A board member at American Bio Medica Corp. has resigned after taking a job at a Philadelphia company in a related field.
American Bio Medica (Nasdaq: ABMC), the Kinderhook, N.Y.-based maker of drug-testing kits, received a resignation letter from Anthony Costantino on Tuesday. The letter says his resignation was effective April 1.
The company said the letter "did not contain any statements describing disagreements with the company related to its operations, policies or practices."
In an interview, company founder and CEO Stan Cipkowski said Costantino decided to step down due to a potential conflict of interest created when he became president and CEO at DrugScan Inc., outside of Philadelphia.
Costantino joined American Bio Medica's board in 2004. The company's board now has six members.
At the end of 2008, American Bio Medica had an accumulated deficit of $15.2 million. The company had a net loss of $850,000 in 2008, or 4 cents a share, on sales of $12.6 million. That followed a 2007 loss of $990,000.
Cipkowski said sales have grown month-over-month so far this year, but they remain below the levels of a year ago.
"Most of our customers are large employers, and obviously, they're not hiring and, therefore, not drug testing," Cipkowski said. "It's going to be a difficult year for everyone, obviously. But we expect to get through this downturn, and look forward to getting through this recession."
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