EXHIBIT 99.1
| ADVANSOURCE BIOMATERIALS ANNOUNCES FISCAL 2011 THIRD QUARTER RESULTS |
Wilmington, MA. February 15, 2010…AdvanSource Biomaterials Corporation (OTCQB: ASNB), a leading developer of advanced polymer materials for a broad range of medical devices, today announced financial results for its fiscal 2011 third quarter ended December 31, 2010.
Third Quarter 2011
For the third quarter of fiscal 2011, revenues, gross profit and net loss were as follows:
| | | For the Three Months Ended December 31, | |
| | | 2010 | | | 2009 | |
| Revenues: | | | | | | |
| Product sales | | $ | 264 | | | $ | 455 | |
| License, royalty and development fees | | | 163 | | | | 213 | |
| Total revenues | | | 427 | | | | 668 | |
| Cost of sales | | | 348 | | | | 377 | |
| Gross Profit ($): | | | | | | | | |
| Total revenues | | $ | 79 | | | $ | 291 | |
| Product sales | | $ | (84 | ) | | $ | 78 | |
| Gross Profit (%) | | | | | | | | |
| Total revenues | | | 18.5 | % | | | 43.6 | % |
| Product sales | | | -31.8 | % | | | 17.1 | % |
| Net loss from continuing operations | | $ | (803 | ) | | $ | (542 | ) |
Net loss per share from continuing operations, basic and diluted | | $ | (0.04 | ) | | $ | (0.03 | ) |
“The decrease in our fiscal 2011 third quarter product sales was largely attributable to decreased demand for polymers from two significant customers,” said Michael Adams, President and CEO. “However, we believe demand from these two customers should return to more normal levels over the next several quarters. In addition, we anticipate new, meaningful contracts and relationships in the next several quarters that could be accretive to polymer product sales.”
“During the second and third quarter of fiscal 2011, we believe the lower limit of license, royalty and development fees was met,” noted Adams. “As a result, we anticipate slow but continuing progress in attracting development opportunities that could result in increasing royalty and licensing arrangements.”
“Not only were gross profits adversely affected by the lower product sales in the third quarter of fiscal 2011, but we incurred additional costs to make improvements in our polymer products,” added Adams. “We believe there exist opportunities to improve our margins through certain cost containment measures and anticipated improvements in future product sales.”
Trailing 12-Months
For the trailing 12 months ended December 31, 2010, total revenues decreased to $1,902,000 compared with $2,350,000 for the comparable trailing 12 month period ended December 31, 2009. However, product sales increased to $1,368,000 for the trailing 12 months ended December 31, 2010 as compared with $1,089,000 for the comparable trailing 12 month period ended December 31, 2009.
“Although our fiscal 2011 third quarter revenues were below those of the same period in fiscal 2010, the overall trend of product sales continues to be one of improvement,” Adams concluded. “The sales and marketing initiatives implemented since embarking on the strategy to focus on our biomaterials business appears to be gaining traction. The success of our initiatives has resulted in new agreements and arrangements for both the development of novel polymer-based biomaterials and continued sales of various polymer products to medical device manufacturers and research labs throughout the world.”
First Nine Months 2011
For the first nine months of fiscal 2011, revenues, gross profit and net loss were as follows:
| | | For the Nine Months Ended December 31, | |
| | | 2010 | | | 2009 | |
| Revenues: | | | | | | |
| Product sales | | $ | 1,027 | | | $ | 1,010 | |
| License, royalty and development fees | | | 394 | | | | 626 | |
| Total revenues | | | 1,421 | | | | 1,636 | |
| Cost of sales | | | 1,070 | | | | 1,007 | |
| Gross Profit ($): | | | | | | | | |
| Total revenues | | $ | 351 | | | $ | 629 | |
| Product sales | | $ | (43 | ) | | $ | 3 | |
| Gross Profit (%) | | | | | | | | |
| Total revenues | | | 24.7 | % | | | 38.4 | % |
| Product sales | | | -4.2 | % | | | 0.3 | % |
| Net loss from continuing operations | | $ | (2,155 | ) | | $ | (1,972 | ) |
Net loss per share from continuing operations, basic and diluted | | $ | (0.10 | ) | | $ | (0.09 | ) |
As of December 31, 2010, we had cash and cash equivalents of $1,360,000 as compared with $3,055,000 as of March 31, 2010.
About AdvanSource Biomaterials Corporation
AdvanSource Biomaterials Corporation manufactures advanced polymer materials which provide critical characteristics in the design and development of medical devices. The Company’s biomaterials are used in devices that are designed for treating a broad range of anatomical sites and disease states. AdvanSource’s business model leverages its proprietary materials science technology and manufacturing expertise in order to expand its product sales and royalty and license fee income. More information about AdvanSource is available at its website: www.advbiomaterials.com.
Forward-Looking Statements
AdvanSource Biomaterials Corporation believes that this press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause results to differ materially from the forward-looking statements. For further information on such risks and uncertainties, you are encouraged to review the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended March 31, 2010 and its Quarterly Reports on Form 10-Q for the quarters ended June 30, 2010, September 30, 2010 and December 31, 2010. The Company assumes no obligation to update any forward - -looking statements as a result of new information or future events or developments, except as required by law.
