BOHEMIA, N.Y., May 12, 2006 (PRIMEZONE) -- Scientific Industries Inc. (OTCBB:SCND) reported net income of $288,800, or $0.29 per basic share, and $102,200, or $0.10 per basic share, for the nine and three month periods ended March 31, 2006, respectively -- increases of $74,700 (35%) and $7,500 (8%) from the net income for the same periods of the prior year.
Net sales for the nine month comparative periods were 2% higher -- $2,737,500 compared with $2,693,200 -- but 8% lower for the three month comparative periods -- $919,400 compared with $996,300. Sales during the three months ended March 31, 2005 benefited from fulfillment of an unusually high backlog of orders as of January 1, 2005 due to production interruptions of a supplier in the prior quarter.
The Company noted that future revenues and operating results are expected to be adversely impacted by the expected reduction in future sales of the Company's products to its principal customer and distributor. Sales to the distributor accounted for 24% and 23%, respectively, of the Company's revenues for the nine and three month periods of the current fiscal year. The Company plans to continue the expansion of its new product development and marketing efforts which have resulted in increased sales of new products and to undertake certain measures, including maintaining and seeking other sales channels for its products, to mitigate or overcome the impact.
About Scientific Industries
Scientific Industries manufactures and markets laboratory equipment, including the world-renowned Vortex-Genie( 2 Mixer. Scientific Industries' products are used by research laboratories, clinics, pharmaceutical manufacturers, medical device manufacturers, and other industries.
The Scientific Industries logo is available at http://media.primezone.com/prs/single/?pkgid=715
"Statements made in this press release that relate to future events, performance or financial results of the Company are forward-looking statements which involve uncertainties that could cause actual events, performance or results to materially differ. The Company undertakes no obligation to update any of these statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties set forth in the Company's Securities and Exchange Commission reports, including our annual report on Form 10-KSB."
SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS March 31, 2006
--------------
Current Assets $ 2,804,100
Property and Equipment, Net 121,200
Other and Intangible Assets 41,100
--------------
Total Assets $ 2,966,400
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Total Liabilities $ 311,800
Shareholders' Equity 2,654,500
--------------
Total Shareholders' Equity & Liabilities $ 2,966,400
==============
SCIENTIFIC INDUSTRIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Month For the Nine Month
Periods Ended Periods Ended
March 31, March 31,
--------------------- -----------------------
2006 2005 2006 2005
--------- --------- ---------- ----------
Net Sales $ 919,400 $ 996,300 $2,737,500 $2,693,200
--------- --------- ---------- ----------
Gross Profit 447,300 517,600 1,368,700 1,323,500
Operating
Expenses 304,200 360,700 991,500 1,025,700
--------- --------- ---------- ----------
Income from
Operations 143,100 156,900 377,200 297,800
Interest and
Other Income 12,600 1,600 31,000 16,100
--------- --------- ---------- ----------
Income Before
Income Taxes 155,700 158,500 408,200 313,900
Income Taxes 53,500 63,800 119,400 99,800
--------- --------- ---------- ----------
Net Income $ 102,200 $ 94,700 $ 288,800 $ 214,100
========= ========= ========== ==========
Basic earnings per
common share: $ .10 $ .10 $ .29 $ .22
Diluted earnings
per common share: $ .10 $ .09 $ .27 $ .20
Cash dividends
declared per share: $ -- $ -- $ .09 $ .07
Weighted average
number of
outstanding shares:
Basic 995,652 979,640 988,972 977,278
Diluted 1,074,827 1,054,612 1,067,560 1,050,825