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| 8-K - 100218_ASB_FORM 8K_Q3-FY2010 EARNINGS PR - EKIMAS Corp | asbform8k_q3earningspr.htm |
EXHIBIT
99.1
ADVANSOURCE
BIOMATERIALS ANNOUNCES THIRD QUARTER RESULTS FOR FISCAL 2010
Wilmington, MA. February 17,
2010…AdvanSource
Biomaterials Corporation (NYSE Amex: ASB), a leading developer of
advanced polymer materials for a broad range of medical devices, today announced
financial results for its fiscal 2010 third quarter ended December 31,
2009.
Total
revenues for the three months ended December 31, 2009 were $668,000 as compared
with $688,000 for the comparable prior year period, a decrease of $20,000, or
2.9%. Total revenues for the nine months ended December 31, 2009 were
$1,636,000 as compared with $2,551,000 for the comparable prior year period, a
decrease of $915,000, or 35.9%.
Product
sales of our biomaterials for the three months ended December 31, 2009 were
$455,000 as compared with $131,000 for the comparable prior year period, an
increase of $324,000, or 247.3%. Product sales of our biomaterials
for the nine months ended December 31, 2009 were $1,010,000 as compared with
$853,000 for the comparable prior year period, an increase of $157,000, or
18.4%. The increase in product sales for the three and nine month
periods ended December 31, 2009 was primarily due to an increase in the demand
for biomaterials from our existing customer base and the addition of new
customers.
License,
royalty and development fees for the three months ended December 31, 2009 were
$213,000 as compared with $557,000 for the comparable prior year period, a
decrease of $344,000 or 61.8%. License, royalty and development fees
for the nine months ended December 31, 2009 were $626,000 as compared with
$1,698,000 for the comparable prior year period, a decrease of $1,072,000 or
63.1%. The decrease in license, royalty and development fees during
the three and nine month periods ended December 31, 2009 is primarily a result
of an amendment to an agreement with a major customer from whom we derive a
majority of our license, royalty and development fee revenue. The
amendment to this agreement resulted in the reduction of royalty fees paid to us
per unit of sale of our customer’s product.
Gross
profit on total revenues for the three months ended December 31, 2009 was
$291,000, or 43.6% of total revenues, compared with $344,000, or 50.0% of total
revenues, for the comparable prior year period. Gross profit on total
revenues for the nine months ended December 31, 2009 was $629,000, or 38.5% of
total revenues, compared with $1,480,000, or 58.0% of total revenues, for the
comparable prior year period. The decrease in gross profit dollars
and gross profit as a percentage of total revenues is primarily due to the
decrease of license, royalty and development fees.
Gross
profit on product sales for the three months ended December 31, 2009 was
$78,000, or 17.1% of product sales, compared with a loss of ($213,000), or
(162.6%) of product sales, for the comparable prior year
period. Gross profit on product sales for the nine months ended
December 31, 2009 was $3,000, or less than 1.0% of product sales, compared with
a loss of $218,000, or 25.6% of product sales, for the comparable prior year
period. The improvement in gross profit dollars on product sales and
gross profit as a percentage of product revenues is attributable to improved
efficiencies in the production process and the increased absorption of fixed
overhead costs by the increased product sales.
Research
and development expenses for the three months ended December 31, 2009 were
$158,000 as compared with $153,000 for the comparable prior year period, an
increase of $5,000 or 3.3%. Research and development expenses for the
nine months ended December 31, 2009 were $499,000 as compared with $567,000 for
the comparable prior year period, a decrease of $68,000 or
12.0%. During the three and nine month periods ended December 31,
2009, we increased our research and development expenditures in the development
of new biomaterials and related applications while expenditures related to the
CardioPass clinical trials decreased.
Selling,
general and administrative expenses for the three months ended December 31, 2009
were $676,000 as compared with $712,000 for the comparable prior year period, a
decrease of $36,000 or 5.1%. Selling, general and administrative
expenses for the nine months ended December 31, 2009 were $2,072,000 as compared
with $2,358,000 for the comparable prior year period, a decrease of $286,000 or
12.1%. The decrease is primarily attributable to our cost containment
measures which included reductions in outside consultants and insurance costs;
offset in part by an increase in non-cash stock-based compensation
expenses.
As of
December 31, 2009, we had cash and cash equivalents of $3,413,000 as compared to
$3,873,000 as of March 31, 2009.
Michael
F. Adams, President and CEO of AdvanSource, stated, “We continue to be pleased
with our progress in growing product sales, both year over year and sequential
quarterly product sales growth. We attribute the growth in product
sales to our continuing efforts to market our custom polymer synthesis
capabilities and the acquisition of customers that recognize the benefits of
using our biomaterials as an integral component of their medical
devices. We are also pleased with the marked improvement in our gross
margins on product sales. This is a testament to our attention to
maximizing our production efficiencies. Although the general economic
environment continues to be difficult and uncertain, we are optimistic that the
general trend of growing product sales and improving margins should continue for
the foreseeable future.”
About AdvanSource
Biomaterials Corporation
AdvanSource
Biomaterials Corporation manufactures advanced polymer materials which provide
critical characteristics in the design and development of medical
devices. The Company’s biomaterials are used in devices that are
designed for treating a broad range of anatomical sites and disease
states. AdvanSource’s business model leverages its proprietary
materials science technology and manufacturing expertise in order to expand its
product sales and royalty and license fee income. More information
about AdvanSource is available at its website: www.advbiomaterials.com.
