CANTON, Mass., May 17 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) today announced financial results for the three months ended March 31, 2004.
For the quarter ended March 31, 2004, Avitar reported revenues of $1.0 million from continuing operations compared to $1.0 million from continuing operations for the quarter ended March 31, 2003. Operating loss from continuing operations amounted to $603 thousand versus $1.1 million. The net loss was $603 thousand, or $0.02 per share, for the quarter ended March 31, 2004 compared with net loss of $1.7 million, or $0.03 per share for the quarter ended March 31, 2003. The net loss for the three months ended March 31, 2003 included income from discontinued operations of $3 thousand and a charge of $650 thousand for a change in accounting principle related to goodwill.
Revenues from continuing operations for the first half of fiscal 2004 were $1.8 million compared to $2.5 million from continuing operations for the six months ended March 31, 2003. Operating loss from continuing operations was $1.2 million versus $2.1 million. The net loss was $1.2 million, or $0.02 per share, for the six months ended March 31, 2004 compared with net loss of $2.7 million, or $0.05 per share, for the six months ended March 31, 2003. The net loss for the six months ended March 31, 2004 included a loss from discontinued operations of $13 thousand and no charges related to the cumulative effect of a change in accounting principle compared to a loss from discontinued operations of $7 thousand and a charge of $650 thousand for the change in accounting principle related to goodwill during the six months ended March 31, 2003.
Peter P. Phildius, Chairman and CEO commented, "While continuing our expense management efforts through the first half of Fiscal 2004, we began the process of enhancing our marketing program. The growth capital that we feel confident about raising during the last half of Fiscal 2004 will permit us to invest in the critical resources necessary to expand our sales and marketing capabilities. These efforts, which are underway, are occurring at a time when both the economy and the interest in oral-based drug testing continue to strengthen. Recently, for example, the United States government agency SAMSHA, recommended guidelines that would allow oral-based drug testing of federal employees."
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 March 31, Six Months Ended March 31,
2004 2003 2004 2003
Sales $1,017 $1,015 $1,837 $2,513
Cost of Sales 684 729 1,218 1,721
Selling, General and
Administrative 749 1,007 1,495 2,164
Research and Development 119 237 228 510
Expenses 1,552 1,973 2,941 4,395
Operating Loss (535) (958) (1,104) (1,882)
Other Income (Expenses) (68) (129) (132) (204)
Loss From Continuing
Effect of a Change in
Accounting Principle (603) (1,087) (1,236) (2,086)
Income (Loss) from
Operations of USDTL - 3 4 (7)
Loss from the
Disposal of USDTL - - (17) -
Income (Loss) from
Discontinued Operations - 3 (13) (7)
Loss Before Cumulative
Effect of a Change
in Accounting Principle (603) (1,084) (1,249) (2,093)
Cumulative Effect of a
Change in Accounting
Principal for Goodwill - (650) - (650)
Net Loss $(603) $(1,734) $(1,249) $(2,743)
Basic and Diluted Loss
Per Share from
of a Change in
Accounting Principle $ (0.02) $(0.02) $(0.02) $(0.04)
Basic and Diluted
Loss Per Share $ (0.02) $(0.03) $(0.02) $(0.05)
Number of Shares and
Outstanding 102,438,882 67,938,589 99,248,955 57,721,739
Selected Balance Sheet Items: 3/31/04
Total Assets 2,121
Total Liabilities 3,332
Shareholders' Deficit (1,211)