PISCATAWAY, N.J., Aug. 10 /PRNewswire-FirstCall/ -- Milestone Scientific Inc. (BULLETIN BOARD: MLSS) , the recognized leader in advanced injection technologies, today announced its second quarter financial results for the three and six months ended June 30, 2009.
Financial Highlights When Comparing Three Months Ended June 30, 2009 with Three Months Ended June 30, 2008:
-- Total revenues rose to $2.04 million, up 32% from $1.55 million. -- Total instrument sales increased 533% to $816,000 from $129,000. -- Sales of disposable hand pieces declined 14% to $1.20 million from $1.39 million. -- Overall domestic sales improved 43%, rising to $1.41 million from $989,000. -- International sales increased 14% to $629,000 from $552,000. -- Total operating expenses were $1.79 million, up 28% from $1.40 million. -- Selling, general and administrative expenses increased 28% to $1.75 million from $1.37 million, which was largely attributable to higher expenses relating to Milestone's 2nd Annual C-CLAD Symposium held in May, attendance at trade shows and various global sales promotions the Company launched during the second quarter of 2009, as well as higher personnel and related costs, third party sales commissions and royalty expenses. This increase in SG&A expenses was offset by a reduction in accounting costs, proxy costs, warehousing fees and insurance costs. -- Research and development expenses remained relatively unchanged at $32,000 compared to $36,000. -- Loss from operations rose 36% to $611,000 from $448,000. -- Net loss totaled $657,000, or $0.05 loss per basic and diluted share, from $473,000, or $0.04 loss per basic and diluted share.
Financial Highlights When Comparing Six Months Ended June 30, 2009 with Six Months Ended June 30, 2008:
-- Total revenues increased 44% to $4.24 million from $2.95 million. -- Total instrument sales climbed 360% to $1.60 million from $348,000. -- Sales of disposable hand pieces totaled $2.60 million representing a 3% increase from $2.54 million. -- Total sales in the U.S. rose 53% to $2.89 million from $1.89 million. -- International sales were $1.35 million, a 30% increase from $1.04 million. -- Total operating expenses increased 23% to $3.58 million from $2.92 million due primarily to the aforementioned reasons. -- Loss from operations was $1.12 million compared to $1.03 million. -- Net loss increased 12% to $1.22 million, or $0.09 loss per basic and diluted share, from $1.09 million, or $0.09 loss per basic and diluted share.
As of June 30, 2009, Milestone had $1.30 million in cash and accounts receivables and total shareholders' equity of $544,000. During the first six months of this year, the Company has used $195,000 net cash in its operating activities, compared to $589,000 net cash used in its operating activities in the same six month period in 2008.
Leonard Osser, Chairman and Interim CEO of Milestone, stated, "The Company continues to see positive traction with sales of our STA Single Tooth Anesthetic System(TM) in both the domestic and international markets."
"Recently," continued Osser, "Milestone has taken important steps towards expanding our growing global distribution network. More specifically, in May we announced that we entered into an exclusive distribution and marketing agreement with China National Medicines Corporation, d/b/a Sinopharm, which is China's largest domestic manufacturer, distributor and marketer of pharmaceuticals and importer of medical devices and the country's largest domestic distributor of dental anesthetic carpules to the Chinese dental industry. As our relationship with Sinopharm evolves and strengthens, we look forward to working with our new Chinese partner to clearly distinguish Milestone's C-CLAD technologies as the new standard of care for dental injections by the growing body of progressive oral care professionals practicing Modern Dentistry in China. This represents a compelling long term growth opportunity for Milestone and one that we fully intend to optimize."
