Welcome!

News Feed Item

Milestone Scientific Announces Financial Results for the Second Quarter of 2014

Revenue Increases 10.0% to $2.5 Million; Domestic Handpiece Sales Increase 22.0%; International Handpiece Sales Increase 20.1%; Domestic Sales Increase 9.3%; International Sales Increase 10.7%; Shareholders' Equity Increases to $15.3 Million

LIVINGSTON, NJ--(Marketwired - August 14, 2014) - Milestone Scientific Inc. (OTCQB: MLSS), a medical R&D company that designs, patents, incubates and commercializes a growing portfolio of innovative injection technologies, today announced financial results and provided a business update for the three and six months ended June 30, 2014.

Leonard Osser, Chief Executive Officer of Milestone Scientific stated, "We are making progress advancing our epidural and intra-articular instruments through the regulatory process. We have developed a broad platform of computer-controlled injection technologies serving a wide array of medical applications and we look forward to announcing additional medical instruments later this year."

"We are also adding strategic resources that we believe will help us advance both our dental and medical instruments. We recently announced the appointment of Gian Domenico Trombetta as Chief Executive Officer of the dental division. He has an impressive track record leading high growth companies across a broad range of industries. We also announced the appointment as Marketing Consultant of Steven Robins, who has overseen the marketing and operations for billion dollar divisions of Fortune 500 healthcare and consumer product companies. Both executives bring valuable industry contracts and expertise."

Mr. Osser continued, "Total revenue for the second quarter of 2014 increased 10.0% to $2.5 million. We achieved a 22.0% increase in domestic handpiece sales and a 20.1% increase in international handpiece sales. This growth in domestic handpieces is due in part to the greater transparency we have with our customers, through our exclusive distributor Aseptico. We are able to establish direct relationships with the dentists and train them properly so they can utilize a greater number of handpieces per year."

"During the second quarter, we announced a $10 million financing which enables us to accelerate the development of additional medical instruments based on our patented CompuFlo and Dynamic Pressure Sensing technologies. Future medical applications of our technologies which will benefit from this investment could include colorectal surgery, podiatry, dermatology, orthopedics, nasal and sinus surgery, and cosmetic surgery, among others. The financing also allows us to more aggressively market and sell our dental instruments and handpieces in the United States and worldwide. As a result of this financing, we now have over $15 million of shareholders' equity. Given the strength of our balance sheet and continued positive cash flow from operations, we believe we are well positioned in the months and years ahead."

Revenue for the three months ended June 30, 2014 was $2.5 million versus $2.3 million for the second quarter of 2013. Domestic instrument sales decreased by $33,376 or 8.7% in the second quarter of 2014 versus the same period in 2013 due to lower distributor purchase prices for the STA instruments for a limited time period. The strategy is to facilitate the deployment of the STA instruments at a faster pace, thus generating recurring handpiece revenue. Domestic handpiece sales increased by $146,527, or 22.0% in 2014 over 2013. On the international front, instrument sales decreased by $34,677 or 9.4% in the second quarter of 2014 versus the same period in 2013. International handpiece sales increased by $162,758 or 20.1% in the second quarter of 2014 versus 2013. Gross profit for the second quarter of 2014 was $1.6 million or 63.6% of revenue versus $1.5 million or 67.3% of revenue for the second quarter of 2013. The decrease in gross margin reflected the lower pricing strategy on the instruments to drive handpiece sales. Operating income for the second quarter of 2014 was $47,507 versus an income of $151,113 for the second quarter of 2013. Net loss for the second quarter of 2014 was ($169,457), or $(0.01) per share, versus an income of $74,009 or $0.00 per share for the comparable period in 2013. Net loss for the second quarter of 2014 includes a Loss on Earnings from Medical Joint Venture of ($213,193) compared to ($47,093) for the three months ended June 30, 2013. Also, the June 30, 2013 net income included the positive impact of the reversal of the bad debt reserve for uncollectable accounts in 2013 that did not occur in 2014.

