CANTON, Mass., Feb. 17 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) today announced financial results for the three months ended December 31, 2003.
For the quarter ended December 31, 2003, Avitar reported revenues of $820 thousand from continuing operations compared to $1.5 million from continuing operations for the quarter ended December 31, 2002. Operating loss from continuing operations amounted to $630 thousand versus $999 thousand. The net loss was $643 thousand, or $0.01 per share, for the quarter ended December 31, 2003 compared with net loss of $1.0 million, or $0.02 per share for the quarter ended December 31, 2002. The net loss for the three months ended December 31, 2003 included a loss from discontinued operations of $13 thousand, compared to a loss of $10 thousand for the same period of the prior year.
Peter P. Phildius, Chairman and CEO commented, "Our First Quarter results continue to reflect the effect of our resource conservation efforts pending the improvement in the capital markets. Our confidence in our ability to raise the necessary capital to re-ignite the growth potential of our rapid, oral fluid, drugs-of-abuse test, ORALscreen(TM), is reflected in our recent announcement of the hiring of a new Vice President of Marketing.
Feedback from our ORALscreen users also continues to reinforce our belief that we have the right product strategy to provide significant benefits to the drugs-of-abuse testing market. Funding is, therefore, our priority and the initial step in that process is anticipated to take place following our Special Stockholders Meeting scheduled for February 27, 2004. As has been mentioned previously, with the economy showing signs of improvement and our cost reduction in place, the availability of capital will allow us to invest in sales and marketing resources from a much-reduced fixed cost base."
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.
Summary of Financial Results
(in thousands, except per share amounts)
Quarter Ended December 31,
Sales $820 $1,498
Cost of Sales 534 992
Selling, General and
Administrative 747 1,157
Research and Development 108 273
Total Operating Expenses 1,389 2,422
Operating Loss (569) (924)
Other Income(Expenses) (61) (75)
Loss from Continuing
Discontinued Operations (630) (999)
Income (Loss) from
Operations of USDTL 4 (10)
Loss from the Disposal of
USDTL (17) -
Loss from Discontinued
Operations (13) (10)
Net Loss $(643) $(1,009)
Basic and Diluted Loss Per
From Continuing Operations
Discontinued Operations $(0.01) $(0.02)
Basic and Diluted Net Loss
Per Share $(0.01) $(0.02)
Weighted Average Number of
Common Equivalent Shares
Outstanding 96,093,701 49,959,035
Selected Balance Sheet Items:
Total Assets 2,228
Total Liabilities 3,798
Shareholders' Equity (1,570)