SAN MARCOS, Calif., June 24, 2008 (PRIME NEWSWIRE) -- Amistar Corporation (Pink Sheets:AMTA) today reported sales and results for the three months ended March 31, 2008.
Net sales for the first quarter of 2008 decreased $1,920,000, or 85%, to $349,000, compared to $2,269,000 for the comparable period in the prior year. The decrease in net sales was primarily due to a decrease in custom factory automation machine sales and to a lesser extent to a decrease in label machine sales.
Net income for the first quarter of 2008 was $231,000 or $0.07 per share compared to a net loss of $522,000 or $0.16 per share for the comparable quarter in 2007. Net income in the first quarter of 2008 was primarily the result of the recognition of the balance of deferred gain totaling $1,127,000 on sale and lease-back of the Company's headquarters building in the first quarter of 2008, compared to amortization of $75,000 during the first quarter of 2007.
As announced in its press release on February 5, 2008, the Company committed to a plan of restructuring that involved a sale of substantially all its operating assets. The Company has been executing its plans and making preparations for the orderly wind down of its operations, including having fulfilled all its outstanding sales contracts, made headcount reductions, secured continuing support for its existing customers, sold its tangible operating assets and provided for outstanding and anticipated liabilities including restructuring costs.
On March 3, 2008, as part of its plan of restructuring, the Company consummated an Agreement with Amistar Automation, Inc. ("AAI") to sell certain assets of the Company's machine division in exchange for $19,000 in cash at close and for consideration on certain future sales, acting as a distributer of the Company, to market and sell its existing inventory and provide service, warranty and sales support to the Company's existing customer base. Amistar Automation principals consist of two former employees of the Company.
Amistar Corporation
Unaudited Condensed Consolidated Statements of Operations
(In thousands)
Three Months Ended
March 31,
2008 2007
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Net Sales $ 349 $2,269
Cost of Sales 373 1,672
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Gross Profit (loss) (24) 597
Operating Expenses 903 1,195
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Operating Loss (927) (598)
Other Income 1,159 77
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Income (Loss) Before Income Taxes 232 (521)
Income Taxes 1 1
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Net Income (Loss) $ 231 $ (522)
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Income (Loss) Per Share $ 0.07 $(0.16)
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Shares Used In Per Share Calculation-
Basic and Diluted 3,308 3,308
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Financial Statement Information
This report contains condensed financial statements that have not been audited or reviewed by our auditors and are subject to change.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market opportunities, customer acceptance of products, sales growth, and gross margin. These forward-looking statements involve risks and uncertainties, and the cautionary statements set forth below identify important factors that could cause actual results to differ materially from those in any such forward-looking statements. Such factors include, but are not limited to, adverse changes in general economic conditions, including changes in the specific markets for the Company's products, decreased or lack of growth in the electronics industry, adverse changes in customer order patterns, increased competition, pricing pressures, fluctuations in the price of the Company's stock, ability of the Company and its distributer AAI to be financially viable or continue as a going concern for the long term.
About the Company
The Company has developed, manufactured, distributed and marketed assembly machinery primarily for the electronics industries, and provided engineering design and manufacturing services to customers seeking enhanced factory automation for a variety of industries. As of March 3, 2008, the Company provides machinery, accessories and spare parts through its distributor Amistar Automation, Inc.
Additional information about Amistar is available at www.amistar.com and www.pinksheets.com