By: Dylan Sikes - AllPennyStocks.com News

Friday, December 9, 2016

Applied DNA Sciences Inc (NASDAQ:APDN) recently reported its fourth quarter and full year results. The company announced its fourth quarter revenue at $1.6 million, down 59% from $4 million which it had reported for the fourth quarter of the previous year. While fourth quarter showed 151% improvement over its third quarter revenue of $653 thousand, the steep increase was mainly due to shipments of DNA concentrates for marking cotton. The company is likely to face challenging times ahead as the fourth quarter revenue suffered due to lower international demand. The company also saw the conclusion of two non-recurring government commercialization contracts in the fourth quarter. Applied DNA Sciences will be required to source for new business opportunities to generate steady revenue streams going forward.

Consequent to the decrease in its demand, Applied DNA Sciences also reported lower total operating expenses at $3.6 million, down from $4.2 million which it had spent in the fourth quarter of the previous year. The company’s net loss ballooned from $496 thousand to $2.4 million. On per share basis, the net loss stood at $0.10.

Applied DNA Sciences stock lost over 6% of its value in the past six trading session, as the company announced the marginal increase in its full fiscal year net loss. The company’s net loss for the year stood at $12.2 million or $0.51 per share. The comparable figures for the previous year stood at $11.9 million and $0.63 per share.

The company also reported an increase in its R&D expenses as it spent resources for carrying out the cooperative research and development agreement with the USDA for enhanced cotton genotyping.

Applied DNA Sciences plans to boost its supply chain and the market for its products in the coming future. The company expects to profit from recent controversies related to the mislabeling of Egyptian cotton goods. The company offers various products which offer DNA tagging of cotton.

Apart from its general market, the company also seeks to augment its government and military vertical. Its recently concluded government contracts are likely to provide a solid platform to the company for further development. Applied DNA Sciences also expects to provide advisory services to OEMs related to its validation and authentication solutions.

The company’s new partnership with ITL Group is likely to further boost the expertise of Applied DNA Sciences. The new collaboration is related to SigNature DNA forensic marking system. The technology is designed to help the apparel and footwear industry in protecting itself against counterfeits.

As a result of the weak financial results, its been tough to be a shareholder in APDN with shares at their 52 week low level with no real bounce back in sight. Perhaps some of the Company’s above mentioned verticals will step in and add some bottom line revenues so this struggling Company can turn the corner in upcoming quarters.

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