Avitar reports profitable third quarter 1996 results.WALLINGFORD, Conn.--(BUSINESS WIRE)--Aug. 21, 1996--Avitar, Inc. ("the Company") (Nasdaq SmallCap Market:AVIT AVIT Aarupadai Veedu Institute of Technology AVIT Audiovisual Instructional Technology (Common Stock); AVITW (Redeemable Warrants)) today announced financial results for the third quarter ended June 30, 1996. In making this announcement, management noted that the more meaningful comparison is made when the Company's results for the third quarter ended June 30, 1995 are restated on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis to include the results of operations of the former Avitar, Inc. ("Old Avitar") as if the merger had taken place on October 1, 1994. In the quarter ended June 30, 1996, net income reached $41,000, or $.01 per share compared to the pro forma net loss of approximately $857,000, or $.17 per share, for the quarter ended June 30, 1995. Total revenues rose to approximately $1,592,000 for the quarter ended June 30, 1996 verses pro forma revenues for Old Avitar of $1,356,000 for the quarter ended June 30, 1995. Total revenues for the third quarter of 1996 reflect non-recurring other income of $493,000 in connection with amendments to the Company's operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Avitar Technology Inc.'s ("ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. ") License and Supply Agreements with Convatec, a division of E.R. Squibb and Sons, Inc. The Company had entered into these agreements on June 30, 1994 with Calgon Vestal vestal (vĕs`təl), in Roman religion, priestess of Vesta. The vestals were first two, then four, then six in number. While still little girls, they were chosen from prominent Roman families to serve for 30 (originally 5) years, during which Laboratories, Inc., which is now owned by Convatec. Peter Phildius, Chairman of the Board of the Company, stated, "We remain very encouraged about the potential for our saliva saliva Thick, colourless fluid constantly present in the mouth, composed of water, mucus, proteins, mineral salts, and amylase, an enzyme that breaks down starches. One to two litres are produced daily by the salivary glands. collector as the market for saliva diagnostic tests continues to develop. Additionally, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about other product developments utilizing our hydrophilic hydrophilic /hy·dro·phil·ic/ (-fil´ik) readily absorbing moisture; hygroscopic; having strongly polar groups that readily interact with water. hy·dro·phil·ic adj. polyurethane foam Noun 1. polyurethane foam - a foam made by adding water to polyurethane plastics polyfoam polyurethan, polyurethane - any of various polymers containing the urethane radical; a wide variety of synthetic forms are made and used as adhesives or plastics or technology. We presently expect the Company to reach profitability, excluding non-recurring items, during the Fourth Calendar Quarter of 1996, not in the third quarter as previously announced. However, given the start-up nature of some of our new products, there can be no assurance that sales will materialize as forecasted. Management will continue to closely monitor and attempt to control costs at the Company and will continue to actively seek capital on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms." This press release contains forward looking statements which involve numerous risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission. The Company designs, develops, manufactures and markets healthcare products and services including Hydrasorb(TM), a proprietary line of polyurethane polyurethane Any of a class of very versatile polymers that are made into flexible and rigid foams, fibres, elastomers (elastic polymers), surface coatings, and adhesives. wound care dressings. The Company also provides healthcare cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. services to employers and third-party payors. -0-
AVITAR, INC.
SUMMARY OF FINANCIAL RESULTS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended June 30, Nine Months Ended June 30,
Actual Pro Forma Actual Pro Forma
1996 1995 1995(a) 1996 1995 1995(a)
Sales $1,099 $1,109 $1,356 $3,591 $2,094 $3,238 Other Revenue 493 -- -- 493 -- -- Total Revenues 1,592 1,109 1,356 4,084 2,094 3,238 Operating Income (Loss) 82 (391) (795) (602) (276) (1,944) Net Income (Loss) 41 (374) (857) (709) (167) (2,060) Net Income (Loss) Per Share $.01 $(.08) $(.17) $(.13) $(.03) $(.40) Net Income (Loss) -Exclusive of Amortization of Goodwill 181 (303) (716) (289) (96) (1,989) Net Income (Loss) Per Share -Exclusive of Amortization of Goodwill $.03 $(.06) $(.14) $(.05) $(.02) $(.38) Weighted Average Number of Common and Common Equivalent Shares Outstanding 5,785,495 4,997,320 5,038,718 5,379,828 4,848,328 5,150,000 (a) Amounts are presented as if the merger had taken place on October 1, 1994. CONTACT: AVITAR, INC. Peter Phildius, Chairman of the Board (617) 575-9790 or Jay Leatherman, Chief Financial Officer (203) 265-3594 |
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