American Bio Medica Reports Fourth Quarter and Fiscal Year End 2007 Results
KINDERHOOK, N.Y.--(BUSINESS WIRE)--March 17, 2008--American Bio Medica Corporation (NASDAQ:ABMC) today announced financial results for the fourth quarter and the fiscal year ended December 31, 2007.
Net sales for the year ended December 31, 2007 were $13,872,000 compared to $13,838,000 for fiscal year ended December 31, 2006, representing an increase in sales of $34,000 or less than 1%. Operating loss for 2007 was $856,000 compared to operating income of $251,000 in 2006. The Company reported a net loss of $990,000, or $0.05 per share, for 2007 compared to a net income of $196,000, or $0.01 per share for 2006.
Net sales for the fourth quarter of 2007 were $3,348,000, an increase of $167,000, or 5.2% from $3,181,000 reported in the fourth quarter of 2006. Operating income for the fourth quarter of 2007 was $6,000 compared to operating income of $107,000 for the fourth quarter of 2006. Net loss for the fourth quarter of 2007 was $28,000, or $0.00 per share, compared to net income of $104,000, or $0.00 per share reported for the fourth quarter of 2006.
ABMC Chief Executive Officer, Stan Cipkowski, stated, "I am pleased that gross margins returned to acceptable levels allowing us to achieve a small operating profit in the fourth quarter of 2007. As I said at the end of the third quarter, inventory disposals, manufacturing inefficiencies as we ramp up our capacity to satisfy anticipated post-CLIA needs, and the costs associated with applying for our CLIA waiver negatively impacted our bottom line in 2007, and were important factors preventing us from improving our earnings in 2007."
Cipkowski added, "While we have not yet received approval of our CLIA waiver application, we still expect to receive the approval in the near future. In 2008 we expect to achieve growth in our core markets and enter new markets with our strategic alliances already in place. At the same time, we expect to keep expenses in line and maintain acceptable gross margins."
Conference Call
The Company will host a conference call and webcast to discuss the FY2007 and Fourth Quarter results on Tuesday, March 18, 2008 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 1-866-322-1159 and internationally dial 1-416-640-3404. 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(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.
(financial tables follow)
American Bio Medica Corporation
Statements of Operation
(in thousands, except earnings per share)
Three Months Year
Ended December 31, Ended December 31,
--------------------------------------------
(unaudited) (unaudited) (unaudited)
----------- ----------- ----------- --------
2007 2006 2007 2006
----------- ----------- ----------- --------
Net sales $ 3,348 $ 3,181 $13,872 $13,838
Cost of goods sold 1,757 1,468 8,141 7,035
----------- ----------- ----------- --------
Gross profit 1,591 1,713 5,731 6,803
----------- ----------- ----------- --------
Operating expenses:
Research and development 149 149 669 606
Selling and marketing 757 782 3,091 3,325
General and
administrative 679 675 2,827 2,621
--------------------------------------------
Total operating
expenses 1,585 1,606 6,587 6,552
----------- ----------- ----------- --------
Operating income
(loss) 6 107 (856) 251
Other income/(expense) -
net (32) (3) (131) (50)
----------- ----------- ----------- --------
Income (loss)
before provision
for income taxes (26) 104 (987) 201
Provision for income taxes (2) (3) (5)
----------- ----------- ----------- --------
Net income/(loss) $ (28) $ 104 $ (990) $ 196
=========== =========== =========== ========
Dilutive earnings/(loss)
per share $ 0.00 $ 0.00 $ (0.05) $ 0.01
Weighted average shares
outstanding 21,745 21,720 21,737 21,484
Fully diluted shares
outstanding 21,745 21,769 21,737 21,573
(balance sheets follow)
American Bio Medica Corporation
Balance Sheets
(in thousands)
December December
31, 31,
2007
(unaudited) 2006
----------- ---------
ASSETS
Current Assets:
Cash and equivalents $ 336 $ 641
Receivables-net of allowance for doubtful
accounts of $105,000 at December 31, 2007
and 2006 1,365 1,313
Inventory, net of reserve for slow moving
and obsolete inventory of $250,000 at
December 31, 2007 and 2006 4,994 4,859
Prepaid and other current assets 181 165
----------- ---------
Total current assets 6,876 6,978
Property, plant and equipment - net 2,267 1,982
Other assets 7 57
----------- ---------
Total assets $ 9,150 $ 9,017
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,623 $ 1,600
Wages payable 332 269
Patent sublicense current 50 50
Line of credit 723 176
Current portion of long term debt
and unearned grant 131 27
----------- ---------
Total current liabilities 2,859 2,122
Patent sublicense non-current 50
Other liabilities 48
Long-term debt 1,107 758
Unearned grant 40 50
----------- ---------
Total liabilities 4,054 2,980
----------- ---------
Stockholders' Equity:
Common stock 217 217
Additional paid-in capital 19,267 19,218
Accumulated deficit (14,388) (13,398)
----------- ---------
Total stockholders' equity 5,096 6,037
----------- ---------
Total liabilities and stockholders' equity $ 9,150 $ 9,017
=========== =========
CONTACT: American Bio Medica Corporation
Stan Cipkowski
Chief Executive Officer
(800) 227-1243, Ext 106
or
BPC Financial Marketing
John Baldissera
(800) 368-1217
SOURCE: American Bio Medica Corporation
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