Company Reports 19.3% Increase in Revenue From Q3 2000
And Continued Progress in PCT Sample Preparation System
WEST BRIDGEWATER, Mass., Oct. 31 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue from continuing operations for the third quarter ended September 30, 2001 was $5,408,640, compared with revenue of $4,533,977 for the same period in 2000, an increase of nearly 20%. The operating loss from continuing operations was $(157,336) or $(0.03) per diluted share, compared with an operating loss from continuing operations of $(2,589,224), or $(0.46) per diluted share, for the same period last year. After interest and taxes, the loss from continuing operations for the third quarter of 2001 was $(210,672) or $(0.03) per diluted share, compared with a loss from continuing operations of $(4,695,481), or $(0.84) per diluted share, for the same period last year. The prior year numbers included goodwill impairment and income tax charges of $(3,326,170) or $(0.59) per share.
For the nine months ended September 30, 2001, the Company reported revenue of $15,890,804, an increase of $1,283,162 or 8.8%, compared with revenue of $14,607,642 for the same period in 2000. The operating loss from continuing operations for the nine months ended September 30, 2001 was $(317,562), compared with an operating loss from continuing operations of $(3,658,999) for the same period in 2000. After interest and taxes, the loss from continuing operations for the first nine months of 2001 was $(659,279), or $(0.11) per diluted share, compared with a loss of $(5,579,217), or $(0.99) per diluted share, for the same period last year.
For the nine months ended September 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 $(149,525) for the same period in 2000.
In summary, net loss for the third quarter of 2001 was $(210,672) or $(0.03) per diluted share compared with a net loss of $(4,765,983) or $(0.85) per diluted share for the third quarter of 2000. Net income for the nine months ended September 30, 2001 was $3,305,219 or $0.53 per diluted share as compared with a net loss of $(5,728,742) or $(1.02) per diluted share for the same period last year.
"We continue to be pleased with the progress of our operating business units as we seek to improve their financial results while working to bring to commercial reality our first PCT product," remarked Kevin W. Quinlan, President and Chief Operating Officer. "There were several highlights for the quarter. First, revenue from our diagnostics products business unit was the sixth highest quarter in our 16 Year history, exhibiting both strong growth and higher operating profits throughout multiple product lines. Second, our biotech business unit continued to grow its molecular (genomic) services by adding additional commercial customers, which helped to achieve its third consecutive profitable quarter (prior to the allocation of corporate overhead). Finally, for the second consecutive quarter, all operating business units posted improved revenue and operating results versus the comparable period last year."
"It should also be noted," continued Quinlan, "that the third quarter included increased spending on PCT for both R&D and patent costs of $101,000 as well as increased spending in marketing and sales of $63,000, over the levels of spending in Q2 2001. We view these additional expenses as necessary and important investments in our goal to continue to improve the financial results of the Company in 2002 and beyond."
"During the past quarter, through increased effort and spending we made significant, measurable progress in our goal to achieve commercialization of our first PCT product by Q2 2002," said Richard T. Schumacher, Founder, CEO, and Chairman of BBI. "During the quarter, we were issued our seventh and eighth PCT patents, we filed a new patent covering our novel PCT PULSE tube, and we demonstrated the PCT sample preparation system for the first time publicly at the annual meeting of the American Association for Clinical Chemistry. At AACC, we met with industry leaders in nucleic acid and protein extraction from around the world, as well as other potential users, to allow them a first-hand look at our PCT-based sample preparation system. These meetings went very well. We were encouraged by their responses indicating that the PCT sample preparation system appears to offer clear advantages over existing methods. We were further encouraged by requests from industry leaders to demonstrate the PCT system to their scientists and management."
Schumacher continued: "We will work diligently to achieve our goal of releasing our first PCT product by the middle of 2002, concomitant with continuing to improve the financial results of the Company. We plan to show the PCT sample preparation system at four scientific expositions between November and March, and have also accepted invitations to demonstrate the PCT system privately at the facilities of two industry leaders. In addition, we continue to make good progress in our core diagnostics products business. In summary, we remain very optimistic about the progress of the Company, and about the prospects of increasing shareholder value over the coming months and years."
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, the financial results of the quarter ended September 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; 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, may not be successful in releasing the first PCT product by Q2 2002, such development may take longer than expected, and demand for PCT products may not develop as anticipated. 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 and six months ended March 31, 2001 and June 30, 2001, respectively; 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 Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
REVENUE:
Products $3,400,879 $2,643,965 $9,843,142 $8,780,908
Services 2,007,761 1,890,012 6,047,662 5,826,734
Total revenue 5,408,640 4,533,977 15,890,804 14,607,642
COSTS AND EXPENSES:
Cost of products 1,635,467 1,552,374 4,734,990 4,570,407
Cost of services 1,570,748 1,444,996 4,593,393 4,709,360
Research and development 536,823 658,508 1,695,904 2,007,613
Selling and marketing 752,817 699,841 2,193,781 2,050,363
General and
administrative 1,070,121 1,303,262 2,990,298 3,464,678
Impairment of intangible
asset - 1,464,220 - 1,464,220
Total operating costs
and expenses 5,565,976 7,123,201 16,208,366 18,266,641
Operating (loss) from
continuing operations (157,336) (2,589,224) (317,562) (3,658,999)
Interest income 12,513 8,675 49,207 9,097
Interest expense (65,849) (389,585) (375,245) (794,048)
(Loss) from continuing
operations
before income taxes (210,672) (2,970,134) (643,600) (4,443,950)
(Provision for) income
taxes - (1,725,347) (15,679) (1,135,267)
(Loss) from continuing
operations $(210,672) $(4,695,481) $(659,279) $(5,579,217)
Discontinued operations
Income (loss) from
discontinued operations
of Clinical
Laboratory Segment, net
of income taxes - (70,502) 3,964,498 (149,525)
Net income (loss) $(210,672) $(4,765,983) $3,305,219 $(5,728,742)
(Loss) from continuing
operations $(0.03) $(0.84) $(0.11) $(0.99)
per share, basic &
diluted
Income (loss) per share
from discontinued $- $(0.01) $0.64 $(0.03)
operations, basic &
diluted
Net income (loss) per
share, basic & diluted $(0.03) $(0.85) $0.53 $(1.02)
Number of shares used to
calculate net income
(loss)
per share, basic 6,074,180 5,623,803 6,231,891 5,617,661
Number of shares used to
calculate net income
(loss)
per share, diluted 6,074,180 5,623,803 6,244,022 5,617,661
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
September 30, December 31,
2001 2000
Current assets $12,615,351 $12,579,084
Property, plant and equipment, net 6,591,854 7,459,283
Other non-current assets 1,029,469 1,272,894
Net assets from discontinued
operations - 1,237,535
Total assets $20,236,674 $22,548,796
Accounts payable and accrued expenses $2,640,943 $3,044,107
Debt 2,439,851 11,078,996
Other liabilities 680,010 676,118
Accrued liabilities to exit Clinical
Laboratory testing business 2,564,344 -
Total liabilities 8,325,148 14,799,221
Stockholders' equity 11,911,526 7,749,575
Total liabilities and
stockholders' equity $20,236,674 $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, +1-508-580-1900, both of Boston Biomedica, Inc.