Applied Digital posts 2004 loss of $17.3 million
CEO sees turnaround, expresses optimism about VeriChip tracking device.
South Florida Sun-Sentinel | March 9, 2005
By Glenn Singer
Delray Beach-based Applied Digital Solutions Inc. on Tuesday reported a net loss of $17.3 million, or 34 cents a share, for 2004, compared with a profit of $3.1 million, or 9 cents a share, for the previous year.
The company also reported a fourth-quarter loss from continuing operations of $13.2 million, or 24 cents a diluted share, compared with a loss of $23.3 million, or 59 cents a basic share, a year ago. Revenue from continuing operations was $31.4 million, compared with revenue from continuing operations of $24.7 million last year.
Applied Digital said the fourth-quarter loss included a charge of $8.9 million attributable to decreased ownership of Digital Angel Corp. Applied Digital owns about 55 percent of the St. Paul, Minn.-based company.
Scott Silverman, Applied Digital's chairman and chief executive officer, described 2004 as a turnaround year for the company.
"In less than two years, we have gone from a company that was basically insolvent to one with a strong balance sheet and an FDA-cleared medical device," Silverman said in a news release.
Applied Digital said it ended 2004 with $30.8 million in cash and cash equivalents and was focusing on increasing awareness of its VeriChip in the medical community. The chip, which can be implanted in a human shoulder, contains a code enabling physicians with company-developed scanners to access medical information about an individual.
Digital Angel Corp. on Tuesday reported a loss of $5 million, or 15 cents a share, for 2004. That compares with a loss of $9.5 million, or 35 cents a share, for the previous year.
Digital Angel manufactures the VeriChip and earns much of its money from livestock tracking technology.