FOR IMMEDIATE RELEASE: KINDERHOOK, NY -- September 17, 2024 -- American Bio Medica Corp. (NASDAQ: ABMC), today announced its unaudited results for the three months ended July 31, 2001. Sales for the first quarter fiscal 2002 were $1,550,000 representing a decrease of $605,000, or 28.1%, from $2,155,000 in the same period last year. The decrease in sales was attributed to the company's transition from a distributor-based sales organization to a more direct sales oriented company. The Company has terminated relationships with several distributors in both clinical and workplace markets in order to achieve higher gross margins through alliances with key distributors and direct sales. The Company expects sales to begin to grow steadily in the second quarter as a result of the same internal sales restructuring. Operating results improved from a loss of $(308,000) in the first quarter fiscal 2001 to a loss of $(214,000), an improvement of $94,000. Excluding non-cash compensation charges, depreciation and non-recurring expenses, the Company would have reported operating income of $13,000 in the first quarter of fiscal 2002. Gross profit, as a percentage of sales, improved to $70.1% from 65.6% as a result of greater operating efficiencies. Operating expenses decreased $420,000, or 24.4%, from 1,721,000 in the first quarter fiscal 2001 to 1,301,000 in the first quarter fiscal 2002. The decrease in operating expenses was due to a decrease in selling, general and adminstrative (SG&A). SG&A expenses including depreciation and non-cash charges decreased $401,000 or 25% from $1,602,00 in the first quarter fiscal 2001 to $1,201,000 in the 2002 first quarter. The decrease in SG&A was due in part to a decrease in legal fees of $279,000, as a result of the settlement of the patent litigation filed by the Company against numerous parties and a decrease in marketing & promotion and consulting fees of $179,000 as a result of the internal restructuring of its marketing department. "We are encouraged that the company has improved operating results and cash flow, despite a loss in gross sales," said Robert L. Aromando Jr., ABMC chariman and chief executive officer. "As expected, we have experienced some growing pains during the restructuring of our organization and implementation of our new sales strategy. Although our first quarter sales were affected by some lost distribution support, we do not anticipate this to continue into the second quarter. Our strategy includes focusing on cost of goods, and optimizing margins for profitability, while simultaneously growing sales. We simply make more profit by working with a limited network of high-level, committed distributors, and our internal sales force. These results underscore the legitimacy of our strategy." "We have secured additional financing to support this strategy,
and are already realizing significant new business through new
products and target selling. I am confident that the new business will
eclipse the revenue we lost through some distributor sales. And the
company, as well as our strategic distribution partners, will be
better positioned for sustained profitability in the long run."
Consolidated Balance Sheet July 31, 2024 April 30, 2024 Unaudited(1) ------------- -------------- Total current assets $3,083,000 $3,030,000 Total assets $3,693,000 $3,640,000 Total current liabilities $2,562,000 $2,406,000 Total stockholders' equity $1,111,000 $1,213,000 (1) Excludes net proceeds of $2.3 million received in our August 2001 financing. Consolidated Statement of Operations (Unaudited) For the Three For the Three Months Ended Months Ended July 31, 2024 July 31, 2024 -------------- -------------- Net sales $1,550,000 $2,155,000 Cost of goods sold $463,000 $742,000 Gross profit $1,087,000 $1,413,000 Net income (loss) $(212,000) $(273,000) Basic and diluted net income (loss) per common share $(0.01) $(0.02) Weighted average shares outstanding - basic and diluted 17,995,548 18,045,548 About American Bio Medica Corporation American Bio Medica Corporation develops, manufactures and markets inexpensive, accurate on-site drugs-of-abuse diagnostic kits, sprays and support services worldwide. The company's global distributors target the workplace, physicians, corrections, clinical and educational markets. ABMC's Drug Detector identifies minute traces of illegal drugs on surfaces, while the company's Rapid Drug Screen tests individuals and is proven to correlate greater than 99% with the standard laboratory screening test. Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. Contact: American Bio Medica Corporation Melissa Decker, 800-227-1243, Fax: 518/758-8171 melissa@americanbiomedica.com Web: www.americanbiomedica.com |