WEST BRIDGEWATER, Mass., Oct. 24 /PRNewswire-FirstCall/ --
Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue from
continuing operations for the three months ended September 30, 2002 was
$5,875,972, an increase of $467,332 or 8.6%, compared with revenue from
continuing operations of $5,408,640 for the three months ended September 30,
2001. Loss from continuing operations for the quarter ended September 30,
2002 was $(567,178), or $(0.08) per diluted share, compared with a loss from
continuing operations of $(210,672), or $(0.03) per diluted share, for the
quarter ended September 30, 2001. For the third quarter of 2002, the Company
showed income of $225,000 or $0.03 per diluted share due to a revised estimate
of the gain on the sale of its clinical laboratory business in the first
quarter of 2001. These results are reported as discontinued operations. In
summary, net loss from both continuing and discontinued operations amounted to
$(342,178) or $(0.05) per diluted share for the third quarter ended September
30, 2002.
For the nine months ended September 30, 2002, the Company reported revenue of $16,685,182, an increase of $794,378 or 5.0% compared with revenue of $15,890,804 for the nine months ended September 30, 2001. Loss from continuing operations for the nine months ended September 30, 2002 was $(1,747,937) compared with a loss from continuing operations of $(659,279) for the nine months ended September 30, 2001. Results of operations for the nine- month periods ended September 30, 2002 and September 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 $225,000 or $0.03 per diluted share in the first nine months of 2002 as discussed above, as compared to income of $3,964,498 or $0.64 per share in the first nine months of 2001, resulting primarily from the gain on the sale of the clinical laboratory business in February 2001. Net loss for the first nine months of 2002, from both continuing and discontinued operations, was $(1,522,937), or $(0.23) per share, versus net income of $3,305,219, or $0.53 per share, in the first nine months of 2001.
Third quarter revenue increased 8.6%, driven primarily by strong activity
in two service contracts related to HIV vaccine development and Hepatitis C.
This was partially offset by disappointing product revenue, caused primarily
by postponed and cancelled orders as the current economic downturn in the IVD
industry hurt our customers' test kit sales and new test development. The
result was an unfavorable mix shift that adversely impacted gross margin and
operating performance. Nonetheless we remain encouraged as we released
several important new products during the quarter, including an Accurun multi-
marker control for viral nucleic acid testing performed in blood banks, as
well as a much anticipated HIV drug resistant mutants positive control -- the
first commercially available quality control product of its kind in an
important new area of monitoring for AIDS patients,
said Kevin W. Quinlan,
President and Chief Operating Officer of Boston Biomedica, Inc. In addition,
we achieved our goal to release our first PCT-based product -- the PCT Sample
Preparation System -- during the quarter. To do so, we increased spending in
our PCT program by more than $220,000 in Q3 2002 verses Q3 2001. We are
optimistic that this novel System will have a positive impact on our future
results. In the meantime, as a result of our continuing losses, we have
implemented a number of cost cutting measures and are evaluating additional
steps to enable the Company to return to profitability in the very near
future.
Through the efforts of our staff at all three business units, we were
able to meet our publicly stated goal of releasing the PCT Sample Preparation
System before the end of Q3,
said Richard T. Schumacher, Founder, CEO and
Chairman of BBI. We believe the PCT SPS is faster, more reproducible, more
versatile, more powerful, and safer than other sample preparation methods
currently available for
hard-to-lyse materials, and that it will find
widespread acceptance in genomics and proteomics laboratories worldwide. We
realize this acceptance will take time, as it requires a paradigm shift away
from manual, less versatile, and less safe methods that are often used today.
However, the data being generated in our laboratories and the laboratories of
our independent Beta Site investigators have convinced us that our optimism is
well-founded, and have given us added confidence of our future success.
