KINDERHOOK, N.Y.--(BUSINESS WIRE)--American Bio Medica Corporation (OTCPK:ABMC) today announced financial results for the fourth quarter and year ended December 31, 2016.
Chief Executive Officer Melissa A. Waterhouse stated, “Organic growth continued to be challenging for ABMC in 2016 due to the continued price competitive environment. Gross profit for the year decreased slightly due to an inefficiency in the third quarter for 2016 but, from an annual perspective, the impact wasn’t significant. When compared to the fourth quarter of 2015, operational expenses in the fourth quarter 2016 were higher due to a reclassification of debt issuance costs in the fourth quarter of 2015, and increased expenses related to our application for a 510k marketing clearance. From an annual perspective, operational expenses were down; reductions in G&A and selling and marketing expense were partially offset by increased costs related to the 510k marketing clearance application.”
Waterhouse continued, “In late 2016, we started to take steps to reorganize and restructure our sales and marketing department. In addition, we are bringing on new products and service offerings to diversify our revenue stream. These new products and services (through relationships with third parties) include products for the detection of alcohol, alternative sample options for drug testing (such as lab based oral fluid testing and hair testing) as well as toxicology management services. We also expect to start offering customers lower-cost alternatives for onsite drug testing starting in the first half of 2017. And finally, we are reviewing our contract manufacturing operations in efforts to capitalize on offerings in that area. Even with all of these actions, we have continued to be as fiscally conservative as possible. We are poised for profitability, provided no extraordinary expenses occur and that our initiatives start to positively impact sales.”
Chief Executive Officer Melissa A. Waterhouse stated, “Organic growth continued to be challenging for ABMC in 2016 due to the continued price competitive environment. Gross profit for the year decreased slightly due to an inefficiency in the third quarter for 2016 but, from an annual perspective, the impact wasn’t significant. When compared to the fourth quarter of 2015, operational expenses in the fourth quarter 2016 were higher due to a reclassification of debt issuance costs in the fourth quarter of 2015, and increased expenses related to our application for a 510k marketing clearance. From an annual perspective, operational expenses were down; reductions in G&A and selling and marketing expense were partially offset by increased costs related to the 510k marketing clearance application.”
Waterhouse continued, “In late 2016, we started to take steps to reorganize and restructure our sales and marketing department. In addition, we are bringing on new products and service offerings to diversify our revenue stream. These new products and services (through relationships with third parties) include products for the detection of alcohol, alternative sample options for drug testing (such as lab based oral fluid testing and hair testing) as well as toxicology management services. We also expect to start offering customers lower-cost alternatives for onsite drug testing starting in the first half of 2017. And finally, we are reviewing our contract manufacturing operations in efforts to capitalize on offerings in that area. Even with all of these actions, we have continued to be as fiscally conservative as possible. We are poised for profitability, provided no extraordinary expenses occur and that our initiatives start to positively impact sales.”
