Message #5 From:
NewsBot Date: August 16, 2005 11:45:00 AM
ADLI News American Medical Technologies Reports Second Quarter 2005 Results
CORPUS CHRISTI, Texas--(BUSINESS WIRE)--Aug. 16, 2005--American Medical Technologies, Inc. (OTCBB:ADLI) reported its financial results for the second quarter and first six months of 2005 ended June 30, 2005. Those results, compared with results for the second quarter and first six months of 2004, are as follows:
-- Second-quarter total revenues and royalties declined 3.5 percent from a year ago, but were up 13.6 percent excluding 2004 revenues from a discontinued trial product and from a former German subsidiary.
-- Net loss was $0.03 per share diluted for the quarter, improved from a $0.04 per share loss in the second quarter last year.
-- A 19 percent increase in first-half total revenues and royalties on strong sales of the Company's air abrasion and Hydrobrasion(TM) products.
-- A net loss of $0.07 per share diluted for the first half. Prior-year income of $0.08 per share diluted included an $0.18 per share non-recurring gain on the sale of securities.
Operating Highlights:
-- Sales of the Company's principal products, its patented air abrasion and Hydrobrasion(TM) systems for dental and industrial applications, increased 54 percent, or $102,700, for the quarter, and 75 percent, or $219,200, for the first half.
-- Licensing royalties were $16,700 for the quarter and $86,800 for the first half, compared with nominal amounts in the prior-year periods. Two new licensing agreements for the company's air abrasion and Hydrobrasion(TM) technologies are driving that highly profitable new revenue stream.
-- Sales, general and administrative expenses declined 19% for the quarter and 22% for the first half, as the Company continues to emphasize strong cost controls to improve profitability.
American Medical Technologies reported that its total revenues and royalties for the second quarter were $566,787, compared to $587,564 in the second quarter last year. The 2004 results included $34,000 in trial sales of a product that was discontinued, and $54,800 in sales from a former subsidiary in Germany. Excluding those items from 2004 total revenues and royalties, second-quarter 2005 total revenues and royalties increased 13.6 percent.
Second-quarter net loss was $265,157, or $0.03 per share diluted, compared to a net loss of $347,015, or $0.04 per share diluted in the second quarter of 2004. The second quarter 2004 included an additional $88,400 in gross profits, reflecting the amount of obsolete inventory that was sold or disposed of.
For the first six months of 2005, total revenues and royalties were $1,178,073, versus 2004 first-half total revenues and royalties of $986,311. Net loss for the first six months of 2005 was $554,071, or $0.07 per share diluted, compared with a net profit of $740,303, or $0.08 per share diluted, for the first six months of 2004. First-half 2004 earnings included a one-time gain of $1.6 million, or $0.18 per share, related to the sale of securities received by the Company in the sale of assets the previous year.
"We are concentrating on our core business of manufacturing and marketing enhanced air abrasion products for the dental and industrial markets, while leveraging our patented technologies through high-margin licensing agreements," said Roger Dartt, President and Chief Executive Officer of American Medical Technologies. "I am pleased to report strong growth in sales of our principal air abrasion products, including those that incorporate our new Hydrobrasion(TM) technology. We expect continued growth in these lines in the second half of 2005."
American Medical Technologies recently signed a number of sales and licensing agreements that are expected to contribute to future growth and profitability. They include:
-- non-exclusive license agreements with KaVo Dental GmbH and Danville Materials, Inc., each a worldwide manufacturer of dental equipment and ancillary products, for use of AMT's patented air abrasion and Hydrobrasion(TM) technologies.
-- an agreement between its industrial division, Texas Airsonics, and Bell Helicopter for the sale of machining units to be used in the manufacture of aerospace composites.
-- an agreement with Becton, Dickinson and Co. to upgrade its Texas Airsonics equipment used to prepare, clean and polish hypodermic needles. Becton, Dickinson and Co. is the third largest medical products and equipment company in the United States.
Dartt added that AMT continues to focus its efforts on products related to cosmetic and minimally invasive dentistry that can appeal to a larger segment of the dental professional market, emphasizing its unique patented Hydrobrasion(TM) technology, while also pursuing additional industrial applications for this technology. The Company plans to augment its dental product line, to increase the number of independent sales representatives marketing its products, and to extend the market penetration of its industrial products through additional dealer representatives.
"We are very pleased with the results we are beginning to achieve by pursuing this strategy, and excited about our potential going forward," he said.
AMT, headquartered in Corpus Christi, Texas, develops and manufactures advanced technologies in the field of dentistry and markets them worldwide. The company's securities are quoted on the OTC Bulletin Board under the symbol ADLI, and its website is at www.americanmedicaltech.com.
Statements in this release concerning the Company's plans and business prospects are "forward looking statements" within the meaning of the Securities Exchange Act of 1934 and are subject to uncertainties. Such uncertainties include, without limitation, the ability of AMT to develop its remaining product lines, generate sufficient cash flow to meet its current liabilities, introduce new products to the market, and expand into new markets.
American Medical Technologies, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
---------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ----------- ----------
Revenues $ 550,634 $ 586,599 $ 1,091,315 $ 984,380
Royalties 16,153 965 86,758 1,931
---------- ---------- ----------- ----------
566,787 587,564 1,178,073 986,311
Cost of sales 287,140 250,484 542,843 453,220
---------- ---------- ----------- ----------
Gross profit 279,647 337,080 635,230 533,091
Selling, general and
administrative 509,821 627,456 1,103,947 1,412,831
Research and
development 45,470 46,368 76,859 88,550
---------- ---------- ----------- ----------
Loss from operations (275,644) (336,744) (545,576) (968,290)
Other income
(expenses)
Gain on sale of
available for sale
securities --- --- --- 1,642,050
Net realized and
unrealized
gains/(losses) on
investments 3,455 (65,679) (7,523) (65,679)
Other income 20,267 52,769 20,472 160,847
Interest expense (27,712) (25,443) (45,452) (57,797)
Interest income 14,477 28,082 24,008 29,172
---------- ---------- ----------- ----------
Net income(loss) (265,157) (347,015) (554,071) 740,303
Preferred dividends --- --- --- (47,671)
---------- ---------- ----------- ----------
Net income(loss)
available to common
stockholders $ (265,157) $ (347,015) $ (554,071) $ 692,632
---------- ---------- ----------- ----------
Basic earnings per
common share $ (0.03) $ (0.04) $ (0.07) $ 0.09
---------- ---------- ----------- ----------
Diluted earnings per
common share $ (0.03) $ (0.04) $ (0.07) $ 0.08
---------- ---------- ----------- ----------
