EXHIBIT 99
AMISTAR REPORTS FOURTH QUARTER 2004 FINANCIAL RESULTS
SAN MARCOS, CALIFORNIA, March 4, 2005 /PR Newswire-First Call/ -- Amistar
Corporation (Nasdaq:-AMTA) today reported sales and results for the three and
twelve months ended December 31, 2004.
Net sales for the three months ended December 31, 2004 were $3,156,000, compared
to $3,537,000 for the same quarter in 2003. Net sales for the twelve months
ended December 31, 2004 were $10,882,000, compared to $12,083,000 for the same
period in 2003.
There was a net loss for the three months ended December 31, 2004 of $1,346,000
or $0.43 per share compared to a net loss of $89,000 or $0.03 per share in the
fourth quarter of 2003. There was a net loss for the twelve months end December
31, 2004 of $3,370,000 or $1.09 per share compared to a net loss of $349,000 or
$0.11 per share in the same period in 2003.
The loss in the current quarter was due primarily to start-up and machine
development costs incurred by the Company's new majority-owned subsidiary,
Distributed Delivery Networks Corporation ("ddn"), as well as litigation defense
costs related to the ddn venture, reduced gross margins on AMS division sales,
lower sales of DataPlace(TM) machines, and an increase in custom factory
automation engineering and manufacturing services compared to the fourth quarter
of 2003.
During the fourth quarter 2004 ddn incurred $303,000 in marketing,
administrative, and machine development costs. During the same quarter, the
Company incurred $357,000 in litigation defense costs related to its suit with
Asteres, Inc.
For the fiscal year 2004, ddn incurred $1,276,000 in marketing, administrative,
and machine development costs. During the same period, the Company incurred
$463,000 in litigation defense costs.
The Company considers the case with Asteres, Inc to be without merit and an
effort to block lawful competition and will continue to defend itself
vigorously, including seeking dismissal in a summary judgment hearing scheduled
for June 2005. It is the Company's expectation that it will seek compensation
for attorney's fees and costs provided it prevails in its defense and proves
that the case was brought forth in bad faith. There is no assurance that the
Company will be successful in defending itself or in recovering its legal costs.
"On one hand we are disappointed with the fourth quarter 2004 operating
results. Although the AMS division sales grew 14% with the addition of some new
contracts, the margins were affected adversely by inefficiencies related to
early production of new customer products. On the other hand, the Company,
working jointly with our majority-owned subsidiary ddn, has reached significant
milestones in our effort to enter a new market. During 2004, the Company
developed and manufactured a point-of-sale dispensing kiosk for finished
prescriptions, the APM(TM), to be installed in pharmacies. Initial units have
been received well by potential customers and ddn plans to install units in
chain and independent retail pharmacy customer sites across the country
beginning in the first quarter of 2005," stated Stuart Baker, president of
Amistar.
"The Amistar engineering team has done a tremendous job of developing an
industry standard product. With the combination of our new cutting-edge APM
product, Amistar's proven manufacturing capability, and the recent acquisition
of intellectual property rights from the industry pioneers at Advanced Pharmacy
Technologies, LLC, ddn is well positioned in this exciting and emerging market,"
said William Holmes, ddn President and CEO.
Condensed Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
------------- ------------- ------------- -------------
Net Sales $ 3,156,000 $ 3,537,000 $ 10,882,000 $ 12,083,000
Cost of Sales 3,074,000 2,969,000 9,848,000 9,856,000
------------- ------------- ------------- -------------
Gross Profit 82,000 568,000 1,034,000 2,227,000
Operating Expenses 1,380,000 657,000 4,348,000 2,564,000
------------- ------------- ------------- -------------
Operating Loss (1,298,000) (89,000) (3,314,000) (337,000)
Other Income (Expense) -- 1,000 (6,000) (8,000)
------------- ------------- ------------- -------------
Loss Before Income Taxes (1,298,000) (88,000) (3,320,000) (345,000)
Income Taxes 48,000 1,000 50,000 4,000
------------- ------------- ------------- -------------
Net Loss $ (1,346,000) $ (89,000) $ (3,370,000) $ (349,000)
============= ============= ============= =============
Loss Per Common Share-
Basic and Diluted $ (0.43) $ (0.03) $ (1.09) $ (0.11)
============= ============= ============= =============
Shares Used In Per Share Calculation-
Basic and Diluted 3,115,794 3,078,857 3,093,775 3,080,401
============= ============= ============= =============
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 December 31, 2003 Annual Report on Form 10-K.
Actual results may differ materially from anticipated results.
Amistar Corporation provides automation solutions primarily for the industrial
and retail markets and provides 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. Through its subsidiary, ddn Corporation, the Company provides
automated point-of-sale machines that control the dispensing of securely stored
items such as consumer products and prescriptions to retail customers.
Additional information about Amistar is available at www.amistar.com and ddn
Corporation at www.ddncorp.com
Contact:
Gregory Leiser
Vice-President Finance and CFO
760-471-1700
gregL@amistar.com