LIVINGSTON, N.J., March 13, 2012 (GLOBE NEWSWIRE) -- Milestone Scientific Inc. (OTCQB:MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced financial results for the three months and full year ended December 31, 2011.
Highlights of 2011:
- Signed on Florida-based Towncare Dental Partnership, Inc., for STA Single Tooth Anesthesia System®
- Created Medical Joint Venture with Beijing 3H Scientific Technology Co. for development, commercialization, manufacture and marketing of epidural and intra-articular injection medical instruments
- Expansion of Towncare Dental rollout of STA® instrument to eight dental offices in Broward county, Florida with additional locations planned throughout the state for 2012
- Initiated beta testing of STA® instruments among several dental group practices in the United States
Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, "We achieved a number of key milestones in 2011, starting with the signing on of Towncare Dental Partnership in January 2011, a group dental practice with 60 offices based in Florida. After a successful rollout of our STA Single Tooth Anesthesia System® in Dade County last year, Towncare Dental initiated the rollout to its eight dental offices located in Broward County with plans to expand throughout the other locations throughout the year."
Mr. Osser continued, "Beta testing of our STA® instruments among dental groups across the U.S. have been proceeding very well and, in some cases, have now been completed. Obviously, when dealing with large organizations such as these, the selling cycle is longer than dealing with an individual dental practitioner.
"We are pleased to report that the development of our pressure sensing technology for medical applications has begun through our Medical Joint Venture with Beijing 3H. Our initial focus will be the epidural and intra-articular markets. The formation of the joint venture included a $1.5 million infusion by Beijing 3H for development of these products while Milestone has contributed an exclusive worldwide royalty-free license to use its patents as far as they cover these two instruments. As of December 31, 2011 we had received $670,000 of funding, and thus far, we have received $850,000 with the remainder expected in 2012."
Domestic instrument sales totaled $1.3 million in 2011 compared to $1.2 million the prior year. Handpiece sales in North America totaled $3.3 million versus $3.2 million in 2010. On the international side, instrument sales totaled $1.5 million in 2011 versus $2.5 million in 2010 while handpiece sales were $2.2 million versus $2.7 million last year.
Mr. Osser continued, "Outside North America, instrument sales from all territories combined, excluding China, totaled $333,000 in the fourth quarter of 2011 lower than the $364,000 in instrument sales in the same quarter of 2010. Approval of our Wand/STA instruments and handpieces in China has been delayed, which has impacted our distributor's ability to sell into the region, but we anticipate that the situation will be resolved in 2012."
Mr. Osser concluded, "The versatility of our award-winning pressure sensing technology across hundreds of potential medical applications and within the dental arena sets the stage for an exciting future at Milestone. We look forward to moving ahead with new initiatives to develop and market our instruments around the globe."
Revenue for the three months ended December 31, 2011 was $1.7 million versus $2.0 million for the fourth quarter of 2010. The decrease in sales was primarily due to a marketing shift in the U.S. toward large dental groups which have a longer selling cycle. This resulted in lower instrument sales, partially offset by an increase in domestic handpiece sales due to higher usage rates among dentists. Gross profit for the fourth quarter of 2011 was $1.1 million or 61% of revenue versus $1.3 million or 64% of revenue in the fourth quarter of 2010. Net loss for the fourth quarter of 2011 was $405,051 versus a loss of $295,264 for the comparable period in 2010. The increase in net loss was substantially attributable to $61,372 Medical Joint Venture development expenses.
Milestone's executive management team will host a teleconference on Tuesday, March 13, 2012 at 4:30 P.M. Eastern Time to discuss the company's financial results. The conference call can be accessed via telephone by dialing toll free 877-941-0843. For those unable to participate at that time, a replay of the call can be accessed by dialing 800-406-7325 and entering the pass code 4523377. The replay will be available for 90 days.
About Milestone Scientific Inc.
Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled drug delivery technologies for the medical and dental markets and currently sells its award-winning products through a global distribution network serving North and South America, Asia, Africa, Europe and the Middle East. For more information on the STA Single Tooth Anesthesia System® instrument and other innovative Milestone products, please visit the Company's web site found at www.milestonescientific.com.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of 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 for the year ended December 31, 2010. 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.
