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Milestone Scientific Achieves Profitability for the First Quarter of 2014

Companies mentioned in this article: Milestone Scientific, Inc.

LIVINGSTON, NJ--(Marketwired - May 14, 2014) - Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced, computer-controlled injection technologies, today announced financial results for the three months ended March 31, 2014.

Leonard Osser, Chief Executive Officer of Milestone Scientific stated, "We continue to advance our strategy of building a broad platform of computer-controlled injection technologies serving a wide array of medical applications. We are awaiting regulatory approval for both our epidural and intra-articular instruments. In the meantime, we are focused on establishing strategic partnerships with distributors worldwide to ensure a seamless rollout upon approval. As announced last year, we already have a distribution channel in place with one of largest specialty distributors of healthcare products in the United States to market and sell our epidural instrument. We look forward to creating similar agreements in other markets later this year. We also plan to announce this year the development of additional medical instruments that address large potential markets."

Mr. Osser continued, "As announced earlier this year, Aseptico, our exclusive dental distributor, will now only sell Milestone's STA Wand® handpieces directly to dentists and will no longer sell through third-party distributors. As a result, we will have greater transparency with our customers since Aseptico shares with us the names of all the dentists that use our instruments. By capturing that information, we are able to establish a direct relationship with the dentists, and based on experience, once we train dentists, we know they utilize a greater number of handpieces each year. As a result, we anticipate an increase in handpiece sales in the third and fourth quarters of this year as our former handpiece distributor sells through their remaining inventory. Nevertheless, we still achieved a 5.3% increase in revenue to $2.6 million in the first quarter of 2014. We expect to see a more significant increase in sales in the second half of 2014. International sales increased by 18.3% to $1.4 million in the first quarter of 2014. This was driven by an increase in international instrument sales due to promotions and incentives on instruments in 2014 to our worldwide distributors. I am also pleased to report we achieved another quarter of profitability and positive cash flow, while continuing to improve our balance sheet with shareholders' equity increasing to $5.9 million from $5.5 million at the end of the first quarter."

Revenue for the three months ended March 31, 2014 was $2.6 million versus $2.5 million for the first quarter of 2013. The increase in product sales of $131,292 or 5.3% was primarily the result of increased international revenue. Domestic instrument sales decreased by $49,431 in 2014 versus 2013 due to certain sales incentives and arrangements with our distributor. In the domestic market, handpiece sales decreased by $30,558 or 2.9%. On the international front, total revenue was $1.4 million, an 18.3% increase versus the same period in 2013. International instrument sales increased by $372,962 or 120.6% in the first quarter of 2014 versus 2013. Gross profit for the first quarter of 2014 was $1.7 million or 66.3% of revenue versus $1.7 million or 67.4% of revenue in the first quarter of 2013. Net income for the first quarter of 2014 was $194,384 versus net income of $150,746 for the comparable period in 2013. The increase in net income was attributable to an increase in sales, offset by a non-cash expense of $130,523 related to the Milestone Medical Inc. joint venture that was not incurred in 2013.

Milestone's executive management team will host a teleconference at 8:30 a.m. Eastern Time on Wednesday, May 14, 2014 to discuss the Company's financial results. The conference call will be available via telephone by dialing toll free 1-800-762-8779 or on the company's website at www.milestonescientific.com. For those unable to participate at that time, a replay of the call will be archived on the company's website or can be accessed by dialing 1-800-406-7325 and entering the pass code 4683266. The replay will be available for 90 days.

About Milestone Scientific Inc.
Milestone Scientific Inc. (MLSS) is a leading medical research and development company that designs and patents innovative injection technology. Milestone's computer-controlled systems make injections precise, efficient, and virtually painless. For more information please visit our website: www.milestonescientific.com

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, 2013. 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.

