CANTON, Mass., Jan. 13 /PRNewswire-FirstCall/-- Avitar, Inc. (Amex: - ) today announced financial results for the three and 12 months ended September 30, 2003.
For the year ended September 30, 2003, Avitar reported revenues of $4.6 million from continuing operations compared to $8.3 million from continuing operations for the year ended September 30, 2002 (which included approximately $2 million of purchases by a major customer to fulfill the initial terms of its agreement). Operating loss from continuing operations for amounted to $3.2 million versus $4.0. The net loss was $6.4 million, or $0.12 a share, for the year ended September 30, 2003 compared with net loss of $4.1 million, or $0.11 a share for the year ended September 30, 2002. The net loss for the twelve months ended September 30, 2003 included a loss from the disposal of discontinued operations of $895,000, interest and financing costs of $1,306,000 from the discount and deferred financing costs associated with the conversion of convertible long-term notes and a charge of $650,000 for a change in accounting principle related to goodwill.
Revenues from continuing operations for the fourth quarter of fiscal 2003 were $1.1 million compared to $1.6 million from continuing operations in the prior year's fourth fiscal quarter ended September 30, 2002. Operating loss from continuing operations was $.4 million versus $1.4 million. The net loss was $2.7 million, or $0.05 per share, for the quarter ended September 30, 2003 compared with net loss of $1.4 million, or $0.04 per share, for the quarter ended September 30, 2002. The net loss for the quarter ended September 30, 2003 included the loss from discontinued operations of $895,000 and interest and financing costs of $1,306,000 from the discount and deferred financing costs associated with the conversion of convertible long-term notes.
Peter P. Phildius, Chairman and CEO commented, "Our revenues during the year and quarter ended September 30, 2003, reflect the impact of the slower rate of new hiring in the U.S. economy. Additionally, in order to conserve capital until new sources of adequate capital are obtained, we have significantly reduced our SG&A expenses. The positive result of this has been to reduce our operating loss of on-going operations during the quarter to $400,000, a decrease of $1 million compared to the same quarter of the previous year. As we secure the necessary growth capital, we will invest in sales and marketing resources which will enable us to grow from a much lower fixed cost base."
ABOUT AVITAR
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. 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
Avitar, Inc.
Summary of Financial Results
(in thousands, except per share amounts)
Quarter Ended September 30, Year Ended September 30,
2003 2002 2003 2002
Sales $1,090 $1,565 $4,598 $8,292
Operating Expenses:
Cost of Sales 752 895 3,433 4,728
Selling, General
and Administrative 651 1,473 3,603 5,738
Research and Development 101 488 765 1,489
Amortization of Goodwill - 78 - 310
Total Operating Expenses 1,504 2,934 7,801 12,265
Operating Loss (414) (1,369) (3,203) (3,973)
Other Income (Expenses)(1,344) 74 (1,731) 35
Loss from Continuing Operations Before
Discontinued Operations and Cumulative
Effect of a Change in
Accounting Principle (1,758) (1,295) (4,934) (3,938)
Discontinued Operations:
Income (Loss) from
Operations of USDTL (1) (75) 17 (208)
Loss from the Disposal
of USDTL (895) (895)
Loss from Discontinued
Operations (896) (75) (878) (208)
Loss Before Cumulative
Effect of a Change
In Accounting Principle(2,654) (1,370) (5,812) (4,146)
Cumulative Effect
of a Change
in Accounting
Principle - - (650) -
Net Loss $(2,654) $(1,370) $(6,462) $(4,146)
Basic and Diluted
Loss Per Share
From Continuing
Operations Before
Discontinued Operations
and Cumulative Effect
of a Change in
Accounting Principle $(0.04) $(0.04) $(0.10) $ (0.10)
Basic and Diluted
Net Loss Per Share $(0.05) $(0.04) $(0.12) $ (0.11)
Weighted Average Number
of Shares and
Common Equivalent
Shares Outstanding 82,841,168 44,662,830 68,452,155 42,675,660
Selected Balance
Sheet Items: 9/30/03
Cash $1,130
Total Assets 3,668
Total Liabilities 5,249
Shareholders' Equity 1,581
