WEST BRIDGEWATER, Mass., May 6 /PRNewswire/ -- Boston Biomedica Inc. (Nasdaq: BBII) today announced that revenue for the first quarter ended March 31, 1998 was $6,272,795, an increase of $2,063,746, or 49 percent, compared with revenue of $4,209,049 for the same period in 1997. Net loss for the quarter was $(644,518), or $(0.14) per diluted share, compared with net income of $147,758, or $0.03 per diluted share, for the same period last year. Included in the first quarter loss was a charge of $850,000, or $(0.11) per diluted share, relative to the Company's March acquisition of the worldwide, exclusive rights to BioSeq Inc.'s immunodiagnostic technology. In accordance with applicable accounting rules, this acquired research and development was expensed in the current period.
"First-quarter results were bittersweet," said Richard T. Schumacher, Founder and Chief Executive Officer of Boston Biomedica. "We were extremely pleased by our significant growth in revenue and the strong performance of our core businesses -- quality control products and clinical lab services. Highlights included a 27 percent increase in sales of our quality control products, including a 95 percent increase in Accurun(R) revenue; a 28 percent boost in clinical testing revenue; and continued growth in the profitability of our core businesses. In addition, our acquisition of the worldwide, exclusive rights to BioSeq's cutting-edge immunodiagnostic technology offers the potential for long-term revenue and profit growth."
"On the other hand," added Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica, "we were disappointed by two specific events that adversely impacted first quarter results. However, we understand these events and are comfortable that they are either behind us or currently being addressed.
"First," explained Quinlan, "the relocation of the Company's Biotech operation in Maryland to a state-of-the-art laboratory facility with higher fixed costs took longer than anticipated, disrupting performance on existing contracts which resulted in lower than expected revenue.
"Second," continued Quinlan, "the opportunity costs of building the ABX- related field-service business for the past ten months adversely affected the ability to generate revenue from the development of new laboratory instruments or the expansion of the existing BBI-Source in-house service business. With the modification of the ABX agreement (See March 9, 1998 press release), we are now refocusing our efforts on our core strengths of laboratory instrumentation and in-house service."
"In summary, while we were pleased with the performance of our core businesses, the overall results for the quarter were a disappointment," said Schumacher. "However, the issues that adversely affected earnings relative to our instrument and biotech operations are being addressed, and we are optimistic about Boston Biomedica's prospects."
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. There can be no assurance that BBI Source Scientific and ABX will execute a modified definitive agreement; there can be no assurance that the modified relationship; with ABX will be profitable to BBI or that ABX will not seek to further modify the relationship in the future, that the Company will be able to integrate the business of Source Scientific into the Company's business. There can be no assurance that BioSeq can obtain the necessary funds to remain an ongoing concern, or that the BioSeq technology can be developed to the level of commercial utilization; or that research contracts will be renewed. 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).
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
1998 1997 1996
REVENUE:
Products $3,063,359 $2,126,956 $ 1,815,481
Services 3,209,436 2,082,093 1,268,528
Total revenue 6,272,795 4,209,049 3,084,009
COSTS AND EXPENSES:
Cost of product sales 1,771,751 1,055,422 899,826
Cost of services 2,323,211 1,475,532 1,133,439
Research and Development 432,389 236,750 166,565
Acquired research
and development 850,000 --- ---
Selling and marketing 928,612 613,360 415,012
General and administrative 1,029,936 679,207 536,503
Total operating costs
and expenses 7,335,899 4,060,271 3,151,345
(Loss) income from
operations (1,063,104) 148,778 (67,336)
Interest income
(expense), net 23,559 97,486 (93,560)
(Loss) income before
income taxes (1,039,545) 246,264 (160,896)
Benefit from (provision for)
income taxes 395,027 (98,506) 64,358
Net (loss) income $(644,518) $147,758 $(96,538)
Net (loss) income
per share, basic $(0.14) $0.03 $(0.04)
Net (loss) income
per share, diluted $(0.14) $0.03 $(0.04)
Number of shares
used to calculate
net income per share
Basic 4,632,061 4,380,024 2,560,417
Diluted 4,632,061 4,825,582 2,560,417
CONSOLIDATED SUMMARY BALANCE SHEETS
March 31, December 31,
1998 1997
Cash, cash equivalents,
and investments $ 642,684 $2,772,360
Other current assets 12,150,577 12,078,574
Total current assets 12,793,261 14,850,934
Investment 1,482,500 1,482,500
Other long-term assets 7,781,377 7,316,562
Total assets $22,057,138 $23,649,996
Current liabilities $4,092,443 $5,217,473
Long-term liabilities 502,710 365,270
Stockholders' equity 17,461,985 18,067,253
Total liabilities and
stockholders' equity $22,057,138 $23,649,996
SOURCE Boston Biomedica Inc.
CONTACT: Richard T. Schumacher, Pres./CEO or Kevin W. Quinlan, CFO of Boston Biomedica, Inc., 508-580-1900 or Jeff Goodman or Maribel Lopez of Ronald Trahan Associates, Inc., 617-332-0101