SEC Filings
Leonard Osser, Chairman and CEO
Stuart J. Wildhorn – President
Milestone Scientific Inc.
(973) 535-2717; (973) 535-2829 (Fax)
Web site: www.milesci.com
MILESTONE SCIENTIFIC, INC. ANNOUNCES YEAR END RESULTS, INCLUDING 20% REVENUE INCREASE AND IMPROVED FINANCIAL POSITION
April 1, 2005
LIVINGSTON, New Jersey, April 1, 2005 -- Milestone Scientific Inc. (AMEX: MS), a developer, manufacturer and marketer of computer controlled local anesthetic delivery systems for medical and dental markets, today announced that 2004 net sales increased 20% to $4,751,186, compared with $3,971,707 in 2003.
This increase was primarily driven by a 25% expansion in domestic sales of CompuDent® systems and a 21% increase in worldwide sales of The Wand® handpieces. Gross profit remained strong at approximately 49% of sales despite some bundled pricing initiatives that were offered to customers towards the end of the year at lower margins. Net loss for the year ended December 31, 2004 increased to ($2,996,864), or $(0.33) per share, compared with a 2003 net loss of ($2,412,908), or $(0.52) per share. Working capital increased to $3,866,838 as of December 31, 2004, from $(2,921,737) at the end of 2003, as a result of a public offering of common stock and the issuance of equity securities in satisfaction of short-term debt, trade payables and accrued compensation in the first quarter of 2004.
“Our revenue growth in 2004, fueled by a fourth quarter sales increase of 56% over the comparable period in 2003, reflects the initial success of our expanded domestic sales force and heightened marketing activities,” commented Leonard Osser, Chairman and Chief Executive Officer of Milestone Scientific Inc. “These increased sales generated a gross margin of more than 60% in the fourth quarter. However, our net loss increased in 2004 as we incurred greater sales and marketing expenses in order to lay the groundwork for higher levels of future sales activity. It is our belief that 2005 and future years will benefit from the expenses incurred during 2004.”
“Since the end of the year, we have announced the very successful initial launch of our Ionic White™ enhanced technology consumer tooth whitening system through an infomercial program that our marketing partner aired regionally in 23 television markets throughout the U.S. We received an initial order for 500,000 Ionic White starter kits in March, and the infomercial program is scheduled to roll out nationwide in the second quarter.”
“When the Ionic White launch is combined with an improving sales outlook for our computer controlled dental injection products and our ongoing efforts to commercialize new products, including our CompuFlo™ technology for safely administering injections of local anesthetics and other medications, the outlook for 2005 is exciting to us,” continued Osser. “In order to assure adequate capital to pursue these various strategic initiatives in the most effective manner, we recently announced a $3 million private placement of common stock units (including warrants). Once all funds from this capital raise have been received, Milestone’s cash position should exceed $4.7 million.”
Milestone also announced that filing of its Annual Report on form 10-KSB for the year ended December 31, 2004 would be delayed a few days to allow subsequent event disclosure to be made of its previously announced $3.0 million private placement to institutional investors.
Milestone Scientific is the developer, manufacturer and marketer of CompuMed® and CompuDent® computer controlled local anesthetic delivery systems for medical and dental applications. These systems are comprised of a microprocessor controlled drive unit and single patient use disposable handpieces. The Company recently announced its entry into the tooth whitening market through a third party mass-marketing organization. The consumer product is being marketed under the distributor’s trademark Ionic WhiteÔ and Stay White™. Milestone has also developed and patented its CompuFlo™ technology, which advances the delivery and removal of a wide array of fluids from the human body by providing real time displays of pressures, fluid densities and flow rates. In 2002, Milestone Scientific received United States patent protection on a safety engineered sharps technology that allows for fully automated true single-handed activation with needle anti-deflection and force-reduction capability. In 2003, Milestone received FDA Clearance to market SafetyWand®, which incorporates engineered sharps injury protection features to aid in the prevention of accidental needlesticks.
The Company is headquartered in Livingston, New Jersey, and its common stock trades on the American Stock Exchange under the symbol “MS”. For additional information, please visit the Company’s website at www.milesci.com.