Forward-Looking
Statements
AdvanSource
believes that this press release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are based on management’s
current expectations and are subject to risks and uncertainties that could cause
results to differ materially from the forward-looking statements. For
further information on such risks and uncertainties, you are encouraged to
review AdvanSource’s filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the fiscal year ended March 31,
2009, as amended, and its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2009, September 30, 2009 and December 31, 2009. AdvanSource
assumes no obligation to update any forward-looking statements as a result of
new information or future events or developments, except as required by
law.
For
further information contact:
AdvanSource
Biomaterials Corporation
David
Volpe, Acting CFO
(978)
657-0075, ext. 103
dvolpe@advbiomaterials.com
[FINANCIAL
TABLES FOLLOW]
|
AdvanSource
Biomaterials Corporation
|
||||||||
|
Condensed
Consolidated Balance Sheets
|
||||||||
|
(Unaudited
- in thousands, except share and per share amounts)
|
||||||||
|
December
31,
2009
|
March
31,
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 3,413 | $ | 3,873 | ||||
|
Accounts
receivable-trade, net of allowance of $5 as of December 31,
2009
and
March 31, 2009
|
156 | 37 | ||||||
|
Accounts
receivable-other
|
109 | 997 | ||||||
|
Inventories,
net
|
456 | 390 | ||||||
|
Note
receivable
|
141 | - | ||||||
|
Prepaid
expenses and other current assets
|
105 | 108 | ||||||
|
Total
current assets
|
4,380 | 5,405 | ||||||
|
Property,
plant and equipment, net
|
3,112 | 3,295 | ||||||
|
Other
assets
|
- | 6 | ||||||
|
Total
assets
|
$ | 7,492 | $ | 8,706 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 101 | $ | 124 | ||||
|
Accrued
expenses
|
283 | 470 | ||||||
|
Deferred
revenue
|
74 | 136 | ||||||
|
Current
liabilities of discontinued operations
|
- | 149 | ||||||
|
Total
current liabilities
|
458 | 879 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Stockholders'
equity:
|
||||||||
|
Preferred
stock; $.001 par value; 5,000,000 shares authorized; 500,000
shares
issued
and none outstanding as of December 31, 2009 and March 31,
2009
|
- | - | ||||||
|
Common
stock; $.001 par value; 50,000,000 shares authorized; 21,244,763
and
21,205,399
shares issued and 21,168,071 and 21,128,707 shares
outstanding
as
of December 31, 2009 and March 31, 2009, respectively
|
21 | 21 | ||||||
|
Additional
paid-in capital
|
37,758 | 38,744 | ||||||
|
Accumulated
deficit
|
(30,715 | ) | (30,908 | ) | ||||
| 7,064 | 7,857 | |||||||
|
Less:
treasury stock, 76,692 shares at cost as of December 31, 2009
and
March 31, 2009
|
(30 | ) | (30 | ) | ||||
|
Total
stockholders' equity
|
7,034 | 7,827 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 7,492 | $ | 8,706 | ||||
|
AdvanSource
Biomaterials Corporation
|
||||||||||||||||
|
Condensed
Consolidated Statements of Operations
|
||||||||||||||||
|
(Unaudited
- in thousands, except per share amounts)
|
||||||||||||||||
|
Three
Months Ended
December
31,
|
Nine
Months Ended
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Product
sales
|
$ | 455 | $ | 131 | $ | 1,010 | $ | 853 | ||||||||
|
License,
royalty and development fees
|
213 | 557 | 626 | 1,698 | ||||||||||||
| 668 | 688 | 1,636 | 2,551 | |||||||||||||
|
Cost
of sales
|
377 | 344 | 1,007 | 1,071 | ||||||||||||
|
Gross
profit
|
291 | 344 | 629 | 1,480 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Research,
development and regulatory
|
158 | 153 | 499 | 567 | ||||||||||||
|
Selling,
general and administrative
|
676 | 712 | 2,072 | 2,358 | ||||||||||||
|
Impairment
of goodwill
|
- | 487 | - | 487 | ||||||||||||
| 834 | 1,352 | 2,571 | 3,412 | |||||||||||||
|
Loss
from operations
|
(543 | ) | (1,008 | ) | (1,942 | ) | (1,932 | ) | ||||||||
|
Other
income (expense):
|
||||||||||||||||
|
Interest
income
|
1 | 8 | 5 | 47 | ||||||||||||
|
Other
expense
|
- | - | (35 | ) | - | |||||||||||
|
Other
income (expense)
|
1 | 8 | (30 | ) | 47 | |||||||||||
|
Net
loss from continuing operations
|
(542 | ) | (1,000 | ) | (1,972 | ) | (1,885 | ) | ||||||||
|
Income
from discontinued operations - sale of
subsidiaries,
net of income tax of $0
|
- | - | 942 | - | ||||||||||||
|
Net
income (loss)
|
$ | (542 | ) | $ | (1,000 | ) | $ | (1,030 | ) | $ | (1,885 | ) | ||||
|
Net
income (loss) per common share, basic and diluted:
|
||||||||||||||||
|
Net
loss per share, continuing operations
|
$ | (0.03 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | (0.09 | ) | ||||
|
Net
income per share, discontinued operations
|
- | - | 0.04 | - | ||||||||||||
|
Net
income (loss) per common share, basic and diluted
|
$ | (0.03 | ) | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.09 | ) | ||||
|
Shares
used in computing net loss per
common
share, basic and diluted
|
21,168 | 21,126 | 21,144 | 21,092 | ||||||||||||