BOHEMIA, N.Y., Nov. 14, 2006 (PRIMEZONE) -- Scientific Industries Inc. (OTCBB:SCND), reported today net income of $77,600 ($0.8 per basic share) and net sales of $802,900 for the three months ended September 30, 2006, compared to net income of $96,900 ($0.10 per basic share) and net sales of $890,000 for the three months ended September 30, 2005.
The lower net income was the result of the $87,100 reduction in total net sales due to the loss in May 2006 of the Company's major customer and distributor, Fisher Scientific International ("Fisher"), which decided to discontinue distributing the Company's products because of a stated objective of switching focus from branded to private label products.
Ms. Helena R. Santos, President and Chief Executive Officer, noted, however, the effect of the loss of sales to Fisher was offset to a material extent by the success of the Company's new expanded marketing program, including increasing business with its other distributors, appointing new distributors and increasing the Company's direct-to-end user selling efforts.
About Scientific Industries
Scientific Industries designs, manufactures, and markets a variety of laboratory equipment, including the world-renowned Vortex-Genie(r) 2 Mixer. Scientific Industries' products are generally used for research purposes in laboratories of universities, hospitals, clinics, pharmaceutical companies, and medical device manufacturers.
The Scientific Industries logo is available at http://media.primezone.com/prs/single/?pkgid=715
"Statements made in this press release that relate to future events, performance or financial results of the Company are forward-looking statements which involve uncertainties that could cause actual events, performance or results to materially differ. The Company undertakes no obligation to update any of these statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties set forth in the Company's Securities and Exchange Commission reports, including our annual report on Form 10-KSB."
SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
September 30, 2006
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Current Assets $2,944,600
Property and Equipment, Net 112,300
Intangible Assets and Other 80,000
Total Assets $3,136,900
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $ 430,700
Deferred Taxes 5,500
Shareholders' Equity 2,700,700
Total Liabilities and Shareholders' Equity $3,136,900
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SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For The Three Months Ended
September 30, 2006 September 30, 2005
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Net Sales $ 802,900 $ 890,000
Gross Profit 414,400 456,700
Operating Expenses 314,100 329,300
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Income from Operations 100,300 127,400
Interest and Other Income, Net 14,300 7,500
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Income Before Income Taxes 114,600 134,900
Income Taxes, All Current 37,000 38,000
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Net Income $ 77,600 $ 96,900
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Basic Earnings Per Common Share $ .08 $ .10
Diluted Earnings Per Common Share $ .07 $ .09
Cash Dividends Declared Per Common
Share $ .07 $ .09
Weighted Average Number of
Outstanding Shares:
Basic 1,000,352 980,310
Diluted 1,059,320 1,060,825