American Bio Medica Announces Second Quarter 2008 Results
KINDERHOOK, N.Y., Aug 12, 2008 (BUSINESS WIRE) -- American Bio Medica Corporation (NASDAQ:ABMC) today announced unaudited financial results for the three and six month periods ending June 30, 2008.
Net Sales for the second quarter of 2008 were $3,465,000, compared to $3,436,000 for the second quarter of 2007, representing an increase of $29,000, or 1%. For the six months ended June 30, 2008, net sales were $6,764,000, compared to $6,611,000 for the six months ended June 30, 2007, representing an increase of $153,000, or 2.3%. The Company attributes the increase in sales in both periods to growth in the national account and contract manufacturing divisions, which was offset by declines in the Company's government sales division as a result of continued price pressures in the market due to general economic conditions and competition from foreign manufacturers.
The Company reported an operating loss of $34,000 in the second quarter of 2008, compared to an operating loss of $376,000 in the second quarter of 2007. Net loss for the second quarter of 2008 was $64,000, or $0.00 per share, compared to a net loss of $413,000, or $(0.02) per share in the second quarter of 2007. Operating loss for the first half of 2008 was $196,000, compared to an operating loss of $650,000 in the first half of 2007. Net loss for the first half of 2008 was $264,000, or $(0.01) per share, compared to a net loss of $710,000, or $(0.03) per share in the first half of 2007. The improvement in operating results in both periods was as a result of cost cutting initiatives implemented by the Company as well as decreases in costs associated with the Company's CLIA waiver application.
ABMC Chief Executive Officer Stan Cipkowski stated, "We continued to cut expenses in the second quarter of 2008 and we also saw improvement in our gross margins. We expect these expense reductions and gross margin improvements to positively impact the second half of 2008."
Cipkowski continued, "Our national account market continues to grow nicely and our Rapid TOX Cup is helping us get some of the criminal justice market back; however, declines in the criminal justice market are still offsetting the growth in national accounts. We are still awaiting a decision from the FDA on our CLIA waiver application and as I stated early in the second quarter, we only expect to see modest sales growth unless and until we are granted the CLIA waiver which will enable ABMC to realize more substantial sales growth with our lab partner."
Conference Call
The Company will host a conference call and webcast to discuss the 2008 Second Quarter results on Wednesday, August 13, 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 1-800-820-0231 and internationally dial 1-416-640-5926. 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, 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.
(Financial tables follow)
American Bio Medica Corporation
Statements of Operations
(in thousands, except earnings per share)
(unaudited)
For the For the For the For the
three months three months six months six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
------------ ------------ ----------- -----------
Net Sales $ 3,465 $ 3,436 $ 6,764 $ 6,611
Cost of goods
sold 1,847 1,974 3,719 3,890
------------ ------------ ----------- -----------
Gross profit 1,618 1,462 3,045 2,721
------------ ------------ ----------- -----------
Operating
expenses:
Research and
development 178 178 316 347
Sales and
marketing 716 825 1,484 1,516
General and
administrative 758 835 1,441 1,508
------------ ------------ ----------- -----------
Total
operating
expenses 1,652 1,838 3,241 3,371
------------ ------------ ----------- -----------
Operating loss (34) (376) (196) (650)
------------ ------------ ----------- -----------
Other income /
(expense) (30) (37) (68) (60)
------------ ------------ ----------- -----------
Loss before
provision for
income taxes (64) (413) (264) (710)
Income taxes
------------ ------------ ----------- -----------
Net loss $ (64) $ (413) $ (264) $ (710)
============ ============ =========== ===========
Basic & diluted
loss per common
share $ (0.00) $ (0.02) $ (0.01) $ (0.03)
============ ============ =========== ===========
Weighted average
shares
outstanding-
basic & diluted 21,744,768 21,736,526 21,744,768 21,728,193
============ ============ =========== ===========
American Bio Medica Corporation
Balance Sheets
(in thousands)
June 30, December 31,
2008 2007
(Unaudited)
----------- ------------
Assets
-------------------------------------------
Current Assets:
Cash and equivalents $ 92 $ 336
Accounts receivable, net of allowance of
$105,000 at both June 30, 2008 and
December 31, 2007 1,581 1,365
Inventory-net of reserve for slow moving
and obsolete inventory of $250,000 at
both June 30, 2008 and December 31, 2007 5,181 4,994
Prepaid and other current assets 162 181
----------- ------------
Total current assets 7,016 6,876
Property, plant and equipment - net 2,107 2,267
Other assets 7 7
----------- ------------
Total assets $ 9,130 $ 9,150
=========== ============
Liabilities and Stockholders' Equity
-------------------------------------------
Current Liabilities:
Accounts payable $ 1,646 $ 1,403
Accrued expenses 402 220
Wages payable 363 332
Patent sublicense current 50
Lines of credit 566 723
Current portion of long term debt 126 121
Current portion of unearned grant 10 10
----------- ------------
Total current liabilities 3,113 2,859
Other liabilities 102 48
Long term debt 1,043 1,107
Unearned grant 40 40
----------- -------------
Total liabilities 4,298 4,054
COMMITMENT AND CONTINGENCIES
Stockholders' Equity:
Common stock 217 217
Additional Paid-in capital 19,267 19,267
Accumulated deficit (14,652) (14,388)
----------- ------------
Total stockholders' equity 4,832 5,096
----------- ------------
Total liabilities and stockholders' equity $ 9,130 $ 9,150
=========== ============
SOURCE: American Bio Medica Corporation
American Bio Medica Corporation
Stan Cipkowski, 800-227-1243, Ext 106
Chief Executive Officer
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