KINDERHOOK, N.Y. – May 12, 2010 – American Bio Medica Corporation (Pink Sheets: ABMC) announced today its financial results for the three months ended March 31, 2010.
Net sales for the first quarter of 2010 were $2,426,000 compared to net sales of $2,255,000 in the first quarter of 2009, representing an increase of $171,000, or 7.6%. Operating loss for the first quarter of 2010 was $219,000 compared to an operating loss of $204,000 in the first quarter of 2009. The Company reported a net loss of $276,000 in the first quarter of 2010 compared to a net loss of $252,000 in the first quarter of 2009.
ABMC Chief Executive Officer, Stan Cipkowski, stated, “National accounts and other non-government direct sales increased in the first quarter of 2010 when compared to the first quarter of 2009, however, we are still down from pre-recession sales levels of 2008. We believe this is a result of positive movement in our workplace market as unemployment rates improve in many areas throughout the country, although according to published reports, much of the country has far to go.”
Cipkowski continued, “In the first quarter we also saw an increase in our CLIA business, through direct sales. ABMC is currently the only company offering a CLIA waived test for Buprenorphine. Burprenorphine is used to treat certain types of drug dependency, including opioid addiction, as well as being used in pain management. Rehabilitation centers and physicians specializing in pain management need a quality drugs of abuse testing kit to aid in monitoring patient usage to ensure narcotics are being used as prescribed and to identify possible medication usage from other sources that can complicate a patient’s treatment.”
“Unfortunately, sales in our government market continue to be negatively impacted by government budget cuts and price pressures from foreign manufacturers, although our Rapid TOX Cup II product has alleviated some of the impact. We remain hopeful that sales will continue to improve as general economic conditions improve. During this time, we will continue to take measures to control expenses and manufacturing costs to improve our operating results in 2010.”
The Company will host a conference call and webcast to discuss the First Quarter 2010 results on Thursday, May 13, 2010 at 11:00 a.m (ET). Investors and interested parties are invited to participate. The call will be broadcast live over the internet at www.abmc.com/investor/. The webcast will be listen-only mode. Listeners are requested to be online at least fifteen minutes early to register, as well as to download and install any complimentary audio software that might be required. To ask questions, you are invited to participate by phone. Within North America, dial 866-212-4491 and internationally dial 416-800-1066. The call will be available for replay at www.abmc.com/investor/ for 30 days.
For more information on American Bio Medica Corporation or its drug testing products, please visit www.abmc.com.
About American Bio Medica Corporation
American Bio Medica Corporation is a biotechnology company that develops, manufactures and markets accurate, cost-effective immunoassay diagnostic test kits, including some of the world’s most effective 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 products test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ tests 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 fiscal year ended December 31, 2009, 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.
|AMERICAN BIO MEDICA CORPORATION|
|Statements of Operations|
|(in thousands, except loss per share)|
|For the three||For the three|
|months ended||months ended|
|March 31, 2010||March 31, 2009|
|Cost of goods sold||1,475||1,336|
|Research and development||102||101|
|Selling and marketing||487||498|
|General and administrative||581||524|
|Total operating expenses||1,170||1,123|
|Other expense, net||(54||)||(48||)|
|Net loss before tax||(273||)||(252||)|
|Income tax expense||(3||)|
|Basic & diluted loss per common share||$||(0.01||)||$||(0.01||)|
|Basic & diluted weighted average shares outstanding||21,744,768||21,744,768|
|American Bio Medica Corporation|
|March 31,||December 31,|
|Cash and cash equivalents||$||56||$||35|
Accounts receivable, net of allowance for doubtful accounts
of $83,000 at March 31, 2010 and $67,000 at December 31,
Inventory, net of allowance for slow moving and obsolete
inventory of $246,000 at March 31, 2010 and $271,000 at
December 31, 2009
|Prepaid expenses and other current assets||135||101|
|Total current assets||5,394||5,267|
|Property, plant and equipment, net||1,554||1,624|
|Debt issuance costs||106||118|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued expenses and other current liabilities||271||506|
|Line of credit||778||260|
|Current portion of long-term debt and unearned grant||940||117|
|Total current liabilities||2,938||1,776|
|Related party note||124||124|
|COMMITMENTS AND CONTINGENCIES|
|Additional paid-in capital||19,306||19,299|
|Total stockholders’ equity||3,109||3,378|
|Total liabilities and stockholders’ equity||$||7,084||$||7,040|
Contact: American Bio Medica Corporation Stan Cipkowski, 800-227-1243, Ext 106 Chief Executive Officer