 (tables follow)

                         MILESTONE SCIENTIFIC INC.                          
                       CONDENSED STATEMENTS OF INCOME                       
                                               Three Months Ended March 31, 
                                                    2014           2013     
                                               -------------  ------------- 
Net sales                                      $   2,620,834  $   2,489,542 
Cost of products sold                                882,997        812,043 
                                               -------------  ------------- 
  Gross profit                                     1,737,837      1,677,499 
                                               -------------  ------------- 
Selling, general and administrative expenses       1,392,869      1,387,901 
Research and development expenses                     15,720        121,837 
                                               -------------  ------------- 
Total operating expenses                           1,408,589      1,509,738 
                                               -------------  ------------- 
Income from operations                               329,248        167,761 
Other income (expenses)                                                     
  Other income                                             -         17,543 
  Interest expense                                      (475)       (34,558)
  Loss from Medical Joint Venture                   (130,523)             - 
  Loss from Education Joint Venture                   (3,416)             - 
                                               -------------  ------------- 
    Total other expenses, net                       (134,414)       (17,015)
                                               -------------  ------------- 
Net income                                     $     194,834  $     150,746 
                                               -------------  ------------- 
Net income                                                                  
  Basic                                        $        0.01  $        0.01 
                                               =============  ============= 
  Diluted                                      $        0.01  $        0.01 
                                               =============  ============= 
Weighted average shares outstanding and to be                               
 issued -                                                                   
  Basic                                           17,787,352     16,351,894 
                                               =============  ============= 
  Diluted                                         18,268,814     16,752,580 
                                               =============  ============= 
                         MILESTONE SCIENTIFIC INC.                          
                          CONDENSED BALANCE SHEETS                          
                                                 March 31,     December 31, 
                                                    2014           2013     
                                                (Unaudited)     (Audited)   
                                               -------------  ------------- 
Current Assets:                                                             
  Cash and cash equivalents                    $   1,398,847  $   1,147,198 
  Accounts receivable, net of allowance for                                 
   doubtful accounts of $5,000 as of March 31,                              
   2014 and $5,000 as of December 31, 2013         1,221,375      1,532,856 
  Inventories                                      1,744,946      1,321,652 
  Advances on contracts                            1,763,280        727,478 
  Prepaid expenses and other current assets          242,717        150,451 
                                               -------------  ------------- 
    Total current assets                           6,371,166      4,879,635 
Advances on contracts                                218,875      1,580,874 
Investment in Milestone Medical Inc                  852,295        924,115 
Investment in Milestone Education LLC                 38,666         42,082 
Furniture, Fixtures & Equipment net of                                      
 accumulated depreciation of $458,614 as of                                 
 March 31, 2014 and $476,884 as of December                                 
 31, 2013                                             24,562         23,988 
Patents, net of accumulated amortization of                                 
 $518,095 as of March 31, 2014 and $498,502 as                              
 of December 31, 2013                                572,142        591,735 
Other assets                                          12,917         12,917 
                                               -------------  ------------- 
      Total assets                             $   8,090,623  $   8,055,346 
                                               =============  ============= 
     LIABILITIES AND STOCKHOLDERS' EQUITY                                   
Current Liabilities:                                                        
  Accounts payable                             $   1,217,135  $   2,020,368 
  Customer advances                                  507,345              - 
  Accrued expenses and other payables                484,012        515,133 
                                               -------------  ------------- 
    Total current liabilities                      2,208,492      2,535,501 
                                               -------------  ------------- 
Commitments and Contingencies                                               
Stockholders' Equity                                                        
  Preferred Stock, par value $.001, 5,000,000                               
   shares                                                  -              - 
  Common stock, par value $.001; authorized                                 
   50,000,000 shares; 17,780,465 shares                                     
   issued, 1,964,930 shares to be issued and                                
   17,747,132 shares outstanding as of March                                
   31, 2014; 17,759,540 shares issued,                                      
   1,839,930 shares to be issued and                                        
   17,726,207 shares outstanding as of                                      
   December 31, 2013                                  19,745         19,599 
  Additional paid-in capital                      66,844,506     66,677,200 
  Accumulated deficit                            (60,070,604)   (60,265,438)
  Treasury stock, at cost, 33,333 shares            (911,516)      (911,516)
                                               -------------  ------------- 
    Total stockholders' equity                     5,882,131      5,519,845 
                                               -------------  ------------- 
      Total liabilities and stockholders'                                   
       equity                                  $   8,090,623  $   8,055,346 
                                               =============  ============= 

David Waldman or Natalya Rudman
Crescendo Communications, LLC
Email: mlss@crescendo-ir.com
Tel: 212-671-1020