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Boston Biomedica Reports Second Quarter Financial Results

WEST BRIDGEWATER, Mass., July 25 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced the results of its operations for the quarter ended June 30, 1997.

For the second quarter, the Company reported revenues of $4,648,954, an increase of $804,580, or 21%, over revenues of $3,844,374 for the same period in 1996. Net income for the quarter was $175,690 compared to net income of $180,339 for the same period last year. Second quarter 1997 earnings per share were $0.04, as compared to $0.06 per share for the prior year period. Second quarter 1997 EPS reflects an increase in shares outstanding of 49% as a result of the Company's October 1996 initial public offering (IPO).

"The 21% revenue increase was led by continued strong growth in molecular testing at BBI Clinical Laboratories, as well as record sales of our Accurun and other TQS products," stated Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica, Inc. "At the same time, however, we increased our expenditures on new product development and added significantly to our sales capabilities during the quarter. While adversely affecting the second quarter's operating income, this should translate into improved future results."

For the six months ended June 30, 1997, the Company reported revenues of $8,858,003, an increase of $1,929,620, or 28%, compared to revenues of $6,928,383 for the same period in 1996. Net income for the six months ended June 30, 1997 was $323,448 compared to $82,869 for the same period in 1996. Earnings per share for the six months ended June 30, 1997 were $0.07, compared to $0.03 for the same period in 1996.

"We are very pleased with the progress made last quarter on our strategic plan for growth through both external and internal investments," said Richard T. Schumacher, President and CEO of Boston Biomedica. "The acquisition of Source Scientific offers an immediate expansion of our IVD product line to an existing customer base, while the alliance with BioSeq offers the potential for further growth in the very exciting area of molecular diagnostics. Concomitantly, our internal investment in research, product development, sales/marketing, and management information systems will help ensure that we maintain BBI's leadership role in our core area of quality control products for infectious diseases testing.

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 services.

This release may include forward-looking statements concerning the Company's financial performance and business operations. The Company wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements.

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 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).

See Attached Consolidated Statements of Operations and Summary Balance Sheets

                   BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS


                                  Three Months Ended        Six Months Ended
                                       June 30,                June 30,
                                 1997          1996        1997      1996
    REVENUE:
      Product Sales             $2,416,956  $2,130,278  $4,543,912 $3,945,759
      Services                   2,231,998   1,714,096   4,314,091  2,982,624
        Total revenue            4,648,954   3,844,374   8,858,003  6,928,383

    COSTS AND EXPENSES:
      Cost of product sales      1,271,662   1,106,076   2,327,084  2,006,833
      Cost of services           1,456,194   1,116,171   2,931,726  2,249,610
      Research and development     256,995     195,054     493,745    361,619
      Selling and marketing        775,594     500,277   1,388,954    915,289
      General and administrative   694,875     551,945   1,374,082  1,088,448
        Total operating costs
          and expenses           4,455,320   3,469,523   8,515,591  6,621,799

        Income from operations     193,634     374,851     342,412    306,584

    Interest income (expense), net  99,184     (74,908)    196,670   (168,469)

        Income before income taxes 292,818     299,943     539,082    138,115

    Provision for income taxes    (117,128)   (119,604)   (215,634)   (55,246)

        Net income                $175,690    $180,339    $323,448    $82,869

    Net income per share             $0.04       $0.06       $0.07      $0.03

    Weighted average common and
     common equivalent shares
     outstanding                 4,851,623   3,263,711   4,831,747  3,252,643


                     CONSOLIDATED SUMMARY BALANCE SHEETS

                                                      June 30,    December 31,
                                                       1997          1996

      Cash and cash equivalents                     $5,777,048     $8,082,642
        Other current assets                         8,644,522      8,119,478
          Total current assets                      14,421,570     16,202,120

      Investment                                     1,482,500        732,500
        Other long-term assets                       4,169,829      2,863,694
          Total assets                             $20,073,899    $19,798,314
      Current liabilities                           $3,231,546     $3,366,204
      Long-term debt                                    34,055         40,948
      Other long-term liabilities                      101,581        101,580

      Stockholders' equity                          16,706,717     16,289,582
      Total liabilities and stockholders' equity   $20,073,899    $19,798,314


SOURCE Boston Biomedica, Inc.
CONTACT: Richard T. Schumacher, President & CEO, or Kevin W. Quinlan, Chief Financial Officer of Boston Biomedica, 508-580-1900

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