SAN MARCOS, Calif., Nov. 29, 2007 (PRIME NEWSWIRE) -- Amistar Corporation (Pink Sheets:AMTA) today reported sales and results for the three and six months ended June 30, 2007.
Net sales for the second quarter of 2007 decreased $419,000, or 35%, to $767,000, compared to $1,186,000 for the comparable period in the prior year. The decrease in net sales was primarily due to a decrease in distributed machine and accessory sales and to a lesser extent to a decrease in custom factory automation sales.
Net sales for the six-months ended June of 2007 increased $1,129,000, or 59%, to $3,036,000, compared to $1,907,000 for the comparable period in the prior year. The increase in net sales was primarily due to an increase in custom factory automation machine sales, and partially offset by decreases in DataPlace label machine and distributed machine and accessory sales.
Net income for the second quarter of 2007 was $1,761,000 or $0.53 per share compared to a net loss of $816,000 or $0.25 per share for the comparable quarter in 2006. Net income for the six months ended June 30, 2007 was $1,239,000 or $0.37 per share compared to a net loss of $1,734,000 or $0.54 per share for the comparable period in 2006.
The net income in the second quarter and six months of 2007 was achieved primarily due to a $2,266,000 gain on sale of APM assets, net of a charge of $396,000, for the amount paid for the shares of Distributed Delivery Networks formerly held by the minority shareholders. Immediately preceding the transaction, 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. The Company plans to operate Distributed Delivery Networks for the purposes of settling any remaining obligations and to collect and distribute any earn-out payments earned.
Preliminary Unaudited Condensed Consolidated Statements of Operations
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
------------------ ------------------
Net Sales $ 767 $ 1,186 $ 3,036 $ 1,907
Cost of Sales 621 985 2,293 1,613
------- ------- ------- -------
Gross Profit 146 201 743 294
Operating Expenses 679 1,051 1,874 2,275
------- ------- ------- -------
Operating Loss (533) (850) (1,131) (1,981)
Other Income 2,354 111 2,431 238
------- ------- ------- -------
Income (Loss) Before
Income Taxes 1,821 (739) 1,300 (1,743)
Income Taxes 60 1 61 2
------- ------- ------- -------
Income (Loss) from
Continuing operations 1,761 (740) 1,239 (1,745)
Income (Loss) from
Discontinued Operation -- (76) -- 11
------- ------- ------- -------
Net Income (Loss) $ 1,761 $ (816) $ 1,239 $(1,734)
======= ======= ======= =======
Income (Loss) Per Common
Share on Continuing
Operations - Basic
and Diluted $ 0.53 $ (0.23) $ 0.37 $ (0.54)
======= ======= ======= =======
Income (Loss) Per Common
Share on Discontinued
Operations - Basic
and Diluted $ -- $ (0.02) $ -- $ 0.00
------- ------- ------- -------
Income (Loss) Per Share $ 0.53 $ (0.25) $ 0.37 $ (0.54)
======= ======= ======= =======
Shares Used In Per Share
Calculation - Basic
and Diluted 3,308 3,270 3,308 3,227
======= ======= ======= =======
De-registration of Shares with the Securities and Exchange Commission
On March 30, 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 30, 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.
Financial Statement Information
This report contains condensed financial statements that are preliminary, have not been audited or reviewed by our auditors and are subject to change. The press release dated April 10, 2007, announcing the sale of the APM(r) assets should be read in conjunction with this release.
Forward Looking Statements
This report contains forward-looking statements within the meaning of the Private Securities Reform Act of 1995, including statements regarding market opportunities, customer acceptance of products, sales growth, gross margin, marketing expenses, liquidity and ability to improve financial performance. 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, product availability, decreased or lack of growth in the electronics industry, adverse changes in customer order patterns, increased competition, lack of acceptance of new products, pricing pressures, lack of success in technological advancements, risks associated with foreign trade, fluctuations in the price of the Company's stock and the ability to continue as a going concern for the long term.
About the Company
Amistar Corporation provides automation solutions primarily for the industrial and retail markets. The Company designs, develops, manufactures, markets and services a variety of automated equipment used to assemble electronic components and product identification media to printed circuit boards and other assemblies. In addition, the Company provides design and manufacturing resources to create customized factory automation equipment and other products according to customers' specification in a broad range of industries.
Additional information about Amistar is available at www.amistar.com and pinksheets.com