Shares of American Bio Medica Corporation (OTCMKTS:ABMC) have been moving within a narrow over the past month after the recent jump.
Market Reaction
On Thursday, ABMC stock fell 2.40% at $0.0449 with more than 71k shares, compared to its average volume of 162k shares. The stock has moved within a range of $0.0420 – 0.0449 after opening trade at $0.0420.
Earnings Recap
American Bio Medica Corporation (OTCMKTS:ABMC) on November 18, 2021 announced financial results for three and nine months ending September 30, 2021.
Chief Executive Officer Melissa A. Waterhouse said that the company is encouraged by the fact that sales has augmented by 16.1% in the third quarter 2021 vis-à-vis previous year.
Waterhouse added that the surge is due to drug testing markets witnessing return to normal and higher contract manufacturing sales from the current customers as well as stabilized clinical sales. Furthermore, she added that sales orders of ABMC drug tests amounting to $336,000 were delayed to supply chain constraints.
The CEO confirmed that the firm’s Net sales have witnessed reduction of 30.5% in quarter three of the year as compared to the same period in 2020 and about 49% reduction comparing the nine months periods. Its operating expenses reduced a little comparing both the time periods. Additionally, it believes that operating expenses will continue working diligently on different aspects of expenses.
The company’s PPP loan was forgiven in August 2021 and in quarter three of 2021, it commenced claiming Employee Retention Credit resulting in other income of $44,000.
It has also filed the modified quarterly tax returns claiming refunds pertaining to ERC for first, second as well as part of quarter three of 2021 resulting in income of $537,000.
Key Quote
Chief Executive Officer Melissa A. Waterhouse stated, “We are encouraged by the fact that when compared to the second quarter 2021, sales actually increased 16.1% in the third quarter 2021. This increase is a result of our drug testing markets continuing to return to normal, increased contract manufacturing sales from our current customers, stabilized clinical sales and higher sales of rapid Covid-19 tests as a result of new products we started to offer within the last few months. At the end of the third quarter, we had open sales orders of ABMC drug tests in the amount of $336,000 due to continued delays in our supply chains but, we are taking whatever steps possible to mitigate the increased lead times. As of today, our open sales order levels have decreased to a more reasonable level.”
Market Reaction
On Thursday, ABMC stock fell 2.40% at $0.0449 with more than 71k shares, compared to its average volume of 162k shares. The stock has moved within a range of $0.0420 – 0.0449 after opening trade at $0.0420.
