ABMC Reports Second Quarter 2012 Results

American Bio Medica Corporation (ABMC.PK) today announced financial results for the three and six months ended June 30, 2012.

Net sales for the second quarter of 2012 were $2,462,000, compared to $2,486,000 for the second quarter of 2011, representing a decrease of $24,000, or less than 1%. For the six months ended June 30, 2012, net sales were $4,758,000, compared to $4,533,000 for the six months ended June 30, 2011, representing an increase of $225,000, or 5.0%.

The Company reported an operating loss of $(30,000) in the second quarter of 2012, compared to operating income of $175,000 in the second quarter of 2011. Net loss for the second quarter of 2012 was $(77,000), or $(0.00) per share, compared to net income of $123,000, or $0.01 per share in the second quarter of 2011. Operating loss for the first six months of 2012 was $(199,000), compared to an operating loss of $(198,000) in the first six months of 2011. Net loss for the first half of 2012 was $(283,000), or $(0.01) per share, compared to a net loss of $(301,000), or $(0.01) per share in the first half of 2011.

ABMC Chief Executive Officer Stan Cipkowski stated, “We are achieving sales growth in certain markets but, as a US manufacturer, we continue to struggle to be cost-competitive in other markets. I remain confident that our investments in sales and marketing in the first quarter of 2012 and our investments in new product development will enable us to see more positive results later this year and into 2013.”

For more information on ABMC or its drug testing products, please visit www.abmc.com.

About American Bio Medica Corporation

American Bio Medica Corporation develops, manufactures and markets accurate, cost-effective immunoassay test kits, including some of the world’s most effective point of collection tests for drugs of abuse. The Company and its worldwide distribution network target the workplace, government, corrections, clinical and educational markets. ABMC’s Rapid Drug Screen®, Rapid ONE®, RDS® InCup®, Rapid TOX® and Rapid TOX Cup® II test for the presence or absence of drugs of abuse in urine, while OralStat® and Rapid STAT™ test for the presence or absence of drugs of abuse in oral fluids. ABMC’s Rapid Reader® is a compact, portable device that, when connected to any computer, interprets the results of an ABMC drug screen, and sends the results to a data management system, enabling the test administrator to easily manage their drug testing program.

This release may contain forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ, and such differences could be material. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to the following: continued acceptance of our products, increased levels of competition in our industry, acceptance of new products, product development, compliance with regulatory requirements, intellectual property rights, our dependence on key personnel, third party sales and suppliers, trading in our common shares may be subject to “penny stock” rules, our history of recurring net losses and our ability to continue as a going concern. There can be no assurance that the Company will be successful in addressing such risks and uncertainties and the Company assumes no duty to update any forward-looking statements based upon actual results. Investors are strongly encouraged to review the section entitled “Risk Factors” in the Company's annual report on Form 10-K for the year ended December 31, 2011, quarterly reports on Form 10-Q, and other periodic reports on file with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect operating results and the market price of the Company's common shares.

AMERICAN BIO MEDICA CORPORATION
Statements of Operations
(unaudited)
			For the three				For the three				For the six				For the six
			months ended				months ended				months ended				months ended
			June 30, 2012				June 30, 2011				June 30, 2012				June 30, 2011
Net sales		$	2,462,000			$	2,486,000			$	4,758,000			$	4,533,000
Cost of goods sold			1,420,000				1,335,000				2,753,000				2,620,000
Gross profit			1,042,000				1,151,000				2,005,000				1,913,000
Operating expenses:
Research and development			55,000				57,000				108,000				109,000
Selling and marketing			529,000				445,000				1050,000				902,000
General and administrative			488,000				474,000				1,046,000				1,100,000
Total operating expenses			1,072,000				976,000				2,204,000				2,111,000
Operating (loss) / income			(30,000	)			175,000				(199,000	)			(198,000	)
Other expense			(44,000	)			(51,000	)			(86,000	)			(102,000	)
Net (loss) / income before tax			(74,000	)			124,000				(285,000	)			(300,000	)
Income tax (expense) / benefit			(3,000	)			(1,000	)			2,000				(1,000	)
Net (loss) / income		$	(77,000	)		$	123,000			$	(283,000	)		$	(301,000	)
Basic & diluted (loss) / income per common share		$	(0.00	)		$	0.01			$	(0.01	)		$	(0.01	)
Weighted average shares outstanding - basic			21,744,768				21,744,768				21,744,768				21,744,768
Weighted average shares outstanding - diluted			21,744,768				21,827,564				21,744,768				21,744,768

American Bio Medica Corporation
Balance Sheets
			June 30,				December 31,
			2012				2011
			(unaudited)
ASSETS
Current Assets
Cash and cash equivalents		$	15,000			$	93,000
Accounts receivable, net of allowance for doubtful accounts of $50,000 at June 30, 2012 and $66,000 at December 31, 2011			1,159,000				883,000
Inventory, net of allowance for slow moving and obsolete inventory of $449,000 at June 30, 2012 and $401,000 at December 31, 2011			3,390,000				3,239,000
Prepaid expenses and other current assets			68,000				61,000
Total current assets			4,632,000				4,276,000
Property, plant and equipment, net			1,252,000				1,304,000
Debt issuance costs, net			3,000				26,000
Patents			23,000				0
Other assets			30,000				30,000
Total assets		$	5,940,000			$	5,636,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable			1,384,000				631,000
Accrued expenses and other current liabilities			139,000				217,000
Wages payable			232,000				264,000
Line of credit			377,000				397,000
Current portion of long-term debt and unearned grant			1,430,000				882,000
Total current liabilities			3,562,000				2,391,000
Other liabilities			144,000				143,000
Long-term debt			0				608,000
Related party note			124,000				124,000
Total liabilities			3,830,000				3,266,000
COMMITMENTS AND CONTINGENCIES
Stockholders’ Equity:
Common stock			217,000				217,000
Additional paid-in capital			19,409,000				19,386,000
Accumulated deficit			(17,516,000	)			(17,233,000	)
Total stockholders’ equity			2,110,000				2,370,000
Total liabilities and stockholders’ equity		$	5,940,000			$	5,636,000

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