SAN MARCOS, Calif., June 24, 2008 (PRIME NEWSWIRE) -- Amistar Corporation (Pink Sheets:AMTA) today reported sales and results for the three months and year ended December 31, 2007.
Net sales for the fourth quarter of 2007 decreased $1,519,000, or 64%, to $871,000, compared to $2,390,000 for the comparable period in the prior year. The decrease in net sales was due primarily to decreases in custom factory automation and distributed circuit board assembly machine sales.
Net sales for the year ended December 31, 2007 decreased $2,211,000, or 34%, to $4,270,000, compared to $6,481,000 in 2006. The decrease in net sales was primarily due to decreases in distributed circuit board assembly and DataPlace label machine sales.
Net loss for the fourth quarter of 2007 was $420,000 or $0.13 per share compared to a net loss of $47,000 or $0.01 per share for the comparable quarter in 2006. Net income for the year ended December 31, 2007 was $269,000 or $0.08 per share compared to a net loss of $518,000 or $0.16 per share for the comparable period in 2006.
The increased net loss in the fourth quarter of 2007 was due primarily to decreased sales in the fourth quarter of 2007, compared to the fourth quarter of 2006.
Net income for the year ended 2007 was primarily the result of a $2,266,000 gain on sale of APM assets, net of $396,000 for the amount paid for the shares of Distributed Delivery Networks formerly held by the minority shareholders and to a lesser extent from other income, which exceeded a $2,308,000 operating loss. Immediately preceding the transaction for sale of the APM assets, the Company entered into Stock Purchase Agreements for shares representing 49% of Distributed Delivery Networks, formerly held by the Founders for $396,000 in cash, and for one Founder, a portion of certain earn out payments the Company receives in the future.
On March 31, 2007, the Company filed Form 15 with the Securities and Exchange Commission ("SEC") to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Upon the filing of the Form 15, Amistar's obligation to file certain reports with the SEC, including Forms 10-K, 10-Q, and 8K, was suspended. Amistar's de-registration of its common stock became effective on June 31, 2007. As a result of the filing of the Form 15, the Company's shares were no longer quoted on the OTC Bulletin Board and since then, have been quoted on the Pink Sheets.
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 Years Ended
December 31, December 31,
2007 2006 2007 2006
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Net Sales $ 871 $ 2,390 $ 4,270 $ 6,481
Cost of Sales 938 1,729 3,605 5,023
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Gross Profit (loss) (67) 661 665 1,458
Operating Expenses 479 804 2,973 4,439
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Operating Loss (546) (143) (2,308) (2,981)
Other Income 127 97 2,660 2,363
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Income (Loss) Before Income
Taxes (419) (46) 352 (618)
Income Taxes 1 1 83 3
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Income (Loss) from Continuing
operations (420) (47) 269 (621)
Income from Discontinued
Operation -- -- -- 103
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Net Income (Loss) $ (420) $ (47) $ 269 $ (518)
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Income (Loss) Per Common Share
on Continuing
Operations-Basic and Diluted $ (0.13) $ (0.01) $ 0.08 $ (0.19)
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Income (Loss) Per Common Share
on Discontinued
Operations-Basic and Diluted $ -- $ -- $ -- $ 0.03
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Income (Loss) Per Share $ (0.13) $ (0.01) $ 0.08 $ (0.16)
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Shares Used In Per Share
Calculation-Basic and Diluted 3,308 3,308 3,308 3,264
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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, including its financial statements for 2007 is available at www.amistar.com and www.pinksheets.com