SAN MARCOS, Calif., Nov. 29, 2007 (PRIME NEWSWIRE) -- Amistar Corporation (Pink Sheets:AMTA) today reported sales and results for the three and nine months ended September 30, 2007.
Net sales for the third quarter of 2007 decreased $1,799,000, or 83%, to $363,000, compared to $2,162,000 for the comparable period in the prior year. The decrease in net sales was primarily due to a decrease in custom distributed machine and accessory sales and to a lesser extent to a decrease in label machine and factory automation sales.
Net sales for the nine-months ended September of 2007 decreased $670,000, or 16%, to $3,399,000, compared to $4,069,000 for the comparable period in the prior year. The decrease in net sales was primarily due to decreases in DataPlace label machine and distributed machine and accessory sales and partially offset by an increase in custom factory automation machine sales.
Net loss for the third quarter of 2007 was $550,000 or $0.17 per share compared to a net income of 1,388,000 or $0.42 per share for the comparable quarter in 2006. Net income for the nine months ended September 30, 2007 was $689,000 or $0.21 per share compared to a net loss of $346,000 or $0.11 per share for the comparable period in 2006.
The net loss in the third quarter of 2007 was due primarily to the decrease in sales, compared to the net income in the third quarter of 2006, which was due primarily to the increase in gain on sale of property. The operating losses in the third quarter of 2007 and 2006 were comparable.
The net income for the nine months ended 2007, was due primarily 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, offsetting a $1,762,000 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.
Preliminary Unaudited Condensed Consolidated Statements
of Operations
(In thousands)
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
2007 2006 2007 2006
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Net Sales $ 363 $ 2,162 $ 3,399 $ 4,069
Cost of Sales 374 1,658 2,667 3,271
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Gross Profit (loss) (11) 504 732 798
Operating Expenses 620 1,150 2,494 3,425
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Operating Loss (631) (646) (1,762) (2,627)
Other Income 102 2,038 2,533 2,276
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Income (Loss) Before
Income Taxes (529) 1,392 771 (351)
Income Taxes 21 1 82 3
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Income (Loss) from
Continuing operations (550) 1,391 689 (354)
Income (Loss) from
Discontinued Operation -- (3) -- 8
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Net Income (Loss) $ (550) $ 1,388 $ 689 $ (346)
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Income (Loss)
Per Common Share
on Continuing
Operations-Basic
and Diluted $ (0.17) $ 0.42 $ 0.21 $ (0.11)
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Income (Loss)
Per Common Share on
Discontinued
Operations-Basic
and Diluted $ -- $ -- $ -- $ --
------- ------- ------- -------
Income (Loss)
Per Share $ (0.17) $ 0.42 $ 0.21 $ (0.11)
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Shares Used In
Per Share
Calculation-
Basic and Diluted 3,308 3,307 3,308 3,251
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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