-- 4th Quarter Revenue is up 137% or $167,495 from a year earlier to
$289,415.
-- Fiscal 2008 Revenue is up 616% or $751,090 from a year earlier to
$873,010.
-- Cost of sales for the year ended September 30, 2008 was $171,332,
netting a gross profit of $701,678. Cost of sales for the year ended
September 30, 2007 was $23,073, netting a gross profit of $98,847.
"This year, APDN broadened its commercial scope, gained traction for its
multiple product offerings, expanded its customer base and increased its
revenues in each quarter of fiscal 2008, averaging 35% growth
quarter-over-quarter for the year. This builds on our strategy of
diversified revenue sources with managed risk concentration and shortened
sales cycles," stated Dr. James Hayward, President and CEO.
Costs and Expenses:
-- Selling, general and administrative expenses for the twelve months
ended September 30, 2008 decreased 65% to $4.3 million from $12.1 million
in the same period in 2007. Included within the selling, general and
administrative expenses for the years ended September 30, 2008 and 2007
were expenses relating to liquidation damage accrual, fund raising and
consultant costs of $1.1 million and $7.9 million, respectively.
-- Total operating expenses decreased to $4.9 million from $12.6 million,
or a decrease of $7.7 million, primarily due to the reduction in accrual
for liquidation damages and less consulting costs for the year ended
September 30, 2008 as compared to September 30, 2007.
-- The net loss for fiscal 2008 decreased by $6,501,935 from a year
earlier to $6,802,898 as a result of a combination of the factors described
above and less impactful changes in R&D costs, Depreciation and
Amortization and Other Income/Expenses.
Key 2008 achievements include:
-- Four consecutive quarters of increased revenues, averaging 35% growth,
quarter-over-quarter.
-- Expansion of diversified product lines including SigNature® DNA,
BioMaterial™ Genotyping and BioActive™ Ingredients to enhance the
Company's ability to capture a dominant position in the DNA authentication
market.
-- Expansion of SigNature DNA markers in Cash-In-Transit industry with
newly developed, forensically formulated products like AzSure™ Security
Ink.
-- Training of UK police and other law enforcement teams on the detection
and authentication of SigNature DNA markers in stolen cash.
-- Continued repeat orders of BioActive Ingredients that are being used
by leading global brands in personal care.
-- Auditable process and controls throughout the company to support
authentication.
-- Expanded patent and trademark portfolios which will form the basis for
added value through future licensing revenue opportunities.
The Company has made significant inroads with its central SigNature DNA
platform that uses botanically derived genomic DNA to mark and authenticate
a range of security inks, packaging labels, and event tickets. This year,
APDN has been able to develop more market-ready products, enabling faster
price quotations and more concise product cycles which will provide a
foundation for continued growth in 2009.
"Despite the challenges of today's economy, APDN continued to expand and
grow in fiscal 2008. Our strategy remains focused on long-term sustainable
growth and although the economic realities may impact us slightly in the
short term, our long-term goals remain intact," stated Kurt Jensen, Chief
Financial Officer.
APDN in Textiles:
One of the key highlights of the year for APDN was our launch into the
world of textiles. In addition to marking fabrics with our SigNature DNA,
we authenticate natural fibers by genotyping, analyzing the unique DNA
content found naturally in these goods. Our newly launched services for
textiles include:
-- Cotton authentication by FiberTyping™ and PimaTyping™. With
FiberTyping, retailers or brand owners can verify that the garment that is
labeled as Pima cotton does, in fact, contain Pima cotton. This test can be
used to establish cotton provenance throughout the logistic chain and can
be effectively used in commerce to ensure both fabric quality and brand
integrity. Management believes this assay will have utility for governments
wishing to enforce cotton trade agreements.
-- SigNature DNA marks to authenticate textiles at all points of the
logistic chain. We expanded our collaborations to include Yorkshire
Forward, the Textile Centre of Excellence and its consortium of companies
throughout the Yorkshire region in the UK.
Dr. Benjamin Liang, Chief Technology Officer, commented, "Our FiberTyping
test, which was developed to help the cotton industry, is ready for
commercial use. We believe that the experience we bring to cotton will also
be of great value to the wool industry. We are looking forward to our
business collaborations with Supima and the Yorkshire companies in marking
and authenticating textile and apparel in the new year."
"We are grateful for the strong support of our customers, strategic
partners, employees and investors this year. We have made significant
progress toward our goals and we believe our vision and strategy will take
us there," continued Dr. Hayward.
About APDN
Applied DNA Sciences markets and sells DNA encrypted and embedded solutions
that are forensically authenticated by machine readable devices. These
solutions can be easily integrated with a range of inks, threads,
varnishes, adhesives as well as thermal ribbon, inkjet and laser ink.
Applied DNA Sciences' products can help protect the brands and intellectual
property that can easily be eroded by counterfeiting, product diversion and
fraud.
The statements made by APDN may be forward-looking in nature and are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements describe APDN's future
plans, projections, strategies and expectations, and are based on
assumptions and involve a number of risks and uncertainties, many of which
are beyond the control of APDN. Actual results could differ materially from
those projected due to our short operating history, limited financial
resources, limited market acceptance, market competition and various other
factors detailed from time to time in APDN's SEC reports and filings,
including our Annual Report on Form 10-K, filed on January 15, 2008 and our
subsequent quarterly reports on Form 10-Q. APDN undertakes no obligation to
update publicly any forward-looking statements to reflect new information,
events or circumstances after the date hereof to reflect the occurrence of
unanticipated events.
Contact Information: INVESTOR CONTACT: Debbie Bailey 631-444-8090 fax: 631-444-8848 MEDIA CONTACT: Deanne Eagle 212-554-5436 FCMN Contact: Web site: http://www.ADNAS.com