Significant Reduction Reported in Year 2003 Operating Loss vs. 2002
WEST BRIDGEWATER, Mass., April 2 /PRNewswire-FirstCall/-- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue for the year ended December 31, 2003 was $23,295,690, an increase of $531,053 or 2.3%, compared with revenue of $22,764,637 for the year 2002. The Company incurred an operating loss from continuing operations of $(1,013,900) for the year 2003, significantly lower than the operating loss from continuing operations of $(1,503,906) reported for the year 2002. The operating loss from continuing operations for 2003 includes approximately $213,000 of G&A expenses related to costs incurred by the Special Oversight Committee of the Company's Board of Directors, and approximately $245,000 of costs associated with investment banking activities evaluating strategic and financing opportunities for the Company. The overall net loss was $(1,289,222) or $(0.19) per share for the year ended December 31, 2003, as compared to a net loss of ($1,488,004) or $(0.22) per share in 2002. The 2002 results include income from discontinued operations of $225,000 due to a revised estimate of the gain on the sale in 2001 of the Company's former clinical laboratory business.
Revenue for the fourth quarter ended December 31, 2003 was $5,800,794, a decrease of $278,660 or 4.6%, compared with revenue from continuing operations of $6,079,454 for the same period in 2002. Net loss for the quarter was $(454,615) or $(0.07) per diluted share, compared with net income of $34,933 or $0.01 per diluted share, for the same period in 2002. The net loss for the fourth quarter includes $245,000 of the G&A expenses described in the paragraph above.
"In 2003 we successfully launched a number of new ACCURUN and quality control panel products, and achieved significant growth in our nucleic acid control sales. These and other programs enabled us to achieve a 7.2% growth in product sales, which resulted in a $271,000 increase in operating profit in our core business. At the same time, we decreased the level of losses from our PCT segment, resulting in an overall reduction in operating loss of $490,000," said Kevin W. Quinlan, President and Chief Operating Officer. "The operating loss experienced in 2003 included $458,000 of Board level costs for oversight, corporate governance, shareholders' rights plan adoption, and strategic direction, so our segment progress was even more substantial. With the release of new products and the start of new service contracts, combined with our development projects underway, we are optimistic about the future."
Quinlan continued: "As previously reported, the Company's sales of PCT- based products in 2003 were lower than expected. However, based on market feedback, we developed over the past year a smaller, more affordable Bench Top Barocycler model. This new instrument was introduced at PITTCON in Chicago last month, and we expect to release the NEP3229 for sale in the third quarter of 2004. We look to this instrument as the vehicle to achieve initial commercial success for this novel and needed technology."
As previously announced, the Company reiterated its intention to continue the practice of releasing its results to approximately coincide with its SEC filing timeframe.
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. In addition, BBI conducts research in new applications for our patented Pressure Cycling Technology (PCT). In 2000, the Company launched Panacos Pharmaceuticals and maintains a passive investment in this antiviral drug development company.
Forward Looking Statements
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 Company's 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. PCT may also not be adaptable to other commercially viable applications, certain PCT applications may not fall within the claims of the Company's issued US and foreign patents, and individuals and groups utilizing such PCT procedures may not be required to license such technology from the Company. The financial results for the three months and year ended December 31, 2003 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 and present director of the Company. There can be no assurance that Boston Biomedica will have future growth or that shareholder value will be increased. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements and risk factors are contained in the Company's recent filing with the Securities and Exchange Commission of its Annual Report on Form 10-K for the year ended December 31, 2003. Copies of these documents may be obtained by contacting the Company or the SEC at www.sec.gov.
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Investor Contacts:
Kevin W. Quinlan, President & COO
Michael N. Avallone, Chief Financial Officer
Boston Biomedica, Inc.
(508) 580-1900 (T)
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
2003 2002 2003 2002
REVENUE:
Products $3,421,542 $3,270,307 $13,607,808 $12,696,830
Services 2,379,252 2,809,147 9,687,882 10,067,807
Total revenue 5,800,794 6,079,454 23,295,690 22,764,637
COSTS AND EXPENSES:
Cost of products 1,855,921 1,702,796 7,262,815 6,535,429
Cost of services 1,867,910 2,155,475 7,602,321 7,727,137
Research and
development 501,615 513,976 1,816,273 2,611,060
Selling and marketing 859,591 751,885 3,282,538 3,286,183
General and
administrative 1,099,783 866,338 4,345,643 4,108,734
Total operating costs
and expenses 6,184,820 5,990,470 24,309,590 24,268,543
Operating Income
(loss) from
continuing operations (384,026) 88,984 (1,013,900) (1,503,906)
Interest income 1,773 7,065 19,391 41,809
Interest expense (72,362) (58,180) (291,283) (247,971)
Income (loss) from
continuing operations
before income taxes (454,615) 37,869 (1,285,792) (1,710,068)
Provision for income
taxes - (2,936) (3,430) (2,936)
Income (loss) from
continuing operations (454,615) 34,933 (1,289,222) (1,713,004)
Discontinued
operations
Income from
discontinued
operations of
Clinical
Laboratory Segment,
net of income taxes - - - 225,000
Net Income (loss) $(454,615) $34,933 $(1,289,222) $(1,488,004)
Income (loss) from
continuing operations
per share, basic &
diluted $(0.07) $0.01 $(0.19) $(0.26)
Income per share from
discontinued
operations, basic &
diluted $- $- $- $0.03
Net income (loss) per
share, basic &
diluted $(0.07) $0.01 $(0.19) $(0.22)
Number of shares used
to calculate net
income (loss)
per share, basic and
diluted 6,827,592 6,786,335 6,810,660 6,660,662
CONSOLIDATED SUMMARY
BALANCE SHEETS
(unaudited)
December 31, December 31,
2003 2002
Current assets $11,192,808 $13,074,203
Property, plant and
equipment, net 4,725,523 5,826,817
Other non-current
assets 924,115 942,349
Total assets $16,842,446 $19,843,369
Accounts payable and
accrued expenses $3,185,632 $3,375,789
Debt 2,329,479 2,417,749
Other liabilities 504,285 712,344
Net liabilities from
discontinued
operations 407,841 710,441
Total liabilities 6,427,237 7,216,323
Stockholders' equity 10,415,209 12,627,046
Total liabilities
and stockholders'
equity $16,842,446 $19,843,369
SOURCE Boston Biomedica, Inc.