American Bio Medica Continues to Post Dramatic Top- and Bottom-line Growth in the First Half of Fiscal 2000.KINDERHOOK, N.Y.--(BUSINESS WIRE)--Dec. 16, 1999-- American Bio Medica medica (māˑ·dē·k Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ABMC ABMC American Battle Monuments Commission ABMC Alexian Brothers Medical Center (Illinois) ABMC Aviation Battle Management Concept ABMC Arrowbear Music Camp (California) ) today announced its unaudited results for the three months ended October 31, 1999. Sales for the second quarter fiscal 2000 were $2,122,000, representing a 19.7% increase from $1,773,000 in the same period last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. rose 8.6% on an actual basis to $1,119,000 in the second quarter fiscal 2000 while decreasing relative to sales by five percentage points over the same period last year. This was due in part to a 7.0% year-over-year reduction in selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. relative to sales and an 8.5% decline in marketing and promotion costs as a percentage of sales during the same period. Net income (loss) from operations amounted to $(30,000) for the three months ended October 31, 1999 as compared to $9,000 for the same period last year, due primarily to an increase in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold resulting from the Company's sale of its book sales business and a loss on sales of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . The Company is reducing costs at its in-house production department by increasing in-house manufacturing of the Rapid Drug Screen(TM) drug test strips. ABMC is also implementing various cost reduction and production efficiency plans to improve gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. throughout fiscal 2000. In the first half of fiscal 2000, sales rose 37.9% to $4,249,000 from $3,081,000 in the comparable six months of last year. Operating expenses were $2,270,000 during the six months ended October 31, 1999, representing a 15.7 percentage point improvement relative to sales as compared to the first half of fiscal 1999. Selling, general and administrative costs decreased 1.4% on an actual basis to $1,957,000 for the first half of fiscal 2000 and fell 18.2% year-over-year relative to sales. Marketing and promotion costs were also reduced during this period by 79.1% on an actual basis and by 5.3 percentage points relative to sales. Net income (loss) from operations amounted to $(57,000) for the first half of fiscal 2000 versus $(268,000) for same period last year, due primarily to increased sales and a decrease in selling, general and administrative expenditures. As of October 31, 1999, the Company had working capital of $2,247,000, total assets of $4,660,000, a current ratio of 2.3 to 1 and $2,913,000 in total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. . "The second quarter marked ABMC's move into its new headquarters in Kinderhook, where we are benefiting from a larger facility that supports our continued growth and current industry positioning as number three in on-site drug testing," stated Company Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Stan Cipkowski. "Several other exciting developments occurred during the quarter," Cipkowski continued. "This included the fact that we won the Friedenberg appeal, which reduced our litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. risk and positively impacted our bottom line by confirming that we are not required to issue any additional shares. It also involved the Company filing its second patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. and trademark dilution lawsuit, thus continuing our efforts to block copycat products that dilute our market share. We also experienced significant sales growth in various market segments in the second quarter, and reported particularly notable increases in our strength within the educational sector." The Company gained a strong foothold in the educational market during the three months ended October 31, 1999 with its substance abuse test being used in nearly 100 schools across the country as part of drug prevention programs. ABMC also launched the first resource-based website (www.drugfreeschools.com) to assist schools in developing and implementing effective drug testing initiatives. In a related announcement, ABMC reported that it will be holding a conference call with investors on Friday December 17, 1999 at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to discuss its second quarter fiscal 2000 results. The Company invites parties interested in participating in the conference to call 800-526-7151 by 9:45 a.m. EST this Friday. -0-
Consolidated Balance Sheet
October 31, 1999 April 30, 1999
Unaudited
---------------- --------------
Total current assets $3,954,000 $3,802,000
Total assets $4,660,000 $4,435,000
Total current liabilities $1,707,000 $1,415,000
Total stockholders' equity $2,913,000 $2,973,000
Consolidated Statement of Operations (Unaudited)
For the three For the three For the six For the six
months ended months ended months ended months ended
Oct. 31, 1999 Oct. 31, 1998 Oct. 31, 1999 Oct. 31, 1998
------------- ------------- ------------- -------------
Sales $2,122,000 $1,773,000 $4,249,000 $3,081,000
Gross profit $1,089,000 $1,051,000 $2,134,000 $1,845,000
Total operating
expenses $1,119,000 $1,030,000 $2,270,000 $2,130,000
Net income (loss) $(30,000) $9,000 $(57,000) $(268,000)
Basic and diluted
net income $(0.00) $(0.01) $(0.02) $(0.05)
(loss) per common
share
Weighted avg.
shares
outstanding 14,923,341 14,346,669 14,923,341 14,346,669
- basic and
diluted
American Bio Medica Corporation develops, manufactures and markets inexpensive, accurate, on-site drugs of abuse diagnostic kits and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services worldwide. The Company's global distributors target the workplace, clinical, rehabilitation, physicians, corrections and educational markets. ABMC's Rapid Drug Screen is proven to correlate 100% with the standard laboratory screening test. Forward-looking statements in this release are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. |
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