American Bio Medica Announces Third Quarter 2008 Results
KINDERHOOK, N.Y. -- (BUSINESS WIRE) -- November 11, 2008 -- American Bio Medica Corporation (NASDAQ: ABMC) today announced unaudited financial results for the three and nine month periods ended September 30, 2008. The results show improvement in the Company's operating results, despite declines in sales revenues.
Net sales for the third quarter of 2008 were $3,604,000, compared to $3,912,000 for the third quarter of 2007, representing a decrease of $308,000, or 7.9%. For the nine months ended September 30, 2008, net sales were $10,368,000, compared to $10,523,000 for the nine months ended September 30, 2007, representing a decrease of $155,000, or 1.5%. Affecting sales in both periods were decreases in the Company's outside and in-house sales divisions, which continue to be affected by price pressures in the criminal justice market caused by general economic conditions and foreign competition. Sales in the Company's national account division also decreased in the third quarter. Historically, the Company has seen year over year growth in this division, but the recent downturn of the economy has impacted existing and new employment levels of the Company's national account customers. These decreases were partially offset by increases in international sales, primarily to the Company's master distributors in Latin America and Europe.
The Company reported an operating income of $127,000 for the third quarter of 2008, compared to an operating loss of $213,000 in the third quarter of 2007. Net income for the third quarter of 2008 was $86,000, or $0.00 per share, compared to a net loss of $252,000, or $0.01 per share in the third quarter of 2007. Operating loss in the nine months ended September 30, 2008 was $69,000, compared to an operating loss of $863,000 for the nine months ended September 2007. Net loss for the nine months ended September 30, 2008 was $177,000, or $0.01 per share, compared to a net loss of $962,000, or $0.04 per share for the same period in 2007. The Company attributes the improvement in operating results to the implementation of a number of cost cutting initiatives, as well as efforts the Company has taken to reduce manufacturing costs to improve the Company's gross margin.
ABMC Chief Executive Officer Stan Cipkowski stated, "Although we are feeling the impact of the economic crisis on our sales in the United States, we are seeing increases in international sales, especially in Latin America through our master distributor, who continues to be one of ABMC's top customers. I am also encouraged by the improvement in operating results and earnings. We have taken a hard look at our expenses and made strategic cuts while simultaneously reducing our manufacturing costs."
Cipkowski continued, "Our CLIA waiver, granted by the FDA in the latter part of August, is already opening up other markets for us although the sales impact has yet to be felt, as the new CLIA business is made up of smaller accounts. Based on information provided by our lab partner, we expect to see more significant CLIA sales from them beginning in January 2009."
Conference Call
The Company will host a conference call and webcast to discuss the 2008 Third Quarter results on Wednesday, November 12, 2008 at 11:00 a.m. (ET). 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.
American Bio Medica Corporation
Statements of Operations
(in thousands, except earnings per share)
(unaudited)
For the For the For the For the
three three nine months nine months
months months ended ended
ended ended September September
September September 30, 2008 30, 2007
30, 2008 30, 2007
----------- ----------- ----------- -----------
Net Sales $ 3,604 $ 3,912 $ 10,368 $ 10,523
Cost of goods sold 2,104 2,493 5,822 6,383
----------- ----------- ----------- -----------
Gross profit 1,500 1,419 4,546 4,140
----------- ----------- ----------- -----------
Operating
expenses:
Research and
development 128 173 445 520
Sales and
marketing 713 818 2,197 2,334
General and
administrative 532 641 1,973 2,149
----------- ----------- ----------- -----------
Total
operating
expenses 1,373 1,632 4,615 5,003
----------- ----------- ----------- -----------
Operating income /
(loss) 127 (213) (69) (863)
----------- ----------- ----------- -----------
Other income /
(expense) (41) (39) (108) (99)
----------- ----------- ----------- -----------
Income / (loss)
before tax 86 (252) (177) (962)
Income tax
----------- ----------- ----------- -----------
Income / (loss)
after tax $ 86 $ (252) $ (177) $ (962)
=========== =========== =========== ===========
Basic & diluted
loss per common
share $ 0.00 $ (0.01) $ (0.01) $ (0.04)
=========== =========== =========== ===========
Weighted average
shares
outstanding-basic 21,744,768 21,744,768 21,744,768 21,773,779
Dilutive effect of
stock options &
warrants 16,934
----------- ----------- ----------- -----------
Weighted average
shares
outstanding-fully
diluted 21,761,702 21,744,768 21,744,768 21,773,779
=========== =========== =========== ===========
American Bio Medica Corporation
Balance Sheets
(in thousands)
September 30, December 31,
2008 2007
(Unaudited)
------------- ------------
Assets
-----------------------------------------
Current Assets:
Cash and equivalents $ 391 $ 336
Accounts receivable, net of allowance
of $105,000 at both September 30,
2008 and December 31, 2007 1,765 1,365
Inventory-net of reserve for slow
moving and obsolete inventory of
$250,000 at both September 30, 2008
and December 31, 2007 5,433 4,994
Prepaid and other current assets 114 181
------------- ------------
Total current assets 7,703 6,876
Property, plant and equipment - net 2,043 2,267
Debt issuance costs 120
Other assets 7 7
------------- ------------
Total assets $ 9,873 $ 9,150
============= ============
Liabilities and Stockholders' Equity
-----------------------------------------
Current Liabilities:
Accounts payable $ 1,432 $ 1,403
Accrued expenses 657 220
Wages payable 399 332
Patent sublicense current 50
Line of credit 419 723
Current portion of long term debt 128 121
Current portion of unearned grant 10 10
------------- ------------
Total current liabilities 3,045 2,859
Other liabilities 102 48
Long term debt 1,761 1,107
Unearned grant 40 40
------------- -------------
Total liabilities 4,948 4,054
COMMITMENT AND CONTINGENCIES
Stockholders' Equity:
Common stock 217 217
Additional paid-in capital 19,273 19,267
Accumulated deficit (14,565) (14,388)
------------- ------------
Total stockholders' equity 4,925 5,096
------------- ------------
Total liabilities and stockholders'
equity $ 9,873 $ 9,150
============= ============
CONTACT:
American Bio Medica Corporation
Stan Cipkowski, 800-227-1243, Ext 106
Chief Executive Officer
SOURCE: American Bio Medica Corporation
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