Press Releases Detail:
Avitar Reports First Quarter 2002 Revenues of $3.2 Million Up 177% Over First Quarter 2001
February 14, 2002
CANTON, Mass., Feb. 14 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) today reported financial results for its first fiscal quarter ended December 31, 2001.
Revenues for the first quarter of fiscal 2002 increased 177% to $3.2 million, compared with revenues of $1.2 million for the first quarter of fiscal 2001. The first quarter 2002 net loss of $378,000, or $0.01 per share, narrowed by approximately 77% from the loss of $1.6 million, or $0.09 per share, for the comparable period last year, which included $0.03 per share attributable to accounting charges for warrant valuations and original discounts related to preferred stock issuances.
``We are extremely pleased to report the highest quarterly revenue in the history of Avitar as the company surpassed the $3 million milestone for the first time,'' said Peter P. Phildius, Avitar's Chairman and Chief Executive Officer. ``We attribute this dramatic revenue growth to the increased recognition in the marketplace of our flagship ORALscreen(TM) drugs-of-abuse product line, and most importantly, to the positive impact of our partnership with ChoicePoint (NYSE: - ) in fulfilling the initial terms of the previously announced agreement. However, we expect the second quarter of fiscal 2002 to be the most challenging of the year owing to the ordering patterns of our partners.''
Phildius added, ``During the remainder of fiscal 2002, we plan to introduce a number of new products while improving current ones as we strengthen the relationships with our partners in the $1.5 billion Substance Abuse market. We also anticipate continued progress in fiscal 2002 towards our intended expansion into the $25 billion In-Vitro Diagnostic business, and look forward to seeing a positive impact from these efforts in future years.''
Avitar, Inc. (Amex: - ) is a diagnostics company that develops, manufactures and markets innovative and proprietary medical devices in two major areas: the oral fluid drugs-of-abuse market and the disease and clinical testing market. Oral fluid diagnostics includes the drugs-of-abuse testing market estimated to be worth $1.5 billion, which encompasses the corporate workplace and criminal justice markets. Avitar's products include ORALscreen(TM), the world's first non-invasive, rapid, onsite oral fluid test for drugs-of-abuse, and HAIRscreen(TM), a laboratory-based hair test for detecting long-term drug abuse. In the $25 billion disease and clinical testing market, Avitar is developing diagnostic products for Lyme disease, influenza, diabetes, and pregnancy. For more information, see Avitar's website at avitarinc.com.
Safe Harbor Statement. This release contains forward looking statements that are subject to risks and uncertainties including the development and marketing of new applications and other risks that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. In view of such risks and uncertainties, the Company's actual results could differ materially from those anticipated in such forward looking statements.
Summary of Financial Results
(in thousands, except per share amounts)
Quarter Ended December 31,
Sales $3,242 $1,169
Cost of Sales 1,638 884
Selling, General and Administrative 1,509 1,380
Research and Development 392 435
Amortization of Goodwill 77 70
Total Operating Expenses 3,616 2,769
Operating Loss (374) (1,600)
Other Income (Expenses) (4) (10)
Net Loss $(378) $(1,610)
Basic and Diluted Loss Per Share:
Before accounting charges for warrant
valuations and original discounts related
to preferred stock issuances $(0.01) $(0.06)
Accounting charges for warrant valuations
and original discounts related to preferred
stock issuances -- (0.03)
Total Basic and Diluted Loss Per Share $(0.01) $(0.09)
Weighted Average Number of Shares and
Common Equivalent Shares Outstanding 38,769,464 30,934,411
Selected Balance Sheet Items:
Cash 588 62
Total Assets 5,274 4,197
Total Liabilities 2,884 2,286
Shareholders' Equity 2,390 1,911