Milestone Scientific Announces Record Results for Second Quarter 2010

LIVINGSTON, N.J., Aug. 10 /PRNewswire-FirstCall/ -- Milestone Scientific Inc. (OTC Bulletin Board: MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced its second quarter financial results for the three and six months ended June 30, 2010.

Financial Highlights When Comparing Three Months Ended June 30, 2010 with Three Months Ended June 30, 2009:

• Total revenues rose to $3.22 million, up 58% from $2.04 million.
  • Total instrument sales increased 124% to $1.82 million from $816,000.
  • Sales of disposable handpieces were up 14% to $1.37 million from $1.20 million.
  • International sales totaled $1.96 million, representing a 212% over $629,000.
  • Domestic sales declined 11% to $1.26 million from $1.41 million.
• Gross profit margin on sales climbed to 64% from 58%.
• Total operating expenses increased 4% to $1.86 million from $1.79 million.
  • Selling, general and administrative expenses remained relatively flat at $1.78 million compared to $1.75 million.
  • Research and development expenses increased 147% to approximately $80,000 from $32,000, which was attributable to the ongoing research and prototype development of new medical drug delivery devices using Milestone's patented CompuFlo® system technology.  
• Net income was approximately $180,000, or $0.01 earnings per basic and diluted share, compared to a net loss of $657,000, or [$0.05] loss per basic and diluted share.  This marked the second consecutive quarter that Milestone has posted a net profit.

Financial Highlights When Comparing Six Months Ended June 30, 2010 with Six Months Ended June 30, 2009:

• Total revenues increased 36% to $5.78 million from $4.24 million.
  • Total instrument sales climbed 51% to $2.42 million from $1.60 million.
  • Sales of disposable handpieces totaled $3.31 million, representing a 27% increase from $2.60 million.  
  • International sales were $3.32 million, a 145% increase from $1.35 million.
  • Total sales in the U.S. decreased 15% to $2.46 million from $2.89 million.
• Gross profit margin on sales improved, rising to 64% from 58%.
• Total operating expenses declined 3% to $3.49 million from $3.58 million.
• Net income totaled approximately $264,000, or $0.02 earnings per basic and diluted share, compared to a net loss of $1.22 million, or [$0.09] loss per basic and diluted share.

As of June 30, 2010, Milestone had $2.62 million in cash and accounts receivables, working capital of $2.31 million and total shareholders' equity of $3.21 million.

Leonard Osser, Chief Executive Officer of Milestone, stated, "As indicated by our record second quarter performance, Milestone benefited from the shipment of the first 1,000 STA Single Tooth Anesthesia System® units to China pursuant to the 12,000 unit purchase order received from China National Medicines Corporation late last year.  Although we are still working towards receiving regulatory approval in China to market the device to the Chinese dental market, our distribution partner determined that it prefers to be poised and ready – with the 1,000 units on hand – to commence the commercial product launch as soon as practical once marketing clearance is received."

Continuing, Osser noted, "We are very proud of the material progress Milestone has made in the past year with our efforts to enhance penetration of the global dental markets, which has led to our achieving two consecutive profitable quarters.  We also continue to make meaningful headway in identifying and pursuing opportunities to expand our portfolio of advanced computer-controlled injection products for the medical industry."

"As we have noted numerous times in the past, the key to Milestone's long term success lies in our ability to effectively leverage our valuable intellectual property to address the multitude of painless medical drug delivery and fluid aspiration applications made possible with our powerful CompuFlo system technology.  With hundreds of potential applications to consider, we must remain focused on only those that we believe are the most promising for obtaining a rapid return on investment while simultaneously representing new product introductions that can have the greatest positive impact on patients and the medical profession," concluded Osser.

Milestone will host a teleconference and live webcast tomorrow afternoon, beginning at 4:15 PM Eastern Time, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments.  The conference call can be accessed via telephone by dialing toll-free 1-877-941-4776, or via the Internet at www.milestonescientific.com.  For those unable to participate at that time, a replay of the webcast will be available for 90 days on the Company's web site at www.milestonescientific.com.

About Milestone Scientific Inc.

Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled injection technologies for the medical and dental markets; and currently sells its award-winning products through a global distribution network serving North America, Asia, Africa and Europe.  For more information on the STA Single Tooth Anesthesia System® unit and other innovative Milestone products, please visit the Company's web site found at www.milestonescientific.com or follow the Company on Twitter @painlessdental or become a fan on Facebook at Painless Dentistry.

Safe Harbor Statement

This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues and future success. These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report for the year ended December 31, 2009. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof.  Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

SOURCE Milestone Scientific Inc.