PCT Sample Preparation System
WEST BRIDGEWATER, Mass., May 1 /PRNewswire-FirstCall/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue from continuing operations for the first quarter ended March 31, 2002 was $4,953,115, a slight decrease of $28,974 or 0.6%, compared with revenue from continuing operations of $4,982,089 for the same period in 2001. Loss from continuing operations for the quarter was $(886,866), or $(0.14) per diluted share, compared with a loss from continuing operations of $(486,152), or $(0.08) per diluted share, for the same period in 2001. Results of operations for both quarters reflect the Company's decision in late 2000 to exit the clinical laboratory business. The results of the clinical laboratory business, reported as discontinued operations, showed income of $3,964,498 or $0.64 per share for the first quarter of 2001, resulting primarily from the gain on the sale of the clinical laboratory business. Net loss for the first quarter of 2002 from both continuing and discontinued operations was $(886,866), or $(0.14) per share, versus net income of $3,478,346, or $0.56 per share, in the prior year's first quarter.
"The results for the quarter reflect several major accomplishments and one key disappointment," said Kevin W. Quinlan, President and Chief Operating Officer of BBI. "By far our biggest accomplishment was the completion of the design and manufacture of the PCT Sample Preparation System, including both the Barocycler(TM) NEP2017 instrument and the FT500 PULSE(TM) Tube, followed by its successful unveiling at the Pittsburg Conference (Pittcon) in New Orleans in mid-March. To accomplish this goal, we incurred $395,000 of incremental R&D expenses in the first quarter of 2002 as compared to the same period last year. This includes the cost of the parts to make several Beta Site units, as well as the cost of the Mold needed to manufacture the disposable Pulse Tubes. In addition, we spent approximately $100,000 in marketing and promotional costs related to Pittcon -- an amount we considered both an important investment and necessary expenditure as we enter the commercialization phase of our first PCT product. Our only significant disappointment was that IVD customer product revenue and commercial service revenue lagged behind our expectations, primarily because we experienced delays from several customers in getting final approval for shipment. We are working diligently with our customers to speed up this process. We expect a stronger performance in the second quarter due to promotional activities relating to new product launches and the availability of certain people temporarily engaged in the PCT Sample Preparation System launch during Q1. Finally, several important core business product development projects were initiated which also contributed to higher spending, but we are optimistic of their future revenue potential."
"Pittcon was hands-down the most successful meeting that we have ever attended," said Richard T. Schumacher, Founder, CEO, and Chairman of Boston Biomedica. "We left the conference with 705 leads, nearly five times the number we expected. We were one of seventeen companies nominated for the prestigious Pittcon Editor's Best New Product Award, we were interviewed by ten journal and magazine editors, and we successfully ran multiple "difficult- to-lyse" samples dozens of times a day in front of potential customers."
Schumacher continued: "We have continued to show excellent progress in our PCT program since Pittcon. We have successfully completed our internal "first article" testing of the manufactured PULSE Tubes, we have been highlighted in two leading industry periodicals (including "Editor's Choice" in the April issue of Biomedical Products), we announced the award of two additional PCT- related NIH grants, and we are preparing to begin Beta Site testing of the PCT Sample Preparation System within the next two weeks. We are confident that we have the financial, technical, and marketing resources to meet our announced goal to begin shipment of the PCT Sample Preparation System to commercial customers by September. This is a very exciting time for all BBI stakeholders."
