For the quarter ended June 30, 2007, Avitar reported revenues of $779,000from continuing operations compared to $1,202,000 from continuing operationsfor the quarter ended June 30, 2006. The operating loss from continuingoperations amounted to $597,000 versus $696,000. The net income was $301,000,or $0.01 per basic share and $0.00 per diluted share, for the quarter endedJune 30, 2007 compared with net loss of $1,329,000, or $0.31 per share for thequarter ended June 30, 2006. The reduction in net loss for the quarter endedJune 30, 2007 compared to the quarter ended June 30, 2006 resulted primarilyfrom an increase in non-cash income from the change in the fair market valueof derivative securities and warrants of $1,062,000, a decrease in operatingexpenses of $522,000 and lower interest and financing costs related toshort-term and long-term borrowings of $462,000; offset in part by a reductionin sales of $423,000.
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Revenues from continuing operations for the first nine months of fiscal2007 were $2,440,000 compared to $3,162,000 from continuing operations for thenine months ended June 30, 2006. The operating loss from continuingoperations amounted to $2,136,000 versus $2,293,000. The net loss was$1,542,000 or $0.08 per share, for the nine months ended June 30, 2007compared with net loss of $3,256,000, or $0.78 per share, for the nine monthsended June 30, 2006. The change in net loss for the nine months ended June30, 2007 compared to the corresponding period of Fiscal 2006 resultedprimarily from an increase in non-cash income from the change in the fairmarket value of derivative securities and warrants of $1,449,000, a decreasein operating expenses of $878,000 and lower interest and financing costsrelated to short-term and long-term borrowings of $204,000; offset in part bya reduction in sales of $722,000 and a decrease in income from discontinuedoperations of $96,000.
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Peter P. Phildius, Chairman and CEO commented, "Our total revenuecontinues to be negatively impacted by the decline in Hydrasorb sales throughour U.S. distributor. We hope to improve the performance of our foam businessin the coming quarters."
Mr. Phildius continued, "The diagnostic business, however, is showingcontinued improvement as our value proposition of random testing with oralfluid gains traction. An example of this change is the law recently passed inHawaii which provides for oral fluid random testing for employers. Wecontinue to work on further enhancing our product offerings and to beoptimistic about this large market opportunity."
ABOUT AVITAR
Avitar, Inc. develops, manufactures and markets innovative and proprietaryproducts in the oral fluid diagnostic market, disease and clinical testingmarket, and customized polyurethane applications used in the wound dressingindustry. Oral fluid diagnostics includes the estimated $1.5 billiondrugs-of-abuse testing market, which encompasses the corporate workplace andcriminal justice markets. Avitar's products include ORALscreen(TM), theworld's first non-invasive, rapid, onsite oral fluid test for drugs-of-abuse.Additionally, Avitar manufactures and markets HYDRASORB(TM) an absorbenttopical dressing for moderate to heavy exudating wounds. In the estimated $25billion in vitro diagnostics market, Avitar is developing diagnosticstrategies for disease and clinical testing. Some examples include influenza,diabetes and pregnancy. For more information, see Avitar's website athttp://www.avitarinc.com.
Safe Harbor Statement. This release contains forward looking statementsthat are subject to risks and uncertainties including the development andmarketing of new applications and other risks that are detailed from time totime in the Company's filings with the S
