Strong Rebound in Revenue and Significant Decreases in Operating and
Net Losses Over Q1 2000 Reported
WEST BRIDGEWATER, Mass., July 27 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue for the second quarter ended June 30, 2000 was $7,754,009, an increase of $615,352 or 8.6 percent, compared with revenue of $7,138,657 for the same period in 1999. Net loss for the quarter was $291,524, or $(0.05) per diluted share, compared with a net loss of $224,935, or $(0.05) per diluted share, for the same period last year. Revenue for the first half of fiscal year 2000 was $14,584,721, an increase of $600,899 or 4.3%, compared with revenue of $13,983,822 for the same period in 1999. Net loss for the six months ended June 30, 2000 was $962,759, or $(0.18) per diluted share, compared with a net loss of $462,180, or $(0.10) per diluted share, for the same period last year.
When compared to Q12000, second quarter results showed a revenue increase of $923,296 or 13.5%, a decrease in operating loss of $629,904 or 70.8%, and a decrease in net loss of $379,710 or 56.6%.
"We are pleased with the results of the quarter, as they compare favorably to the results of the same quarter last year," remarked Kevin Quinlan, President and Chief Operating Officer. "In addition, we are very encouraged with the strong rebound in revenue and decreases in operating and net losses, as well as the significant increase in the profitability of our BBI Diagnostics, BBI Clinical Laboratories, and BBI Biotech business units, as compared to this year's first quarter results. This increase was primarily driven by improved OEM quality control panel and Basematrix sales, continued record sales in our Accurun control product line, and growth in our repository services. Further, as has been the case for the past several years, we used the profits from these three business units to help support the continuing turnaround of BBI Source Scientific, as well as in our exciting PCT and drug discovery R&D programs."
"In addition to the strong financial results reported for the second quarter, we are also pleased with the progress made in our Panacos and PCT programs," commented Richard T. Schumacher, Founder, CEO, and Chairman of BBI. "During the past few months, our scientists and collaborators have generated important data in both research programs, data we believe will help us find the financial and technical partners to help move these exciting technologies further along the value curve, and ultimately to commercialization. We also remain committed to returning BBI to profitability, and the second quarter financial results are a significant step in that direction."
Boston Biomedica, Inc. provides 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 through its subsidiaries BBI BioSeq and Panacos Pharmaceuticals, respectively, 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 that these and other such research and development activities may take longer than currently expected. Also, the financial results for the second quarter ended June 30, 2000 are not necessarily indicative of future results, the market for quality control and other diagnostic products for infectious disease tests may not continue to increase which would have an adverse impact on the Company's revenues, and future revenue 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, 1999 and on Form 10-Q for the period ended March 31, 2000. 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 Six Months Ended
June 30, June 30,
2000 1999 2000 1999
REVENUE:
Product sales $3,539,861 $3,491,323 $6,136,942 $6,947,525
Services 4,214,148 3,647,334 8,447,779 7,036,297
Total revenue 7,754,009 7,138,657 14,584,721 13,983,822
COSTS AND EXPENSES:
Cost of product
sales 1,723,736 1,822,537 3,018,033 3,631,184
Cost of services 3,191,619 2,641,555 6,522,031 5,111,652
Research and
development 730,162 728,452 1,492,854 1,491,061
Acquired research
and development - - - -
Selling and
marketing 1,031,064 1,102,546 1,952,713 2,107,817
General and
administrative 1,336,676 1,116,975 2,747,491 2,211,665
Total operating costs
and expenses 8,013,257 7,412,065 15,733,122 14,553,379
Loss from operations (259,248) (273,408) (1,148,401) (569,557)
Interest income (526) 159 (104) 855
Interest expense (210,428) (89,549) (404,334) (176,748)
Loss before income
taxes (470,202) (362,798) (1,552,839) (745,450)
Benefit from income
taxes 178,678 137,863 590,080 283,270
Net loss $(291,524) $(224,935) $(962,759) $(462,180)
Net loss per share,
basic $(0.05) $(0.05) $(0.18) $(0.10)
Net loss per share,
diluted $(0.05) $(0.05) $(0.18) $(0.10)
Number of shares used to calculate net loss per share
Basic 5,556,628 4,743,870 5,315,026 4,680,915
Diluted 5,556,628 4,743,870 5,315,026 4,680,915
CONSOLIDATED SUMMARY BALANCE SHEETS
June 30, December 31,
1999 1999
Current assets $15,369,267 $14,958,300
Property, plant and equipment, net 8,520,947 8,295,024
Other non-current assets 2,621,168 2,909,016
Total assets $26,511,382 $26,162,340
Current liabilities $10,485,218 $4,904,976
Long-term debt 2,541,104 7,145,651
Other long-term liabilities 146,046 465,590
Total liabilities 13,172,368 12,516,217
Stockholders' equity 13,339,014 13,646,123
Total liabilities and
stockholders' equity $26,511,382 $26,162,340
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