WEST BRIDGEWATER, Mass., May 17 /PRNewswire-FirstCall/-- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue for the first quarter ended March 31, 2004 was $5,550,801, a decrease of $92,073 or 1.6% compared with revenue of $5,642,874 for the same period in 2003. The Company incurred a loss from continuing operations of $(290,734) or $(0.04) per diluted share in the first quarter of 2004, compared to a loss from continuing operations of $(253,547) or $(0.04) per diluted share in the same quarter of 2003. A revised estimate of the gain on the sale of the Company's clinical laboratory business in the first quarter of 2001 resulted in income of $135,000 or $0.02 per diluted share from discontinued operations in the first quarter of 2004. In summary, net loss from both continuing and discontinued operations was $(155,734), or $(0.02) per diluted share in the first quarter of 2004, as compared with a net loss of $(253,547), or $(0.04) per diluted share, for the same period in 2003.
The operating loss in the first quarter of 2004 reflects a lower level of sales to European distributors who had placed large orders in the fourth quarter of 2003 prior to the implementation of CE marking requirements, increased facility-related costs, lower Pressure Cycling Technology (PCT)- related revenue, and higher legal fees associated with the continued prosecution of PCT patents. The operating loss incurred in the first quarter of 2003 includes approximately $193,000 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.
"The results for the first quarter 2004 were very similar to the results reported for the first quarter of 2003," remarked Kevin W. Quinlan, President and Chief Operating Officer of Boston Biomedica, Inc. "Although our financial results did not show improvement, we were successful in achieving goals in several important areas during the first quarter that we believe will have a positive impact on future operating results. These included continued progress in obtaining CE marking of our Accurun(R) products for sale in Europe and the signing of a new facility lease agreement that will allow us to begin the expansion later this year of our growing Frederick, MD commercial repository operations."
Richard T. Schumacher, Chief Executive Officer of BBI, noted, "The Company continues to make progress in the development of a smaller, less expensive bench-top model of the PCT Barocycler(TM). We unveiled a prototype of this instrument at Pittcon 2004, one of the most important meetings of the year for laboratory instrumentation, and the feedback from potential users of the technology was excellent. We remain on target to have this new model (Barocycler NEP3229) available for sale by September of this year."
Schumacher continued: "In addition, on April 16, 2004, the Company announced the signing of an Asset Purchase Agreement to sell substantially all of the assets and selected liabilities of our BBI Diagnostics and BBI Biotech Divisions to SeraCare Life Sciences, Inc. The closing, which is expected to occur by August 15, 2004, is subject to a number of conditions, including the approval of the transaction by BBI stockholders, and SeraCare's receipt of sufficient financing to complete the transaction. In addition, we also announced that we had entered into a non-binding Letter of Intent to sell the assets and selected liabilities of our BBI Source Scientific Instrumentation Division. Simultaneously with these announcements, we stated our intention to commence a tender offer to purchase up to 6,000,000 shares of our common stock at a price of $3.50 per share, following the completion of the asset sale to SeraCare. We expect to use up to $21.0 million of the after-tax net proceeds from the asset sale to SeraCare to purchase shares of our common stock. The remaining net proceeds after taxes and transaction fees, estimated between $1.0 and $2.0 million, plus any portion of the $2.5 million to be held in escrow following the closing of the asset sale to SeraCare that is released to BBI, are expected to be used primarily as working capital for the Company's PCT activities."
As previously announced, the Company reiterated its intention to continue the practice of releasing its results to approximately coincide with the Company's 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. 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 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. The financial results for the three months ended March 31, 2004 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 its Chief Executive Officer and Director. There can be no assurance that Boston Biomedica will have future growth or that shareholder value will be increased. Factors that could cause actual results to differ from those projected also include the possibility that due to difficulties in the implementation of its strategies, Boston Biomedica may not be successful in commercializing its PCT products, or such activities may take longer, or may require more financial, technical, and marketing resources than currently expected. In addition, as a result of entering into an Asset Purchase Agreement on April 16, 2004 coupled with signing a nonbinding letter of intent to sell its Laboratory Instrumentation operations, additional factors facing the Company include: the possible inability to reach a definitive agreement to sell the assets of its BBI Source Scientific business unit or otherwise complete the sale of those assets; the possibility that continuity of the Company's operations will be disrupted in the event the proposed transactions are not completed; the costs of completing the proposed asset sale transactions may exceed management's estimates; the risk that the timing and amount of the tender offer purchase price may differ from what is presently anticipated or that the tender may not be able to be completed at all due to unanticipated events or other circumstances beyond the Company's control, including unforeseen liabilities or contingencies reducing the amount of proceeds available for the tender offer; the risk that the Company will not have sufficient funds to operate its remaining business following the closing; and the risk that if expenses are higher than anticipated, if revenues are lower than anticipated, or if the Company is unable to complete the assets sale transactions, the Company may require additional capital sooner than expected, and there can be no assurance that the Company will be able to obtain additional financing or capital on acceptable terms, or that it will be successful in eliminating or scaling back certain of its activities. 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, on its Form 10-Q for the quarter ended March 31, 2004 and on its Form 8-K dated April 16, 2004. Copies of these documents may be obtained by contacting the Company or the SEC at www.sec.gov.
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Investor Contacts:
Richard T. Schumacher, CEO
Kevin W. Quinlan, President & COO
Michael Avallone, Chief Financial Officer
Boston Biomedica, Inc.
(508) 580-1900 (T)
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31,
2004 2003
REVENUE:
Products $3,263,548 $3,288,257
Services 2,287,253 2,354,617
Total revenue 5,550,801 5,642,874
COSTS AND EXPENSES:
Cost of products 1,748,139 1,618,631
Cost of services 1,626,748 1,838,151
Research and development 489,447 400,680
Selling and marketing 721,672 808,294
General and administrative 1,192,403 1,167,194
Total operating costs and expenses 5,778,409 5,832,950
Operating loss from continuing
operations (227,608) (190,076)
Interest income 1,990 12,617
Interest expense (64,016) (73,008)
Loss from continuing operations
before income taxes (289,634) (250,467)
Provision for income taxes (1,100) (3,080)
Loss from continuing operations $(290,734) $(253,547)
Discontinued operations
Income from discontinued operations
of Clinical Laboratory Segment,
net of income taxes 135,000 -
Net loss $(155,734) $(253,547)
Loss from continuing operations per
share, basic & diluted $(0.04) $(0.04)
Income per share from discontinued
operations, basic & diluted $0.02 $-
Net loss per share, basic & diluted $(0.02) $(0.04)
Number of shares used to calculate net loss
per share, basic and diluted 6,828,585 6,789,389
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
March 31, December 31,
2004 2003
Current assets $11,776,477 $11,192,808
Property, plant and equipment, net 4,501,636 4,725,523
Other non-current assets 1,190,105 924,115
Total assets $17,468,218 $16,842,446
Accounts payable and accrued expenses $3,691,401 $3,185,632
Debt 2,831,216 2,329,479
Other liabilities 474,588 504,285
Net liabilities from discontinued operations 201,880 407,841
Total liabilities 7,199,085 6,427,237
Stockholders' equity 10,269,133 10,415,209
Total liabilities and
stockholders' equity $17,468,218 $16,842,446
SOURCE Boston Biomedica, Inc.