Record Revenue Soars 44 Percent, to $22.3 Million;
Record Net Income Increases By 109 Percent, to $1 Million
WEST BRIDGEWATER, Mass., Feb. 24 /PRNewswire/ -- Boston Biomedica Inc. (Nasdaq: BBII) today announced that revenue for the year ended December 31, 1997 increased to a record $22,299,337, an increase of $6,790,041, or 44 percent, compared with revenue of $15,509,296 during 1996. The Company also reported net income for the year ended December 31, 1997 of $1,004,834, or $0.21 per diluted share, compared with net income of $481,220, or $0.14 per diluted share, in 1996.
For the fourth quarter ended December 31, 1997, the Company reported revenue of $7,301,551, an increase of $2,735,369, or 60 percent, over revenue of $4,566,182 for the same period in 1996. The Company also reported fourth quarter net income of $435,237, or $0.09 per diluted share, compared with net income of $235,699, or $0.06 per diluted share, for the previous year's fourth quarter.
Two items affect the comparability of the 1997 financial results to those of 1996. The acquisition of Source Scientific Inc., effective July 1, 1997, added $2.6 million to revenue and a net loss of $115,000 for the second half of 1997, as its turnaround and integration with BBI progressed. In addition, fiscal 1997 diluted EPS reflects an increase in shares outstanding of 43 percent as a result of the Company's October 1996 initial public offering (IPO).
"We are extremely pleased that we could post record revenue and profit in 1997, while at the same time steering significant investment dollars back into the Company to position us for expansion," said Richard T. Schumacher, founder and chief executive officer of Boston Biomedica. "For example, we relocated BBI Biotech to a new state-of-the-art facility and made major renovations to our laboratories in West Bridgewater; acquired Source Scientific Inc.; expanded our operational and R & D staffs; and, very importantly, added a dozen new industry-experienced employees to our sales and marketing team. The bottom line is that, in 1997, we proved that we could grow our business significantly, and quite profitably as well."
Added Kevin W. Quinlan, chief financial officer of Boston Biomedica: "We are proud of the fact that our financial results for 1997 exceeded analysts' expectations. Additionally, given the technical, financial and human resources we now have in place at Boston Biomedica, we believe our Company is well positioned for further success in 1998 and beyond."
Boston Biomedica Inc. is a worldwide manufacturer and provider of proprietary quality control products for use with IVD test kits for the detection, analysis and monitoring of infectious diseases, including AIDS, Hepatitis, Lyme Disease and ToRCH. These products are used by clinical and research laboratories, blood banks, IVD manufacturers, and regulatory agencies to help ensure the accuracy of infectious disease test results through the routine monitoring of test performance. The Company also manufactures diagnostic test kit components and laboratory instrumentation, and provides specialty laboratory testing services.
This release may include forward-looking statements that may or may not materialize. Additional information and risk factors that could potentially affect Boston Biomedica's financial results may be found in the Company's filings with the Securities and Exchange Commission (SEC).
Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: inability of the Company to develop the end-user market for quality control products; inability of the Company to integrate the business of Source Scientific Inc. into the Company's business; inability of the Company to renew all of the existing field service contracts recently assigned to BBI Source Scientific; uncertainty of research contract renewals; inability of BioSeq to develop its technology to the level of commercial utilization; inability of the Company to obtain an adequate supply of raw materials necessary for certain of its products; significant reductions in purchases by any of the Company's major customers; and the potential insufficiency of Company resources -- including human resources, plant and equipment, and management systems -- to accommodate any future growth. These and certain other factors which might cause actual results to differ materially from those projected are more fully set forth under the caption "Risk Factors" in the Company's Registration Statement on Form S-1 (SEC File No. 333-10759).
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
Consolidated Statements Of Operations
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
REVENUE:
Product sales $ 3,824,342 $ 2,502,669 $11,711,026 $ 8,469,890
Services 3,477,209 2,063,513 10,588,311 7,039,406
Total revenue 7,301,551 4,566,182 22,299,337 15,509,296
COSTS AND EXPENSES:
Cost of product
sales 1,662,847 1,200,722 5,773,417 4,252,068
Cost of services 2,491,779 1,388,827 7,238,527 4,856,630
Research and
development 438,994 266,029 1,311,190 796,805
Selling and
marketing 982,043 679,340 3,241,422 2,188,152
General and
administrative 1,028,345 670,732 3,342,829 2,400,681
Total operating
costs and
expenses 6,604,008 4,205,650 20,907,385 14,494,336
Income from
operations 697,543 360,532 1,391,952 1,014,960
Interest income
(expense), net 27,851 32,257 282,771 (212,969)
Income before
income taxes 725,394 392,789 1,674,723 801,991
Provision for income
taxes (290,157) (157,090) (669,889) (320,771)
Net income $ 435,237 $ 235,699 $ 1,004,834 $ 481,220
Net income per share,
basic $ 0.10 $ 0.06 $ 0.23 $ 0.17
Net income per share,
diluted $ 0.09 $ 0.06 $ 0.21 $ 0.14
Number of shares used to calculate net income per share
Basic 4,529,888 3,769,967 4,437,801 2,915,522
Diluted 4,809,494 4,181,237 4,780,071 3,340,236
CONSOLIDATED SUMMARY BALANCE SHEETS
December 31,
1997 1996
Cash and cash equivalents $ 2,772,360 $ 8,082,642
Other current assets 12,058,502 8,119,478
Total current assets 14,830,862 16,202,120
Investment 1,482,500 732,500
Other long-term assets 7,316,562 2,863,694
Total assets $23,629,924 $19,798,314
Current liabilities $ 5,254,228 $ 3,366,204
Long-term debt 215,937 40,948
Other long-term liabilities 92,506 101,580
Stockholders' equity 18,067,253 16,289,582
Total liabilities and
stockholders' equity $23,629,924 $19,798,314
SOURCE Boston Biomedica, Inc.
CONTACT: Richard T. Schumacher, President and CEO, or Kevin W. Quinlan, CFO, both of Boston Biomedica, 508-580-1900; or Jeff Goodman or Maribel Lopez, both of Ronald Trahan Associates, 617-332-0101