Aug. 11, 2010 (Business Wire) -- American Bio Medica Corporation (Pink Sheets:ABMC) announced today its financial results for the three and six months ended June 30, 2010.
Net sales for the second quarter of 2010 were $3,126,000, compared to $2,808,000 for the second quarter of 2009, representing an increase of $318,000, or 11.3%. For the six months ended June 30, 2010, net sales were $5,552,000, compared to $5,063,000 for the six months ended June 30, 2009, representing an increase of $489,000, or 9.7%.
The Company reported operating income of $222,000 in the second quarter of 2010, compared to an operating loss of $170,000 in the second quarter of 2009. Net income for the second quarter of 2010 was $167,000, or $0.01 per share, compared to a net loss of $219,000, or $(0.01) per share in the second quarter of 2009. Operating income for the first half of 2010 was $3,000, compared to an operating loss of $374,000 in the first half of 2009. Net loss for the first half of 2010 was $108,000, or $0.00 per share, compared to a net loss of $471,000, or $(0.02) per share in the first half of 2009.
ABMC Chief Executive Officer, Stan Cipkowski, stated, “Sales in the second quarter continued to improve when comparing year over year results, and we were able to report a modest profit. Although we are pleased with second quarter results and optimistic we will continue to see growth, there are no guarantees in this time of ongoing economic turmoil. We will keep a close eye on our expenses and manufacturing costs so that we may achieve our goal of improving operating results in 2010.”
Conference Call
The Company will host a conference call and webcast to discuss the Second Quarter 2010 results on Thursday, August 12, 2010 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 866-212-4491 and internationally dial 416-800- 1066. 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 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®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II 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, trading in our common shares may be subject to “penny stock” rules, 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, 2009, 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.
(financial tables follow)
| American Bio Medica Corporation Statements of Operations (in thousands, except earnings per share) (unaudited) | |||||||||||||||||
| For the three months ended June 30, 2010 | For the three months ended June 30, 2009 | For the six months ended June 30, 2010 | For the six months ended June 30, 2009 | ||||||||||||||
| Net sales | $ | 3,126 | $ | 2,808 | $ | 5,552 | $ | 5,063 | |||||||||
| Cost of goods sold | 1,665 | 1,652 | 3,140 | 2,988 | |||||||||||||
| Gross profit | 1,461 | 1,156 | 2,412 | 2,075 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 114 | 106 | 216 | 208 | |||||||||||||
| Selling and marketing | 534 | 572 | 1,021 | 1,070 | |||||||||||||
| General and administrative | 591 | 648 | 1,172 | 1,171 | |||||||||||||
| Total operating expenses | 1,239 | 1,326 | 2,409 | 2,449 | |||||||||||||
| Operating income / (loss) | 222 | (170 | ) | 3 | (374 | ) | |||||||||||
| Other expense, net | (55 | ) | (49 | ) | (108 | ) | (97 | ) | |||||||||
| Net income / (loss) before tax | 167 | (219 | ) | (105 | ) | (471 | ) | ||||||||||
| Income tax expense | (3 | ) | |||||||||||||||
| Net income / (loss) | $ | 167 | $ | (219 | ) | $ | (108 | ) | $ | (471 | ) | ||||||
| Basic & diluted income / (loss) per | $ | 0.01 | $ | (0.01 | ) | $ | 0.00 | $ | (0.02 | ) | |||||||
| Weighted average shares outstanding– | 21,744,768 | 21,744,768 | 21,744,768 | 21,744,768 | |||||||||||||
(Balance Sheets follow)
| American Bio Medica Corporation | ||||||||||
| Balance Sheets | ||||||||||
| (in thousands) | ||||||||||
| June 30, | December 31, | |||||||||
| (unaudited) |
| |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 79 | $ | 35 | ||||||
| Accounts receivable, net of allowance for doubtful accounts |
1,418 |
816 | ||||||||
| Inventory, net of allowance for slow moving and obsolete |
4,001 |
4,315 | ||||||||
| Prepaid expenses and other current assets | 127 | 101 | ||||||||
| Total current assets | 5,625 | 5,267 | ||||||||
| Property, plant and equipment, net | 1,486 | 1,624 | ||||||||
| Debt issuance costs, net | 95 | 118 | ||||||||
| Other assets | 30 | 31 | ||||||||
| Total assets | $ | 7,236 | $ | 7,040 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 778 | $ | 678 | ||||||
| Accrued expenses and other current liabilities | 443 | 506 | ||||||||
| Wages payable | 291 | 215 | ||||||||
| Line of credit | 483 | 260 | ||||||||
| Current portion of long-term debt and unearned grant | 921 | 117 | ||||||||
| Total current liabilities | 2,916 | 1,776 | ||||||||
| Other liabilities | 138 | 136 | ||||||||
| Long-term debt | 754 | 1,606 | ||||||||
| Related party note | 124 | 124 | ||||||||
| Unearned grant | 20 | 20 | ||||||||
| Total liabilities | 3,952 | 3,662 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| Stockholders' Equity: | ||||||||||
| Common stock | 217 | 217 | ||||||||
| Additional paid-in capital | 19,313 | 19,299 | ||||||||
| Accumulated deficit | (16,246 | ) | (16,138 | ) | ||||||
| Total stockholders’ equity | 3,284 | 3,378 | ||||||||
| Total liabilities and stockholders' equity | $ | 7,236 | $ | 7,040 | ||||||
American Bio Medica Corporation
Stan Cipkowski
Chief Executive
Officer
(800) 227-1243, Ext 106