(tables follow)
| MILESTONE SCIENTIFIC INC. | ||
| STATEMENTS OF OPERATIONS | ||
| YEARS ENDED DECEMBER 31, 2011 AND 2010 | ||
| 2011 | 2010 | |
| Product sales, net | $ 8,378,094 | $ 9,749,968 |
| Cost of products sold | 3,016,642 | 3,531,452 |
| Gross profit | 5,361,452 | 6,218,516 |
| Selling, general and administrative expenses | 6,445,001 | 6,648,859 |
| Research and development expenses | 140,053 | 270,494 |
| 6,585,054 | 6,919,353 | |
| Loss from operations | (1,223,602) | (700,837) |
| Other income (expense) | ||
| Other income | -- | 183,673 |
| Interest income | 35 | 587 |
| Interest expense | (131,838) | (95,135) |
| Amortized debt issuance | (5,296) | (2,796) |
| Loss on Earnings from Medical Joint Venture | (121,399) | -- |
| Total other (expense) income | (258,498) | 86,329 |
| Net loss | $ (1,482,100) | $ (614,508) |
| Net loss applicable to common stockholders | $ (1,482,100) | $ (614,508) |
| Loss per share applicable to common stockholders -- | ||
| basic and diluted | $ (0.10) | $ (0.04) |
| Weighted average shares outstanding and to be issued -- | ||
| basic and diluted | 15,174,893 | 14,824,802 |
| MILESTONE SCIENTIFIC INC. | ||
| BALANCE SHEETS | ||
| December 31, 2011 and 2010 | ||
| December 31, 2011 | December 31, 2010 | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 96,324 | $ 627,082 |
| Accounts receivable, net of allowance for doubtful accounts of $182,880 in 2011 and $202,160 in 2010 | 1,154,459 | 796,221 |
| Inventories | 790,494 | 986,947 |
| Advances to contract manufacturer | 952,558 | 730,491 |
| Prepaid expenses and other current assets | 304,180 | 247,465 |
| Total current assets | 3,298,015 | 3,388,206 |
| Accounts receivable-long term, net of allowance for doubtful accounts of $372,000 in 2011 and $438,840 in 2010 | 261,256 | 361,160 |
| Advances to contract manufacturer | 2,453,948 | 1,713,794 |
| Investment in distributor, at cost | 76,319 | 76,319 |
| Investment in Medical Joint Venture | 124,179 | -- |
| Furniture, Fixtures & Equipment net of accumulated depreciation of $446,484 as of December 31, 2011 and $426,482 as of December 31, 2010 | 52,309 | 66,936 |
| Patents, net of accumulated amortization of $344,238 as of December 31, 2011 and $294,934 as of December 31, 2010 | 698,357 | 944,858 |
| Other assets | 27,819 | 57,750 |
| Total assets | $ 6,992,202 | $ 6,609,023 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable - short term | $ 3,931,531 | $ 2,883,587 |
| Accrued expenses and other payable | 677,419 | 511,304 |
| Total current liabilities | 4,608,950 | 3,394,891 |
| Long-term Liabilities: | ||
| Accounts payable - long term | -- | 440,376 |
| Notes payable-net of discount of $3,065 and $8,361, respectively | 446,935 | 441,639 |
| Total long-term liabilities | 446,935 | 882,015 |
| Commitments and Contingencies | ||
| Stockholders' Equity | ||
| Common stock, par value $.001; authorized 50,000,000 shares; 15,556,878 shares issued 1,501,457 shares to be issued and 15,523,545 shares outstanding as of December 31, 2011; 14,915,959 shares issued, 637,013 shares to be issued, and 14,882,626 shares outstanding as of December 31, 2010 | 17,058 | 15,552 |
| Additional paid-in capital | 63,690,837 | 62,606,043 |
| Accumulated deficit | (60,860,062) | (59,377,962) |
| Treasury stock, at cost, 33,333 shares | (911,516) | (911,516) |
| Total stockholders' equity | 1,936,317 | 2,332,117 |
| Total liabilities and stockholders' equity | $ 6,992,202 | $ 6,609,023 |