CANTON, Mass., Feb. 14 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) today reported financial results for its first fiscal quarter ended December 31, 2002.
Revenues for the first quarter of fiscal 2003 were $1.9 million compared to revenues of $3.2 million for the first quarter of fiscal 2002 (which included approximately $1.6 million of inventory build-up by a channel partner to fulfill the initial terms of its agreement with Avitar). Revenues reported for quarter ended December 31, 2002 were similar to the $1.9 million reported for the immediately prior quarter ended September 30 2002. As indicated in the 10-QSB Report filed today by the Company for the quarter ended December 31, 2002, the Company intends to continue its active efforts to expand revenues because it believes that a significant opportunity exists for its ORALscreen products in the drugs-of-abuse testing market. The first quarter 2003 net loss of $1.0 million, or $0.02 per share, was greater than the loss of $.4 million, or $0.01 per share, for the first quarter 2002, but less than the loss of $1.4 million, or $0.04 per share, for the fourth quarter of fiscal 2002.
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 financing risks and 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.
Avitar, Inc.
Summary of Financial Results
(in thousands, except per share amounts)
Quarter Ended December 31,
2002 2001
Sales $1,874 $3,242
Operating Expenses:
Cost of Sales 1,190 1,638
Selling, General and Administrative 1,344 1,509
Research and Development 273 392
Amortization of Goodwill - 77
Total Operating Expenses 2,807 3,616
Operating Loss (933) (374)
Other Income (Expenses) (75) (4)
Net Loss $(1,008) $(378)
Basic and Diluted Loss Per Share: $(0.01) $(0.01)
Weighted Average Number of Shares and
Common Equivalent Shares Outstanding 49,959,035 38,769,464
Selected Balance Sheet Items:
12/31/02 12/31/01
Cash 215 588
Total Assets 4,729 5,274
Total Liabilities 3,624 2,884
Shareholders' Equity (139) 2,390
Jay Leatherman
Chief Financial Officer
Avitar Inc.
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