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ABMC Reports Third Quarter 2012 Results

Wednesday, November 14, 2012 10:11 AM


American Bio Medica Corporation (ABMC.PK) today announced financial results for the three and nine months ended September 30, 2012.

Net sales for the third quarter of 2012 were $2,283,000, compared to $2,365,000 for the third quarter of 2011, representing a decrease of $82,000, or 3.5%. For the nine months ended September 30, 2012, net sales were $7,041,000, compared to $6,898,000 for the nine months ended September 30, 2011, representing an increase of $143,000, or 2.1%.

The Company reported an operating loss of $(229,000) in the third quarter of 2012, compared to operating income of $26,000 in the third quarter of 2011. Net loss for the third quarter of 2012 was $(264,000), or $(0.01) per share, compared to a net loss of $(28,000), or $(0.00) per share in the third quarter of 2011. Operating loss for the nine months ended September 30, 2012 was $(427,000), compared to an operating loss of $(173,000) in the nine months ended September 30, 2011. Net loss for the nine months ended September 30, 2012 was $(546,000), or $(0.03) per share, compared to a net loss of $(330,000), or $(0.02) per share in the nine months ended September 30, 2011.

ABMC Chief Executive Officer Stan Cipkowski stated, “In the third quarter, we continued to see improvement in national account (workplace) and contract manufacturing sales, as well as improvement in sales to international markets. However, government contract sales continued to decline. We remain hopeful that our investment in sales and marketing earlier this year will have a positive impact on future sales.”

Cipkowski continued, “Contributing to the loss in the third quarter was increased general and administrative expense related to legal and compliance costs, as well as increased share-based payment expense. The increase in share-based payment expense stemmed primarily from the issuance (and full expense recognition in the third quarter 2012) of warrants issued in connection with the extension of our Series A Debentures.”

For more information on ABMC or its drug testing products, please visit www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation 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™ test 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 year ended December 31, 2011, 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.

AMERICAN BIO MEDICA CORPORATION
Statements of Operations
(unaudited)
 
  For the three   For the three   For the nine   For the nine
months ended months ended months ended months ended
  September 30, 2012     September 30, 2011     September 30, 2012     September 30, 2011
 
Net sales $ 2,283,000 $ 2,365,000 $ 7,041,000 $ 6,898,000
Cost of goods sold   1,392,000       1,399,000       4,145,000       4,019,000  
Gross profit   891,000       966,000       2,896,000       2,879,000  
 
Operating expenses:
Research and development 54,000 61,000 162,000 170,000
Selling and marketing 453,000 417,000 1,503,000 1,319,000
General and administrative   613,000       462,000       1,658,000       1,563,000  
Total operating expenses   1,120,000       940,000       3,323,000       3,052,000  
 
Operating (loss) / income   (229,000 )     26,000       (427,000 )     (173,000 )
 
Other expense   (35,000 )     (49,000 )     (121,000 )     (151,000 )
 
Net loss before tax (264,000 ) (23,000 ) (548,000 ) (324,000 )
 
Income tax (expense) / benefit   0       (5,000 )     2,000       (6,000 )
 
Net loss $ (264,000 )   $ (28,000 )   $ (546,000 )   $ (330,000 )
 
Basic & diluted loss per common share $ (0.01 )   $ (0.00 )   $ (0.03 )   $ (0.02 )
 
Weighted average shares outstanding – basic and diluted  

21,833,003

     

21,744,768

     

21,833,003

     

21,744,768

 
 
 
American Bio Medica Corporation
Balance Sheets
  September 30,   December 31,
2012 2011
  (unaudited)      
ASSETS
Current Assets
Cash and cash equivalents $ 0 $ 93,000
Accounts receivable, net of allowance for doubtful accounts of $50,000 at September 30, 2012 and $66,000 at December 31, 2011

1,242,000

883,000

Inventory, net of allowance for slow moving and obsolete inventory of $469,000 at September 30, 2012 and $401,000 at December 31, 2011

 

3,079,000

 

3,239,000

Prepaid expenses and other current assets   83,000       61,000  
Total current assets 4,404,000 4,276,000
Property, plant and equipment, net 1,225,000 1,304,000
Debt issuance costs, net 42,000 26,000
Patents, net 23,000 0
Other assets   26,000       30,000  
Total assets $ 5,720,000     $ 5,636,000  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Checks written in excess of cash balance $ 14,000 $ 0
Accounts payable 1,027,000 631,000
Accrued expenses and other current liabilities 195,000 217,000
Wages payable 290,000 264,000
Line of credit 565,000 397,000
Current portion of long-term debt and unearned grant   1,445,000       882,000  
Total current liabilities 3,536,000 2,391,000
Other liabilities 144,000 143,000
Long-term debt 0 608,000
Related party note   124,000       124,000  
Total liabilities 3,804,000 3,266,000
 
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock 217,000 217,000
Additional paid-in capital 19,479,000 19,386,000
Accumulated deficit   (17,780,000 )     (17,233,000 )
Total stockholders’ equity   1,916,000       2,370,000  
Total liabilities and stockholders’ equity $ 5,720,000     $ 5,636,000  

(Source: Business Wire )
(Source: Quotemedia)

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