LIVINGSTON, N.J., Aug. 10, 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 ended June 30, 2012.
Leonard Osser, Chief Executive Officer of Milestone Scientific, stated, "We are making progress in bringing our CompuFlo® technology to the forefront of medical and dentalglobal markets. Our medical joint venture with Beijing 3H (Heart-Help-Health) Scientific Technology continues to advance as we make headway with the development of our intra-articular and epidural drug delivery instruments. We are hoping to commercialize at least one of these new instruments by the end of the first quarter 2013."
Mr. Osser continued,"We are actively engaged in very high level discussions with some of the leading dental universities and dental group practices regarding implementation of our award winning STA Single Tooth Anesthesia System®. A new component of our strategy is to implement training programs using our STA system within dental universities. With over 4,000 graduate students per year, educating the next generation of dental students will help accelerate our penetration of the dental market and further establish our instrument as the global standard of care for drug delivery."
Revenue for the three months ended June 30, 2012 was $2.3 million versus $2.5 million for the second quarter of 2011. 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. Gross profit for the second quarter of 2012 was $1.5 million or 63% of revenue versus $1.6 million or 65% of revenue for the second quarter of 2011. Operating loss for the second quarter of 2012 was $53,607 versus a loss of $261,848 for the second quarter of 2011. The decrease in operating loss was substantially attributable to a reduction in selling, general and administrative expenses. Net loss for the second quarter of 2012 was $164,541 versus a loss of $298,066 for the comparable period in 2011. Net loss for the second quarter of 2012 included a non-cash expense of $46,084 related to the medical joint venture expense that did not occur in the same period last year. As previously announced, the joint venture was independently funded by Beijing 3H (Heart-Help-Health) Scientific Technology in July 2011.
Revenue for the six months ended June 30, 2012 was $4.2 million versus $4.9 million for the six months ended June 30, 2011. 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. Gross profit for the six months ended June 30, 2012 was $2.7 million or 64% of revenue versus $3.1 million or 64% of revenue for the six months ended June 30, 2011.Operating loss for the six months ended June 30, 2012 was $286,757 versus a loss of $383,423 for the six months ended June 30, 2011. The decrease in operating loss was substantially attributable to a reduction in selling, general and administrative expenses. Net loss for the six months ended June30, 2012 was $519,722 versus a loss of $439,711 for the comparable period in 2011. Net loss for the second quarter of 2012 included a non-cash expense of $124,179 related to the medical joint venture expense that did not occur in the same period last year.
Milestone's executive management team will host a teleconference on Friday, August 10, 2012 at 11:00 A.M. Eastern Time to discuss the company's financial results. The conference call can be accessed via telephone by dialing toll free 800-762-8779. 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 4558839. 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, 2011. 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.
| MILESTONE SCIENTIFIC INC. | ||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Product sales, net | $ 2,326,976 | $ 2,464,119 | $ 4,248,334 | $ 4,890,107 |
| Cost of products sold | 854,005 | 868,074 | 1,516,951 | 1,747,663 |
| Gross profit | 1,472,971 | 1,596,045 | 2,731,383 | 3,142,444 |
| Selling, general and administrative expenses | 1,487,076 | 1,801,668 | 2,939,326 | 3,425,924 |
| Research and development expenses | 39,502 | 56,225 | 78,814 | 99,943 |
| Total operating expenses | 1,526,578 | 1,857,893 | 3,018,140 | 3,525,867 |
| Loss from operations | (53,607) | (261,848) | (286,757) | (383,423) |
| Other expenses | ||||
| Interest expense | (63,318) | (34,686) | (105,721) | (54,057) |
| Interest-Amortization of debt issuance | (1,532) | (1,532) | (3,065) | (2,231) |
| Loss on Earnings from Joint Venture | (46,084) | -- | (124,179) | -- |
| Total other expenses | (110,934) | (36,218) | $ (232,965) | $ (56,288) |
| Net loss applicable to common stockholders | $ (164,541) | $ (298,066) | $ (519,722) | $ (439,711) |
| Net loss per share applicable to common stockholders - | ||||
| Basic and diluted | $ (0.01) | $ (0.02) | $ (0.03) | $ (0.03) |
| Weighted average shares outstanding and to be issued - | ||||
| Basic and diluted | 15,975,822 | 15,046,728 | 15,796,754 | 15,005,260 |
| MILESTONE SCIENTIFIC INC. | ||
| CONDENSED BALANCE SHEETS | ||
| June 30, 2012 | December 31, 2011 | |
| (Unaudited) | ||
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 121,802 | $ 96,324 |
| Accounts receivable, net of allowance for doubtful accounts of $180,311 in 2012 and $182,880 in 2011 | 1,081,633 | 1,154,459 |
| Inventories | 514,337 | 790,494 |
| Advances to contract manufacturer, current | 940,318 | 952,558 |
| Prepaid expenses and other current assets | 297,423 | 304,180 |
| Total current assets | 2,955,513 | 3,298,015 |
| Accounts receivable-long term, net of allowance for doubtful accounts of $296,473 as of June 30, 2012 and $372,000 as of December 31, 2011 | 206,623 | 261,256 |
| Advances to contract manufacturer, non current | 2,294,213 | 2,453,948 |
| Investment in distributor, at cost | 76,319 | 76,319 |
| Investment in Joint Venture | -- | 124,179 |
| Furniture, Fixtures & Equipment net of accumulated depreciation of $454,966 as of June 30, 2012 and $446,484 as of December 31, 2011 | 44,873 | 52,309 |
| Patents, net of accumulated amortization of $382,195 as of June 30, 2012 and $344,238 as of December 31, 2011 | 673,359 | 698,357 |
| Other assets | 9,816 | 27,819 |
| Total assets | $ 6,260,716 | $ 6,992,202 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 3,085,527 | $ 3,931,531 |
| Accrued expenses and other payables | 833,938 | 677,419 |
| Total current liabilities | 3,919,465 | 4,608,950 |
| Long-term Liabilities: | ||
| Notes Payable-net of discount of $3,065 at December 2011 | 450,000 | 446,935 |
| Total long-term liabilities | 450,000 | 446,935 |
| Commitments and Contingencies | ||
| Stockholders' Equity | ||
| Common stock, par value $.001; authorized 50,000,000 shares; 16,275,525 shares issued | ||
| 1,472,671 shares to be issued and 16,242,192 shares outstanding as of June 30, 2012; | ||
| 15,556,878 shares issued, 1,501,457 shares to be issued, and 15,523,545 shares outstanding as of December 31, 2011 | 17,748 | 17,058 |
| Additional paid-in capital | 64,164,803 | 63,690,837 |
| Accumulated deficit | (61,379,784) | (60,860,062) |
| Treasury stock, at cost, 33,333 shares | (911,516) | (911,516) |
| Total stockholders' equity | 1,891,251 | 1,936,317 |
| Total liabilities and stockholders' equity | $ 6,260,716 | $ 6,992,202 |