9,150
=========== =========
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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