MILESTONE SCIENTIFIC INC. CONDENSED BALANCE SHEET June 30, December 31, 2009 2008 (Unaudited) ----------- ------------ ASSETS Current Assets: Cash and cash equivalents $498,576 $743,665 Accounts receivable, net of allowance for doubtful accounts of $5,000 in 2009 and 2008 797,620 925,742 Inventories 632,625 719,902 Advances to contract manufacturer 124,950 250,110 Prepaid expenses and other current assets 105,509 218,296 --------- --------- Total current assets 2,159,280 2,857,715 Advances to contract manufacturer 400,735 415,780 Investment in distributor, at cost 76,319 76,319 Furniture, Fixtures & Equipment net of accumulated depreciation of $373,570 as of June 30 ,2009 and $345,377 as of December 31, 2008 154,511 152,574 Patents, net of accumulated amortization of $172,449 as of June 30, 2009 and $135,406 as of December 31, 2008 908,571 901,045 Other assets 15,874 7,317 --------- --------- Total assets $3,715,290 $4,410,750 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $1,008,710 $829,130 Accrued expenses and other payable 461,108 495,897 Line of credit-net of discount of $36,152 1,263,848 - --------- --------- Total current liabilities 2,733,666 1,325,027 --------- --------- Long-term Liabilities: Line of credit-net of discount of $52,530 - 1,247,470 Notes Payable-net of discount of $12,555 and $11,927, respectively 437,445 438,073 --------- --------- Total long-term liabilities 437,445 1,685,543 --------- --------- Commitments and Contingencies Stockholders' Equity Common stock, par value $.001; authorized 50,000,000 shares; 13,117,574 shares issued 550,093 shares to be issued and 13,084,241 shares outstanding as of June 30, 2009; 12,695,685 shares issued, 504,639 shares to be issued, and 12,662,352 shares outstanding as of December 31, 2008 13,667 13,200 Additional paid-in capital 59,893,580 59,531,865 Accumulated deficit (58,451,552) (57,233,369) Treasury stock, at cost, 33,333 shares (911,516) (911,516) --------- --------- Total stockholders' equity 544,179 1,400,180 --------- --------- Total liabilities and stockholders' equity $3,715,290 $4,410,750 ========== ========== MILESTONE SCIENTIFIC INC. RESULTS OF OPERATIONS Three Months Six Months Ended June 30, Ended June 30, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- Products sales, net $2,036,902 $1,540,883 $4,241,721 $2,928,873 Royalty income - 9,007 - 23,170 ---------- ---------- ---------- ---------- Total revenue 2,036,902 1,549,890 4,241,721 2,952,043 ---------- ---------- ---------- ---------- Cost of products sold 862,741 594,437 1,779,291 1,058,361 ---------- ---------- ---------- ---------- Gross Profit 1,174,161 955,453 2,462,430 1,893,682 ---------- ---------- ---------- ---------- Selling, general and administrative expenses 1,753,237 1,367,807 3,482,052 2,839,784 Research and development expenses 32,347 36,000 99,969 84,319 ---------- ---------- ---------- ---------- Total operating expenses 1,785,584 1,403,807 3,582,021 2,924,103 ---------- ---------- ---------- ---------- Loss from operations (611,423) (448,354) (1,119,591) (1,030,421) Other income - interest & expense (45,119) (24,764) (98,592) (58,581) ---------- ---------- ---------- ---------- Net loss $(656,542) $(473,118) $(1,218,183) $(1,089,002) ========== ========== ========== ========== About Milestone Scientific Inc.
Headquartered in Piscataway, New Jersey, Milestone Scientific is engaged in pioneering proprietary, highly innovative technological solutions for the medical and dental markets. Central to the Company's IP platform and product development strategy is its patented CompuFlo technology for the improved and painless delivery of local anesthetic. Specifically, CompuFlo is a computer-controlled, pressure sensitive infusion, perfusion, suffusion and aspiration technology, which provides real-time readouts of pressures, fluid densities and flow rates, enabling the advanced delivery and removal of a wide array of fluids. The STA Single Tooth Anesthesia System(TM), a computer-controlled local anesthesia delivery system, uses this technology to provide dentists with audible and visual signals as to in-tissue pressure. Milestone's existing painless injection systems are currently sold in 25 countries. For more information on these and other innovative Milestone products, please visit the Company's web site found at http://www.milestonescientific.com/ and http://www.stais4u.com/.
Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of the Milestone's ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2008. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
FOR MORE INFORMATION, PLEASE CONTACT: Elite Financial Communications Group Dodi Handy, President and CEO (Twitter: dodihandy) For Media Inquiries: Kathy Addison, Director, Elite Media Group (Twitter: kathyaddison) 407-585-1080 or via email at mlss@efcg.net
Milestone Scientific Inc.
CONTACT: Kathy Addison, Director of Elite Media Group, +1-407-585-1080,
mlss@efcg.net, for Milestone Scientific Inc.
Web Site: http://www.milestonescientific.com/
