WEST BRIDGEWATER, Mass., March 4 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced the results of its operations for the fiscal year and fourth quarter ended December 31, 1996.
For the fiscal year, the Company reported record revenues, net profit, and earnings per share. Revenues for 1996 were $15,509,296, an increase of $3,238,566, or 26%, compared to revenues of $12,270,730 for 1995. Net income for 1996 was $481,220 as compared to net income of $102,990 for 1995; resulting earnings per share were $0.14 for 1996 as compared to $0.04 per share for 1995.
Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica, Inc., said, "Fiscal year 1996 continued to show strong sales increases in both our products and services. This revenue increase, combined with higher efficiencies in operations, caused net income for 1996 to more than quadruple compared to 1995. Highlights for the year were a 130% increase in Accurun(TM) sales, continued penetration of the end-user market, improved gross margins in both products and services, operating income exceeding one million dollars for the first time, and the successful release of several clinical laboratory testing services, including tests for HIV RNA ("viral load") and Ehrlichia antibodies. We expect 1997 to show continued revenue growth."
For the fourth quarter, the Company reported revenues of $4,566,182, an increase of $755,826, or 20%, over revenues of $3,810,356 for the same period in 1995. Net income for the quarter was $235,699 compared to net income of $158,507 for the same period in 1995. Fourth quarter 1996 earnings per share were $0.06, as compared to $0.05 per share for the fourth quarter of 1995. Fourth quarter 1996 EPS reflects an increase of 33% in shares outstanding as a result of the Company's October 1996 initial public offering (IPO).
"The successful completion of our IPO on October 31st was clearly the highlight of 1996, as it provided the capital to continue the growth of BBI," said Mr. Richard T. Schumacher, Chairman, President and CEO of Boston Biomedica. "However, the concomitant achievement of these record financial results is a true reflection of the dedication and hard work of all BBI employees."
Mr. Schumacher continued, "We are very pleased with the Company's progress thus far in 1997, including the award of a National Cancer Institute (NCI) repository contract (see February 25, 1997 news release) and the signing of a non-binding Letter of Intent to purchase all assets, business and selected liabilities of Source Scientific, Inc. (see February 7, 1997 news release). As the year progresses, we intend to continue our stated growth strategy -- the significant investment in both product development and sales and marketing -- to expand our penetration of the rapidly growing quality control market among end-user laboratories of in vitro diagnostic test kits."
Boston Biomedica, Inc. is a worldwide manufacturer of quality control products for use with in vitro diagnostic test kits for the detection, analysis and monitoring of infectious diseases, including AIDS, Hepatitis and Lyme Disease. These products are used to develop test kits, to permit the monitoring of laboratory personnel and equipment, and to help ensure the accuracy of test results. The Company also manufactures diagnostic test kit components and provides specialty laboratory testing services.
This release may include forward-looking statements concerning the Company's financial performance and business operations. The Company wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements.
Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: inability of the Company to develop the end-user market for quality control products; inability of the Company to integrate the business of Source Scientific, Inc. into the Company's business; inability of Source Scientific, Inc. to repay the $500,000 loan made by the Company; inability of the Company to obtain an adequate supply of raw materials necessary for certain of its products; significant reductions in purchases by any of the Company's major customers; and the potential insufficiency of Company resources, including human resources, plant and equipment and management systems, to accommodate any future growth. These and certain other factors which might cause actual results to differ materially from those projected are more fully set forth under the caption "Risk Factors" in the Company's Registration Statement on Form S-1 (SEC File No. 333-10759).
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
REVENUE:
Product sales $2,502,669 $2,202,451 $8,469,890 $6,621,631
Services 2,063,513 1,607,905 7,039,406 5,649,099
Total revenue 4,566,182 3,810,356 15,509,296 12,270,730
COSTS AND EXPENSES:
Cost of product
sales 1,200,722 1,179,678 4,252,068 3,564,241
Cost of services 1,388,827 1,156,605 4,856,630 4,167,625
Research and
development 266,029 118,054 796,805 375,712
Selling and
marketing 679,340 376,273 2,188,152 1,339,792
General and
administrative 670,732 635,062 2,400,681 2,315,814
Total operating
costs and
expenses 4,205,650 3,465,672 14,494,336 11,763,184
Income from
operations 360,532 344,684 1,014,960 507,546
Interest expense,
net (32,257) 84,551 212,969 335,899
Income before
income taxes 392,789 260,133 801,991 171,647
Provision for income
taxes (157,090) (101,626) (320,771) (68,657)
Net income $235,699 $158,507 $481,220 $102,990
Net income per share $0.06 $0.05 $0.14 $0.04
Weighted average
common and common
equivalent shares
outstanding 4,181,237 3,132,572 3,340,236 3,151,477
CONSOLIDATED SUMMARY BALANCE SHEETS
December 31,
1996 1995
Cash and cash equivalents $8,082,642 $11,463
Other current assets 8,119,478 7,117,686
Total current assets 16,202,120 7,129,149
Investment 732,500 --
Other long-term assets 2,863,694 2,799,224
Total assets $19,798,314 $9,928,373
Current liabilities $3,366,204 $2,441,283
Long-term debt 40,948 4,215,501
Other long-term liabilities 101,580 84,641
Stockholders' equity 16,289,582 3,186,948
Total liabilities and
stockholders' equity $19,798,314 $9,928,373
SOURCE Boston Biomedica, Inc.
CONTACT: Richard T. Schumacher, President & CEO or Kevin W. Quinlan, Chief Financial Officer, both of Boston Biomedica, Inc., 508-580-1900