Tuesday March 31, 6:45 pm Eastern Time
Company Press Release
American BioMed Reports 1997 Fourth Quarter and Year-End Financial Results
THE WOODLANDS, Texas--(BW HealthWire)--March 31, 1998--American BioMed, Inc. (OTC Bulletin Board: ABMI - news), a manufacturer of minimally invasive medical devices for the treatment of cardiovascular disease, today announced fourth quarter and year-end financial results for the period ended December 31, 1997.
Revenues for the quarter increased 13.9% to $184,852, compared with $162,336 reported in the same period last year. The net loss for the quarter was $951,709, or $0.05 per share, based on weighted average number of common shares outstanding of 17,691,213, compared with a net loss of $1,391,585, or $0.11 per share based on weighted average number of common shares outstanding of 13,164,202, for the same period last year.
Revenues for the year ended December 31, 1997 were $545,473, compared with $579,533 reported in the same period last year. The net loss for the year-end was $2,774,203, or $0.18 per share based on weighted average number of common shares outstanding of 15,528,231, compared with a net loss of $3,808,529, or $0.34 per share based on weighted average number of common shares outstanding of 11,310,592, for the same period in 1996.
Steven B. Rash, president and chief executive officer, stated, ''While international sales of our products increased 13% in 1997 with the addition of several distributors in 1996, total revenues for the year were adversely impacted by decreased domestic sales. Also, increased expenses associated with general, selling and administrative, and research & development costs were incurred to support our business initiatives. Under the strong direction of a new vice president of sales and marketing, aggressive new domestic and international sales activities were implemented in the fourth quarter of 1997. We strengthened the company's distribution network by adding four new domestic distributors covering key markets throughout the U.S., and four international distributors covering Japan and several countries in Europe. As a result, fourth quarter sales surpassed third quarter sales of $107,292 by 72.3%. Additionally, we are pleased to report that revenues for the first quarter of 1998 have already exceeded last year's first quarter.''
Mr. Rash continued, ''In September, we were recommended for International Standards Organization (ISO) 9001 Certification by the ISO 9001 Registrar, and received Certification early this year. One month after receipt of Certification, we entered into our first original equipment manufacturer (OEM) agreement with Polamedco, Inc., a privately held disposable medical products manufacturer, to manufacture assorted sizes of their nasopharyngeal airway products. We believe ISO 9001 Certification has given American BioMed a competitive advantage, and will certainly allow us to attract additional OEM partnerships and additional business opportunities.''
''In order to expand the company's international marketing activities, American BioMed submitted documentation to secure the CE Mark, currently required by the European Commission for many products sold in the European marketplace, for certification of product quality for its entire product line,'' added Mr. Rash.
Mr. Rash continued, ''During the year, we submitted two 510(k)s to the U.S. Food and Drug Administration (FDA) for market clearance of two new versions of American BioMed's 100%-silicone based balloon catheter products. We received FDA approval for the Ahn thrombectomy catheter in January 1998, marking the company's first internally developed product. Our second internally developed product, a 100% silicone-based bi-lumen balloon catheter utilizing the company's dual balloon technology, is currently pending market clearance and we are working diligently with the FDA to expedite the approval process.''
''1997 was a building year for American BioMed, a year in which we made substantial investments in five key areas to strengthen the company's infrastructure. First, as a result of the consolidation of all of the company's manufacturing operations into our Irvine, California facility in 1996, we were able to increase our manufacturing capabilities and efficiencies in 1997. Second, investments were made in American BioMed's manufacturing activities, resulting in productivity improvements. Third, we invested in product development and clinical investigational programs to further the advancement of our core product technologies. Fourth, we expanded our sales and marketing activities by implementing new marketing programs. Finally, we reshaped our balance sheet and raised additional equity capital to further the company's strategic business plan. These combined initiatives have allowed us to establish a stronger foundation for the future growth of our company, and will allow us to take advantage of the many opportunities in the marketplace for our unique line of medical devices,'' Mr. Rash concluded.
American BioMed, Inc. utilizes state-of-the-art technology to develop, manufacture and market minimally invasive medical devices for the treatment of cardiovascular disease. The company's products include: 100% silicone-based catheters, through its Cathlab subsidiary; the Evert-O-Cath(TM), a toposcopic catheter for site-specific drug delivery and fluid removal; the OmniCath, an atherectomy catheter designed to remove athersclerotic plaque from obstructed blood vessels throughout the body; the OmniStent(TM), which uses stent technology for angioplasty and atherectomy procedures; and the OmniFilter, which is used to prevent blood clots from reaching various organs of the body. The company has over twenty five patents covering its product portfolio, and the combined worldwide market is estimated at over $10 billion annually.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties including, but not limited to, the results of research and development efforts, the results of pre-clinical and clinical testing, the effect of regulation by the FDA and other agencies, the impact of competitive products, product development, commercialization and technological difficulties, the results of financing efforts, the effect of the Company's accounting policies, and other risks detailed in the Company's Securities and Exchange Commission filings.
AMERICAN BIOMED, INC. AND SUBSIDIARY
(A Development Stage Enterprise)
CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Quarter Year Year
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
1997 1996 1997 1996
Sales, net $ 184,852 $ 162,336 $ 545,473 $ 579,533
Cost of sales (260,298) (125,117) (482,360) (420,838)
---------- ---------- ---------- ----------
Gross profit (75,446) 37,219 63,113 158,695
---------- ---------- ---------- ----------
Operating expenses:
Selling, general and
administrative (648,272) (435,337) (2,075,695) (1,718,595)
Research and
development (145,991) (148,314) (648,049) (640,792)
Distributor
settlement -- -- -- --
---------- ---------- ---------- ----------
(794,263) (583,651) (2,723,744) (2,359,387)
---------- ---------- ---------- ----------
Loss from operations (869,709) (546,432) (2,660,631) (2,200,692)
---------- ---------- ---------- ----------
Other income
(expense):
Interest income 19,695 639 44,200 4,252
Interest expense (82,517) (30,596) (183,538) (313,914)
Other income
(expense) (19,178) (172,339) 25,766 (114,762)
---------- ---------- ---------- ----------
Other income
(expense), net (82,000) (202,296) (113,572) (424,424)
---------- ---------- ---------- ----------
Net loss $ (951,709) $ (748,728) $(2,774,203) $(2,625,116)
Less preferred stock
dividends -- (642,857) -- (1,183,413)
---------- ---------- ---------- ----------
Net loss available
to common
shareholders $ (951,709) $(1,391,585) $(2,774,203) $(3,808,529)
---------- ---------- ---------- ----------
Net loss per common
share $ (0.05) $ (0.11) $ (0.18) $ (0.34)
---------- ---------- ---------- ----------
Weighted average
number of
common shares
outstanding 17,691,213 13,164,202 15,528,231 11,310,592
---------- ---------- ---------- ----------
-0-
SELECT BALANCE SHEET DATA
December 31, December 31,
1997 1996
ASSETS
Cash and cash
equivalents $ 82,789 $ 1,183,613
Total current assets 1,048,899 2,111,112
Total assets 1,945,056 3,069,151
LIABILITIES AND
STOCKHOLDERS' EQUITY
Total current
liabilities 1,676,050 2,367,318
Long-term debt, net of
current maturities 71,855 110,472
Total stockholders'
equity 97,151 128,595
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Contact:
American BioMed, Inc., The Woodlands
Steven B. Rash, 281/367-3895
or
Lippert/Heilshorn & Associates, Inc., New York
Investor Relations
Bruce Voss/Sue Yeoh, 212/838-3777
e-mail: bruce@lhai.com
e-mail: sue@lhai.com
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