ABMC Reports First Quarter 2013 Results

ABMC Reports First Quarter 2013 Results

KINDERHOOK, N.Y.--(BUSINESS WIRE)-- American Bio Medica Corporation (ABMC.PK) today announced financial results for the three months ended March 31, 2013.

Net sales for the first quarter of 2013 were $2,125,000, a decrease of $171,000, or 7.4%, when compared to net sales of $2,296,000 for the first quarter of 2012. Operating loss for the first quarter of 2013 was $362,000, compared to an operating loss of $169,000 in the first quarter of 2012. Net loss for the first quarter of 2013 was $424,000, or $0.02 per share, compared to a net loss of $206,000, or $0.01 per share reported in the first quarter of 2012.


ABMC Chief Executive Officer Stan Cipkowski stated, "Achieving sales growth in the drug testing market remained challenging in the first quarter of 2013, as drug testing budgets in the private and public sectors continue to be affected by uncertain economic conditions and high unemployment rates."

Cipkowski continued, "General and administrative expense continues to be impacted by investments in the required regulatory costs associated with our efforts to get FDA 510(k) marketing clearance on oral fluid and other new products, as well as ongoing litigation. 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 three   For the three
months ended months ended
March 31, 2013 March 31, 2012
 
Net sales $ 2,125,000 $ 2,296,000
Cost of goods sold 1,339,000     1,334,000  
Gross profit 786,000 962,000
 
Operating expenses:
Research and development 63,000 52,000
Selling and marketing 475,000 521,000
General and administrative 610,000     558,000  
Total operating expenses 1,148,000 1,131,000
 
Operating loss (362,000 ) (169,000 )
 
Other expense (61,000 )   (42,000 )
 
Net loss before tax (211,000 )
(423,000 )
Income tax expense / (benefit) (1,000 )   5,000  
 
Net loss $ (424,000 ) $ (206,000 )
 
Basic & diluted loss per common share $ (0.02 ) $ (0.01 )
 
Basic & diluted weighted average shares outstanding 22,166,336 21,744,768
 
 
American Bio Medica Corporation
Condensed Balance Sheets
 
  March 31, December 31,
2013

(unaudited)

2012
ASSETS
Current Assets
Cash and cash equivalents $ 1,000 $ 89,000
Accounts receivable, net of allowance for doubtful accounts of $59,000 at March 31, 2013 and $60,000 at December 31, 2012

907,000

810,000

Inventory, net of allowance for slow moving and obsolete inventory of $304,000 at March 31, 2013 and $261,000 at December 31, 2012

2,478,000

2,571,000

Prepaid expenses and other current assets 159,000     50,000  
Total current assets 3,545,000 3,520,000
Property, plant and equipment, net 1,175,000 1,192,000
Debt issuance costs, net 401,000 29,000
Patents 23,000 24,000
Other assets 14,000     14,000  
Total assets $ 5,158,000   $   4,779,000  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable 698,000 $ 1,016,000
Accrued expenses and other current liabilities 191,000 174,000
Wages payable 214,000 231,000
Line of credit 1,176,000 321,000
Current portion of long-term debt 1,348,000     1,404,000  
Total current liabilities 3,627,000 3,146,000
Other liabilities 145,000 145,000
Related party note 124,000     124,000  
Total liabilities 3,896,000 3,415,000
 
COMMITMENTS AND CONTINGENCIES
Stockholders' Equity:
Common stock 222,000 218,000
Additional paid-in capital 19,809,000 19,490,000
Accumulated deficit (18,769,000 )   (18,344,000 )
Total stockholders' equity 1,262,000     1,364,000  
Total liabilities and stockholders' equity $ 5,158,000   $ $ 4,779,000  



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

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:

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