Company Reports First Operating Profit Since Q2 1998
WEST BRIDGEWATER, Mass., July 25 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that the Company earned a profit from continuing operations of $37,545 or $0.01 per diluted share, compared with a loss from continuing operations of $(276,025), or $(0.05) per diluted share, for the same period last year. This marks the Company's first profit from continuing operations since the second quarter of 1998 - just before BBI embarked on ambitious R&D programs in Pressure Cycling Technology ("PCT") and drug development ("Panacos"). Revenue from continuing operations for the second quarter ended June 30, 2001 was $5,500,075, compared with revenue of $5,534,725 for the same period in 2000.
For the six months ended June 30, 2001, the Company reported revenue of $10,482,164, an increase of $408,499 or 4.1%, compared with revenue of $10,073,665 for the same period in 2000. The operating loss from continuing operations for the six months ended June 30, 2001 was $(160,226), compared with an operating loss from continuing operations of $(1,069,775) for the same period in 2000. After interest and taxes, the loss from continuing operations for the first six months of 2001 was $(448,607), or $(0.07) per diluted share, compared with a loss of $(883,736), or $(0.17) per diluted share, for the same period last year.
For the six months ended June 30, 2001 discontinued operations showed a gain of $3,964,498 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 $(79,023) for the same period in 2000.
In summary, net income for the second quarter of 2001 was $37,545 or $0.01 per diluted share compared with a net loss of $(291,525) or $(0.05) per diluted share for the second quarter of 2000. Net income for the six months ended June 30, 2001 was $3,515,891 or $0.56 per diluted share as compared with a net loss of $(962,759) or $(0.18) per diluted share.
"We are extremely pleased with the results for the second quarter as we achieved several milestones," remarked Kevin Quinlan, President and Chief Operating Officer. "First, all of our operating business units were profitable prior to corporate allocations, and together their results more than covered an increased level of R&D spending on PCT. Second, BBI Source achieved their first operating profit ever on strong OEM instrument customer demand, resulting in their best revenue performance since Q2 1999. Third, our strategy to seek third-party contracts that offer the potential for additional business from ancillary services continued to build momentum as we doubled our revenue at BBI Biotech from research services. And finally, the organizational changes made at BBI Diagnostics over the past year began to take hold in our sales and marketing team as well as in our new, streamlined product development process, both of which bode well for the second half of this year and beyond."
"In 1998, BBI made the strategic decision to aggressively fund two exciting technology platforms: Pressure Cycling Technology (PCT) and the development of anti-viral compounds (now Panacos Pharmaceuticals), knowing full well that this change would most likely adversely affect the Company's bottom line, which had been profitable for eleven consecutive years," said Richard T. Schumacher, Founder, CEO, and Chairman of Boston Biomedica. "Before doing so, we made our goals very clear: (1) to move our drug discovery program further along the value curve in order to attract the support of both the financial and scientific communities, (2) to continue to develop PCT with the ultimate goal to commercialize this exciting, enabling technology, and (3) to return to profitability in three years."
Schumacher continued: "Last November, we announced the spin-off of the majority of Panacos to two excellent VC firms, while maintaining a 30% passive interest for the shareholders of BBI. Panacos has recently stated that it is their goal to file an IND with the FDA on their lead compound by this time next year. With respect to PCT, we have announced that we will be publicly demonstrating Pressure Cycling Technology for the first time at next week's AACC Meeting in Chicago, and that it is our goal to release a nucleic acid/protein sample preparation system, based on our patented PCT technology, to the research market by Q2 of 2002. And with respect to our goal for returning to profitability, we have now achieved our first operating profit in three years and look forward to continued success in the future."
Schumacher added: "We are extremely proud of the loyalty, hard work, and perseverance of all employees of BBI, for they are clearly the reason for our success to date. These are exciting times for them, and for all other shareholders of Boston Biomedica."
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 continue to be profitable in 2001; the financial results of the quarter ended June 30, 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 due to unforeseen cost increases; the organizational changes at BBI Diagnostics may not continue to have the desired positive impact on results of operations; and due to technological difficulties and changes in the market place, 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 10-Q for the three months ended March 31, 2001; 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.
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BOSTON BIOMEDICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
REVENUE:
Products $3,279,837 $3,539,861 $6,442,263 $6,136,943
Services 2,220,238 1,994,864 4,039,901 3,936,722
Total revenue 5,500,075 5,534,725 10,482,164 10,073,665
COSTS AND EXPENSES:
Cost of products 1,517,978 1,723,736 3,099,523 3,018,033
Cost of services 1,743,663 1,651,043 3,022,645 3,264,364
Research and development 568,550 656,078 1,159,081 1,349,105
Selling and marketing 689,694 711,768 1,440,964 1,350,522
General and administrative 891,497 1,036,094 1,920,177 2,161,416
Total operating costs and
expenses 5,411,382 5,778,719 10,642,390 11,143,440
Operating income (loss)
from continuing
operations 88,693 (243,994) (160,226) (1,069,775)
Interest income 17,600 - 36,694 422
Interest expense (62,869) (210,709) (309,396) (404,463)
Income (loss) from
continuing operations
before income taxes 43,424 (454,703) (432,928) (1,473,816)
(Provision for) benefit
from income taxes (5,879) 178,678 (15,679) 590,080
Income (loss) from
continuing operations $37,545 $(276,025) $(448,607) $(883,736)
Discontinued operations
Income (loss) from
discontinued operations
of Clinical Laboratory
Segment, net of
income taxes - (15,500) 3,964,498 (79,023)
Net income (loss) $37,545 $(291,525) $3,515,891 $(962,759)
Income (loss) from
continuing operations
per share, basic & diluted $0.01 $(0.05) $(0.07) $(0.17)
Income (loss) per share
from discontinued
operations, basic &
diluted $- $- $0.63 $(0.01)
Net income (loss) per
share, basic & diluted $0.01 $(0.05) $0.56 $(0.18)
Number of shares used to
calculate net income
(loss) per share, basic 6,382,863 5,556,628 6,312,053 5,315,026
Number of shares used to
calculate net income
(loss) per share,
diluted 6,394,355 5,556,628 6,323,600 5,315,026
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
June 30, December 31,
2001 2000
Current assets $12,788,074 $12,579,084
Property, plant and equipment, net 6,887,340 7,459,283
Other non-current assets 1,029,018 1,272,894
Net assets from discontinued
operations - 1,237,535
Total assets $20,704,432 $22,548,796
Accounts payable and accrued expenses $2,522,210 $3,044,107
Debt 2,524,898 11,078,996
Other liabilities 631,871 676,118
Accrued liabilities to exit Clinical
Laboratory testing business 2,779,633 -
Total liabilities 8,458,612 14,799,221
Stockholders' equity 12,245,820 7,749,575
Total liabilities and
stockholders' equity $20,704,432 $22,548,796
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SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Richard T. Schumacher, CEO & Chairman, or Kevin W. Quinlan, President & COO, of Boston Biomedica, Inc., +1-508-580-1900