Milestone Scientific Announces Record Results for Second Quarter 2010
Financial Highlights When Comparing Three Months Ended June 30, 2010 with Three Months Ended June 30, 2009:
- Total revenues rose to $3.22 million, up 58% from $2.04 million.
- Total instrument sales increased 124% to $1.82 million from $816,000.
- Sales of disposable handpieces were up 14% to $1.37 million from $1.20 million.
- International sales totaled $1.96 million, representing a 212% over $629,000.
- Domestic sales declined 11% to $1.26 million from $1.41 million.
- Gross profit margin on sales climbed to 64% from 58%.
- Total operating expenses increased 4% to $1.86 million from $1.79 million.
- Selling, general and administrative expenses remained relatively flat at $1.78 million compared to $1.75 million.
- Research and development expenses increased 147% to approximately $80,000 from $32,000, which was attributable to the ongoing research and prototype development of new medical drug delivery devices using Milestone's patented CompuFlo® system technology.
- Net income was approximately $180,000, or $0.01 earnings per basic and diluted share, compared to a net loss of $657,000, or [$0.05] loss per basic and diluted share. This marked the second consecutive quarter that Milestone has posted a net profit.
Financial Highlights When Comparing Six Months Ended June 30, 2010 with Six Months Ended June 30, 2009:
- Total revenues increased 36% to $5.78 million from $4.24 million.
- Total instrument sales climbed 51% to $2.42 million from $1.60 million.
- Sales of disposable handpieces totaled $3.31 million, representing a 27% increase from $2.60 million.
- International sales were $3.32 million, a 145% increase from $1.35 million.
- Total sales in the U.S. decreased 15% to $2.46 million from $2.89 million.
- Gross profit margin on sales improved, rising to 64% from 58%.
- Total operating expenses declined 3% to $3.49 million from $3.58 million.
- Net income totaled approximately $264,000, or $0.02 earnings per basic and diluted share, compared to a net loss of $1.22 million, or [$0.09] loss per basic and diluted share.
As of June 30, 2010, Milestone had $2.62 million in cash and accounts receivables, working capital of $2.31 million and total shareholders' equity of $3.21 million.
Leonard Osser, Chief Executive Officer of Milestone, stated, "As indicated by our record second quarter performance, Milestone benefited from the shipment of the first 1,000 STA Single Tooth Anesthesia System® units to China pursuant to the 12,000 unit purchase order received from China National Medicines Corporation late last year. Although we are still working towards receiving regulatory approval in China to market the device to the Chinese dental market, our distribution partner determined that it prefers to be poised and ready with the 1,000 units on hand to commence the commercial product launch as soon as practical once marketing clearance is received."
Continuing, Osser noted, "We are very proud of the material progress Milestone has made in the past year with our efforts to enhance penetration of the global dental markets, which has led to our achieving two consecutive profitable quarters. We also continue to make meaningful headway in identifying and pursuing opportunities to expand our portfolio of advanced computer-controlled injection products for the medical industry."
"As we have noted numerous times in the past, the key to Milestone's long term success lies in our ability to effectively leverage our valuable intellectual property to address the multitude of painless medical drug delivery and fluid aspiration applications made possible with our powerful CompuFlo system technology. With hundreds of potential applications to consider, we must remain focused on only those that we believe are the most promising for obtaining a rapid return on investment while simultaneously representing new product introductions that can have the greatest positive impact on patients and the medical profession," concluded Osser.
Milestone will host a teleconference and live webcast tomorrow afternoon, beginning at 4:15 PM Eastern Time, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll-free 1-877-941-4776, or via the Internet at www.milestonescientific.com. For those unable to participate at that time, a replay of the webcast will be available for 90 days on the Company's web site at www.milestonescientific.com.
FINANCIAL CHARTS TO FOLLOW
MILESTONE SCIENTIFIC INC.
CONDENSED BALANCE SHEETS
June 30, 2010
December 31, 2009
Cash and cash equivalents
Accounts receivable, net of allowance for doubtful accounts of $10,000 in 2010 and $5,000 in 2009
Advances to contract manufacturer
Prepaid expenses and other current assets
Total current assets
Advances to contract manufacturer, non current
Investment in distributor, at cost
Furniture, Fixtures & Equipment net of accumulated depreciation of $433,293
as of June 30 ,2010 and $395,630 as of December 31, 2009
Patents, net of accumulated amortization of $252,795 as of June 30, 2010
and $211,539 as of December 31, 2009
LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued interest - 6% note, current
Accrued expenses and other payable
Total current liabilities
Accrued Interest - 6% note, non current
Accrued Interest - 12% note, non current
Notes Payable-net of discount of $12,555 and $11,157 respectively
Total long-term liabilities
Commitments and Contingencies
Common stock, par value $.001; authorized 50,000,000 shares; 14,838,348 shares issued
692,499 shares to be issued and 14,805,015 shares outstanding as of June 30, 2010;
14,781,296 shares issued, 692,499 shares to be issued, and 14,747,962 shares outstanding
as of December 31, 2009
Additional paid-in capital
Treasury stock, at cost, 33,333 shares
Total stockholders' equity
Total liabilities and stockholders' equity
MILESTONE SCIENTIFIC INC.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
Product sales, net
Cost of products sold