Exhibit 99
Press Release of Amistar Corporation dated August 9, 2005, reporting Amistar's
financial results for the second quarter 2005.
AMISTAR REPORTS SECOND QUARTER 2005 FINANCIAL RESULTS
SAN MARCOS, CALIFORNIA, August 9, 2005 /PR Newswire-First Call/ -- Amistar
Corporation (Nasdaq:-AMTA) today reported sales and results for the three and
six months ended June 30, 2005.
Net sales for the three months ended June 30, 2005 increased $445,000 or 20% to
$2,705,000, compared to $2,260,000 for the same quarter in 2004. Net sales for
the six months ended June 30, 2005 increased $1,939,000 or 36% to $7,255,000,
compared to $5,316,000 for the same period in 2004.
There was a net loss for the three months ended June 30, 2005 of $1,256,000 or
$0.40 per share compared to a net loss of $743,000 or $0.24 per share for the
same quarter in 2004. There was a net loss for the six months ended June 30,
2005 of $1,910,000 or $0.61 per share compared to a net loss of $1,094,000 or
$0.36 per share for the same period in 2004.
The operating loss for the three months ended June 30, of 2005 and 2004,
respectively, includes:
o $522,000 and $374,000, for start-up and machine development
costs related to the new ddn venture to provide automated
equipment and systems to the retail pharmacy market.
o $299,000 and $0, related to litigation defense costs for the
lawsuit with Asteres, Inc.
The litigation with Asteres is currently in the discovery phase. A decision on
our motion for dismissal in summary judgment is scheduled for August 2005 and a
trial is scheduled for September 2005. The Company believes it has strong
defenses and will continue to defend itself vigorously.
"The second quarter sales showed improvement over the comparable quarter of
2004; however, the second quarter sales were off 41% from sales in the first
quarter of 2005, due primarily to the absence of a follow-on contract from a
defense industry customer and due to soft demand for the Company's automatic
labeler machine products. Demand for custom factory automation continues to be
steady.
The Company, working jointly with our majority-owned subsidiary ddn, has reached
further milestones in our effort to enter the emerging market for retail
automation. During the current quarter we 1) proved our machine operation during
a beta test in a high-volume community pharmacy, 2) completed pharmacy
management and point of sale integration software for our planned installation
in a mass merchant retail pharmacy site scheduled for the third quarter of 2005,
3) made preparations for our exhibition in the August 2005 National Association
of Chain Drug Stores trade show, 4) launched the RIA machine for automation of
the behind-the-counter process in retail pharmacies and 5) obtained
certification as the first vendor for PDX, Inc. pharmacy management software for
applications automating the delivery of finished prescriptions in retail
pharmacies" stated Stuart Baker, Amistar's President.
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Condensed Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
---------------------------- ----------------------------
Net Sales $ 2,705,000 $ 2,260,000 $ 7,255,000 $ 5,316,000
Cost of Sales 2,533,000 2,022,000 6,580,000 4,549,000
----------- ----------- ----------- -----------
Gross Profit 172,000 238,000 675,000 767,000
Operating Expenses 1,544,000 978,000 2,817,000 1,857,000
----------- ----------- ----------- -----------
Operating Loss (1,372,000) (740,000) (2,142,000) (1,090,000)
Other Income (expense) 118,000 (3,000) 235,000 (3,000)
----------- ----------- ----------- -----------
Loss Before Income Taxes (1,254,000) (743,000) (1,907,000) (1,093,000)
Income Taxes 2,000 -- 3,000 1,000
----------- ----------- ----------- -----------
Net Loss $(1,256,000) $ (743,000) $(1,910,000) $(1,094,000)
=========== =========== =========== ===========
Loss Per Common Share-
Basic and Diluted $ (0.40) $ (0.24) $ (0.61) $ (0.36)
=========== =========== =========== ===========
Shares Used In Per Share Calculation-
Basic and Diluted 3,142,794 3,081,732 3,142,758 3,081,223
=========== =========== =========== ===========
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 Section 6 of the Company's Annual Report on Form 10-KSB.
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
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