BBI provides products and services to the life sciences industry to evaluate, monitor, and ensure the quality of infectious disease test results, to improve the preparation of specimens for genomic/proteomic testing, and to safely store and retrieve rare and valuable biological specimens. We also manufacture reagents used in test kits and provide a broad range of routine and esoteric research services to governments and industry. BBI operates in three states, and conducts research in new applications for our patented Pressure Cycling Technology (PCT). In 2000, we launched Panacos Pharmaceuticals, and the Company maintains a significant passive investment in this novel antiviral drug development company.
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
commercializing the PCT Sample Preparation System, 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 develop additional products in PCT, or to improve upon existing products.
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 nine months ended September 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 Reports on Form 10-Q for the quarters ended March 31st
and June 30th, 2002. Copies of these and other documents may be obtained by
contacting the Company or the SEC.
Visit us at our website http://www.bbii.com
Please email us at IR@bbii.com if you prefer to receive future announcements electronically.
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)
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
REVENUE:
Products $2,868,300 $3,400,879 $9,431,905 $9,843,142
Services 3,007,672 2,007,761 7,253,277 6,047,662
Total revenue 5,875,972 5,408,640 16,685,182 15,890,804
COSTS AND EXPENSES:
Cost of products 1,542,111 1,635,467 4,832,634 4,737,413
Cost of services 2,315,721 1,570,748 5,571,661 4,718,505
Research and development 708,284 536,823 2,097,083 1,578,309
Selling and marketing 803,956 752,817 2,534,297 2,193,781
General and
administrative 1,016,087 1,070,121 3,242,397 2,980,358
Total operating costs and
expenses 6,386,159 5,565,976 18,278,072 16,208,366
Operating (loss) from
continuing operations (510,187) (157,336) (1,592,890) (317,562)
Interest income 9,966 12,513 34,744 49,207
Interest expense (66,957) (65,849) (189,791) (375,245)
(Loss) from continuing
operations before income
taxes (567,178) (210,672) (1,747,937) (643,600)
Provision for income
taxes - - - (15,679)
(Loss) from continuing
operations $(567,178) $(210,672) $(1,747,937) $(659,279)
Discontinued operations
Income from discontinued
operations of Clinical
Laboratory Segment, net
of income taxes 225,000 - 225,000 3,964,498
Net (loss) income $(342,178) $(210,672) $(1,522,937) $3,305,219
(Loss) from continuing
operations per share,
basic & diluted $(0.08) $(0.03) $(0.26) $(0.11)
Income per share from
discontinued operations,
basic & diluted $0.03 $- $0.03 $0.64
Net (loss) income per
share, basic & diluted $(0.05) $(0.03) $(0.23) $0.53
Number of shares used to
calculate net (loss)
income
per share, basic 6,782,175 6,074,180 6,618,338 6,231,891
Number of shares used to
calculate net (loss)
income
per share, diluted 6,782,175 6,074,180 6,618,338 6,231,891
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
September 30, December 31,
2002 2001
Current assets $13,413,715 $13,870,848
Property, plant and equipment, net 6,181,016 6,533,671
Other non-current assets 962,375 1,009,735
Total assets $20,557,106 $21,414,254
Accounts payable and accrued expenses $4,084,248 $3,181,201
Debt 2,424,105 2,484,890
Other liabilities 601,792 621,304
Net liabilities from discontinued
operations 854,848 1,686,547
Total liabilities 7,964,993 7,973,942
Stockholders' equity 12,592,113 13,440,312
Total liabilities and
stockholders' equity $20,557,106 $21,414,254
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SOURCE Boston Biomedica, Inc.
-0- 10/24/2002
/CONTACT: Richard T. Schumacher, CEO & Chairman, or Kevin W. Quinlan, President & COO, both of Boston Biomedica, Inc., +1-508-580-1900; or Jennifer Viera of Schneider & Associates, +1-617-536-3300, jviera@schneiderpr.com/
/Web site: http://www.bbii.com/
(BBII)
CO: Boston Biomedica, Inc.
ST: Massachusetts
IN: MTC BIO
SU: ERN
EO-CR
-- NETH019 --
2685 10/24/2002 12:27 EDT http://www.prnewswire.com