Revenue for the six months ended June 30, 2014 was $5.1 million versus $4.8 million for the six months ended June 30, 2013. In the domestic market, total revenue was approximately equal in both periods. On the international front, total revenue increased by $345,924 to $2.7 million versus $2.4 million for the same period in 2013. Gross profit for the six months ended June 30, 2014 was $3.3 million or 65.0% of revenue versus $3.2 million or 67.4% of revenue for the six months ended June 30, 2013. Operating income for the six months ended June 30, 2014 was $376,753 versus an income of $318,874 for the six months ended June 30, 2013. Net income for the six months ended June 30, 2014 was $25,377, or $0.00 per share, versus an income of $224,754, or $0.01 per share, for the comparable period in 2013. Net income for the six months ended June 30, 2014 includes a Loss on Earnings from Medical Joint Venture of ($343,716) compared to ($47,093) for the same period last year.

Milestone's executive management team will host a teleconference on Thursday, August 14, 2014 at 8:30 A.M. Eastern Time to discuss the company's financial results. 

The conference call will be available via telephone by dialing toll free 1-888-359-3627 and entering the pass code 8220117 or on the company's website at www.milestonescientific.com. For those unable to participate at that time, a replay of the call will be archived on the company's website or can be accessed by dialing 1-888-203-1112 and entering the pass code 8220117. The replay will be available for 90 days.

About Milestone Scientific Inc.

Milestone Scientific Inc. (MLSS) is a leading medical research and development company that designs and patents innovative injection technology. Milestone's computer-controlled systems make injections precise, efficient, and virtually painless. For more information please visit our website: www.milestonescientific.com.

Safe Harbor Statement
This press release contains forward-looking statements regarding the timing and financial impact of 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, 2013. 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.

(tables follow)

                                                                            
                         MILESTONE SCIENTIFIC INC.                          
                     CONDENSED STATEMENTS OF OPERATIONS                     
                                (Unaudited)                                 
                                                                            
                          Three Months Ended June    Six Months Ended June  
                                    30,                       30,           
                         ------------------------  ------------------------ 
                             2014         2013         2014         2013    
                         -----------  -----------  -----------  ----------- 
                                                                            
Product sales            $ 2,506,932  $ 2,278,235  $ 5,127,766  $ 4,767,778 
Cost of products sold        912,406      744,108    1,795,403    1,556,152 
                         -----------  -----------  -----------  ----------- 
  Gross profit             1,594,526    1,534,127    3,332,363    3,211,626 
                         -----------  -----------  -----------  ----------- 
                                                                            
Selling, general and                                                        
 administrative expenses   1,517,854    1,340,129    2,910,724    2,728,031 
Research and development                                                    
 expenses                     29,165       42,885       44,885      164,722 
                         -----------  -----------  -----------  ----------- 
Total operating expenses   1,547,019    1,383,014    2,955,609    2,892,752 
                         -----------  -----------  -----------  ----------- 
Income from operations        47,507      151,113      376,754      318,874 
Other income (expenses)                                                     
  Other income                     -            -            -       17,543 
  Interest income                                                           
   (expense)                     635      (30,011)         161      (64,569)
  Loss from Medical                                                         
   Joint Venture            (213,193)     (47,093)    (343,716)     (47,093)
  Loss from Education                                                       
   Joint Venture              (4,406)           -       (7,822)           - 
                         -----------  -----------  -----------  ----------- 
    Total other                                                             
     expenses, net          (216,964)     (77,104)    (351,377)     (94,119)
                         -----------  -----------  ===========  =========== 
Net (loss) income                                                           
 applicable to common                                                       
 stockholders            $  (169,457) $    74,009  $    25,377  $   224,754 
                         ===========  ===========  ===========  =========== 
                                                                            
Net (loss) income per                                                       
 share applicable to                                                        
 common stockholders -                                                      
  Basic                  $     (0.01) $      0.00  $      0.00  $      0.01 
                         ===========  ===========  ===========  =========== 
  Diluted                $     (0.01) $      0.00  $      0.00  $      0.01 
                         ===========  ===========  ===========  =========== 
Weighted average shares                                                     
 outstanding and to be                                                      
 issued -                                                                   
  Basic                   20,246,281   16,744,951   19,196,919   16,765,602 
                         ===========  ===========  ===========  =========== 
  Diluted                 20,246,281   17,056,219   22,206,942   17,124,936 
                         ===========  ===========  ===========  =========== 
                                                                            
