SAN MARCOS, Calif., May 15, 2009 (GLOBE NEWSWIRE) -- Amistar Corporation (Pink Sheets:AMTA) today reported sales and net income for the three months ended March 31, 2009.
Net sales for the first quarter of 2009 decreased $318,000, or 91%, to $31,000, compared to $349,000 for the comparable quarter in 2008. The decrease in net sales for the first quarter of 2009, compared to the same period in 2008 was due primarily to lower selling prices on products sold to the Company's exclusive distributor beginning in March 2008, as part of its plan of restructuring. The Company recorded revenue of $1,000 from earn-out on two pharmacy kiosk units during the first quarter of 2009, compared to earn-out of $3,000 on six units in the comparable period in 2008.
Net loss for the first quarter of 2009 was $11,000 or $0.00 per share compared to net income of $231,000 or $0.07 per share for the comparable quarter in 2008. Net income was lower in the first quarter of 2009, compared to the same period in 2008, due primarily to a one-time recognition of deferred gain on sale of property recorded in the first quarter of 2008.
As announced in its press release on February 5, 2008, the Company committed to a plan of restructuring that involved a sale of substantially all its operating assets and the execution of an agreement to sell its remaining inventory through a distributor. The Company has been executing this plan and as of December 31, 2008, completed its restructuring, including having fulfilled all its outstanding sales contracts, made headcount reductions, secured continuing support for its existing customers, sold tangible operating assets and satisfied its obligations to suppliers and employees other than those related to lease abandonment costs and to ongoing operations.
Unaudited Condensed Consolidated Statements of Income
(In thousands)
Three Months Ended
March 31,
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2009 2008
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Net sales $ 31 $ 349
Cost of sales 19 373
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Gross profit (loss) 12 (24)
Operating expenses 23 903
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Operating loss (11) (927)
Other income -- 1,159
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Income (loss) before income taxes (11) 232
Income taxes -- 1
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Net income (loss) $ (11) $ 231
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Income (loss) per share $ (0.00) $ 0.07
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Shares used in per share calculation-
basic and diluted 3,308 3,308
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Unaudited Condensed Balance Sheets
(In thousands)
March 31, December 31,
2009 2008
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Cash $ 26 $ 10
Accounts receivable from Distributor 20 26
Inventory, net of reserves 407 437
Other assets 11 6
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Total assets $ 464 $ 479
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Accounts payable $ 3 $ 5
Accrued lease abandonment costs 192 186
Other current liabilities 1 9
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Current liabilities 196 200
Common stock 33 33
Additional paid in capital 5,185 5,185
Retained deficit (4,950) (4,939)
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Stockholders equity 268 279
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Total liabilities and equity $ 464 $ 479
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The Company expects to make distributions to shareholders from time to time as it is able to accumulate cash from operations.
Financial Statement Information
This report contains condensed financial statements that have not been audited or reviewed by an auditor and are subject to change.
Forward Looking Statements
This report contains forward-looking statements within the meaning of the Private Securities Reform Act of 1995, including statements regarding market opportunities, customer acceptance of products, sales growth, gross margin, and distributions to shareholders. These forward-looking statements involve risks and uncertainties, and the cautionary statements set forth below identify important factors that could cause actual results to differ materially from those in any such forward-looking statements. Such factors include, but are not limited to, adverse changes in general economic conditions, including changes in the specific markets for the Company's products, decreased or lack of growth in the electronics industry, adverse changes in end customer order patterns, increased competition, pricing pressures, fluctuations in the price of the Company's stock, ability of the Company, its distributer AAI or the purchaser of the Company's previously owned pharmacy kiosk business unit to be financially viable or continue as a going concern for the long term.
Resignation of Vice President Finance, Treasurer, CFO, Secretary and Director
As of the date of this press release, Mr. Gregory Leiser, who has served the company for over fourteen years including the past year on a part-time basis, and having completed the wind-down of operations to its current level, has resigned his position as an officer and Director of the Company. Mr. Leiser will focus his efforts on his role as vice-president finance of another company and will continue to assist Amistar in a non-officer role on a part-time basis as needed. The Company is seeking a replacement for the vacant positions.
About the Company
The Company has developed, manufactured, distributed and marketed assembly machinery primarily for the electronics industries, and provided engineering design and manufacturing services to customers seeking enhanced factory automation for a variety of industries. As of March 3, 2008, the Company provides machinery, accessories and spare parts through its exclusive distributor Amistar Automation, Inc. In addition, the Company receives earn-out payments based on sales of a pharmacy kiosk originally developed by the Company and later sold along with a business unit during 2008.
Additional information about Amistar including its financial statements for the year ending December 31, 2008 is available at www.amistar.com. In order to reduce its costs of printing and mailing, the Company will furnish annual reports to its shareholders by posting them on its website. A shareholder may receive a written copy by written or e-mail request.