ADM Tronics Reports First Quarter of Fiscal Year 2021 Results

Rhea-AI Summary

ADM Tronics Unlimited, Inc. (OTCQB:ADMT) reported its Q1 results for FY 2021, with revenues of $569,093, down 31% from $830,821 in the same quarter last year. The electronic segment experienced an 86% increase in revenue to $288,062, but the engineering and chemical segments declined by 58%, totaling $281,031. The net loss for the quarter was $115,736, a reversal from a net income of $52,769 in Q1 FY 2020. ADMT continues to invest in R&D, particularly in its proprietary Sonotron technology, amidst challenges posed by the COVID-19 pandemic.

Positive

• Electronic segment revenues grew by 86% to $288,062.
• Continued investment in R&D, particularly in proprietary technologies.

Negative

• Overall revenue declined by 31% to $569,093.
• Net loss of $115,736 compared to net income of $52,769 last year.
• Engineering and chemical segment revenues fell by 58%.

NORTHVALE, NJ / ACCESSWIRE / August 19, 2020 / ADM Tronics Unlimited, Inc. (OTCQB:ADMT), a technology-based developer and manufacturer of innovative technologies and products, announces results for its first fiscal quarter ended June 30, 2020 of Fiscal Year 2021.

ADM Tronics' first fiscal quarter ended June 30, 2020 encompassed a full three-month period impacted by the effects of the COVID-19 pandemic. ADMT took aggressive steps to minimize disruption of operations by securing Essential Manufacturer exemption from the statewide shutdown. This allowed continued research, development and manufacturing operations, throughout the quarter, while encompassing CDC safety guidelines. The Company established clerical activities remotely.

By maintaining full operational capability, ADMT's electronic segment manufacturing revenues increased over 86% to $288,062 for the quarter ended June 30, 2020 as compared to $154,767 for the same period last year. This was offset by revenues in engineering and chemical segments, combined, of $281,031 as compared to $676,054 for the same period last year, a decrease of 58%.

"Due to the pandemic, our first quarter was extremely challenging. Although many businesses shutdown or severely curtailed operations, we were steadfast in our efforts to persevere," stated Andre' DiMino, President of ADM Tronics. "That allowed us to increase our electronics segment revenue by over 86% compared to last year's first fiscal quarter. However, due directly to the effects of the pandemic on our customers, both our chemical and engineering segments posted reductions in revenues. Maintaining our commitment of advancing our proprietary developments, such as our Sonotron technology, we continued to invest in research and development. We are confident that, as the world emerges from this crisis, the investments made in our R&D, as well as our customers resuming demand for our products and services, we expect multiple avenues for substantial growth."

Revenues for the quarter ended June 30, 2020 were $569,093 as compared to $830,821 for the same period last year, a decrease of 31%. Net loss for June 30, 2020 was $115,736 as compared to net income of $52,769 for June 30, 2019. Complete financial results are available in the Company's Quarterly Report on Form 10Q for June 30, 2020, available at www.sec.gov.

Financial Highlights

		Three Months Ended				Three Months Ended
		June 30, 2020				June 30, 2019
Net Revenues		$	569,093			$	830,821
Cost of Sales			401,503				396,009
Gross Profit			167,590				434,812
Operating expenses:
Research and development			125,904				145,766
Selling, general and administrative			219,780				214,255
Depreciation and amortization			5,776				5,506
Total operating Expenses			351,460				365,527
Income (loss) from operations			(183,870	)			69,285
Total other income (expense)			13,634				5,484
Income (loss) before provision for taxes			(170,236	)			74,769
Benefit (provision) for income taxes:
Current			12,500				(1,000	)
Deferred			42,000				(21,000	)
Total benefit (provision) for income taxes			54,500				(22,000	)
Net income (loss)		$	(115,736	)		$	52,769
Net income per common share		$	(0.00	)		$	0.00
Weighted average shares of common stock outstanding - diluted			67,588,504				67,588,504

About ADMT

ADMT is a diversified, technology-based developer and manufacturer of innovative technologies and products. Its core competency is its ability to conceptualize a technology, bring it through development, into manufacturing and commercialization, all in-house. ADMT has three areas of activity: Proprietary Electronic Medical Devices; Design, Engineering, Regulatory and Manufacturing Services; and, Eco-Friendly, Safe, Water-Based Formulations. The Company's headquarters, laboratories, FDA-Registered medical device and manufacturing operations are located in Northvale, NJ. ADMT's multi-disciplinary team of engineers, researchers and technologists utilize advanced technology infrastructure, for the research, development and commercialization of diversified technologies. Additional information is available at admtronics.com

Except for historical information contained herein, the matters set forth in this news release are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995), including statements regarding future revenue growth and performance. Although ADMT believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations. Factors that could contribute to such differences include those described from time to time in ADMT's filings with the SEC, news releases and other communications. The Company assumes no obligation to update the information contained in this news release.

Contact:
Andre' DiMino
201-767-6040
andre@admtronics.com

SOURCE: ADM Tronics Unlimited, Inc.

View source version on accesswire.com:
https://www.accesswire.com/602502/ADM-Tronics-Reports-First-Quarter-of-Fiscal-Year-2021-Results

FAQ

What were the Q1 2021 revenue results for ADMT?

ADMT reported total Q1 2021 revenues of $569,093, which is a 31% decrease from $830,821 in Q1 2020.

How did the COVID-19 pandemic impact ADMT's financial performance?

The pandemic led to significant challenges, causing a 58% decrease in revenues from the engineering and chemical segments.

What is the current status of ADMT's electronic segment revenues?

The electronic segment saw an 86% increase in revenues to $288,062 for the quarter ended June 30, 2020.

What was ADMT's net income or loss for Q1 2021?

ADMT reported a net loss of $115,736 for the quarter, compared to a net income of $52,769 in the same quarter last year.

What initiatives is ADMT pursuing for future growth?

ADMT is investing in research and development, focusing on its Sonotron technology as part of its growth strategy.