SEATTLE, WA--(Marketwire - Mar 28, 2013) - Atossa Genetics, Inc. (NASDAQ: ATOS), a healthcare company focused on the prevention of breast cancer through the commercialization of diagnostic medical devices and laboratory developed tests that can detect precursors to breast cancer, and through the research, development, and ultimate commercialization of treatments for pre-cancerous lesions and ductal carcinoma in situ, today announced its 2012 financial results and corporate developments.

Recent Accomplishments and Highlights

"We continue to make steady progress in the national rollout of our patented ForeCYTE Breast Health Test, advancing our ambition to arm women and their physicians with information that will enable improved breast health management and prevent breast cancer," stated Dr. Steven Quay, chairman, CEO and president. "We are very encouraged by the enthusiastic response we are seeing from doctors and their patients for the ForeCYTE test during the early phases of our national rollout. We believe that widespread adoption of the ForeCYTE test could lead to a dramatic lowering of the incidence of breast cancer, much as the Pap smear has led to a 75 percent reduction in cervical cancer."

Developments in 2012 and early 2013 include:

Full-Year 2012 Financial Results

Net loss for the year ended December 31, 2012 was $5.1 million, or $(0.41) per share, compared with net loss of $3.4 million, or $(0.38) per share, for the year ended December 31, 2011. The increase in net loss was primarily attributable to an increasein general and administrative expense of $1.8 million.

Revenues for the twelve months ended December 31, 2012 were $481,842, which included $6,440 of product revenue from the sale of MASCT Systems and $475,402 of diagnostic testing service revenue from the ForeCYTE and ArgusCYTE breast health tests. This compares with total revenues of $1,500 for the year ended December 31, 2011. The year-over-year increase in total revenues was driven by the launch of the ForeCYTE test near the end of 2011 in a field experience trial and sales of the ArgusCYTE test.

Gross profit for the twelve months ended December 31, 2012 was $416,213. This compares to gross loss of $95,690 for the year ended December 31, 2011. Loss on reduction of inventory to lower of cost or market was $29,884 for the twelve months ended December 31, 2012, and $92,026 for the twelve months ended December 31, 2011, primarily due to write-off of parts purchased during the year for the assembly of MASCT System which was determined at zero net realizable value as a result of lower of cost or market analysis at year end. The MASCT System is currently sold at a price substantially lower than its cost to encourage sales and because the MASCT System is currently manufactured by Atossa's suppliers only in small quantities. For these reasons, the manufacturing cost allocated to each inventory unit is high.

Total operating expenses were $5.5 million for the twelve months ended December 31, 2012, consisting of G&A expenses of $5.0 million and selling expenses of $0.5 million.This compares to total operating expenses of $3.3 million for the twelve months ended December 31, 2011, consisting of G&A expenses of $3.2 million and selling expenses of $0.1 million.The increase in G&A expenses of $1.8 million, or approximately 56%, from 2011 to 2012 is attributed to the launch of the Company's MASCT System, ForeCYTE test and ArgusCYTE test and the related growth in expenses to hire additional staff, expand our operations, invest additional funds in research and development and increased legal fees and other costs associated with our initial public offering.Atossa expects that its G&A expenses will continue to increase as it adds additional full time employees and incurs additional costs as a publicly traded company. Additionally, G&A costs are expected to rise as the Company increases headcount to coordinate the production and manufacture of the MASCT System, and the expected increase in service revenues.

At December 31, 2012, Atossa had cash and cash equivalents of $1.7 million.

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Atossa Genetics Reports 2012 Results and Operating Highlights

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