AFP Imaging Receives North and South American Distribution Exclusive From Yoshida Corporation of Japan for Digital Dental Panoramic and Pan/Cepholometric Imaging Devices Expanding AFP's Dental Business and Reports Third Quarter and Nine Months Results for Fiscal 1999
ELMSFORD, N.Y.--(BUSINESS WIRE)--May 27, 1999--AFP Imaging
(OTCBB: AFPC): AFP Imaging Corporation announced today that it reached
an exclusive distribution agreement with Yoshida Corporation of Japan,
for their line of Panoramic and Pan/Cepholometric imaging devices for
Dental Radiography. This integrated patient chair and x-ray unit is
primarily used for whole jaw x-ray imaging by dentists, orthodontists
and oral surgeons. It will further expand the scope of DENT-X
offerings to our domestic and international dental dealer network, and
will strengthen the overall AFP Imaging business. The agreement covers
North, Central, and South America. A total of over 60,000 "pan" units
are in use today in the United States. The Yoshida panoramic unit is
well known internationally under the tradename Panoura Ultra Pan.
AFP Imaging will transfer the distribution of the Panoramic
radiographic equipment line from its former distributor to DENT-X, the
dental products division of AFP Imaging. Yoshida's panoramic dental
x-ray equipment has been sold in the USA and Latin America for over
twenty years and is considered a mid-priced industry standard. The
estimated overall annual sales in the USA for panoramic units is about
4,000 units. The Company's goal is to achieve an 8% to 10% market
share per year which could add several million dollars in revenue to
AFP. In addition, this new series of radiographic imaging products
will enhance the profession's perception of DENT-X as a full line
dental imaging company. Panoramic x-ray machines can record images
either on x-ray film or digitally which is complimentary to the
current DENT-X line of high-tech dental imaging systems. Yoshida's
strong reputation for manufacturing a high quality product, combined
with the DENT-X brand and dental market distribution capability is
expected to dramatically increase the market share of the DENT-X/
Yoshida business in the future.
The Company reported its third quarter and nine months results
for the period ended March 31, 1999. Third quarter revenues for Fiscal
1999 were $6,700,297 as compared to the third quarter revenues for
Fiscal 1998 of $8,548,583. Revenues for the nine months just ended
were $21,829,122 compared to $26,313,956 for the same period last
year. Even though sales were down $1.1 million from the immediate past
quarter, the Company's loss before Special Charges was $156,000 less
than the previous quarter, a clear indication of the effectiveness of
the Expense Reduction Plan implemented during the third quarter fiscal
1999.
The Company recorded, in the third quarter fiscal 1999, a Special
Charge of $750,000 to reduce the goodwill amount associated with the
acquisition of a business, due to the recognized impairment in this
product line. The current quarter had a loss of $484,830 or ($.13) per
share and a loss for the nine months of $1,274,939 or ($.21) per
share, exclusive of the Special Charge. This is compared to a loss of
$58,113 for the third quarter fiscal 1998 and a profit of $668,668 for
the nine months fiscal 1998, both exclusive of Special Charges
recorded in Fiscal 1998. The net loss for the quarter and nine months
fiscal 1999 were $1,213,523 or ($.13) per share and $2,027,622 or
($.21) per share, respectively.
The remarks contained in this press release and presented
elsewhere by management from time to time contain forward-looking
statements which involve risks and uncertainties. The Company's actual
results may differ significantly from the results discussed in this
press release or in other forward-looking statements presented by
management. Among the factors that could cause actual results to
differ materially include failure of revenue on new products to
develop as estimated, regulatory delays, loss of existing customers,
general downward trends in the Company's industry and other risk
factors detailed from time to time in the Company's reports filed with
the SEC.
AFP Imaging is a medical equipment supplier whose imaging
products are widely applied in dental and medical diagnostics. The
Company's digital imaging technology is providing the gateway for
future growth. AFP's products are used by medical, dental and
industrial professional. Dental products include x-ray units, digital
x-ray sensors, film processors, chemistry, video camera and panoramic
units. The Company's products are sold worldwide under various brand
names which include AFP, DENT-X and SENS-A-RAY 2000(TM).
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Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
Net Sales $ 6,700,297 $ 8,548,583 $ 21,829,122 $ 26,313,956
Income (Loss)
Before
Special
Charges ($ 484,830) ($ 58,113) ($ 1,274,939) $ 668,668
Special
Charges ($ 750,000) ($ 1,700,000) ($ 750,000) ($ 3,320,983)
Loss Before
Taxes ($ 1,234,830) ($ 1,758,113) ($ 2,024,939) ($ 2,652,315)
Provision
(Benefit) for
Taxes ($ 21,317) -- $ 2,683 $ 50,480
Net Loss ($ 1,213,513) ($ 1,758,113) ($ 2,027,622) ($ 2,702,795)
Weighted
average
outstanding
of common
stock 9,271,054 9,767,949 9,436,686 8,594,533
Net loss per
Common Share
Basic ($ .13) ($ .18) ($ .21) ($ .31)
Diluted ($ .13) ($ .18) ($ .21) ($ .31)
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CONTACT:
AFP Imaging Corporation
David Vozick, 914/592-6100 |
