Company Reports 18% Increase in Revenue and Significant Reduction
In Operating Loss from Q1 2002
WEST BRIDGEWATER, Mass., July 25 /PRNewswire-FirstCall/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue from continuing operations for the three months ended June 30, 2002 was $5,856,096, an increase of $902,981 or 18.2%, compared with revenue from continuing operations of $4,953,115 for the three months ended March 31, 2002. Loss from continuing operations for the three months ended June 30, 2002 declined to $(293,893), or $(0.04) per diluted share, compared with a loss from continuing operations of $(886,866), or $(0.14) per diluted share, for the three months ended March 31, 2002.
Revenue from continuing operations for the three months ended June 30, 2002 increased by $356,021 or 6.5%, compared with revenue from continuing operations of $5,500,075 for the three months ended June 30, 2001. Loss from continuing operations for the three months ended June 30, 2002 was $(293,893), or $(0.04) per diluted share, compared with income from continuing operations of $37,545, or $0.01 per diluted share, for the three months ended June 30, 2001.
For the six months ended June 30, 2002, the Company reported revenue of $10,809,211, an increase of $327,047 or 3.1% compared with revenue of $10,482,164 for the six months ended June 30, 2001. Loss from continuing operations for the six months ended June 30, 2002 was $(1,180,759) compared with a loss from continuing operations ($432,928) for the six months ended June 30, 2001. Results of operations for the six-month periods ended June 30, 2002 and June 30, 2001 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 $0.63 per share in the first six months of 2001, resulting primarily from the gain on the sale of the clinical laboratory business in February 2001. Net loss for the first six months of 2002, from both continuing and discontinued operations, was $(1,180,759), or $(0.18) per share, versus net income of $3,515,891, or $0.56 per share, in the first six months of 2001.
"The results for the second quarter of 2002 were a considerable improvement over this year's first quarter, with a significant increase in revenue (18%) resulting in a much lower operating loss," said Kevin W. Quinlan, President and Chief Operating Officer of Boston Biomedica, Inc. "This improvement was led by a rebound in IVD customer sales and continued strength in our Accurun(TM) line of quality control products. Looking at the second quarter of 2002 compared to last year's second quarter, we increased revenue 6.5% while ramping up spending in several key areas, including the establishment of a product launch team for the PCT Sample Preparation System, the marketing of our molecular and cellular biology services at BBI Biotech, continued additional R&D in our PCT program, and the development of a much needed, web based data management software program for our quality control products customers. The quarter's results were adversely impacted by several G&A items, including higher than expected health care and facility costs. As previously disclosed, last year's second quarter also benefited by the reversal of an $80,000 legal accrual due to a favorable settlement. The key now is to keep this momentum in our core business going as we continue to work with our Beta Sites and launch our PCT Sample Preparation System."
"We continue to make excellent progress in our overall PCT program, and remain on target to release our novel PCT Sample Preparation System (PCT SPS) for sale before the end of Q3," said Richard T. Schumacher, Founder, CEO, and Chairman of Boston Biomedica. "During the past quarter, BBI, PCT, and the PCT Sample Preparation System were highlighted in six different industry publications, as well as in the June 24th issue of BusinessWeek. Concomitantly, we were also invited to present information and data on PCT and the PCT SPS at the American Society for Microbiology's Annual Meeting in May, as well as at an important scientific meeting at the University of New Hampshire in June."
Schumacher continued: "We are pleased with the results thus far from our Beta Site testing, from the data that we continue to generate in our own research laboratories, and from the discussions we have had with potential customers for the PCT Sample Preparation System in academia, pharma, and biotech. These PCT program successes, coupled with the excellent progress we are making in our core quality control business, are certainly very gratifying, but they also give us reason for continued optimism for the future of the Company."
Boston Biomedica, Inc. provides products and services for the detection and monitoring 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, including the Barocycler NEP 2017. In addition, BBI is conducting research and development in Pressure Cycling Technology (PCT) 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, genomics, and proteomics. 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 and six months ended June 30, 2002 are not necessarily indicative of future results. Future revenue 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 and the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2002. 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 Six Months Ended
June 30, June 30,
2002 2001 2002 2001
REVENUE:
Products $3,587,980 $3,279,837 $6,563,605 $6,442,263
Services 2,268,116 2,220,238 4,245,606 4,039,901
Total revenue 5,856,096 5,500,075 10,809,211 10,482,164
COSTS AND EXPENSES:
Cost of products 1,783,483 1,517,978 3,290,523 3,099,523
Cost of services 1,694,506 1,743,663 3,255,940 3,022,645
Research and
development 631,089 568,550 1,388,800 1,159,081
Selling and marketing 814,637 689,694 1,730,341 1,440,964
General and
administrative 1,179,868 891,497 2,226,310 1,920,177
Total operating costs
and expenses 6,103,583 5,411,382 11,891,914 10,642,390
Operating (loss) income
from continuing
operations (247,487) 88,693 (1,082,703) (160,226)
Interest income 11,122 17,600 24,778 36,694
Interest expense (57,528) (62,869) (122,834) (309,396)
(Loss) income from
continuing operations
before income
taxes (293,893) 43,424 (1,180,759) (432,928)
Provision for income
taxes - (5,879) - (15,679)
(Loss) income from
continuing
operations $(293,893) $37,545 $(1,180,759) $(448,607)
Discontinued operations
Income from discontinued
operations of Clinical
Laboratory Segment,
net of income taxes - - - 3,964,498
Net (loss) income $(293,893) $37,545 $(1,180,759) $3,515,891
(Loss) income from
continuing operations
per share, basic
& diluted $(0.04) $ 0.01 $(0.18) $(0.07)
Income per share from
discontinued operations,
basic & diluted $- $- $- $ 0.63
Net (loss) income
per share, basic &
diluted $(0.04) $ 0.01 $(0.18) $ 0.56
Number of shares used
to calculate net
(loss) income
per share, basic 6,770,103 6,382,863 6,535,061 6,312,053
Number of shares used
to calculate net
(loss) income
per share, diluted 6,770,103 6,394,355 6,535,061 6,312,053
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
June 30, December 31,
2002 2001
Current assets $12,885,025 $13,870,848
Property, plant and equipment, net 6,312,799 6,533,671
Other non-current assets 973,088 1,009,735
Total assets $20,170,912 $21,414,254
Accounts payable and accrued expenses $3,003,959 $3,181,201
Debt 2,441,644 2,484,890
Other liabilities 606,724 621,304
Net liabilities from discontinued operations 1,203,681 1,686,547
Total liabilities 7,256,008 7,973,942
Stockholders' equity 12,914,904 13,440,312
Total liabilities and stockholders' equity $20,170,912 $21,414,254
Investor Contacts:
Richard T. Schumacher, CEO & Chairman
Kevin W. Quinlan, President & COO
Boston Biomedica, Inc.
(508) 580-1900 (T)
(508) 580-1110 (F)
Media Contact:
Jennifer Viera
Schneider & Associates
(617) 536-3300 (T)
jviera@schneiderpr.com
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SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Investor Contacts: Richard T. Schumacher, CEO & Chairman or Kevin W. Quinlan, President & COO of Boston Biomedica, Inc., +1-508-580-1900; or Media Contact: Jennifer Viera of Schneider & Associates, +1-617-536-3300, jviera@schneiderpr.com