ABMC Reports First Quarter 2015 Results
KINDERHOOK, N.Y. - May 15, 2015 - American Bio Medica Corporation (ABMC) today announced financial results for the three months ended March 31, 2015.
Chief Executive Officer Melissa A. Waterhouse stated, "The decline in sales in the first quarter 2015 was primarily due to the loss of two state contracts in 2014 (both of which are now using a product manufactured outside of the United States). In addition, contract-manufacturing sales declined as a result of an inventory surplus at one of our contract-manufacturing customers. The surplus has been used and we expect contract-manufacturing levels to return to a level more in line with historical sales."
Waterhouse continued, "A couple months ago, I indicated that 2015 was expected to be a year of investment in selling and marketing and our recent sales levels demonstrate the need for such an investment. In the first quarter of 2015, we hired additional sales representatives to target our core markets in the United States, increased our market presence at industry trade shows, and began new marketing initiatives. Our application for OTC marketing clearance of our urine-based all-inclusive drug test is still under FDA review but we are hopeful that we will have FDA’s decision on the application in the very near future. New assay development continues and is going well."
Net sales in the first quarter of 2015 were $1,502,000 compared to $2,043,000 in the first quarter of 2014, a decrease of 26.5%.
Operating loss was $53,000 in the first quarter of 2015 compared to an operating profit of $62,000 in first quarter of 2014.
Net loss was $45,000 in the first quarter 2015 compared to net income of 9,000 in the first quarter 2014.
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.
(financial tables follow)
Contact: American Bio Medica Corporation Melissa A. Waterhouse, (800) 227-1243, Ext 107 Chief Executive Officer