ABMC Reports Second Quarter 2013 Results

Before you go, we thought you'd like these...
Before you go close icon

ABMC Reports Second Quarter 2013 Results

KINDERHOOK, N.Y.--(BUSINESS WIRE)-- American Bio Medica Corporation (OTCQB:ABMC) today announced financial results for the three and six months ended June 30, 2013.

Net sales for the second quarter of 2013 were $2,380,000, compared to $2,462,000 in the second quarter of 2012, representing a decrease of $82,000, or 3.3%. For the six months ended June 30, 2013, net sales were $4,505,000 compared to $4,758,000 for the six months ended June 30, 2012, representing a decrease of $253,000, or 5.3%.


The Company reported an operating loss of $(211,000) in the second quarter of 2013, compared to an operating loss of $(30,000) in the second quarter of 2012. Net loss for the second quarter of 2013 was $(294,000), or $(0.01) per share, compared to a net loss of $(77,000), or $(0.00) per share in the second quarter of 2012. Operating loss for the first six months of 2013 was $(573,000), compared to an operating loss of $(199,000) in the first six months of 2012. Net loss for the first half of 2013 was $(718,000), or $(0.03) per share, compared to a net loss of $(283,000), or $(0.01) per share in the first half of 2012.

ABMC Chief Executive Officer Stan Cipkowski stated, "Sales growth in our core markets continues to be elusive, not only for ABMC but for our entire industry. This continues to be for the same reasons that have plagued us for the past several years, high unemployment and the uncertain worldwide economic outlook. With the introduction of two new products, pending FDA clearance, we expect to see sales and earnings growth in new and expanded markets in the near future."

Cipkowski continued, "Gross margins have returned to appropriate historical levels, and though we have continued to cut operating expenses, costs related to regulatory clearance for the new products as well as costs associated with additional funding caused increased G&A expenses. Diversification continues to be our primary objective in 2013."

For more information on ABMC or its drug testing products, please visit www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation develops, manufactures and markets accurate, cost-effective immunoassay test kits, primarily 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 test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ test 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 year ended December 31, 2012, 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
Condensed Statements of Operations
(unaudited)
     
For the threeFor the threeFor the sixFor the six
months endedmonths endedmonths endedmonths ended
 June 30, 2013  June 30, 2012  June 30, 2013  June 30, 2012
 
Net sales$2,380,000$2,462,000$4,505,000$4,758,000
Cost of goods sold 1,411,000   1,420,000   2,750,000   2,753,000 
Gross profit 969,000   1,042,000   1,755,000   2,005,000 
 
Operating expenses:
Research and development115,00055,000178,000108,000
Selling and marketing491,000529,000966,0001,050,000
General and administrative 574,000   488,000   1,184,000   1,046,000 
Total operating expenses 1,180,000   1,072,000   2,328,000   2,204,000 
 
Operating loss (211,000)  (30,000)  (573,000)  (199,000)
 
Other expense (82,000)  (44,000)  (143,000)  (86,000)
 
Net loss before tax(293,000)(74,000)(716,000)(285,000)
 
Income tax (expense) / benefit (1,000)  (3,000)  (2,000)  2,000 
 
Net loss$(294,000) $(77,000) $(718,000) $(283,000)
 
Basic & diluted (loss) / income per common share

$

(0.01

)

 

$

(0.00

)

 

$

(0.03

)

 

$

(0.01

)

 
Weighted average shares outstanding - basic and diluted 

22,166,336

   

21,744,768

   

22,109,560

   

21,744,768

 
 

 
American Bio Medica Corporation
Condensed Balance Sheets
  
June 30,December 31,
 

2013
(unaudited)

  2012 
ASSETS
Current Assets
Cash and cash equivalents$55,000$89,000
Accounts receivable, net of allowance for doubtful accounts of $59,000 at June 30, 2013 and $60,000 at December 31, 2012

1,054,000

810,000

Inventory, net of allowance for slow moving and obsolete inventory of $358,000 at June 30, 2013 and $261,000 at December 31, 2012

2,481,000

2,571,000

Prepaid expenses and other current assets 103,000   50,000 
Total current assets3,693,0003,520,000
Property, plant and equipment, net1,190,0001,192,000
Debt issuance costs, net346,00029,000
Patents23,00024,000
Other assets 14,000   14,000 
Total assets$5,266,000  $4,779,000 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable648,000$1,016,000
Accrued expenses and other current liabilities215,000174,000
Wages payable239,000231,000
Line of credit1,583,000321,000
Current portion of long-term debt 1,318,000   1,404,000 
Total current liabilities4,003,0003,146,000
Other liabilities146,000145,000
Related party note 124,000   124,000 
Total liabilities4,273,0003,415,000
 
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity:
Common stock222,000218,000
Additional paid-in capital19,833,00019,490,000
Accumulated deficit (19,062,000)  (18,344,000)
Total stockholders' equity 993,000   1,364,000 
Total liabilities and stockholders' equity$5,266,000  $4,779,000 

anImage


American Bio Medica Corporation
Stan Cipkowski, 800-227-1243, Ext 106
Chief Executive Officer

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:

The article ABMC Reports Second Quarter 2013 Results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners