Exhibit 99-Press Release of Amistar Corporation dated November 18, 2005,
reporting Amistar's financial results for the third quarter 2005.
AMISTAR REPORTS THIRD QUARTER 2005 FINANCIAL RESULTS
SAN MARCOS, CALIFORNIA, November 18, 2005 /PR Newswire-First Call/ -- Amistar
Corporation (OTC Pink Sheets:-AMTA.PK) today reported sales and results for the
three and nine months ended September 30, 2005.
As disclosed in the press release dated August 19, 2005, the Company decided to
exit the business of providing electronic manufacturing services subject to
certain continuing obligations during the fourth quarter of 2005 as part of its
strategy to convert assets to cash in order to improve liquidity, defend itself
against the litigation with Asteres, Inc. and to support its entry into the
retail pharmacy market with its automated prescription delivery machine and
system. The Unaudited Condensed Consolidated Statements of Operations included
in this release reflect the AMS operating results as a discontinued operation.
Net sales for the three months ended September 30, 2005 decreased $8,000 or 1%
to $545,000, compared to $553,000 for the same quarter in 2004. Net sales for
the nine months ended September 30, 2005 increased $154,000 or 6% to $2,764,000,
compared to $2,610,000 for the same period in 2004.
There was a net loss from continuing operations for the three months ended
September 30, 2005 of $1,285,000 or $0.40 per share compared to a net loss from
continuing operations of $866,000 or $0.28 per share for the same quarter in
2004. There was a net loss for the three months ended September 30, 2005 of
$1,175,000 or $0.37 per share compared to a net loss of $930,000 or $0.30 per
share for the same quarter in 2004. The income from discontinued operations was
$110,000 for the three months ended September 30, 2005 compared to a $64,000
loss during the same period in 2004.
There was a net loss from continuing operations for the nine months ended
September 30, 2005 of $3,026,000 or $0.96 per share compared to a net loss from
continuing operations of $1,943,000 or $0.63 per share for the same period in
2004. There was a net loss for the nine months ended September 30, 2005 of
$3,085,000 or $0.98 per share compared to a net loss of $2,024,000 or $0.66 per
share for the same period in 2004. The loss from discontinued operations was
$59,000 for the nine months ended September 30, 2005 compared to an $81,000 loss
from discontinued operations during the same period in 2004.
The operating loss from continuing operations for the three months ended
September 30, of 2005 and 2004, respectively, includes:
o $349,000 and $388,000, 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 $431,000 and $106,000, related to litigation defense and counter-suit
costs (in 2005) for the lawsuit with Asteres, Inc.
The income from discontinued operations for the three months ended September 30,
2005 increased over the loss from discontinued operations during the same period
in 2004 due primarily to an $81,000 gain on sale of equipment, increased gross
profit on higher AMS sales and partially offset by employee separation costs
during the current quarter. The loss from discontinued operations during the
nine months decreased from the loss from discontinued operations during the same
period in 2004 due primarily to the $81,000 gain on sale of equipment and
partially offset by employee separation costs.
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net Sales $ 545,000 $ 553,000 $ 2,764,000 $ 2,610,000
Cost of Sales 502,000 403,000 2,114,000 1,932,000
----------- ----------- ----------- -----------
Gross Profit 43,000 150,000 650,000 678,000
Operating Expenses 1,445,000 1,012,000 4,025,000 2,613,000
----------- ----------- ----------- -----------
Loss from continuing operations (1,402,000) (862,000) (3,375,000) (1,935,000)
Other Income (expense) 118,000 (3,000) 353,000 (6,000)
----------- ----------- ----------- -----------
Loss from continuing operations before
income taxes (1,284,000) (865,000) (3,022,000) (1,941,000)
Income Taxes 1,000 1,000 4,000 2,000
----------- ----------- ----------- -----------
Net Loss from continuing operations (1,285,000) (866,000) (3,026,000) (1,943,000)
Income (Loss) from discontinued operations,
net of income tax 110,000 (64,000) (59,000) (81,000)
----------- ----------- ----------- -----------
Net Loss $(1,175,000) $ (930,000) $(3,085,000) $(2,024,000)
=========== =========== =========== ===========
Loss Per Common Share on Continuing -
Operations-Basic and Diluted $ (0.40) $ (0.28) $ (0.96) $ (0.63)
=========== =========== =========== ===========
Income (Loss) Per Common Share on
Discontinued Operations-Basic and Diluted $ 0.03 $ (0.02) $ (0.02) $ (0.03)
=========== =========== =========== ===========
Shares Used In Per Share Calculation-
Basic and Diluted 3,154,607 3,090,857 3,147,494 3,084,994
=========== =========== =========== ===========
The litigation with Asteres is currently in the discovery phase. During the
quarter ended September 30, 2005, the Company filed a cross complaint which was
enjoined with the current litigation. The filing of our cross-complaint and
based on certain actions of the parties, resulted in a continuance of the
hearing for summary judgment and the trial start date. The continued dates for
hearing for motion for summary judgment and trial are scheduled for January 2006
and April 2006, respectively. The Company believes it has strong defenses and
will continue to defend itself vigorously along with the pursuit of its counter
claim.
"The third quarter sales were relatively flat compared to the same quarter of
2004. The gross margin decreased primarily due to an increase of $116,000 in the
reserve for obsolescence related to the DataPlace 100LP(TM) product line.
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) made machine hardware and software
improvements resulting from data gathered during our beta test in a high-volume
community pharmacy, and 2) installed an APM(TM) system in a mass merchant retail
pharmacy location" stated Stuart Baker, Amistar's President. 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. Through its majority-owned 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