Exhibit 99.1
AFP Imaging Reports Profitable Second
Quarter and Six Month Results for Fiscal Year Ending June 30, 2007
ELMSFORD, N.Y.--(BUSINESS WIRE)--Feb. 8, 2007--AFP Imaging
Corporation (OTCBB:AFPC) today reported sales and earnings for the
second quarter and six months ended December 31, 2006.
-- Net sales increased 16.4% to $13.38M for the six months and
24.0% for the quarter, compared to the prior year.
-- Second quarter Operating income increased 76% to $595,769,
compared to the prior year.
David Vozick, Chairman said, "We are pleased with the positive
results the Company has achieved by introducing new products as well
as revenue growth in our core business. Our very profitable second
quarter offset the loss from the first quarter and can be attributed
to a better mix of the Company's new digital products, in place of
analog x-ray film based systems. We are gaining greater market share
and acceptance. In addition, the current second quarterly operating
income of $595,769 compares very favorably to $338,423 for the prior
year, or a 76.0% improvement. The significant increase in sales in the
current quarter was achieved with only a modest increase in operating
expenses. At the same time, the Company continues to develop the
market for its three-dimensional "New Tom" dental x-ray system (an
in-office CT scanner), where AFP is the exclusive distributor in the
United states, Canada and most of South America."
Net Sales for the second quarter was $7.88 million, an increase of
$1.52 million or 24.0%, compared to $6.36 million in the same quarter
last year. Net sales for the six months ended December 31, 2006 was
$13.38 million, an increase of $1.89 million or 16.4%, compared to
$11.49 million in the same period last year. The second quarter's net
sales was the highest quarterly net sales for the Company in the past
seven years.
Net Income for the second quarter was $605,648, or $.05 per basic
share, an increase of $295,392, compared to $310,256, or $.03 per
basic share, for the same period last year. Net income for the six
months ended December 31, 2006 was $37,788, or $--- per basic share, a
decrease of $162,572, compared to $200,360, or $.02 per basic share in
the same period last year. The Company's working capital was $10.07
million at December 31, 2006 compared to $9.98 million at June 30,
2006.
The Company designs, develops, manufactures, and distributes
radiographic imaging equipment. These digital imaging products are
diagnostic tools that are widely utilized in dental, veterinary and
medical practices. AFP Imaging Corporation's quality assurance program
is ISO 9001 certified, an international standard. The Company's new
products and imaging technologies are providing the gateway for future
growth. The Company's products include x-ray tables, digital x-ray
sensors, digital panoramic units, equine imaging systems, three
dimensional CT scanners, along with our proprietary Pro-Image
software. The Company's products are sold worldwide under various
trademarked brand names, which include AFP, DENT-X, EVA and AFP
Digital. For additional product information please visit our web sites
at www.afpimaging.com and www.dent-x.com.
Three Months Ended Six Months Ended
December 31, December 31,
2006 2005 2006 2005
----------- ----------- ------------ ------------
Net Sales $7,884,637 $6,359,879 $13,376,765 $11,489,993
----------- ----------- ------------ ------------
Operating
Income/(loss) $595,769 $338,423 ($4,480) $255,682
Income Before
Provision for
Income Taxes $620,292 $310,256 $52,432 $200,360
Provision for Income
Taxes $14,644 $--- $14,644 $---
Net Income $605,648 $310,256 $37,788 $200,360
=========== =========== ============ ============
Net Income per Share
Basic $.05 $.03 $--- $.02
Fully Diluted $.05 $.03 $--- $.02
=========== =========== ============ ============
Weighted average
Shares Outstanding
Basic 12,428,800 9,568,217 12,401,703 9,553,796
Fully Diluted 12,728,692 10,021,838 12,753,476 10,054,972
=========== =========== ============ ============
The remarks contained in this press release and presented
elsewhere by management from time to time contain forward-looking
statements, which involve risks and uncertainties, including
statements regarding the Company's plans, objectives, expectations and
intentions. The Company's actual results may differ significantly from
the results discussed in this press release or in other
forward-looking statements presented by management. Among the factors
that could cause actual results to differ materially include failure
of revenue on new products to develop as estimated, regulatory delays,
loss of existing customers, the Company's inability to meet increasing
demand for its new products, general downward trends in the Company's
industry and other risk factors as described in the Company's filings
with the Securities and Exchange Commission. The Company expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statements to reflect any change in
the Company's expectation or any change in events, conditions or
circumstances on which such statement is based.
CONTACT: AFP Imaging Corporation
David Vozick, Chairman
914-592-6100