Boston Biomedica, Inc. provides products and services for the detection and treatment of infectious diseases such as AIDS and Viral Hepatitis. BBI has three operating business units: (1) BBI Diagnostics, an ISO 9001 certified manufacturer and supplier of quality control and diagnostics reagents used to increase the accuracy of in vitro diagnostic tests, (2) BBI Biotech Research Laboratories, a research and development center providing R&D support for the other BBI business units, as well as contract research and repository services for the government, industry and other third parties, and (3) BBI Source Scientific, an ISO 9001 certified manufacturer of diagnostic instrumentation and medical devices. In addition, BBI is conducting research and development in Pressure Cycling Technology (PCT) through its subsidiary BBI BioSeq, with the goal of introducing new solutions for a number of important healthcare issues, including the extraction of nucleic acids and proteins, the inactivation of pathogens in human plasma and therapeutics, food safety, and genomics. BBI also maintains a passive investment in Panacos Pharmaceuticals, a privately held antiviral drug and vaccine development company spun-off from BBI in 2000, whose goal is to introduce new solutions for the treatment of infectious diseases.
Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking'' statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ from those projected include the possibility that due to difficulties in the implementation of its strategies, Boston Biomedica may not be successful in developing Pressure Cycling Technology (PCT) into commercially successful products, or such activities may take longer, or may require more financial, technical, and marketing resources than currently expected. If so, the Company may not have the resources necessary to achieve commercial success of PCT. Pressure Cycling Technology may also not be adaptable to any other commercially viable applications, certain Pressure Cycling Technology applications may not fall within the claims of the Company's eight issued US patents, and individuals and groups utilizing such PCT procedures may not be required to license such technology from BBI. The financial results for the quarter ended March 31, 2002 are not necessarily indicative of future results. Future revenues may not meet expectations due to changes in customer needs and technological innovations. Additional information concerning factors that could cause actual results to differ materially from those in the forward- looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2001. Copies of these and other documents may be obtained by contacting the Company or the SEC.
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BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31,
2002 2001
REVENUE:
Products $2,975,625 $3,162,426
Services 1,977,490 1,819,663
Total revenue 4,953,115 4,982,089
COSTS AND EXPENSES:
Cost of products 1,507,040 1,583,968
Cost of services 1,561,434 1,404,094
Research and development 757,711 472,936
Selling and marketing 915,704 751,270
General and administrative 1,046,442 1,018,740
Total operating costs and expenses 5,788,331 5,231,008
Operating loss from continuing operations (835,216) (248,919)
Interest income 13,656 19,094
Interest expense (65,306) (246,527)
Loss from continuing operations
before income taxes (886,866) (476,352)
Provision for income taxes - (9,800)
Loss from continuing operations $(886,866) $(486,152)
Discontinued operations
Income from discontinued operations
of Clinical
Laboratory Segment, net of income taxes - 3,964,498
Net (loss) income $(886,866) $3,478,346
Loss from continuing operations per
share, basic & diluted $(0.14) $(0.08)
Income per share from discontinued
operations, basic & diluted $- $0.64
Net (loss) income per share, basic &
diluted $(0.14) $0.56
Number of shares used to calculate
net (loss) income
per share, basic & diluted 6,297,408 6,240,456
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
March 31, December 31,
2002 2001
Current assets $13,453,965 $13,870,848
Property, plant and equipment, net 6,401,625 6,533,671
Other non-current assets 992,343 1,009,735
Total assets $20,847,933 $21,414,254
Accounts payable and accrued expenses $3,080,109 $3,181,201
Debt 2,466,792 2,484,890
Other liabilities 597,170 621,304
Net liabilities from discontinued
operations 1,557,242 1,686,547
Total liabilities 7,701,313 7,973,942
Stockholders' equity 13,146,620 13,440,312
Total liabilities and
stockholders' equity $20,847,933 $21,414,254
Investor Contacts: Media Contact:
Richard T. Schumacher, CEO & Chairman Jennifer Viera
Kevin W. Quinlan, President & COO Schneider & Associates
Boston Biomedica, Inc. (617) 536-3300 (T)
(508) 580-1900 (T) jviera@schneiderpr.com
(508) 580-1110 (F)
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SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, CEO & Chairman, or Kevin W. Qu inlan, President & COO, both of Boston Biomedica, Inc., +1-508-580-1900; or Jennifer Viera of Schneider & Associates, +1-617-536-3300, jviera@schneiderpr.com