BOHEMIA, N.Y., Nov. 10, 2005 (PRIMEZONE) -- Scientific Industries Inc. (OTCBB:SCND) reported today a 65% increase in net income and moderately higher sales for the three months ended September 30, 2005 compared to the three months ended September 30, 2004. The significant increase in the Company's profitability resulted from the higher sales and especially higher gross margins compared to the same period last year, with the Company's operating expenses only slightly higher than the previous year.
Scientific's first-quarter net sales were $890,000, an increase of 4.5% over the previous year's same quarter net sales of $851,800. The increase was mainly the result of continued growth in the sales of new products, registering a 41% increase over the prior year same quarter.
Net income for the three months ended September 30, 2005 was $96,900, or $.10 per basic share, an increase of $38,300 (or 65%) from $58,600, or $.06 per basic share for the three months ended September 30, 2004.
"We are confident that we are on the right track with our program of new product development and marketing as reflected by the continuing growth of sales of new products, and the continued success of our program to reduce production costs, which is reflected in our gross margins," said Helena R. Santos, President and CEO.
About Scientific Industries
Scientific Industries manufactures and markets laboratory equipment, including the world-renowned Vortex-Genie(r) 2 Mixer. Scientific Industries' products are used by research laboratories, clinics, pharmaceutical manufacturers, medical device manufacturers, and other industries.
"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."
The Scientific Industries company logo can be found at: http://media.primezone.com/prs/single/?pkgid=715
SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
September 30, 2005
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Current Assets $2,672,400
Property and Equipment, Net 126,100
Other and Intangible Assets, Net 91,500
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Total Assets $2,890,000
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $ 421,400
Deferred Compensation 20,500
Shareholders' Equity 2,448,100
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Total Liabilities and Shareholders' Equity $2,890,000
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SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended
September 30, September 30,
2005 2004
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Net Sales $ 890,000 $ 851,800
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Gross Profit 456,700 393,800
Operating Expenses 329,300 323,800
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Income from Operations 127,400 70,000
Interest and Other Income, Net 7,500 6,600
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Income Before Income Taxes 134,900 76,600
Income Taxes, All Current 38,000 18,000
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Net Income $ 96,900 $ 58,600
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Basic Earnings Per Common Share $ .10 $ .06
Diluted Earnings Per Common Share $ .09 $ .06
Cash Dividends Declared Per Share $ .09 $ .07
Weighted Average Number of
Outstanding Shares:
Basic 980,310 975,541
Diluted 1,060,825 1,044,679