American Bio Medica Reports 1st Quarter Results
Sales Rebound and Increase 34.1% From Prior Quarter
KINDERHOOK, N.Y.--(BUSINESS WIRE)--Sept. 14, 2000--American Bio Medica Corp. (Nasdaq:ABMC - news), which develops, manufactures and markets drugs of abuse diagnostic kits, sprays and support services, today announced its unaudited results for the three months ended July 31, 2000.
Sales in the first quarter fiscal 2001 increased to $2,155,000 or 34.1% from $1,607,000 in the prior quarter. Gross margins increased to 65.6% or $1,413,000 from 59.3% or $953,000 in the prior quarter, an improvement of $460,000 or 48.3%. Operating expenses before interest, depreciation and other non-cash charges decreased to $1,510,000 from $2,037,000 in the previous quarter, down $527,000 or 25.9%. Earnings before interest, depreciation and other non-cash charges improved by $987,000 to a loss of $97,000 compared to a loss of $1,084,000 in the prior quarter.
In comparison with the same period last year, sales for the first quarter fiscal 2001 were $2,155,000, representing a $28,000 or 1.3% increase from $2,127,000 in the same period last year. Gross margin increased to $1,413,000 from $1,060,000, an increase of $353,000 or 33.3%. Operating expenses including interest, depreciation and non-cash charges increased $555,000 or 47.6% to $1,721,000 in the first quarter fiscal 2001 compared to $1,166000 in the 2000 first quarter. SG&A costs increased $484,000 or 53.4% to $1,391,000 for the first quarter fiscal 2001 compared to $907,000 for the first quarter fiscal 2000.
The increase in SG&A was due in part to increased selling expenses related to the introduction of the 9-panel Rapid Drug Screen(TM) to clinical markets, the introduction of the Drug Detector(TM) product line to over-the-counter retail markets and to legal fees connected with the patent, trademark and unfair competition lawsuits the Company has filed against certain parties. Legal fees rose to $323,000, or 15% of net sales, an increase of $219,000, compared to $104,000 or 4.9% in the same period last fiscal year.
Net loss from operations including non cash charges of $182,000 amounted to $(273,000) for the three months ended July 31, 2000 as compared to $(106,000) for the same period last year. As of July 31, 2000, the Company had working capital of $1,716,000, total assets of $4,990,000 and $3,133,000 in total stockholders' equity.
``We are very pleased with the results of the first quarter of our new fiscal year,'' stated ABMC Chairman and CEO Stan
Cipkowski. ``Sales of the Rapid Drug Screen have been relatively flat or declining in the prior three quarters due to the knock-offs of our proprietary products in the marketplace. We have regained our position in our core markets and will continue to grow from this point. Our entry into the clinical markets with our 9 panel Rapid Drug Screen and in the over-the-counter market with the Drug Detector will impact sales in the coming quarters.'' He added, ``Earnings continue to be effected by the legal fees we have had to incur to defend our intellectual property rights but we know that our market position is strengthened with our commitment to uphold these rights. We also feel it is extremely important to note the continuing improvements in gross profit margin to a record 65.6% of sales; we now make the finest performing product on the market at a lower cost to sales.''
Well sales are up...good news...earnings down...not so good news...
maybe next quarter a little BLACK will show.
chris |
