WEST BRIDGEWATER, Mass., Nov. 17 /PRNewswire-FirstCall/-- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue for the three months ended September 30, 2003 was $5,829,035, a decrease of $46,937 or 0.8%, compared with revenue of $5,875,972 for the three months ended September 30, 2002. The Company incurred an operating loss from continuing operations of $(283,460) in the third quarter of 2003, significantly lower than the operating loss from continuing operations of $(510,187) reported in the third quarter of 2002. In the third quarter of 2002, the Company recorded 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 that occurred in the first quarter of 2001. These results are reported as discontinued operations. In summary, net loss from both continuing and discontinued operations for the three months ended September 30, 2003 amounted to $(355,756) or $(0.05) per diluted share, compared with a net loss from both continuing and discontinued operations of $(342,178) or $(0.05) per diluted share for the third quarter ended September 30, 2002.
For the nine months ended September 30, 2003, the Company reported revenue of $17,494,896 an increase of $809,714 or 4.9% compared with revenue of $16,685,182 for the nine months ended September 30, 2002. The Company incurred an operating loss from continuing operations of $(629,874) in the first nine months of 2003, compared to an operating loss from continuing operations of $(1,592,890) for the same period of 2002. The operating loss for 2003 includes approximately $317,000 of G&A expenses related to the March 2003 adoption of a Shareholders' Purchase Rights Plan and costs incurred by the Special Oversight Committee of the Company's Board of Directors. Overall, net loss from both continuing and discontinued operations for the first nine months of 2003 was $(834,607) or $(0.12) per share, versus a net loss from both continuing and discontinued operations of $(1,522,937) or $(0.23) per share, in the first nine months of 2002. The nine month net loss for 2002 includes a gain of $225,000 or $0.03 per diluted share related to the Company's decision in late 2000 to exit the clinical laboratory business.
"The highlights of the third quarter of 2003 were a 22.9% increase in product revenue and a significant decrease in operating loss compared to last year's third quarter," said Kevin W. Quinlan, President and Chief Operating Officer of Boston Biomedica, Inc. "These achievements were a result of continued strong ACCURUN sales, especially our nucleic acid run controls, cautious spending, and overall effective use of existing resources. The product revenue increase was offset by lower service revenue in 2003 compared to last year's third quarter, which benefited from a very high level of clinical trial activity on two government contracts."
Quinlan continued: "We continue to work with a number of potential customers to solve their sample preparation challenges using our PCT technology. At the same time, our development work continues as we seek to expand the PCT product line. We remain encouraged on this front, but cautious with our resources."
As announced last quarter, the Company reiterated its intention to
continue the practice of releasing its results to coincide with its SEC filing
requirements.
About Boston Biomedica, Inc.
BBI provides products and services to the diagnostics and 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. The Company also manufactures reagents used in test kits and provides 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, the Company launched Panacos Pharmaceuticals and maintains a significant passive investment in this novel antiviral drug development company.
Forward Looking Statement
Statements contained in this news release regarding 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. In addition, demand for the PCT Sample Preparation System may not develop as anticipated. In any of such events, the Company's operating results will be lower than anticipated, and 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 ten 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 three and nine months ended September 30, 2003 and the year ended December 31, 2002 are not necessarily indicative of future results. Future revenue may not meet expectations due to, among other things, changes in customer needs and technological innovations, failure to execute orders on a timely basis, or an impairment to the Company's receivable from a former officer of the Company. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements, and risk factors, is contained in the Company's recent filings with the Securities and Exchange Commission of its Annual Report on Form 10-K for the year ended December 31, 2002, and on Form 10-Q's for the quarters ended March 31, June 30, and September 30, 2003. Copies of these documents may be obtained by contacting the Company or the SEC.
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Investor Contact:
Kevin W. Quinlan, President & COO
Boston Biomedica, Inc.
(508) 580-1900 (T)
(508) 580-1110 (F)
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
REVENUE:
Products $3,524,740 $2,868,300 $10,186,266 $9,431,905
Services 2,304,295 3,007,672 7,308,630 7,253,277
Total revenue 5,829,035 5,875,972 17,494,896 16,685,182
COSTS AND EXPENSES:
Cost of products 1,892,686 1,542,111 5,406,894 4,832,634
Cost of services 1,914,442 2,315,721 5,734,411 5,571,661
Research and
development 491,190 708,284 1,311,757 2,097,083
Selling and marketing 827,688 803,956 2,418,182 2,534,297
General and
administrative 986,489 1,016,087 3,253,526 3,242,397
Total operating costs
and expenses 6,112,495 6,386,159 18,124,770 18,278,072
Operating loss from
continuing operations (283,460) (510,187) (629,874) (1,592,890)
Interest income 1,988 9,966 17,619 34,744
Interest expense (74,284) (66,957) (218,921) (189,791)
Loss from continuing
operations before
income taxes (355,756) (567,178) (831,176) (1,747,937)
Provision for income
taxes - - (3,431) -
Loss from continuing
operations (355,756) (567,178) (834,607) (1,747,937)
Discontinued
operations
Income from
discontinued
operations of
Clinical
Laboratory Segment,
net of income taxes - 225,000 - 225,000
Net loss $(355,756) $(342,178) $(834,607) $(1,522,937)
Loss from continuing
operations per share,
basic & diluted $(0.05) $(0.08) $(0.12) $(0.26)
Income per share from
discontinued
operations, basic &
diluted $- $0.03 $- $0.03
Net loss per share,
basic & diluted $(0.05) $(0.05) $(0.12) $(0.23)
Number of shares used
to calculate net
income (loss)
per share, basic and
diluted 6,824,075 6,782,175 6,804,972 6,618,338
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
September 30, December 31,
2003 2002
Current assets $11,370,568 $13,074,203
Property, plant and
equipment, net 4,967,139 5,826,817
Other non-current
assets 990,244 942,349
Total assets $17,327,951 $19,843,369
Accounts payable and
accrued expenses $3,065,375 $3,375,789
Debt 2,344,480 2,417,749
Other liabilities 644,702 712,344
Liabilities from
discontinued
operations 456,658 710,441
Total
liabilities 6,511,215 7,216,323
Stockholders' equity 10,816,736 12,627,046
Total
liabilities and
stockholders'
equity $17,327,951 $19,843,369
SOURCE Boston Biomedica, Inc.