Applied DNA Sciences Reports Fiscal First Quarter 2013 Results

Thu Feb 14, 2013 10:44pm EST

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  STONY BROOK, NY, Feb 14 (Marketwire) -- 
Applied DNA Sciences, Inc. (OTCBB: APDN) announced its financial results
for the quarter ending December 31, 2012. 

    Financial Results
 For the three months ended December 31, 2012, we
generated $317,670 in revenues from operations principally from the sales
of authentication services. For the three months ended December 31, 2011,
we generated $516,904 in revenues from operations. The decrease in sales
for the three months ended December 31, 2012 compared to the three months
ended December 31, 2011 was primarily caused by the expiration of certain
contracts and delays in our transition to new contracts with products in
our target markets.

    Selling, general and administrative expenses increased from $2,152,428
for the three months ended December 31, 2011 to $2,521,167 for the three
months ended December 31, 2012. The increase of $368,739, or 17.1%, is
primarily attributable to higher professional and service fees incurred. 

    Research and development expenses increased from $78,473 for the three
months ended December 31, 2011 to $147,666 for the three months ended
December 31, 2012. The increase of $69,193 is attributable to additional
research and development activity needed with current operations.

    Total operating expenses increased to $2,689,828 for the three months
ended December 31, 2012 from $2,329,274 for the three months ended
December 31, 2011, or an increase of $360,554 primarily attributable to
an increase in professional fees paid and in R&D expenditures, which was
offset by a decrease in depreciation and amortization expense.

    Net loss for the three months ended December 31, 2012 increased to
$8,704,757 from a net loss of $2,409,905 for the three months ended
December 31, 2011 primarily attributable to the factors described above.

    Commented Dr. James Hayward, President and CEO of Applied DNA Sciences:
"Earnings for this quarter were not as robust as hoped for, but I believe
we have spent the time and resources to lay the foundation on which to
properly build our business. New technology breakthroughs during the
quarter strengthen the company's position in verticals such as textiles
and in optical reading (scanning). Meanwhile, our military electronics
offering continues to have strong momentum, although the sales cycle in a
government-driven business may be somewhat longer than is commonly
perceived."

    APDN opened new cash-in-transit business in Sweden for the company's
anti-theft product, smartDNA, in that country. A new patent was awarded
for the APDN's linkage of SigNature(R) DNA marks to optical reporting
(scanners), while new breakthroughs in SigNature DNA marking for textiles
strengthen the company's offerings in the vertical.

    In the military electronics area, APDN built new contractual
relationships with firms that will provide third-party SigNature DNA
marking on electronics, including in this effort the first test house in
the program, Premier Semiconductor. The company also pointed to expansion
of its capacity in volume and speed in the authentication process, and
hiring of new personnel in sales, scientific, and quality areas.

    Dr. Hayward stated, in reference to the company's business related to the
DLA mandate for SigNature DNA on microcircuits: "We believe that we were
right, during the first quarter, to devote resources to growing the
company's capacity to absorb the very significant business we believe can
be generated by the DLA mandate. We think this is underlined by the
announcement by DLA, only weeks after the quarter concluded, that it
would subsidize costs of SigNature DNA marking for trusted suppliers."

    Subsequent achievements include:


--  Announcement by the U.S. Defense Logistics Agency (DLA) that the
    Agency would subsidize APDN's SigNature DNA marking for defense
    suppliers who provide designated high-reliability electronics to the
    Agency. The announcement, published as an "Update" on the DLA Bid
    Board System (DIBBS) web site on January 24, 2013, also emphasized
    that "effective immediately, only trusted sources who comply with
    Deoxyribonucleic Acid marking requirement in DLAD 52.11-9074 are
    eligible to receive FSC 5962 awards from DLA. There are no
    exceptions."
    
    
--  We established "third-party" DNA Marking Partners, to provide the
    ability for electronic manufacturers and distributors to outsource DNA
    marking and comply with the DLA mandate.
    
    
--  Closed on $7.5 million in financing with the best terms the company
    has ever been able to negotiate. Additional financing is possible
    through the exercise of warrants.
    
    
--  Bought back Warrants to buy 26,881,720 shares of the Company's Common
    Stock, ($0.001 par value), issued to Crede CG II, Ltd. with an
    exercise price per share of $0.2232 for $50,000.
    
    
--  Initiated relationships with Forward Components to SigNature DNA mark
    components for the DLA and with Premier Semi to act as a third-party
    marker of SigNature DNA for parties unable or unwilling to mark the
    components themselves.
    
    
--  Hired additional sales representative with over 15 years in the
    electronics industry.
    
    
--  Received Notification of Allowance for four patent applications
    previously filed and we expect these patents to be issued over the
    next few months. This will further protect our intellectual property
    and act as a barrier to entry to others trying to imitate our product
    offerings.
    
    
--  In January, we were invited to present at the Jedec meeting in San
    Antonio. During a 2-hour technical briefing, we shared testing data in
    direct response to industry concerns.
    
    
--  Signed contracts with 2 trusted distributors, and have contracts
    pending with 4 additional, bringing our total to 10 companies with
    DNA-marking ability.
    
    
--  Eight additional companies have initiated negotiations to obtain
    SigNature DNA.
    


    

The quarterly report on Form 10-Q, which includes Applied DNA
Sciences consolidated financial statements, is available for viewing and
downloading, free of charge, through the Investor Relations section of
APDN's Web site at www.adnas.com, or through the SEC's electronic data
system at www.sec.gov. 

    About APDN
 APDN is a provider of botanical-DNA based security and
authentication solutions that can help protect products, brands and
intellectual property of companies, governments and consumers from theft,
counterfeiting, fraud and diversion. SigNature(R) DNA and BioMaterial
Genotyping(TM), our principal anti-counterfeiting and product
authentication solutions that essentially cannot be copied, provide a
forensic chain of evidence and can be used to prosecute perpetrators.

    The statements made by APDN may be forward-looking in nature.
Forward-looking statements describe APDN's future plans, projections,
strategies and expectations, and are based on assumptions and involve a
number of risks and uncertainties, many of which are beyond the control
of APDN. Actual results could differ materially from those projected due
to our short operating history, limited financial resources, limited
market acceptance, market competition and various other factors detailed
from time to time in APDN's SEC reports and filings, including our Annual
Report on Form 10-K, filed on December 20, 2012 and our subsequent
quarterly reports on Form 10-Q. APDN undertakes no obligation to update
publicly any forward-looking statements to reflect new information,
events or circumstances after the date hereof to reflect the occurrence
of unanticipated events.

    

INVESTOR CONTACT: 
Debbie Bailey
631-444-8090 

MEDIA CONTACT: 
Mitchell Miller
646-543-3373

FCMN Contact: 
info@adnas.com

Web site: http://www.adnas.com
Twitter: @APDN 

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