SAN MARCOS, Calif., Oct. 12, 2009 (GLOBE NEWSWIRE) -- Amistar Corporation (Pink Sheets:AMTA) today reported sales and net income for the three and six months ended June 30, 2009.
Net sales for the second quarter of 2009 were $38,000. The Company recorded revenue of $500 from earn-out on one pharmacy kiosk unit during the second quarter of 2009. Net sales for the six months ended June 30, 2009 were $69,000. The Company recorded revenue of $1,500 from earn-out on three pharmacy kiosk units during the first six months of 2009.
Net loss for the second quarter of 2009 was $301,000 or $0.09 per share. Net loss for the first six months of 2009 was $312,000 or $0.09 per share. These losses were due, primarily, to a write down of inventory of $306,000 in the second quarter of 2009. Management believes this inventory write down was necessary due to the slowness of sales of parts and labeling machine inventory by Amistar's distributor.
Company management believes sales and net income comparisons with prior periods to be of little meaning since, as reported earlier, Amistar, in all of 2009, has become a non-operating entity without manufacturing, engineering, or other service offerings, and income received only from the sale of inventory by its distributor and earn out payments from Parata on its sale of pharmacy kiosk units.
Unaudited Condensed Consolidated Statements of Income
(in thousands)
Three Months Six Months
Ended Ended
June 30 June 30
2009 2008 2009 2008
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Net sales $ 38 $ 753 $ 69 $1,103
Cost of sales 321 613 346 985
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Gross profit (283) 140 (277) 118
Operating expenses 18 26 35 611
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Operating income (loss) (301) 114 (312) (493)
Other income -- 15 -- 873
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Income (loss) before income taxes (301) 129 (312) 380
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Income taxes -- 1 -- 1
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Net income (loss) $ (301) $ 128 $ (312) $ 379
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Income (loss) per share $(0.09) $ 0.04 $(0.09) $ 0.11
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Shares used in per share
calculation, basic and diluted 3,308 3,308 3,308 3,308
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Unaudited Condensed Balance Sheets
(in thousands)
June 30, Dec. 31,
2009 2008
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Cash $ 37 $ 10
Accounts receivable from distributor 33 26
Inventory, net of reserves 91 437
Other assets 6 6
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Total assets $ 167 $ 479
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Accounts payable $ 8 $ 5
Accrued lease abandonment costs 192 186
Other current liabilities -- 9
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Current liabilities 200 200
Common stock 33 33
Additional paid in capital 5,185 5,185
Retained deficit (5,251) (5,246)
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Stockholders equity (33) 279
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Total liabilities and equity $ 167 $ 479
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Financial Statement Information
This report contains condensed financial statements that have not been audited or reviewed by an auditor and are subject to change.
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, customers continuing acceptance of products including sales through the company's exclusive distributor, sales growth, gross margin, and distributions to shareholders. 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, decreased or lack of growth in the electronics industry, adverse changes in end-customer order patterns, increased competition, pricing pressures, fluctuations in the price of the company's stock, ability of the company, its distributor AAI or the purchaser of the company's previously owned pharmacy kiosk business unit to be financially viable or continue as a going concern for the long term.
About the Company
Prior to March, 2008, the Company had developed, manufactured, distributed and marketed assembly machinery primarily for the electronics industries, and provided engineering design and manufacturing services to customers seeking enhanced factory automation for a variety of industries.
Early in 2008, the Company announced that it was restructuring. This restructuring included ceasing ongoing operations and entering into a three year agreement with a distributor, Amistar Automation Inc. (AAI), whereby this distributor would use its best efforts to sell the Company's inventory of spare parts, finished and partially finished labeling machines, and perform any service or warranty obligations the Company had incurred. In addition, the company may receive earn-out payments based on sales of a pharmacy kiosk originally developed by the company and later sold, along with a business unit, on April 6, 2007.
The Company reduced employment in 2008 to two people who performed many of the administrative tasks required for closing the Company's operations: However, the heavy financial requirements of maintaining a publicly owned company continue. In order to reduce costs of printing and mailing, the Company will furnish financial reports to its shareholders only by posting them on its website www.amistar.com.