                                                                            
                          MILESTONE SCIENTIFIC INC.                         
                          CONDENSED BALANCE SHEETS                          
                                                                            
                                                   June 30,    December 31, 
                                                     2014          2013     
                                                  (Unaudited)               
                                                 ------------  ------------ 
                     ASSETS                                                 
Current Assets:                                                             
  Cash and cash equivalents                      $  1,121,721  $  1,147,198 
  Treasury Bills                                    9,498,498             - 
  Accounts receivable, net of allowance for                                 
   doubtful accounts of $5,000 as of June 30,                               
   2014 and $5,000 as of December 31, 2013          1,443,386     1,532,856 
  Inventories                                       1,964,390     1,321,652 
  Advances on contracts                             1,454,807       727,478 
  Prepaid expenses and other current assets           161,560       150,451 
                                                 ------------  ------------ 
    Total current assets                           15,644,362     4,879,635 
Advances on contracts                                 218,875     1,580,874 
Investment in Milestone Medical Inc                   760,750       924,115 
Investment in Milestone Education LLC                  34,261        42,082 
Furniture, Fixtures & Equipment net of                                      
 accumulated depreciation of $454,818 as of June                            
 30, 2014 and $476,884 as of December 31, 2013         38,153        23,988 
Patents, net of accumulated amortization of                                 
 $537,687 as of June 30, 2014 and $498,502 as of                            
 December 31, 2013                                    552,550       591,735 
Other assets                                           12,917        12,917 
                                                 ------------  ------------ 
      Total assets                               $ 17,261,868  $  8,055,346 
                                                 ============  ============ 
                                                                            
      LIABILITIES AND STOCKHOLDERS' EQUITY                                  
Current Liabilities:                                                        
  Accounts payable                               $    983,972  $  2,020,368 
  Customer advances                                   209,000             - 
  Accrued expenses and other payables                 754,538       515,133 
                                                 ------------  ------------ 
    Total current liabilities                       1,947,510     2,535,501 
                                                 ------------  ------------ 
                                                                            
Commitments and Contingencies                                               
                                                                            
Stockholders' Equity                                                        
  Series A Convertible Preferred Stock, par                                 
   value $.001, authorized 5,000,000 shares,                                
   7,000 and zero shares issued and outstanding,                            
   respectively                                  $          7  $          - 
  Common stock, par value $.001; authorized                                 
   50,000,000 shares; 21,074,786 shares issued                              
   875,322 shares to be issued and 21,041,453                               
   shares outstanding as of June 30, 2014;                                  
   17,759,540 shares issued, 1,839,930 shares to                            
   be issued, and 17,726,207 shares outstanding                             
   as of December 31, 2013                             21,949        19,599 
  Additional paid-in capital                       76,443,979    66,677,200 
  Accumulated deficit                             (60,240,061)  (60,265,438)
  Treasury stock, at cost, 33,333 shares             (911,516)     (911,516)
                                                 ------------  ------------ 
    Total stockholders' equity                     15,314,358     5,519,845 
                                                 ------------  ------------ 
      Total liabilities and stockholders' equity $ 17,261,868  $  8,055,346 
                                                 ============  ============ 
                                                                            

Contact:
David Waldman or Natalya Rudman
Crescendo Communications, LLC
Email: [email protected]
Tel: 212-671-1020

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Is it possible to migrate 100% of your data ecosystem to the cloud? Join Joe Caserta as he takes you on a complete journey to digital transformation mapping out on-prem data footprint and walking it to the cloud. Joe will also explain how the modern ecosystem supports Artificial Intelligence and will include business use cases to back each of his insights.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of ...
The now mainstream platform changes stemming from the first Internet boom brought many changes but didn’t really change the basic relationship between servers and the applications running on them. In fact, that was sort of the point. In his session at 18th Cloud Expo, Gordon Haff, senior cloud strategy marketing and evangelism manager at Red Hat, will discuss how today’s workloads require a new model and a new platform for development and execution. The platform must handle a wide range of rec...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Enterprises are universally struggling to understand where the new tools and methodologies of DevOps fit into their organizations, and are universally making the same mistakes. These mistakes are not unavoidable, and in fact, avoiding them gifts an organization with sustained competitive advantage, just like it did for Japanese Manufacturing Post WWII.