WEST BRIDGEWATER, Mass., March 13 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue from continuing operations for the fourth quarter ended December 31, 2000 was $4,862,313, a decrease of $503,021 or 9.4%, compared with revenue from continuing operations of $5,365,334 for the same period in 1999. Net loss from continuing operations for the quarter was $(2,225,077), or $(0.39) per diluted share, compared with a net loss from continuing operations of $(193,103), or $(0.04) per diluted share, for the same period in 1999. The net loss from continuing operations for Q4 2000 includes a non-cash charge for interest expense of $744,568 (including $190,223 for cumulative effect of a change in accounting principle), or $(0.13) per diluted share, in connection with the beneficial conversion feature, warrants, and original issue discount associated with the $3,250,000 Senior Subordinated Convertible Debentures issued in August, 2000. Approximately $528,000 of the non-cash beneficial conversion feature charges in connection with the redemption of $2,040,000 of the Convertible Debentures will be reflected as a benefit in the first quarter 2001 results. Results of operations for the fourth quarter ended December 31, 2000 reflect the Company's decision in late 2000 to exit the clinical laboratory business. The results of this segment, reported as discontinued operations, show a loss of $(47,140) or $(0.01) per share in the fourth quarter of 2000 as compared to income of $98,288 or $0.02 per share for the same period in 1999. Net loss for the quarter from both continuing and discontinued operations was $(2,272,217), or $(0.40) per share, versus a net loss of $(94,815), or $(0.02) per share, in the prior year's fourth quarter. For comparative purposes, prior period financial statements have been reclassified to conform to the current period's presentation.
For the year ended December 31, 2000, the Company reported revenue from continuing operations of $19,469,954, a decrease of $328,393 or 1.7%, compared with revenue from continuing operations of $19,798,347 for the same period in 1999. Net loss from continuing operations for the year ended December 31, 2000 was $(7,804,208), or $(1.43) per diluted share, compared with a net loss from continuing operations of $(1,120,292), or $(0.24) per diluted share, for the same period last year. The net loss from continuing operations for the year ended December 31, 2000 includes charges for three significant non-cash items totaling a loss of $(3,497,414), or $(0.64) per share, which adversely affected the financial results from continuing operations of the Company: (1) a write-down of the majority of the goodwill associated with the Company's instrument manufacturing and service business unit, (2) the establishment of a full valuation allowance for the Company's deferred tax assets, and (3) a charge of $897,927 (including $190,223 for cumulative effect of a change in accounting principle) due to amortization of the beneficial conversion feature, warrants, and original issue discount associated with the Company's August 2000 issuance of $3,250,000 Senior Subordinated Convertible Debentures. These three accounting charges did not have any impact on the Company's cash flow. Results of all operations for the year ended December 31, 2000 also reflect the Company's decision in 2000 to exit the clinical laboratory business. These discontinued operations resulted in a loss of $(196,751) or $(0.03) per share in the year ended December 31, 2000 as compared to income of $306,180 or $0.07 per share for the year ended December 31, 1999. Net loss for the year from both continuing and discontinued operations was $(8,000,959), or $(1.46) per share, versus a net loss of $(814,112), or $(0.17) per share, in the prior year. For comparative purposes, prior period financial statements have been reclassified to conform to the current period's presentation.
"While a significant portion of our loss in year 2000 was from unusual non-cash charges and discontinued operations, the results from continuing operations throughout year 2000 were still a disappointment," said Kevin W. Quinlan, President and Chief Operating Officer of BBI. "Total revenue reported was below our expectations and impacted our results across all business units. An increase in service revenue was more than offset by a decline in product revenue when compared to last year. Specific reasons for product revenue shortfalls include significant turnover in our sales force, the inability to fill key positions, and the effects of consolidation of customers and testing platforms in the IVD market. We also spent significantly more time, resources and professional fees than expected in connection with the November 2000 sale of equity by Panacos Pharmaceuticals (an antiviral drug discovery company), for the public filings associated with our various financings, for the February 2001 sale of certain assets of our BBI Clinical Laboratories subsidiary, and for the redemption of all outstanding Convertible Debentures".
Richard T. Schumacher, Founder, CEO and Chairman of Boston Biomedica, Inc. commented: "The financial results for 2000 were indeed disappointing, but during the year we took major steps leading to the restructuring of BBI Source, the November 2000 sale of equity by Panacos Pharmaceuticals, the February 2001 sale of certain assets of BBICL, the repurchase of all outstanding Convertible Debentures, and the retirement in February 2001 of a significant portion of the Company's debt. Those steps, together with important new hires, expansion of our manufacturing facilities and capabilities, continued benefits from the late 1999 implementation of a new and powerful ERP system, and plans already in place for additional products and services, position us well to achieve our highest priority for 2001: a return to profitability. In addition, we remain committed to continuing the development of our pressure cycling technology (PCT), with a clear goal to move this exciting platform to commercialization within a year. We will continue to evaluate financing options, as well as strategic partnerships, in order to grow our Company and maximize shareholder value."
