Exhibit 99-Press Release of Amistar Corporation dated May 6, 2004, reporting
Amistar's financial results for the first quarter 2004.
AMISTAR REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS
SAN MARCOS, CALIFORNIA, May 6, 2004 /PR Newswire-First Call/ -- Amistar
Corporation (Nasdaq:-AMTA) today reported sales and results for the three months
ended March 31, 2004.
Net sales for the three months ended March 31, 2004 were $3,056,000 compared to
$2,769,000 for the same quarter in 2003, a growth of 10%.
There was a net loss for the three months ended March 31, 2004 of $351,000 or
$0.11 per share compared to a net loss of $146,000 or $0.05 per share in the
first quarter of 2003.
The loss in the current quarter was due primarily to formation costs related to
the Company's new subsidiary, retail-market automation machine development
costs, reduced gross margins resulting from a 14% decline in AMS division sales
and partially offset by profitability in the AIA division from an increase in
machine sales.
During the quarter ended March 31, 2004, the Company incurred $210,000 in
formation and machine development costs in anticipation of forming the Company's
new subsidiary, Distributed Delivery Networks Corporation ("ddn"). The formation
was completed and capitalized on April 7, 2004.
Commenting on the results, Stuart Baker said, "I am encouraged by the increased
sales shown by Amistar Industrial Automation (AIA) during the first quarter,
which yielded a small segment profit for the quarter. During that same time
period, Amistar management devoted significant effort towards the establishment
of a new corporate subsidiary, Distributed Delivery Networks Corporation
("ddn"), of which 51% is owned by Amistar. We expect ddn's first product to be
substantially complete in the third quarter of this year, allowing sales to
begin in the fourth quarter."
Baker continued, "We believe this is a highly strategic step for the Company, as
there are strong synergies between Amistar's core strengths in product design,
development, engineering and manufacturing and ddn's core strengths in
marketing, sales, installation and service. We expect that this venture allows
Amistar to diversify beyond the traditional market segments for our services and
solutions, while providing an avenue for rapid growth, both in sales and
profitability, over the coming years."
Condensed Statements of Operations
Three Months Ended
March 31,
2004 2003
------------ ------------
Net Sales $ 3,056,000 $ 2,769,000
Cost of Sales 2,527,000 2,221,000
------------ ------------
Gross Profit 529,000 548,000
Operating Expenses 879,000 690,000
------------ ------------
Operating Loss (350,000) (142,000)
Other Income (Expense) -- (3,000)
------------ ------------
Loss Before Income Taxes (350,000) (145,000)
Income Taxes 1,000 1,000
------------ ------------
Net Loss $ (351,000) $ (146,000)
============ ============
Loss Per Common Share-
Basic and Diluted $ (0.11) $ (0.05)
============ ============
Shares Used In Per Share Calculation-
Basic and Diluted 3,080,607 3,082,878
============ ============
Statements contained in this release, which are not purely historical, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and are subject to risks and uncertainties such as
those described in the Company's Annual Report on Form 10-K. Actual results may
differ materially from anticipated results.
Amistar Corporation provides industrial automation solutions and
contract-manufacturing services. The Company designs, develops, manufactures,
markets and services a variety of automated equipment used to assemble
electronic components and product identification media to printed circuit boards
and other assemblies. In addition, the Company provides design and manufacturing
resources to create customized factory automation equipment and other products
according to customers' specification in a broad range of industries. The
Company also provides contract-manufacturing services to companies who outsource
the manufacturing of their electronic products.
Additional information about Amistar is available at www.amistar.com.
Gregory Leiser
Vice-President Finance and CFO
760-471-1700
GREGL@amistar.com