CANTON, Mass., Dec. 29 /PRNewswire-FirstCall/ -- Avitar, Inc. (Amex: - ) today announced financial results for the three and 12 months ended September 30, 2004.
For the year ended September 30, 2004, Avitar reported revenues of $4.0 million from continuing operations compared to $4.6 million from continuing operations for the year ended September 30, 2003. Operating loss from continuing operations amounted to $2.6 million versus $3.2. The net loss was $3.0 million, or $0.05 a share, for the year ended September 30, 2004 compared with net loss of $6.5 million, or $0.12 a share, for the year ended September 30, 2003. The net loss for the twelve months ended September 30, 2004 reflected a reduction in the operating loss of $600,000 along with decreases totaling $2,851,000 associated with the prior year's loss from the disposal of discontinued operations, interest and financing costs from the discount and deferred financing costs related to the conversion of convertible long-term notes and a charge for a change in accounting principle related to goodwill.
Revenues from continuing operations for the fourth quarter of fiscal 2004 were $1.2 million compared to $1.1 million from continuing operations in the prior year's fourth fiscal quarter ended September 30, 2003. Operating loss from continuing operations was $.8 million versus $.4 million. The net loss was $.9 million, or $0.01 per share, for the quarter ended September 30, 2004 compared with net loss of $2.7 million, or $0.05 per share, for the quarter ended September 30, 2003. The net loss for the quarter ended September 30, 2004 reflected decreases from the quarter ended September 30, 2003 of $2,201,000 associated with the loss from the disposal of discontinued operations and interest and financing costs from the discount and deferred financing costs related to the conversion of convertible long-term notes; offset in part by an increase on the operating loss of $400,000 that reflects the Company's enhanced sales and marketing program that began during the last half of Fiscal 2004.
Peter P. Phildius, Chairman and CEO commented, "Our fourth quarter financial results reflect the initial impact of the key organizational additions we have made and the market programs which have been initiated. Coupled with the roll-out of the patented ORALscreen® Drugometer(TM) test during our second fiscal quarter, our strategy is to provide a business solution which will enable our customers to attack the financial burden of drug abuse in the workplace. Our value proposition is beginning to resonate in the marketplace and as our capital raising efforts continue, we will be positioned to expand our organization to exploit this opportunity."
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®, the world's first non-invasive, rapid, onsite oral fluid test for drugs-of-abuse. Additionally, Avitar manufactures and markets HYDRASORB®, 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.
Summary of Financial Results
(in thousands, except per share amounts)
Quarter Ended September 30, Year Ended September 30,
2004 2003 2004 2003
Sales $1,244 $1,090 $4,049 $4,598
Cost of Sales 865 752 2,713 3,433
Selling, General and
Administrative 1,041 651 3,401 3,603
Research and Development 179 101 565 765
Expenses 2,085 1,504 6,679 7,801
Operating Loss (841) (414) (2,630) (3,203)
Other Income(Expenses) (11) (1,344) (326) (1,731)
Loss from Continuing Operations
Before Discontinued Operations
and Cumulative Effect
of a Change in Accounting
Principle (852) (1,758) (2,956) (4,934)
from Operations of USDTL - (1) 4 17
Loss from the Disposal
of USDTL - (895) (17) (895)
Loss from Discontinued
Operations - (896) (13) (878)
Loss Before Cumulative
Effect of a Change (852) (2,654) (2,969) (5,812)
in Accounting Principle
of a Change in Accounting
Principle - - - (650)
Net Loss $(852) $(2,654) $(2,969) $(6,462)
Basic and Diluted Loss Per Share
From Continuing Operations Before
Cumulative Effect of a Change
Principle $(0.01) $(0.04) $(0.05) $(0.10)
Basic and Diluted Net Loss
Per Share $(0.01) $(0.05) $(0.05) $(0.12)
Weighted Average Number of Shares
and Common Equivalent Shares
Outstanding 119,284,704 82,841,168 106,658,715 68,452,155
Selected Balance Sheet Items-9/30/04:
Total Assets 2,348
Total Liabilities 2,057
Preferred Stock 958
Shareholders' Equity (667)