Q2 Record Revenue Drives Return to Profitability
WEST BRIDGEWATER, Mass., July 29 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced the results of its operations for the quarter ended June 30, 1998.
For the second quarter, the Company reported record revenue of $6,383,132, an increase of $1,734,178, or 37 percent, over revenue of $4,648,954 for the same period in 1997. Operating income for the quarter was $216,594 compared to $193,634 for the second quarter of 1997, a 12 percent increase. Net income for the quarter was $133,879 compared to net income of $175,690 for the same period last year. Second quarter 1998 earnings per diluted share were $0.03, as compared to $0.04 per diluted share for the prior year period. Second quarter 1997 net income includes interest income of $99,184, or $0.01 per diluted share, versus net interest expense of $660 for the second quarter 1998.
"We are extremely pleased by our significant growth in revenue for the quarter," said Richard T. Schumacher, Founder and Chief Executive Officer of Boston Biomedica. "Driving this growth were sales of our Accurun(R) controls used in infectious disease testing laboratories around the world, which were more than double Accurun sales for the prior year period."
"In the second half of 1998, we also expect to see some benefit from our significant investment this past quarter in the launch of our new line of laboratory instruments from BBI Source Scientific," continued Schumacher. "Thus, with continued sales growth in our quality control products and at our clinical laboratory, new sales of BBI Source's Platemate(TM) readers, and new revenue from the large NIH contracts we recently announced, we feel that the problems of the first quarter are mainly behind us, and we are optimistic about our future."
For the six months ended June 30, 1998 the Company reported revenue of $12,655,927, an increase of $3,797,924, or 43 percent, compared to revenue of $8,858,003 for the same period in 1997. Net loss for the six months ended June 30, 1998 was $(510,639) compared to net income of $323,448 for the same period in 1997. The loss per diluted share for the six months ended June 30, 1998 was $(0.11), compared to earnings per diluted share of $0.07 for the same period in 1997. Included in the six month loss was a charge of $850,000 during the first quarter of 1998, or $(0.11) per diluted share, relative to the Company's 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 that period.
"Not only have sales for the quarter increased significantly, but operating profit for the quarter was up twelve percent compared to last year's second quarter," added Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica, "This operating profit increase resulted from the growth in sales of our existing quality control product lines, more efficient use of our new BBI Biotech facility in Maryland, and renewed focus at BBI Source Scientific on both cost-containment and the launch of its new products."
"In summary, we are quite pleased with our results this quarter," said Schumacher. "We exceeded the expectations of analysts, we returned to profitability and we continued to produce record sales results."
Boston Biomedica, Inc. is a worldwide manufacturer of quality control products for use with in vitro diagnostic test kits for the detection, analysis and monitoring of infectious diseases, including AIDS, Hepatitis and Lyme Disease. These products are used to develop test kits, to permit the monitoring of laboratory personnel and equipment, and to help ensure the accuracy of test results. The Company also manufactures diagnostic test kit components and laboratory instrumentation, and provides specialty laboratory testing and contract research services.
This release may include forward-looking statements concerning the
Company's financial performance and business operations that may or may not
materialize. There can be no assurance that BioSeq can obtain the necessary
funds to remain an ongoing concern, that the BioSeq technology can be
developed to the level of commercial utilization, that the new line of
laboratory instruments from BBI Source Scientific will be commercially
successful, or that NIH 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 Six Months Ended
June 30, June 30,
1998 1997 1998 1997
REVENUE:
Product sales $3,316,804 $2,416,956 $6,380,163 $4,543,912
Services 3,066,328 2,231,998 6,275,764 4,314,091
Total revenue 6,383,132 4,648,954 12,655,927 8,858,003
COSTS AND EXPENSES:
Cost of product sales1,674,837 1,271,662 3,446,588 2,327,084
Cost of services 1,999,019 1,456,194 4,322,230 2,931,726
Research and development583,592 256,995 1,015,981 493,745
Acquired research and
development --- --- 850,000 ---
Selling and marketing 926,015 775,594 1,854,627 1,388,954
General and
administrative 983,075 694,875 2,013,011 1,374,082
Total operating
costs and expenses 6,166,538 4,455,320 13,502,437 8,515,591
Income from operations 216,594 193,634 (846,510) 342,412
Interest income
(expense), net (660) 99,184 22,899 196,670
Income before income
taxes 215,934 292,818 (823,611) 539,082
Provision for income
taxes (82,055) (117,128) 312,972 (215,634)
Net income $133,879 $175,690 $(510,639) $323,448
Net (loss) income per
share, basic $0.03 $0.04 $(0.11) $0.07
Net (loss) income per
share, diluted $0.03 $0.04 $(0.11) $0.07
Number of shares used to
calculate net income per
share
Basic 4,652,519 4,403,277 4,642,343 4,391,715
Diluted 4,865,593 4,839,407 4,642,343 4,824,731
CONSOLIDATED SUMMARY BALANCE SHEETS
June 30 December 31,
1998 1997
Cash, cash equivalents, and investments $123,527 $2,772,360
Other current assets 13,290,982 12,078,574
Total current assets 13,414,509 14,850,934
Investment 1,482,500 1,482,500
Other long-term assets 7,990,665 7,316,562
Total assets $22,887,674 $23,649,996
Current liabilities $4,265,882 $5,217,473
Long-term liabilities 992,553 365,270
Stockholders' equity 17,629,239 18,067,253
Total liabilities and stockholders' equity $22,887,674 $23,649,996
SOURCE Boston Biomedica, Inc.
CONTACT: Richard T. Schumacher, Pres. and CEO and Kevin W. Quinlan, CFO of Boston Biomedica, Inc., 508-580-1900 or Maribel Lopez and Jon Siegal of Ronald Trahan Associates, Inc., 617-332-0101
Web site: http: //www.bbii.com