Press Releases Detail:
Avitar Reports Third Quarter Fiscal 2002 Financial Results
Product Launch in Quarter Sets Stage for Future Growth
August 14, 2002
CANTON, Mass., Aug. 14 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) today announced financial results for the three and nine months ended June 30, 2002. Revenues for the third quarter of fiscal 2002 were $2.2 million, an increase of 19% over revenues of $1.9 million in the prior year's third fiscal quarter ended June 30, 2001. Operating loss narrowed to $1.1 million in the June quarter, from $1.3 million in the third quarter of fiscal 2001. Net loss was $1.2 million, or $0.03 per share, compared with net loss of $1.3 million, or $0.04 per share.
For the nine months ended June 30, 2002, Avitar reported revenues of $7.7 million, up approximately 81% from $4.3 million in the same period the previous year. Net loss was $2.8 million, or $0.07 a share, compared with net loss of $4.5 million, or $0.22 a share. Net loss per share for the nine months ended June 30, 2001 included an accounting charge of $0.07 a share for warrant valuations and original discounts related to preferred stock issuances.
"We are encouraged by the reception our ORALscreen(TM) OSR product has received in the marketplace, commented Peter P. Phildius, Avitar's Chairman and Chief Executive Officer. "The OSR is an instrument that automates the analysis of our ORALscreen rapid drugs-of-abuse test and has the capability of storing and transmitting test results to remote locations. Launched at the very end of the June quarter, we expect this product to stimulate sales in the coming months."
Avitar noted that the recent U.S. Supreme Court decision, which permits drugs-of-abuse testing under certain circumstances in high schools, presents a compelling opportunity for the Company. "We are developing our marketing plan to reach school districts throughout the country," Mr. Phildius continued. "There are approximately 15,000 school districts across the United States, and we can bring testing with dignity to their students. We are also aggressively seeking to raise funds in order to support Avitar's continued growth."
Avitar, Inc. develops, manufactures and markets innovative and proprietary products in the oral fluid diagnostic market, disease and clinical testing market, and customized polyurethane applications used in the wound dressing industry. Oral fluid diagnostics includes the estimated $1.5 billion drugs-of- abuse testing market, 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. Additionally, Avitar manufactures and markets HYDRASORB(TM), an absorbent topical dressing for moderate to heavy exudating wounds. In the estimated $25 billion in vitro diagnostics market, Avitar is developing diagnostic strategies for disease and clinical testing. Some examples include 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.
(Tables to follow)
Summary of Financial Results
(in thousands, except per share amounts)
Quarter Ended June 30, Nine Months Ended June 30,
2002 2001 2002 2001
Sales $2,233 $1,869 $7,707 $4,268
Cost of Sales 1,274 1,073 4,421 2,761
and Administrative 1,692 1,580 4,800 4,394
Research and Development 334 457 1,001 1,402
Amortization of Goodwill 77 77 232 221
Expenses 3,377 3,187 10,454 8,778
Operating Loss (1,144) (1,318) (2,747) (4,510)
Other Income(Expenses) (9) (11) (29) (37)
Net Loss $(1,153) $(1,329) $(2,776) $(4,547)
Basic and Diluted Loss Per Share:
Before accounting charges for warrant
valuations and original discounts related
to preferred stock
issuances $(0.03) $(0.04) $(0.07) $ (0.15)
Accounting charges for warrant valuations
and original discounts related to preferred
stock issuances - - - (0.07)
Total Basic and
Per Share $(0.03) $(0.04) $(0.07) $ (0.22)
Weighted Average Number of Shares
and Common Equivalent Shares
Outstanding 44,605,933 33,459,667 42,006,575 31,768,656
Selected Balance Sheet Items:
Cash 250 245
Total Assets 5,059 5,055
Total Liabilities 3,111 2,981
Shareholders' Equity 1,947 2,073
Lippert/Heilshorn and Associates