Who would have thought this dog will make profits again? What a surprise!
onday May 15, 8:57 am Eastern Time
Company Press Release
Milestone Scientific Inc. Announces
Dramatic Improvement in First Quarter
Performance
LIVINGSTON, N.J.--(BUSINESS WIRE)--May 15, 2000--Milestone Scientific Inc.
(AMEX:MS - news) today announced its results for the first quarter ended March 31, 2000.
Net sales for the first quarter ended March 31, 2000 and March 31, 1999 were $1,410,793 and
$668,170, respectively. The $742,623 increase reflects an approximate 100% increase in
domestic sales of The Wand© and its disposable handpiece. It also represents an approximate
four fold aggregate increase in sales to foreign distributors including Canada. The increase in
foreign sales includes the initial shipment of 500 Wand© units and approximately 50,000
disposable handpieces to the Company's authorized dealer in Japan. Another 50,000 handpieces
is scheduled for delivery this week.
For the first quarter ended March 31, 2000, the Company generated a gross profit of $771,805
or 54.7% as compared to a gross profit of $168,856 or 25.2% for the first quarter ended March
31, 1999.
The net loss for the first quarter ended March 31, 2000 was $1,212,388, or $(0.12) per share on
10,000,063 weighted average shares outstanding compared to a net loss of $1,568,822, or
$(0.18) per share on 8,717,882 weighted average shares outstanding for the same quarter a year
earlier. The net loss for the first quarter ended March 31, 2000 includes $228,501, or $0.02 per
share, for the settlement of a lawsuit with 2 former employees.
Commenting on the results Mitchell G. Kuhn, President and COO, stated, ``Milestone continues
to make major progress in gaining acceptance for The Wand©. Domestic sales of units and
handpieces in the current quarter were double that of a year ago and, more importantly, showed
a strong increase over the 4th quarter 1999. In April 2000 we reported that we expected first
quarter revenue to exceed the prior quarter's revenue by over 50% and that it would equal more
than 40% of 1999 total annual net sales. I am gratified that results exceeded this ambitious goal
and our efforts to penetrate the dental market through an aggressive expansion of our sales and
marketing staff have been rewarded.''
``We are encouraged by the interest in The Wand© by dental hygienists and have begun targeting
this market. They are decision influencers and vital members of dental practices. Currently, 16
dental hygiene schools have The Wand© and 26 states license dental hygienists to give
injections. Over time we expect more states to license the dental hygienist to give injections,
greatly expanding the opportunity to have The Wand© become a standard in the dental
hygienist's regimen of care,'' Kuhn remarked.
``Additionally,'' Mr. Kuhn noted, ``Milestone has been an active participant the past four months
at most dental shows and we have found that our presence there has resulted in a significant
number of Wand© sales. Our participation will continue in conjunction with our greatly
expanded service and education program that is successfully `making users out of purchasers.'
We have recently signed exclusive distributorship agreements in Canada and Puerto Rico that
should meaningfully increase our sales there. In fact, we anticipate that our Canadian Wand©
system sales will more than quadruple in the current year.''
``Even as Wand© sales have risen, returns have declined due to not only owner
education/training initiatives, but to the fact that our design and manufacturing programs have
increased the reliability of the Wand© and addressed the needs of the dentist. Returns are more
than 50% below where they were last year,'' Kuhn added.
``Milestone first quarter performance shows that the Company is making major strides toward
profitability. We are optimistic that the initiatives that have been taken will accelerate this
trend,'' Mr. Kuhn concluded.
Milestone Scientific Inc. is the developer, manufacturer and marketer of The Wand©, a
computer controlled injection system. This precision metered, local anesthetic injection enables
virtually painless injections to be administered consistently.
This release contains certain forward-looking statements which involve known and unknown
risks, uncertainties or other factors not under the Company's control, which may cause actual
results, performance or achievements of the Company to be materially different from the results,
performance or other expectations implied by these forward-looking statements. These factors
include, but are not limited to, those detailed in the Company's periodic filings with the
Securities and Exchange Commission.
Milestone Scientific Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the first quarter ended March 31,
2000 1999
---------- ----------
Revenues $1,410,793 $668,170
Cost of sales 639,708 499,314
------------ ------------
Gross profit 771,085 168,856
------------ ------------
Selling, general and administrative
expense 1,635,327 1,688,464
Research and development expense 101,200 68,846
------------ ------------
1,736,527 1,757,310
------------ ------------
Loss from operations (965,442) (1,588,454)
Settlement costs - Spinello lawsuit (228,501) --
Interest income (expense), net (18,445) 19,632
------------ ------------
NET LOSS $(1,212,388) $(1,568,822)
============ ============
Loss per common share - basic and diluted $(0.12) $(0.18)
============ ============
Weighted average shares outstanding 10,000,063 8,717,882
Milestone Scientific Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31,
March 31, December 31,
ASSETS 2000 1999
------------ ----------
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $458,065 $242,843
Accounts receivable 470,612 297,778
Inventories 1,467,668 1,717,094
Prepaid expenses 161,604 192,636
------------ ------------
Total current assets 2,557,949 2,450,351
PROPERTY AND EQUIPMENT, NET 1,557,390 1,669,769
PATENTS, NET 1,430,585 1,491,724
OTHER ASSETS 10,318 10,318
------------ ------------
Total assets $5,556,242 $5,622,162
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 1,039,444 996,120
Accrued expenses 146,097 246,453
------------ ------------
Total current liabilities 1,185,541 1,242,573
------------ ------------
3% SENIOR CONVERTIBLE NOTES -- 2,250,000
------------ ------------
10% SENIOR CONVERTIBLE NOTES 1,000,000 --
------------ ------------
COMMITMENT AND CONTINGENCIES -- --
------------ ------------
STOCKHOLDERS' EQUITY
Common stock, par value $.001;
authorized, 25,000,000 shares;
10,752,898 issued as of March 31,
2000 and 8,864,898 issued
as of December 31, 1999 10,753 8,865
Additional paid-in capital 33,328,987 30,877,375
Accumulated deficit (29,057,523) (27,845,135)
Treasury stock, at cost, 100,000
shares (911,516) (911,516)
------------ -----------
Total stockholders'
equity 3,370,701 2,129,589
------------ ------------
Total liabilities and
stockholders' equity $5,556,242 $5,622,162
============ ============
Contact:
Wolfe Axelrod Weinberger Assoc. LLC
Stephen D. Axelrod, 212/370-4500
Fax: 212/370-4505
www.wolfeaxelrod.com
or
Milestone Scientific Inc.
Mitchell G. Kuhn, 973/535-2717
Fax: 973/535-2829
www.milesci.com |
