Printer Friendly

EDITEK, INC. ANNOUNCES THIRD QUARTER 1993 SALES INCREASE

 BURLINGTON, N.C., Nov. 15 /PRNewswire/ -- EDITEK, Inc. (AMEX: EDI) reported today its results for the quarter ended Sept. 30, 1993.
 Total revenues for the quarter were $783,273, a 6 percent increase compared to revenues of $738,913 for the three month period ended Sept. 30, 1992. The company's net loss was $282,901 ($0.05 per share) compared to a net loss of $327,400 ($0.09 per share) for the third quarter 1992. Total revenues for the nine months ended Sept. 30, 1993, were $2,058,594, a 10 percent decrease as compared to revenues of $2,288,457 for the same period in 1992. Net loss for the nine months ended Sept. 30, 1993, was $1,998,152 ($0.37 per share) including arbitration costs and expenses of $688,793 versus a net loss of $785,627 ($0.23 per share) for the comparable 1992 period during which no similar arbitration expenses were incurred.
 Significantly, product sales for the third quarter were 10 percent over the same quarter for 1992 and 18 percent ahead of the first quarter of 1993 and 27 percent over the second quarter of 1993. Furthermore, gross profit margins for product sales improved to 21 percent from only 4 percent in the second quarter of 1993.
 During the quarter, the company completed private placements which resulted in a cash position on Sept. 30, 1993, exceeding $3 million enabling the company to graduate from the Emerging Company Marketplace to full American Stock Exchange listing.
 The company continues to invest in sales and marketing to support its on-site drugs of abuse testing business including the newly introduced VERDICT One-Step Drugs of Abuse Assays. Furthermore, the company is aggressively pursuing the qualitative and quantitative breath alcohol market. These efforts have resulted in the company now being able to offer a comprehensive abused substance product package.
 At the company's Annual Meeting of Stockholders, held Oct. 26, 1993, the EDITEK management team reviewed the company's business strategy which is clearly focused on the abused substance testing market. Following the company's acquisition of the NIDA certified Princeton Diagnostic Laboratories of America, Inc. (AMEX: PDA), EDITEK will focus its sales and marketing on the thousands of small companies (fewer than 1,000 employees), most of which currently do not have a drug testing program. EDITEK will market the most comprehensive product and service program available including:
 1. On-site drugs of abuse tests.
 2. On-site qualitative and quantitative alcohol tests.
 3. NIDA certified laboratory screening and confirmation testing.
 4. Ancillary products and supplies (latex gloves, collection
 containers, temperature recording devices, etc.)
 5. A consultation service to assist the smaller firms in the
 creation of policies and procedures, implementation of training
 programs as well as assistance in the conduct of random and other
 testing patterns.
 These smaller firms represent a large, untapped market desirous of instituting an abused substance testing program but lacking the in-house resources to do so. EDITEK will be positioned to provide this comprehensive package of products and services at margins anticipated to be higher than those achieved in the much more price competitive on-site testing only or laboratory testing only markets.
 During the Annual Meeting of Stockholders, the company announced the results of the stockholder voting. The board of directors, including Samuel C. Powell, Ph.D., James D. Skinner, Gene E. Lewis and Mark D. Dibner, Ph.D., was re-elected. In addition, the stockholders approved the remaining two items on the proxy statement as follows:
 1. The proposal to adopt an Equity Compensation Plan.
 2. The proposal to adopt amendments to the company's Qualified Employee Stock Purchase Plan.
 EDITEK offers a comprehensive product and service package for the determination of abused substances. In addition, the company provides products and conducts leading-edge product and technology research under its Department of Defense contract for the growing, broadly defined environmental testing market.
 EDITEK, INC.
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Nine Months Ending Sept. 30
 1993 1992
 Revenues $2,058,594 $2,288,457
 Cost of Goods Sold 1,439,269 1,459,126
 Gross Profit 619,325 829,331
 Operating Expenses 1,928,684 1,614,958
 Net Operating Loss (1,309,359) (785,627)
 Arbitration Costs 688,793 ---
 Net Loss $(1,998,152) $(785,627)
 Loss Per Share of
 Common Stock ($ .37) ($ .23)
 Weighted Average of Shares
 of Common Stock Outstanding 5,413,029 3,392,161
 Quarter Ending Sept. 30
 1993 1992
 Revenues $ 783,273 $ 738,913
 Cost of Goods Sold 534,255 492,277
 Gross Profit 249,018 246,636
 Operating Expenses 680,495 574,036
 Net Loss (431,477) (327,400)
 Arbitration Costs (148,576) ---
 Net Loss $(282,901) $(327,400)
 Loss Per Share of Common Stock ($.05) ($.09)
 Weighted Average of Shares
 of Common Stock Outstanding 5,578,023 3,619,561
 -0- 11/15/93
 /CONTACT: Peter Heath, vice president-Finance and chief financial officer, of EDITEK, 919-226-6311/
 (EDI)


CO: EDITEK, Inc. ST: North Carolina IN: MTC SU: ERN

SB-CM -- CH004 -- 4357 11/15/93 11:25 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 15, 1993
Words:832
Previous Article:WASHINGTON MUTUAL'S 'THAT'S DIFFERENT' CONTEST REVEALS NORTHWEST ODDITIES: DAVENPORT RACING, BIKE-EATING TREE
Next Article:LANCER CORPORATION REPORTS THIRD QUARTER RESULTS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters