American Bio Medica Reports 3rd Quarter/9 Months Results; Nine-Months Sales Up 30.2%.Business Editors KINDERHOOK, N.Y.--(BUSINESS WIRE)--March 17, 2000 American Bio Medica medica (māˑ·dē·k Corporation (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) ), which develops, manufactures and markets drugs of abuse diagnostic kits, sprays 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 , today reported results for the fiscal third quarter and nine months ended Jan. 31, 2000. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter, representing revenues from the sale of drug test kits, were $1,797,000, compared with net sales of $1,912,000 for corresponding quarter of the prior year. The company narrowed its loss from operations for the quarter to $411,000 from $623,000 in the same period last year, and its net loss to $397,000 or three cents per basic and diluted common share from $568,000, or six cents per basic and diluted share in first quarter of fiscal 1999. Nine-months net sales rose 30.2 percent, to $6,046,000 from $4,644,000 for the first nine months last year. Loss from operations decreased to $547,000 from $914,000, and the net loss narrowed to $454,000, or four cents per basic and diluted share from $836,000 or ten cents Ten Cents has several meanings:
Commenting on the reason for the results, Stan Cipkowski, 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. of American Bio Medica, noted that the company had not achieved its sales projections in this or the previous quarter due to the unlawful competition from its former supplier, Phamatech, Inc. "In addition to copying our test kit," Cipkowski said, "Phamatech has also waged an assault on our distributor network in a further effort to palm off our established product as its own. It has signed up several former ABMC distributors to sell its `knockoff' and ABMC will next week initiate an action against those distributors while it pursues an injunction against Phamatech to stay its unfair competition. The company has also filed a suit in Alabama Federal court to enjoin To direct, require, command, or admonish. Enjoin connotes a degree of urgency, as when a court enjoins one party in a lawsuit by ordering the person to do, or refrain from doing, something to prevent permanent loss to the other party or parties. another infringer from distributing its `knockoff' of our Rapid Drug Screen. We have taken several steps recently to redirect our marketing efforts and distributor support programs. We fully expect to overcome this inferior `knockoff' of our product both in the courts and in the marketplace. "In addition," Cipkowski commented, "our gross margins greatly improved over the same period last year from 44.8% to 53.6%. This is a direct result of our investments in our in-house manufacturing capabilities. This is going to continue to get better each quarter. Also noted was that SG & A decreased 29.4 percent for the quarter and 8.3 percent for the nine months. We expect this improvement to continue in the coming year as we benefit from the relocation of our marketing department to our New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State headquarters and further implement an extensive cost reduction program focused on our in-place production process," Cipkowski said. During the third quarter, American Bio Medica acquired the exclusive rights for distribution and marketing of the patented Drug Detector(TM) on-site drug detection system in North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , and the company recently strengthened the retail over the counter, e-commerce and distributor channels for Drug Detector. "We believe American Bio Medica has the products and strategies to continue to be a growing and significant presence in the fast-growing drug detection industry," Cipkowski concluded. About American Bio Medica American Bio Medica Corporation develops, manufactures and markets inexpensive, accurate, on-site drugs of abuse diagnostic kits, sprays and support services worldwide. The company's global distributors target the workplace, clinical, physicians, corrections and educational markets. ABMC's Drug Detector identifies minute traces of illegal drugs on surfaces, while the company's Rapid Drug Screen(TM) tests individuals and is proven to correlate 100% with the standard laboratory screening test. The company's long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. call for further expansion of its product base with on-site tests that screen for a variety of substances. ABMC may develop some of these new tests in-house since the product platform utilized in the Rapid Drug Screen, which utilizes monoclonal antibodies This is a list of monoclonal antibodies, antibodies which are clones of a single parent cell. When used as medications, the generic names end in -mab (see "Nomenclature of monoclonal antibodies"). , can be applied to test urine, blood, serum or saliva samples for multiple specific analyte targets. American Bio Medica also continues to evaluate the profit opportunities presented by obtaining new products through joint ventures or acquisitions. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 risks 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.
AMERICAN BIO MEDICA
Financial Highlights (Unaudited)
For the Three For the Nine
Months Ended Months Ended
1/31/00 1/31/99 1/31/00 1/31/99
Sales $1,797,000 $1,912,000 $6,046,000 $4,644,000
Gross Profits 964,000 857,000 3,098,000 2,419,000
Total Operating
Expenses 1,375,000 1,480,000 3,645,000 3,333,000
Net Income (loss) (397,000) (568,000) (454,000) (836,000)
Basic and diluted
net income (loss)
per common share ($.03) ($.06) ($.04) ($.10)
Weighted average
shares outstanding,
basic and diluted 15,091,417 14,454,883 15,091,417 14,454,883
CONSOLIDATED BALANCE SHEET
January 31, 2000 April 30, 1999
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Total current assets 4,434,000 3,802,000
Total assets 5,189,000 4,435,000
Total current liabilities 2,327,000 1,462,000
Total stockholders' equity 5,189,000 4,435,000
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