ABMC Reports Third Quarter 2014 Results
KINDERHOOK, N.Y. - November 14, 2014 - American Bio Medica Corporation (ABMC) today announced financial results for the three and nine months ended September 30, 2014,
Net sales for the third quarter of 2014 were $1,750,000, compared to $2,257,000 in the third quarter of 2013, representing a decrease of $507,000, or 22.5%. For the nine months ended September 30, 2014, net sales were $5,604,000, compared to $6,762,000 for the nine months ended September 30, 2013, representing a decrease of $1,158,000, or 17.1%.
ABMC Chief Executive Officer Melissa A. Waterhouse stated, "While I remain pleased with the continued year over year improvement in our operating results, I remain disappointed in our sales results. Our inability to sell our oral fluid in the workplace (which was typically 15-20% of our sales), and recent declines in government sales has created a challenging sales environment. Sales growth in the near future will be dependent on our ability to introduce our urine-based, all-inclusive drug test to the clinical and pain management markets, and our ability to provide this product to these markets is contingent on obtaining marketing clearance from the U.S. Food and Drug Administration. In the third quarter, we continued to take actions that will enable us to file the marketing clearance application in the current quarter. I believe this product, when cleared, will have a positive impact on our sales in 2015. Thereafter, further growth will be dependent on the development of new assays for market introduction in 2015, and increased contract manufacturing."
The Company reported an operating loss of $(124,000) in the third quarter of 2014, compared to an operating loss of $(286,000) in the third quarter of 2014. Net loss for the third quarter of 2014 was $(211,000), or $(0.01) per share, compared to a net loss of $(213,000), or $(0.01) per share in the third quarter of 2013. Operating loss for the nine months ended September 30, 2014 was $(39,000), compared to an operating loss of $(860,000) in the nine months ended September 30, 2013. Net loss for the nine months ended September 30, 2014 was $(252,000), or $(0.01) per share, compared to a net loss of $(933,000), or $(0.04) per share in the nine months ended September 30, 2013.
Waterhouse continued, "The improvement in financial results in spite of sales declines is a result of continued examination of all expenses. To that end, in the third quarter of 2014, we began to take actions to partially consolidate manufacturing operations. More specifically, we are closing down two of the three leased units in New Jersey, and moving certain manufacturing operations up to our company-owned facility in New York. The remaining unit in New Jersey will continue to house bulk strip manufacturing and research and development. The estimated cost of partial consolidation will be approximately $80,000; these costs will result in a temporary increase in G&A expenses through the remaining months of 2014. However, as a result of this partial consolidation, starting in 2015 we will begin to see annual savings of $80,000 in site costs alone, and we expect increased manufacturing efficiency as well."
For more information on ABMC or its drug testing products, please visit www.abmc.com.
About American Bio Medica Corporation
American Bio Medica Corporation develops, manufactures and markets accurate, cost-effective immunoassay test kits, primarily point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC's Rapid Drug Screen®, Rapid ONE®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT test for the presence or absence of drugs of abuse in oral fluids. ABMC's Rapid Reader® is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.
This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, product development, compliance with regulatory requirements, intellectual property rights, our dependence on key personnel, third party sales and suppliers, trading in our common shares may be subject to "penny stock" rules, our history of recurring net losses and our ability to continue as a going concern. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2013, quarterly reports on Form 10-Q, and other periodic reports on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares.
(Condensed Balance Sheets follow)
Contact: American Bio Medica Corporation Melissa A. Waterhouse, (800) 227-1243, Ext 107 Chief Executive Officer