Milestone Scientific Reports 2006 Year-End Financial Results
LIVINGSTON, N.J., April 3 /PRNewswire-FirstCall/ -- Milestone Scientific, Inc. , the recognized leader in advanced injection technologies, today reported results for its 2006 fiscal year, ended December 31, 2006.
Key Financial and Operational Highlights: * Total revenues declined 9.2% to $5.8 million in 2006 from $6.4 million in 2005, due largely to a decrease in royalty income related to the curtailment of sales of the Company's consumer and professional teeth whitening products, offset by an increase in worldwide sales of disposable Wand(R) handpieces. Sales of its teeth whitening products were curtailed in mid-2006 while Milestone pursued U.S. patent protection for its consumer solution (Ionic White(TM)) and a European CE mark for its professional solution (Cool Blue(TM)). * In 2006, total operating expenses dropped 10.6% to $6.3 million, compared to $7.1 million in the prior year. * As a result of strict expense control and a material shift in the Company's sales and marketing strategy, selling, general and administrative expenses in 2006 decreased 21.6% to $5.3 million, down from $6.8 million in 2005. * Research and development expenses rose 251% to $1.0 million in 2006, compared to $286,000 in the previous year. This increase was driven primarily by costs associated with development and commercialization of Milestone's Single Tooth Anesthesia (STA) delivery system and its CompuFlo(R) technology. * Net loss attributable to common stockholders totaled $3.2 million, or $0.27 per basic and diluted share, in 2006, up 14.4% over $2.8 million, or $0.25 per basic and diluted share, posted for 2005. * In July 2006, Milestone received FDA clearance of its 510(k) Pre-market Notification for the marketing and sale of its patented CompuFlo technology. One month later, FDA clearance was received for the Company's 510(k) submission for its patented STA delivery system. * Milestone commissioned an independent market study related to possible applications of its CompuFlo technology in August 2006. The study identified more than 700 market opportunities in both the medical and extra-medical fields. As a result, the Company began to actively investigate and pursue strategic collaborations with third parties interested in licensing or co-developing pioneering new technological solutions based on the CompuFlo technology. In March 2007, the Company signed its first teaming agreement with Carticept Medical, Inc., who will fund and co-develop with Milestone the CompuFlo Joint Injection System, a unique painless injection solution for application in the $21 billion Osteoarthritis market. * The Company completed development on the STA delivery system and in late 2006 initiated mutual due diligence and discussions with several distributors noted as market leaders in the global dental distribution industry. In January 2007, Milestone named Henry Schein, Inc., the world's largest provider of healthcare products and services to office-based medical and dental professionals in the combined North American and European markets, as the exclusive distributor of the STA system in the U.S. and Canada. Following the official product launch in late February of this year, Milestone began fulfilling purchase orders received from Henry Schein this March.
According to Leonard Osser, Chairman and CEO of Milestone, "2006 was indeed a defining year for our Company -- a year in which we worked towards refining and strengthening Milestone's long term growth strategies and tactical approach to product development and market positioning, worldwide market penetration and expansion, and operational support. Consequently, it appears that we are now poised to benefit from a confluence of events helping to drive an important inflection point in our Company's history."
Continuing, Osser said, "Signposts indicate that Milestone is on track to deliver solid financial and operational performance in 2007, while further enhancing our reputation as a pioneer in the delivery of advanced technological solutions. We are very proud of our many accomplishments, but fully understand that there is still much hard work ahead of us if we are to succeed in realizing our full potential."
Due to the fact that management has committed to meetings with its manufacturers, suppliers and distributors in Europe and the Far East this week, Milestone will host a teleconference on Monday, April 16, 2007, beginning at 4:15 PM Eastern Time, and invites all interested parties to join management in a discussion regarding the Company's year-end financial results, corporate progression and other meaningful developments. The conference call can be accessed by dialing toll-free 1-800-240-6709. For those unable to participate at that time, a replay of the teleconference can be accessed domestically by dialing 1-800-405-2236 and enter the passcode 11087647#. The replay will be available for 90 days.
About Milestone Scientific, Inc.
Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering proprietary, highly innovative technological solutions for the medical and dental markets. Central to the Company's IP platform and product development strategy is its patented CompuFlo(TM) technology for the improved and painless delivery of local anesthetic. Specifically, CompuFlo is a computer-controlled, pressure sensitive infusion, perfusion, suffusion and aspiration technology, which provides real-time readouts of pressures, fluid densities and flow rates, enabling the advanced delivery and removal of a wide array of fluids. The Single Tooth Anesthesia (STA(TM)) computer-controlled local anesthesia delivery system which uses this technology provides dentists with audible and visual signals as to in-tissue pressure. Milestone's existing painless injection systems are currently sold in 25 countries. For more information on these and other innovative Milestone products, please visit the Company's web site found at www.milesci.com.
MILESTONE SCIENTIFIC, INC. BALANCE SHEET December 31, 2006 ASSETS Current Assets: Cash and cash equivalents $1,160,116 Accounts receivable, net of allowance for doubtful accounts of $16,519 346,619 Royalty receivable 60,107 Inventories 1,323,338 Advances to contract manufacturer 1,077,871 Prepaid expenses 97,073 Total current assets 4,065,124 Investment in distributor, at cost 76,319 Equipment, net of accumulated depreciation of $402,914 459,259 Patents, net of accumulated amortization of $41,938 526,753 Other assets 14,153 Total assets $5,141,608 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $1,196,107 Accrued expenses 232,076 Total current liabilities 1,428,183 Commitments Stockholders' Equity Common stock, par value $.001; authorized 50,000,000 shares; 11,692,636 shares issued, 337,036 shares to be issued, and 11,659,303 shares outstanding 12,031 Additional paid-in capital 57,720,129 Accumulated deficit (53,107,219) Treasury stock, at cost, 33,333 shares (911,516) Total stockholders' equity 3,713,425 Total liabilities and stockholders' equity $5,141,608 MILESTONE SCIENTIFIC INC. STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2006 AND 2005 2006 2005 Product sales, net $5,566,425 $5,775,394 Royalty income 277,752 657,754 Total revenue 5,844,177 6,433,148 Cost of products sold 3,002,615 2,521,022 Royalty expense 33,031 78,930 Total cost of revenue 3,035,646 2,599,952 Gross profit 2,808,531 3,833,196 Selling, general and administrative expenses 5,326,032 6,794,032 Research and development expenses 1,005,285 286,260 6,331,317 7,080,292 Loss from operations (3,522,786) (3,247,096) Other income Other income 283,107 400,000 Interest income 87,411 92,869 Total other income 370,518 492,869 Net loss (3,152,268) (2,754,227) Dividends applicable to preferred stock -- (1,691) Net loss applicable to common stockholders $(3,152,268) $(2,755,918) Loss per share applicable to common stockholders - basic and diluted $(0.27) $(0.25) Weighted average shares outstanding and to be issued - basic and diluted 11,784,793 11,007,755 Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of the Milestone's ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report on Form 10-KSB for the year ended December 31, 2006. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
FOR MORE INFORMATION, PLEASE CONTACT: Elite Financial Communications Group, LLC Dodi Handy, President and CEO, or Daniel Conway, Chief Strategist 407-585-1080 or via email at firstname.lastname@example.orgMilestone Scientific, Inc.
CONTACT: Dodi Handy, President and CEO, or Daniel Conway, ChiefStrategist, both of Elite Financial Communications Group, LLC,+1-407-585-1080, email@example.com, for Milestone Scientific, Inc.
Web site: http://www.milesci.com/