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 BLACKWOOD, N.J., Oct. 11 /PRNewswire/ -- Drug Screening Systems, Inc. (NASDAQ: DRUG), today reported results for the fourth quarter and fiscal year ended June 30, 1993.
 The company had a fourth quarter net loss of $538,199 or 60 cents per share on revenues of $658,136 compared to a net loss of $1,203,737 or $1.36 per share on revenues of $174,368 for the same period last year.
 The net loss for the 12 months was $3,142,441 or $3.49 per share on revenues of $1,839,702 compared to a net loss of $3,005,144 or $3.70 per share on revenues of $512,405 for fiscal 1992.
 All per share amounts have been restated to reflect the company's 1-for-10 reverse stock split effective May 6, 1993.
 "Fiscal 1993 was characterized by a return to basics and a strengthening of the foundation on which our future growth will depend. During the year, the company expanded its product line to include tests for all five major drugs of abuse as recommended by the National Institute of Drug Abuse industry standard; initiated an automation project to increase manufacturing capacity and lower per-unit costs; significantly reduced its operating expenses; and added two distributors to sell product in the United Kingdom, Europe and the Middle East, whose combined sales targets for calendar 1994 could enable the company to reach a break-even level as early as the third fiscal quarter in 1994," Robert Wallace, chairman of the board, stated.
 Gary Nacht, senior vice president and chief financial officer, added, "The improvement in the fourth quarter is attributable to stronger sales and benefits from our cost reduction program. For fiscal 1993, sales increased over threefold, led by Wells Fargo, our largest distributor, whose sales increased from $374,841 during fiscal 1992 to $1,064,900 during fiscal 1993. Significant inroads also were made in selling our product into the criminal justice system, where on-site drugs of abuse testing has become standard."
 Nacht also noted that the company put a temporary hold on exercises of its redeemable warrants because, as a result of the filing of the June 30, 1993 Form 10-KSB, the prospects relating to the warrants had gone "stale." He indicated that the company was in the process of filing a post-effective amendment to its registration statement to make a current prospectus available for such exercises, and that the amendment would likely be declared effective within 45 days.
 Drug Screening Systems is a biochemical diagnostic company engaged in the development, manufacture and marketing of on-site diagnostic tests for drugs of abuse. The company's patented products are currently sold under the trademarks MACH IV SCREEN(R) and microLINE(R) SCREEN in the United States and throughout Europe, South America and the Middle and Far East through distributors and sales agents.
 Comparative Analysis
 Periods Ended Three Months 12 Months
 June 30 1993 1992 1993 1992
 Revenues $658,136 $174,368 $1,839,702 $512,405
 Net loss (538,199)(1,203,737) (3,142,441) (3,005,144)
 Net loss per share $(.60) $(1.36) $(3.49) $(3.70)
 Avg. shrs. outstanding 900,200 887,780 900,200 812,750
 -0- 10/11/93
 /CONTACT: Gary Nacht of Drug Screening Systems, 609-228-8500/

CO: Drug Screening Systems, Inc. ST: New Jersey IN: MTC SU: ERN

MP-PS -- NY029 -- 0668 10/11/93 12:14 EDT
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Publication:PR Newswire
Date:Oct 11, 1993

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