WEST BRIDGEWATER, Mass., Nov. 9 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue for the third quarter ended September 30, 1999 was $7,479,942, an increase of $1,298,983 or 21 percent, compared with revenue of $6,180,959 for the same period in 1998. Net loss for the quarter was $(257,118), or $(0.05) per diluted share, compared with a net loss of $(3,376,809), or $(0.72) per diluted share, for the same period last year. The net loss for the prior year includes a charge for acquired in- process research and development of $3,380,812 or $(0.72) per diluted share.
"The 21% revenue increase for the quarter was driven primarily by improved sales in three areas: Quality Control product sales led by OEM panels; laboratory testing services at BBI Clinical Laboratories; and additional repository contracts. The growth in these three areas was tempered somewhat by flat Accurun sales as new products were delayed to meet customer OEM requirements. However, our overall strong revenue growth enabled us to proceed with our plan to step-up R&D spending for the quarter and the year, which spending was increased over 50%, and still remain ahead of plan," said Kevin W. Quinlan, President and Chief Operating Officer.
Revenue for the first nine months of fiscal year 1999 was $21,463,764, an increase of $2,626,879 or 13.9%, compared with revenue of $18,836,885 for the same period in 1998. Net loss for the nine months ended September 30, 1999 was $(719,296), or $(0.15) per diluted share, compared with a net loss of $(3,887,449), or $(0.84) per diluted share, for the same period last year. Included in the prior year nine month results was after-tax charges of $3,907,812 related to first and third quarter acquired in-process research and development.
"The third quarter contained a watershed event for both shareholders and employees of Boston Biomedica," commented Richard T. Schumacher, CEO, Chairman and Founder of Boston Biomedica. "We announced on July 22nd that the Company would undergo the most significant management restructuring since its founding, in order to better take advantage of future growth opportunities in both our core businesses and new technology areas. A significant part of this restructuring was the promotion of Kevin Quinlan (CFO since 1993) to President/COO, and the subsequent redirection of my responsibilities to our exciting Pressure Cycling Technology (PCT) and Drug Discovery research endeavors. I am pleased to report that the transition is proceeding successfully: the third quarter results for both our quality control product line and our laboratory testing services exceeded our internal plan; we formed Panacos Pharamaceuticals to better take advantage of our exciting Drug Discovery program (see 10/14/99 press release); and we made significant progress in three strategic areas of PCT: instrument design and development, continued proof of principal in pathogen inactivation, and development of potential commercial partnerships".
Boston Biomedica, Inc. is an infectious diseases management company providing products and services for the detection and treatment of infectious diseases (ID) such as AIDS, Lyme Disease, and Viral Hepatitis. The Company has four business units: (1) BBI Diagnostics, an ISO 9001 certified manufacturer and seller of quality control and other diagnostic products used to increase the accuracy of in-vitro diagnostic tests, (2) BBI Clinical Laboratories, a leading specialty infectious diseases testing laboratory, (3) BBI Biotech Research Laboratories, providing R&D support for the other BBI business units as well as contract research services for third parties, and (4) BBI Source Scientific, an ISO 9001 certified manufacturer of laboratory and diagnostic instrumentation. In addition, the Company is pursuing research and development programs in the potentially explosive areas of pressure cycling technology (PCT) and drug discovery, via Panacos Pharmaceuticals Inc., with the goal of introducing new solutions for the detection and treatment of infectious diseases.
Statements contained in this news release that state 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. Factors that could cause actual results to differ from those projected include the possibility that due to unforeseen technical and other difficulties Boston Biomedica may not be able to successfully establish Panacos Pharmaceuticals as an independent Company or develop pressure cycling technology (PCT) into commercially successful products or such activities may take longer than currently expected. The financial results for the third quarter and for the nine months ended September 30, 1999 are not necessarily indicative of future results. Due to unforeseen technical difficulties, current R&D'Allessandro activities may not lead to commercially successful products. Future revenues may not meet expectations due to changes in customer needs and technological innovations. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K for the year ended December 31, 1998 and on Form 10-Q for the period ended September 30, 1999. Copies of this document may be obtained by contacting the Company or the SEC.
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BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
REVENUE:
Product sales $3,649,818 $3,037,553 $10,597,343 $9,417,716
Services 3,830,124 3,143,406 10,866,421 9,419,169
Total revenue 7,479,942 6,180,959 21,463,764 18,836,885
COSTS AND EXPENSES:
Cost of product
sales 1,780,760 1,575,772 5,411,944 5,022,361
Cost of services 2,794,385 2,157,365 7,906,037 6,479,595
Research and
development 891,145 526,167 2,382,206 1,542,147
Acquired research
and development - 3,380,812 - 4,230,812
Selling and
marketing 1,021,324 913,891 3,129,141 2,768,518
General and
administrative 1,291,832 986,202 3,503,497 2,999,214
Total operating
costs and expenses 7,779,446 9,540,209 22,332,825 23,042,647
(Loss) income from
operations (299,504) (3,359,250) (869,061) (4,205,762)
Interest income 2,941 352 3,796 27,393
Interest expense (118,143) (15,458) (294,891) (19,600)
(Loss) income
before income
taxes (414,706) (3,374,356) (1,160,156) (4,197,969)
Benefit From
(provision for)
income taxes 157,588 (2,453) 440,860 310,520
Net income $(257,118) $(3,376,809) $(719,296) $(3,887,449)
Net (loss) income
per share, basic $(0.05) $(0.72) $(0.15) $(0.84)
Net (loss) income
per share, diluted $(0.05) $(0.72) $(0.15) $(0.84)
Number of shares
used to calculate
net income per share
Basic 4,769,003 4,665,603 4,669,217 4,650,158
Diluted 4,769,003 4,665,603 4,669,217 4,650,158
CONSOLIDATED SUMMARY BALANCE SHEETS
September 30, December 31,
1999 1998
Current assets $14,518,870 $14,250,690
Property, plant and
equipment, net 7,608,764 6,925,423
Other non-current assets 2,728,207 2,906,272
Total assets $24,855,841 $24,082,385
Current liabilities $4,507,208 $5,155,628
Long-term debt 6,169,188 3,988,602
Other long-term liabilities 605,599 869,501
Total liabilities 11,281,995 10,013,731
Stockholders' equity 13,573,846 14,068,654
Total liabilities and
stockholders' equity $24,855,841 $24,082,385
SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, CEO & Chairman, or Kevin W. Quinlan, President & COO, or William R. Prather, M.D., Sr. VP Finance & Business Dvlp., all of Boston Biomedica, Inc., 508-580-1900, or fax, 508-580-1110