For further information contact:
AdvanSource Biomaterials Corporation
David Volpe, Acting CFO
(978) 657-0075, ext. 103
dvolpe@advbiomaterials.com
[FINANCIAL TABLES FOLLOW]
| AdvanSource Biomaterials Corporation | |
| Condensed Balance Sheets | |
| (Unaudited - in thousands, except share and per share amounts) | |
| | | | | | | |
| | | December 31 | | | March 31, | |
| | | 2010 | | | 2010 | |
| ASSETS | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 1,360 | | | $ | 3,055 | |
Accounts receivable-trade, net of allowance of $5 as of December 31, 2010 and March 31, 2010 | | | 62 | | | | 117 | |
| Accounts receivable-other | | | 110 | | | | 105 | |
| Inventories, net | | | 488 | | | | 456 | |
| Prepaid expenses and other current assets | | | 77 | | | | 92 | |
| Total current assets | | | 2,097 | | | | 3,825 | |
| Property, plant and equipment, net | | | 2,864 | | | | 3,049 | |
| Total assets | | $ | 4,961 | | | $ | 6,874 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 212 | | | $ | 187 | |
| Accrued expenses | | | 321 | | | | 207 | |
| Deferred revenue | | | 56 | | | | 64 | |
| Total current liabilities | | | 589 | | | | 458 | |
| | | | | | | | | |
| Commitments and contingencies (Note 10) | | | | | | | | |
| | | | | | | | | |
| Stockholders' equity: | | | | | | | | |
Preferred stock; $.001 par value; 5,000,000 shares authorized; 500,000 shares issued and none outstanding as of December 31, 2010 and March 31, 2010 | | | - | | | | - | |
Common stock; $.001 par value; 50,000,000 shares authorized; 21,312,238 and 21,278,386 shares issued, and 21,235,546 and 21,201,694 shares outstanding as of December 31, 2010 and March 31, 2010, respectively | | | 21 | | | | 21 | |
| Additional paid-in capital | | | 37,909 | | | | 37,798 | |
| Accumulated deficit | | | (33,528 | ) | | | (31,373 | ) |
| | | | 4,402 | | | | 6,446 | |
Less: treasury stock, 76,692 shares at cost at December 31, 2010 and March 31, 2010 | | | (30 | ) | | | (30 | ) |
| Total stockholders' equity | | | 4,372 | | | | 6,416 | |
| Total liabilities and stockholders' equity | | $ | 4,961 | | | $ | 6,874 | |
| AdvanSource Biomaterials Corporation | |
| Condensed Statements of Operations | |
| (Unaudited - in thousands, except per share amounts) | |
| | | | | | | | | | | | | |
| | | For the Three Months Ended December 31, | | | For the Nine Months Ended December 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| Revenues: | | | | | | | | | | | | |
| Product sales | | $ | 264 | | | $ | 455 | | | $ | 1,027 | | | $ | 1,010 | |
| License, royalty and development fees | | | 163 | | | | 213 | | | | 394 | | | | 626 | |
| | | | 427 | | | | 668 | | | | 1,421 | | | | 1,636 | |
| Cost of sales | | | 348 | | | | 377 | | | | 1,070 | | | | 1,007 | |
| Gross profit | | | 79 | | | | 291 | | | | 351 | | | | 629 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Research, development and regulatory | | | 215 | | | | 158 | | | | 550 | | | | 499 | |
| Selling, general and administrative | | | 667 | | | | 676 | | | | 1,956 | | | | 2,072 | |
| | | | 882 | | | | 834 | | | | 2,506 | | | | 2,571 | |
| Loss from operations | | | (803 | ) | | | (543 | ) | | | (2,155 | ) | | | (1,942 | ) |
| Other income (expense): | | | | | | | | | | | | | | | | |
| Interest income | | | - | | | | 1 | | | | - | | | | 5 | |
| Other expense | | | - | | | | - | | | | - | | | | (35 | ) |
| Other income (expense) | | | - | | | | 1 | | | | - | | | | (30 | ) |
| Net loss from continuing operations | | | (803 | ) | | | (542 | ) | | | (2,155 | ) | | | (1,972 | ) |
Income from discontinued operations - sale of subsidiaries, net of tax of $0 | | | - | | | | - | | | | - | | | | 942 | |
| Net loss | | $ | (803 | ) | | $ | (542 | ) | | $ | (2,155 | ) | | $ | (1,030 | ) |
| Net loss per common share, basic and diluted: | | | | | | | | | | | | | | | | |
| Net loss per share, continuing operations | | $ | (0.04 | ) | | $ | (0.03 | ) | | $ | (0.10 | ) | | $ | (0.09 | ) |
| Net income per share, discontinued operations | | | - | | | | - | | | | - | | | | 0.04 | |
| Net loss per common share, basic and diluted | | $ | (0.04 | ) | | $ | (0.03 | ) | | $ | (0.10 | ) | | $ | (0.05 | ) |
Shares used in computing net income (loss) per common share, basic and diluted | | | 21,312 | | | | 21,168 | | | | 21,293 | | | | 21,144 | |
