CANTON, Mass., Dec. 29 /PRNewswire-FirstCall/ -- Avitar, Inc.
(OTC:AVTI) (BULLETIN BOARD: AVTI) has released its financial
results for the three and twelve months ended September 30, 2006.
For the year ended September 30, 2006, Avitar reported revenues of
$4,925,000 from continuing operations, compared with $4,509,000
from continuing operations for the year ended September 30, 2005.
The net loss was $3,703,000, or $0.80 a share, for the year ended
September 30, 2006, compared with a net loss of $2,433,000, or
$1.53 a share for the year ended September 30, 2005. The change in
net loss for Fiscal 2006 reflects increased interest and financing
costs of $1,308,000 related to financings completed in Fiscal 2005
and Fiscal 2006, a reduction in non-cash income of $741,000
resulting from changes in fair market value of derivative
securities and warrants, an increase in cost of sales of $321,000
associated with higher revenue and an increase in goodwill
impairment of $38,000 for the BJR Security Acquisition; offset in
part by growth in revenue of $416,000, income of $120,000 from
disposal of a discontinued operation, and reductions in other
operating expenses of $602,000. Revenues from continuing operations
for the fourth quarter of fiscal 2006 were $1,412,000 compared with
$1,285,000 from continuing operations in the prior year's fourth
fiscal quarter ended September 30, 2005. The net loss was $447,000,
or $0.07 per share, for the quarter ended September 30, 2006
compared with a net loss of $345,000, or $0.11 per share, for the
quarter ended September 30, 2005. The net loss for the quarter
ended September 30, 2006 reflected increases in interest and
financing costs of $208,000, a reduction in non-cash income of
$75,000 resulting from changes in fair market value of derivative
securities and warrants, an increase in goodwill impairment of
$38,000 for the BJR Security Acquisition from the quarter ended
September 30, 2005; offset by increases in revenue of $127,000 and
decreases in operating expenses of $91,000. Peter P. Phildius,
Chairman and CEO of Avitar said, "We believe that Avitar's rapid,
oral fluid drug testing technology is making inroads towards
helping to control the tremendous problem our country is
experiencing with drug users on the payroll. This problem, which is
estimated to cost U.S. industry $140 billion per year, also creates
other significant workplace issues." Mr. Phildius continued, "We
believe our product is far superior to any other similar products
on the market. Avitar's rapid, oral fluid drug testing technology
addresses workplace drug use while providing significant economic
value to our customers, many of whom include industry leaders in
areas such as manufacturing, retail and hospitality. Our plans for
Fiscal 2007 include placing more resources into our sales and
marketing efforts. We believe that Avitar's superior products,
combined with our ramp-up in sales and marketing efforts, will help
to accelerate the adoption of our unique technology in addressing
the significant problem of drug users on the payroll, and result in
continued revenue increases." ABOUT AVITAR Avitar, Inc. develops,
manufactures and markets innovative and proprietary products in the
oral fluid diagnostic market, disease and clinical testing market,
and customized polyurethane applications used in the wound dressing
industry. Oral fluid diagnostics includes the estimated $1.5
billion drugs-of- abuse testing market, which encompasses the
corporate workplace and criminal justice markets. Avitar's products
include ORALscreen(R), the world's first non-invasive, rapid,
onsite oral fluid test for drugs-of-abuse. Additionally, Avitar
manufactures and markets HYDRASORB(R), an absorbent topical
dressing for moderate to heavy exudating wounds. In the estimated
$25 billion in vitro diagnostics market, Avitar is developing
diagnostic strategies for disease and clinical testing. Some
examples include influenza, diabetes and pregnancy. For more
information, see Avitar's website at http://www.avitarinc.com/.
Forward Looking Statements This release contains forward looking
statements that are subject to risks and uncertainties including
the development and marketing of new applications and other risks
that are detailed from time to time in the Company's filings with
the Securities and Exchange Commission. In view of such risks and
uncertainties, the Company's actual results could differ materially
from those anticipated in such forward looking statements. Contact:
Jay C. Leatherman The Investor Relations Group Avitar Inc.
Investors: 781-821-2440 Erika Moran/Tom Caden, 212-825-3210
http://www.avitarinc.com/ Media: Bill Douglass, 212-825-3210
Avitar, Inc. Summary of Financial Results (in thousands, except per
share amounts) Quarter Year Ended September 30, Ended September 30,
2006 2005 2006 2005 Sales $1,412 $1,285 $4,925 $4,509 Operating
Expenses: Cost of Sales 973 842 3,504 3,183 Selling, General and
Administrative 951 1,156 3,956 4,329 Research and Development 145
163 494 724 Goodwill Impairment 138 100 138 100 Total Operating
Expenses 2,207 2,261 8,092 8,336 Operating Loss (795) (976) (3,167)
(3,827) Other Income (Expenses) 348 631 (656) 1,394 Loss from
Continuing Operations (447) (345) (3,823) (2,433) Discontinued
Operations: Income from the Disposal of USDTL - - 120 - Income from
Discontinued Operations - - 120 - Net Loss $(447) $(345) $(3,703)
$(2,433) Basic and Diluted Loss Per Share From Continuing
Operations $(0.07) $(0.11) $(0.82) $(1.53) Basic and Diluted Net
Loss Per Share $(0.07) $(0.11) $(0.80) $(1.53) Weighted Average
Number of Shares and Common Equivalent Shares Outstanding 6,482,942
3,601,570 4,850,608 3,115,574 Selected Balance Sheet Items -
9/30/06: Cash $281 Total Assets 2,346 Total Liabilities 7,314
Redeemable Convertible Preferred Stock 3,216 Shareholders Deficit
(8,184) DATASOURCE: Avitar, Inc. CONTACT: Jay C. Leatherman of
Avitar, Inc., +1-781-821-2440, or ; or Investors, Erika Moran, , or
Tom Caden, , both, +1-212-825-3210, or Media, Bill Douglass,
+1-212-825-3210, or , all of The Investor Relations Group Web site:
http://www.avitarinc.com/
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