CANTON, Mass., Dec. 30 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) today announced financial results for the three and 12 months ended September 30, 2002.
For the 12 months ended September 30, 2002, Avitar reported revenues of $9.6 million, up approximately 47% from $6.5 million in the same period the previous year. The increase in revenues for the 12-month period occurred primarily as the result of increased sales of the Company's ORALscreen(TM) products. Operating loss narrowed to $4.2 million in the 12-month period, from $6.0 million in the comparable period. Net loss was $4.1 million, or $0.11 a share, compared with net loss of $6.0 million, or $0.26 a share. Net loss per share for the twelve months ended September 30, 2001 included an accounting charge of $0.08 a share for warrant valuations and original discounts related to preferred stock issuances.
Revenues for the fourth quarter of fiscal 2002 were $1.9 million, a decrease of 17% from revenues of $2.3 million in the prior year's fourth fiscal quarter ended September 30, 2001, which included an inventory buildup by a major channel partner. Operating loss narrowed to $1.4 million in the September quarter, from $1.5 million in the fourth quarter of fiscal 2001. Net loss was $1.4 million, or $0.04 per share, compared with net loss of $1.5 million, or $0.04 per share.
"This past fiscal year we made progress on several fronts, most notably marketing and product development," commented Peter P. Phildius, Avitar's Chairman and Chief Executive Officer. "Our attention is now focused on optimizing distribution channel alliances and increasing marketing capabilities. Additionally, we plan to continue developing and enhancing our drugs-of-abuse product offering."
Mr. Phildius continued, "Oral fluid testing is changing the dynamics of the whole drugs-of-abuse testing industry. This new technology has demonstrated that it eliminates extraneous costs, provides immediate results, and prevents potential adulterations. As a first-mover in the oral fluid testing space, we are well-positioned to capitalize on the expected future growth in this area."
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.
Summary of Financial Results
(in thousands, except per share amounts)
Quarter Ended Year Ended
September 30, September 30,
2002 2001 2002 2001
Sales $1,910 $2,274 $9,617 $6,542
Cost of Sales 1,134 1,502 5,555 4,263
Selling, General and
Administrative 1,660 1,670 6,460 6,064
Research and Development 488 557 1,489 1,959
Amortization of Goodwill 78 77 310 298
Total Operating Expenses 3,360 3,806 13,814 12,584
Operating Loss (1,450) (1,532) (4,197) (6,042)
Other Income(Expenses) 80 (10) 51 (47)
Net Loss $(1,370) $(1,542) $(4,146) $(6,089)
Basic and Diluted Loss Per Share:
Before accounting charges
for warrant valuations
and original discounts
related to preferred
stock issuances $(0.04) $(0.04) $(0.11) $ (0.18)
Accounting charges for warrant
valuations and original
discounts related to
preferred stock issuances - - - (0.08)
Total Basic and Diluted
Loss Per Share $(0.04) $(0.04) $(0.11) $ (0.26)
Weighted Average Number
of Shares and
Common Equivalent Shares
Outstanding 44,662,830 35,125,300 42,675,660 32,553,839
Selected Balance Sheet Items:
Cash 503 245
Total Assets 5,142 5,055
Total Liabilities 5,012 2,981
Shareholders' Equity 131 2,073
Chief Financial Officer
Lippert/Heilshorn and Associates