Boston Biomedica, Inc. provides products and services for the detection and treatment of infectious diseases such as AIDS and Viral Hepatitis. BBI has three operating business units: (1) BBI Diagnostics, an ISO 9001 certified manufacturer and supplier of quality control and diagnostics reagents used to increase the accuracy of in vitro diagnostic tests, (2) BBI Biotech Research Laboratories, a research and development center providing R&D support for the other BBI business units, as well as contract research and repository services for the government, industry and other third parties, and (3) BBI Source Scientific, an ISO 9001 certified manufacturer of diagnostic instrumentation and medical devices. In addition, BBI is conducting research and development in Pressure Cycling Technology (PCT) through its subsidiary BBI BioSeq, with the goal of introducing new solutions for a number of important healthcare issues, including: inactivation of pathogens in human plasma, extraction of nucleic acids, food safety, and genomics. BBI also maintains a passive investment in Panacos Pharmaceuticals, a privately held antiviral drug and vaccine development company recently spun-off from BBI, whose goal is to introduce new solutions for the 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 difficulties in the implementation of its strategies, Boston Biomedica may not be able to successfully downsize BBI Source Scientific to a level that is more in line with its current business or that this downsizing may not result in the business unit becoming profitable. BBI may also not be successful in increasing the profitability of its BBI Diagnostics business unit in infectious disease diagnostics, or in returning its BBI Biotech business unit to profitability; may not be successful in developing pressure cycling technology (PCT) into commercially successful products, or such activities may take longer than currently expected. The financial results for both the quarter and the year ended December 31, 2000 are not necessarily indicative of future results. 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 (as amended) for the year ended December 31, 1999 and on Form 10-Q's (as amended) for the three months ended March 31 and June 30, and on Form 10-Q for the three months ended September 30, 2000 and on Form 8-K filed March 8, 2001. 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
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
REVENUE:
Products $3,132,075 $3,459,314 $12,387,416 $14,056,657
Services 1,730,238 1,906,020 7,082,538 5,741,690
Total revenue 4,862,313 5,365,334 19,469,954 19,798,347
COSTS AND EXPENSES:
Cost of products 2,699,410 1,855,329 7,269,817 7,267,273
Cost of services 872,360 1,504,245 5,581,636 4,567,863
Research and
development 436,167 849,975 2,443,779 3,131,590
Selling and marketing 609,573 585,152 2,659,935 2,831,293
General and
administrative 1,454,220 761,991 4,918,899 3,450,879
Impairment of
intangible asset -- -- 1,464,220 --
Total operating costs
and expenses 6,071,730 5,556,692 24,338,286 21,248,898
Loss from continuing
operations (1,209,417) (191,358) (4,868,332) (1,450,551)
Interest income 22,134 2,350 23,598 6,146
Interest expense (830,896) (131,680) (1,617,311) (419,980)
Loss from continuing
operations before
income taxes (2,018,179) (320,688) (6,462,045) (1,864,385)
Benefit from (provision
for) income taxes (16,675) 127,585 (1,151,940) 744,093
Loss from continuing
operations before
cumulative effect of
change in accounting
principle (2,034,854) (193,103) (7,613,985) (1,120,292)
Cumulative effect of
change in accounting
principle (190,223) -- (190,223) --
Net loss from
continuing operations $(2,225,077) $(193,103) $(7,804,208) $(1,120,292)
Discontinued operations
(Loss) Income from
discontinued
operations of Clinical
Laboratory Segment, net
of income taxes (47,140) 98,288 (196,751) 306,180
Net Loss $(2,272,217) $(94,815) $(8,000,959) $(814,112)
Net (loss) income from
continuing operations
per share, basic &
diluted $(0.39) $(0.04) $(1.43) $(0.24)
Net (loss) income per
share from
discontinued
operations, basic &
diluted $(0.01) $0.02 $(0.03) $0.07
Net (loss) income per
share, basic & diluted $(0.40) $(0.02) $(1.46) $(0.17)
Number of shares used
to calculate net
(loss) income
per share Basic &
Diluted 5,648,684 4,770,351 5,465,358 4,669,717
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
December 31, December 31,
2000 1999
Current assets $12,579,084 $12,311,648
Property, plant and equipment, net 7,459,283 7,752,719
Other non-current assets 1,272,894 2,891,110
Net assets from discontinued
operations 1,237,535 1,978,245
Total assets $22,548,796 $24,933,722
Accounts payable and accrued expenses $3,044,107 $3,696,824
Debt 11,078,996 7,145,651
Other liabilities 676,118 445,124
Total liabilities 14,799,221 11,287,599
Stockholders' equity 7,749,575 13,646,123
Total liabilities and
stockholders' equity $22,548,796 $24,933,722
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., of Boston Biomedica, Inc., 508-580-1900