Sale of Business Unit Helps
Company Achieve First Profitable Quarter Since 1998
WEST BRIDGEWATER, Mass., May 8 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced revenue from continuing operations for the first quarter ended March 31, 2001 was $4,982,089, an increase of $443,149 or 9.8%, compared with revenue from continuing operations of $4,538,940 for the same period in 2000. Operating loss from continuing operations for the first quarter of 2001 was $(248,919), or $(0.04) per diluted share, compared with an operating loss from continuing operations of $(825,781), or $(0.16) per diluted share, for the same period in 2000.
The loss from continuing operations (after interest and taxes) was $(486,152) for Q1 2001, as compared to $(607,711) for the prior year period. The loss for Q1 2000 was reduced by an income tax benefit of $411,402 or $0.08 per diluted share, whereas no tax benefit was recorded in Q1 2001 as the Company ceased recording deferred tax assets as of the third quarter last year.
Results from discontinued operations for the first quarter ended March 31, 2001 showed a gain of $3,964,498 or $0.64 per diluted share due to the February 2001 sale of certain assets and liabilities associated with the Company's clinical laboratory business. This discontinued segment showed a loss of $(63,523) or $(0.01) per diluted share for the same period in 2000.
In summary, net income for the first quarter of 2001 from both continuing and discontinued operations was $3,478,346 or $0.56 per diluted share, versus a net loss of $(671,234) or $(0.13) per diluted share in the prior year's first quarter. For comparison purposes, prior period financial statements have been reclassified to conform to the current period's presentation.
"We were pleased with the significant improvement in our operating results, which were driven by revenue growth from our diagnostic component products as well as continued strength in our Accurun quality control product line," said Kevin W. Quinlan, President and Chief Operating Officer. "We have filled several key sales and marketing positions at our BBI Diagnostics unit and, together with our renewed emphasis on our diagnostic products business, expect to continue to grow revenue as we seek to return the Company to operating profitability. In addition, our cost reduction measures at BBI Source greatly benefited the first quarter results."
"The financial results for the first quarter of 2001 reflect the successful completion of all major parts of the strategic plan that we initiated last year - a plan that we felt would be instrumental for allowing the Company to return to operating profitability in 2001," said Richard T. Schumacher, Founder, CEO, and Chairman of BBI. "The one-time benefit from the sale of certain assets of BBI Clinical Laboratories, although very important, should not overshadow three other factors with longer-term effects: the significant improvement in results from operations, which we expect to continue; the repayment of all our outstanding convertible debentures and line of credit, as reported in February, 2001; and the spin-off in late in 2000 of Panacos Pharmaceuticals. Going forward, we will continue to evaluate financing and partnership options as we seek to achieve the successful commercialization of our very exciting and promising Pressure Cycling Technology (PCT), while concomitantly focusing on growing both the top and bottom lines of our core businesses. As always, we will continue to work to maximize long-term shareholder value."
Boston Biomedica, Inc. provides products and services for the detection and monitoring 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 might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: due to difficulties in the implementation of its strategies, Boston Biomedica may not be able to return to operating profitability in 2001; the financial results of the quarter ended March 31, 2001 are not necessarily indicative of future results because future revenues may not meet expectations due to changes in customer needs and technological innovations and expenses may be higher than anticipated because costs may increase; and BBI may not be successful in developing Pressure Cycling Technology (PCT) into commercially successful products, or such development may take longer than expected. 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 Annual Report on Form 10-K (as amended) for the year ended December 31, 2000, Form 8-K filed March 8, 2001, and in the Company's Registration Statements on Form S-3 (Reg. No. 333- 46426 and Reg. No. 333-94379). Copies of these documents may be obtained by contacting the Company or the SEC.
Visit us at our website http://www.bbii.com
Please email us at IR@bbii.com if you prefer to receive future
announcements electronically
BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31,
2001 2000
REVENUE:
Products $3,162,426 $2,597,082
Services 1,819,663 1,941,858
Total revenue 4,982,089 4,538,940
COSTS AND EXPENSES:
Cost of products 1,581,545 1,294,297
Cost of services 1,278,982 1,613,321
Research and development 590,531 693,027
Selling and marketing 751,270 638,754
General and administrative 1,028,680 1,125,322
Total operating costs and expenses 5,231,008 5,364,721
Operating loss from continuing
operations (248,919) (825,781)
Interest income 19,094 422
Interest expense (246,527) (193,754)
Loss from continuing operations
before income taxes (476,352) (1,019,113)
Benefit from (provision for) income
taxes (9,800) 411,402
Loss from continuing operations $(486,152) $(607,711)
Discontinued operations
(Loss) income from discontinued
operations of Clinical
Laboratory Segment, net of income
taxes 3,964,498 (63,523)
Net income (loss) $3,478,346 $(671,234)
Loss from continuing operations per
share, basic & diluted $(0.08) $(0.12)
(Loss) income per share from
discontinued operations, basic &
diluted $0.64 $(0.01)
Net (loss) income per share, basic &
diluted $0.56 $(0.13)
Number of shares used to calculate
net (loss) income per share, basic 6,240,456 5,048,256
Number of shares used to calculate
net (loss) income per share, diluted 6,251,215 5,048,256
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
March 31, December 31,
2001 2000
Current assets $13,480,197 $12,579,084
Property, plant and equipment, net 7,176,999 7,459,283
Other non-current assets 1,048,749 1,272,894
Net assets from discontinued
operations - 1,237,535
Total assets $21,705,945 $22,548,796
Accounts payable and accrued expenses $3,064,080 $3,044,107
Debt 2,478,207 11,078,996
Other liabilities 685,397 676,118
Net liabilities from discontinued
operations 3,220,499 -
Total liabilities 9,448,183 14,799,221
Stockholders' equity 12,257,762 7,749,575
Total liabilities and
stockholders' equity $21,705,945 $22,548,796
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X16952158
SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, CEO & Chairman, or Kevin W. Quinlan, President & COO, both of Boston Biomedica, Inc., 508-580-1900