Press Releases
Leonard Osser, CEO and Chairman
Milestone Scientific, Inc.
(973)535-2717:(973)535-2829 Fax
www.milesci.com
MILESTONE SCIENTIFIC ANNOUNCES SECOND QUARTER OPERATING RESULTS
August 14, 2006
LIVINGSTON, New Jersey (AUGUST 14, 2006) -- Milestone Scientific Inc. (AMEX: MSS), which develops, manufactures, and markets “intelligent” computer controlled local anesthetic delivery systems, today announced its operating results for the second quarter and first half of 2006.
For the three months ended June 30, 2006, net product sales decreased 2% to $1,425,821, compared with net product sales of $1,456,731 in the second quarter of 2005. Royalty income from the Ionic White™ consumer tooth whitening system totaled $49,473, or 3% of total revenues, in the most recent quarter, compared with $219,210 (13% of revenues) in the year-earlier quarter. Gross profit decreased to $781,533 in the most recent quarter, versus $1,111,032 in the second quarter of 2005. Net loss for the quarter increased to ($954,015), or ($0.08) per share, compared with a net loss of ($789,790), or ($0.07) per share, in the three months ended June 30, 2006.
Selling, general and administrative expenses for the three months ended June 30, 2006 and 2005 were $1,369,497 and $1,854,562, respectively. The $485,065 decrease reflects reductions in salaries, fees and travel expenses.
Research and development expenses for the three months ended June 30, 2006 and 2005 were $390,741 and $69,844, respectively. These increased costs are primarily associated with the accelerated development of the company’s Single Tooth Anesthetic (STA) delivery system and CompuFlo™ technology.
Revenues for the six months ended June 30, 2006, increased 1% to $3,173,050, compared with $3,133,844 in the corresponding period of the previous year. Product sales rose 3% to $2,986,740, compared with $2,914,634 in the first half of 2005. During the six months ended June 30, 2006, the Company recorded $186,310 in royalties from sales of Ionic White, compared with $219,210 in the year-earlier period. The Company reported a net loss of ($1,639,594), or ($0.14) per share, in the first six months of 2006, compared with a net loss of ($1,668,733), or ($0.16) per share, in the six months ended June 30, 2005.
Due to a planned curtailment of the CompuDent sales program in order to focus on the development of the Company’s single tooth anesthetic delivery system (to be introduced in the first quarter of 2007), domestic sales of CompuDent systems declined 39% in the second quarter and 36% in the first half of 2006, when compared with the prior-year periods. On the other hand, second quarter domestic handpiece sales increased 15%, while international handpiece sales increased 92%. Worldwide handpiece sales increased 17% in the six months ended June 30, 2006 over the same period in 2005.
As of June 30, 2006, Milestone’s cash and cash equivalents approximated $2.0 million, and its working capital approximated $3.8 million.
“The decline in sales and profitability during the second quarter reflects the Company’s current focus on readying its new products for commercialization,” stated Leonard Osser, Chief Executive Officer of Milestone Scientific Inc. “Shortly after the end of our second quarter, Milestone received 510(k) Premarket Notification acceptance from the FDA for the marketing and sale of our CompuFlo™ Computer Controlled Infusion Pump. This represents a very important accomplishment in the commercialization process for CompuFlo, which we believe can deliver anesthesia and medicines more safely and effectively than current procedures in a large number of medical and dental applications. Our goal is to enter into strategic marketing relationships with one or more industry-leading companies during the second half of 2006.”
“We also are finalizing the development of our Single Tooth Anesthesia (STA) delivery system, which incorporates our CompuFlo technology and has the potential to greatly expand the market appeal of our dental product line.” continued Osser. “By allowing dentists to achieve total tooth anesthesia with a predictable single-tooth injection, the STA can enhance patient comfort, while eliminating collateral numbness and other unpleasant side effects of currently used injection techniques. By integrating our CompuFlo pressure feedback technology into the CompuDent platform, we have essentially ‘repositioned’ CompuDent as our new STA system – an anesthetic delivery system that is not technique-dependent in its administration. We have targeted the first quarter of 2007 for commercial launch of this new STA system.”
“While we are disappointed to report continued losses during this period of transition, management has implemented a cost-control program in order to allocate corporate and financial resources in the most efficient manner. Although this strategy has negatively impacted sales of our current products, we are confident that our new products and technologies will address expanded market opportunities,” concluded Osser.
The Company will host a conference call on Monday, August 14, 2006 at 4:30 p.m. EDT to discuss its second quarter operating results. The dial-in number for the conference call is 888-889-5345 (international/local participants dial 973-935-8516) and referencing the Access Code 7734099. Parties interested in participating in the conference call should dial in approximately five minutes before 4:30 p.m. EDT. A replay of the call will be available from two hours after the conclusion of the conference call until August 21, 2006 by dialing 877-519-4471 (international/local callers dial 973-341-3080) and entering the Access Code 7734099.
Milestone Scientific Inc. is the developer, manufacturer and marketer of CompuMed® and CompuDent® computer controlled local anesthetic delivery systems. These systems comprise a microprocessor controlled drive unit as well as The Wand® handpiece, a single patient use product that is held in a pen-like manner for injections. The Company also sells the SafetyWand®, which incorporates engineered sharps injury protection features to aid in the prevention of accidental needlesticks. Milestone has also developed proprietary consumer (Ionic White) and professional (CoolBlue) teeth whitening systems that were introduced to the market in early 2005.
Milestone has also received broad United States patent protection on CompuFlo™, an enabling technology for computer controlled, pressure sensitive infusion, perfusion, suffusion and aspiration that provides real time displays of pressures, fluid densities and flow rates. CompuFlo advances the delivery to and/or removal from patients of local anesthesia, medications and other fluids, and the Company is pursuing market opportunities in a variety of medical and dental applications.
The Company is headquartered in Livingston, New Jersey, and its common stock trades on the American Stock Exchange under the symbol “MSS”.