WEST BRIDGEWATER, Mass., Feb. 29 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced record revenue for the fourth quarter ending December 31, 1999 of $7,807,324, a 7.8% increase compared with revenue of $7,244,191 for the same period in 1998. The Company also reported a net loss for the quarter of $(94,814), or $(0.02) per diluted share, compared with a net loss of $(501,270), or $(0.11) per diluted share, for the previous year's fourth quarter.
For the year ending December 31, 1999, BBI reported record revenue of $29,271,088, an increase of $3,190,012 or 12.2%, compared with revenue of $26,081,076 for 1998. The Company also reported a net loss for the year ended December 31, 1999 of $(814,112), or $(0.17) per diluted share, compared with a net loss of $(4,388,719), or $(0.94) per diluted share, in 1998. The 1998 results include an after-tax charge of $3,907,812 related to acquired in-process research and development.
Clinical laboratory testing services showed a significant increase in revenue of 27.8%, led by HCV & HIV nucleic acid (viral load) testing, followed by increases in both microbiology and immunology services. Contract research services increased 18.5%. On the product side of the business, Accurun(R) Control sales increased 15.0%, laboratory instrument sales increased 15.8%, and Basematrix (negative control) sales increased 57.9%.
"Overall, we are very pleased with the performance of our core business units," said Kevin W. Quinlan, President and COO. "We managed to significantly increase the operating profit of our core businesses by over $600,000. At the same time, we increased R&D spending by approximately $800,000, making excellent strides in our major programs. We have an excellent plan for the coming year and expect to return to profitability in the near future. We are looking forward to continued growth at BBI Clinical Laboratories, with the addition of new tests in microbiology, immunology and nucleic acid testing, particularly for HIV drug resistance and additional markers for Hepatitis B Virus (HBV). At BBI Biotech, we expect recently awarded grants and contracts will bring in additional revenue, while continuing its significant contribution to new products and services for the other core business units. BBI Diagnostics will be adding new products to its quality control line to fuel further growth, and we believe that our new reflectance reader (Verif-Eye(R)) will move BBI Source Scientific along the path to profitability. In addition, BBI Source is working closely with BBI Biotech on the continued development of the BarocyclerTM, the instrument used in PCT, as well as some exciting opportunities in the rapid test portion of the diagnostic industry."
In 1999, BBI continued its strategy of supporting its two R&D programs, pressure cycling technology (PCT) and drug discovery, by investing over $1.5 million in these efforts. PCT is BBI's proprietary platform technology that uses the rapid cycling of ultra high pressure to control molecules. Potential applications of PCT are the inactivation of pathogens in human plasma and therapeutics, the enhancement of genomic and other laboratory tests through the purification of DNA and RNA, and the control of enzymes. Panacos Pharmaceuticals, a BBI subsidiary, was recently formed as a vehicle to develop BBI's pharmaceutical programs and to attract the larger amounts of capital that will be required to move these programs rapidly and efficiently through the clinical development pathway. Panacos focuses on the discovery and development of anti-viral drugs and vaccines with novel mechanisms of action for the treatment of HIV and other medically important viruses.
"Our plan for 1999 was to focus on growth and profitability in our core business units, while continuing to use the positive cash flow from these operations to fund our R&D programs in PCT and drug discovery," commented Richard T. Schumacher, Founder, CEO and Chairman of BBI. "This investment resulted in significant progress for both programs. In the area of PCT, important data involving the ability of pressure cycling to inactivate HIV, Parvovirus, E. Coli, and other pathogens were generated in our laboratories and presented at national scientific meetings; two new, enhanced versions of the Barocycler(TM) were designed and built (by BBI Source); and the entire PCT program was moved from Woburn, Mass. to Gaithersburg, Md., which immediately resulted in increased efficiencies and access to the equipment and scientists of BBI Biotech. Panacos Pharmaceuticals expanded its collaboration with the University of North Carolina, filed a patent application for a novel approach to the development of an HIV vaccine, and began its efforts to raise capital in our goal for it to become an independent company in 2000."
Schumacher continued, "Above all, we are especially proud of the hard- working BBI employees who are committed to our stated goal of growing our core business, moving our exciting R&D technologies further along the value curve, and returning BBI to profitability in the near future."
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 areas of Pressure Cycling Technology (PCT) and drug discovery (Panacos Pharmaceuticals), 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 fourth quarter and for the year ended December 31, 1999 are not necessarily indicative of future results. Due to unforeseen technical difficulties, current R&D activities may not lead to commercially successful products. Future revenues may not meet expectations due to changes in customer needs and technological innovations. There can be no assurance that the Company will return to profitability in the near future. 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 periods ended March 31, June 30 and September 30, 1999. Copies of these documents 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 Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
REVENUE:
Product sales $3,459,314 $3,657,369 $14,056,657 $13,075,085
Services 4,348,010 3,586,822 15,214,431 13,005,991
Total revenue 7,807,324 7,244,191 29,271,088 26,081,076
COSTS AND EXPENSES:
Cost of product
sales 1,855,329 2,157,559 7,267,273 7,179,920
Cost of services 3,262,558 2,417,451 11,168,595 8,897,046
Research and
development 876,336 919,169 3,258,542 2,461,316
Acquired research
and development -- -- -- 4,230,812
Selling and
marketing 894,650 1,170,235 4,023,791 3,938,753
General and
administrative 938,027 1,276,413 4,441,524 4,275,627
Total operating
costs and
expenses 7,826,900 7,940,827 30,159,725 30,983,474
Loss from
operations (19,576) (696,636) (888,637) (4,902,398)
Interest income 2,350 1,464 6,146 27,901
Interest expense (135,702) (59,977) (430,593) (78,621)
Loss before
income taxes (152,928) (755,149) (1,313,084) (4,953,118)
Benefit from income
taxes 58,114 253,879 498,972 564,399
Net income $(94,814) $(501,270) $(814,112) $(4,388,719)
Net loss per share,
basic $(0.02) $(0.11) $(0.17) $(0.94)
Net loss per share,
diluted $(0.02) $(0.11) $(0.17) $(0.94)
Number of shares used to
calculate net income
per share
Basic 4,770,351 4,667,826 4,669,717 4,654,609
Diluted 4,770,351 4,667,826 4,669,717 4,654,609
CONSOLIDATED SUMMARY BALANCE SHEETS
December 31, December 31,
1999 1998
Current assets $15,263,043 $14,250,690
Property, plant and
equipment, net 8,295,024 6,925,423
Other non-current assets 2,688,481 2,906,272
Total assets $26,246,548 $24,082,385
Current liabilities $4,719,357 $5,155,628
Long-term debt 7,145,651 3,988,602
Other long-term
liabilities 770,554 869,501
Total liabilities 12,635,562 10,013,731
Stockholders' equity 13,610,986 14,068,654
Total liabilities and
stockholders' equity $26,246,548 $24,082,385
SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, Chairman and CEO, or Kevin W. Quinlan, President and COO, or William R. Prather, M.D., Sr. VP Finance & Business Dvlp., of Boston Biomedica, Inc., 508-580-1900