SEC Filings
Stuart J. Wildhorn - President
Milestone Scientific Inc.
(973) 535-2717; (973) 535-2829 (Fax)
Web site: www.milesci.com
FIRST QUARTER SALES INCREASE 33% AT MILESTONE SCIENTIFIC INC.
May 18, 2005
COMPUDENT® ORDERS RISE AS COMPANY ANTICIPATES CONTRIBUTION FROM NEW PRODUCTS DURING BALANCE OF YEAR
LIVINGSTON, New Jersey, May 18, 2005 -- Milestone Scientific Inc. (AMEX: MS), which develops, manufactures, and markets computer controlled local anesthetic delivery systems, today announced its operating results for the first quarter of 2005.
For the three months ended March 31, 2005, net sales increased 33% to $1,457,903 compared with net sales of $1,094,223 in the first quarter of 2004. Domestic sales of CompuDent systems rose 145% from the prior-year period, while international CompuDent sales increased 5%. The expansion in domestic unit sales reflects the growing success of Milestone’s investment in new sales and marketing initiatives during the past twelve months. Total sales of The Wand® disposable handpieces increased 28% during the most recent quarter, when compared with the prior-year period. Increased handpiece sales are generated from a growing installed base of CompuDent systems in service within the dental community and represent a recurring revenue stream for Milestone. The Company reported a net loss for the three months ended March 31, 2005 of ($878,943), or ($0.09) per share, compared with a net loss of ($518,793), or ($0.07) per share, in the year-earlier quarter. The increase in net loss was due to a 63% planned increase in selling, general and administrative expenses, primarily related to Milestone’s continued execution of a strategy to develop its domestic sales force and enhanced marketing efforts.
“Not only were our first quarter sales 33% higher than in the prior-year period, but they were 7% above reported sales for the fourth quarter of 2004,” observed Leonard Osser, Chairman and Chief Executive Officer of Milestone Scientific Inc. “This was particularly encouraging in light of the fact that our first quarter is typically a slow quarter from a seasonal perspective. A 145% year-over-year increase in domestic CompuDent sales in the most recent quarter provides clear evidence that our new sales and marketing initiatives are working, and we anticipate further gains in the second quarter.”
“The first quarter was highlighted by the launch of our Ionic White™ consumer tooth whitening product, and we have been very pleased with initial consumer response to infomercials that have been running in many television markets around the country,” continued Osser. “As previously announced, we received an initial order for 500,000 Ionic White starter kits from our marketing partner, which will generate approximately $500,000 of revenue and $400,000 of pretax income for the Company. No revenue from Ionic White was recognized in the first quarter and production delays will limit these revenues in the second quarter. Full scale production and shipments are now under way, however. Because of the earlier delays, we have negotiated an extension of the agreement with our infomercial marketing partner that moves the initial performance measuring period ahead by one quarter. In April, we introduced our new Cool Blue™ Tooth Whitening System for dental professionals at the International Dental Society (IDS) conference in Cologne, Germany, and I am pleased to report a high level of interest among prospective distributors. Meaningful revenues from the sale of Cool Blue™ systems, along with related continuity rinse kits, are expected to become evident in the second half of 2005.”
“We have recently seen a growing interest in our new SafetyWand product, which utilizes engineered sharps injury protection to aid in the reduction of inadvertent needlesticks and is designed to conform with OSHA regulations promulgated under the Federal Needlestick Safety Prevention Act of 2000. It appears that regulatory authorities in a number of states are stepping up their enforcement of the Act, and we are hopeful that this will benefit sales of both SafetyWands and CompuDent systems in the future.”
“Overall, we were pleased with first quarter operating results, which were consistent with management’s expectations, and I believe we are on track to achieve our goals of becoming cash flow positive and profitable during the course of the current year,” concluded Osser.
Selling, general and administrative expenses for the quarters ended March 31, 2005 and 2004 totaled $1,601,693 and $984,868, respectively. Sales headcount increased from 1 manager, 3 sales representatives and 8 independent contractors at March 31, 2004, to 3 sales managers, 22 inside sales representatives and 8 independent contractors as of March 31, 2005. Selling, marketing and advertising expenses including, related travel and tradeshows, increased by $100,824, or 223%, from the prior-year period.
Research and development expenses for the three months ended March 31, 2005 declined to $31,545, versus $41,211 in the first quarter of 2004. These costs are associated with the development of Milestone’s SafetyWand, CoolBlue and CompuFlo products.
As of March 31, 2005, Milestone’s cash and cash equivalents approximated $3.9 million, and its working capital approximated $5.8 million.
Milestone Scientific 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 (Cool Blue) teeth whitening systems that were introduced to the market in early 2005. In 2001, Milestone Scientific received broad United States patent protection on an enabling technology for computer controlled, pressure sensitive infusion, perfusion, suffusion and aspiration, which provides real time displays of pressures, fluid densities and flow rates, that advances the delivery and removal of a wide array of fluids. Development of this CompuFlo technology is currently underway. The Company is headquartered in Livingston, New Jersey, and its common stock trades on the American Stock Exchange under the symbol “MS”.