WEST BRIDGEWATER, Mass., Feb. 28 /PRNewswire-FirstCall/ -- Boston Biomedica, Inc. (Nasdaq: BBII) today announced that revenue from continuing operations for the fourth quarter ended December 31, 2001 was $5,935,303, an increase of $1,072,990 or 22.1%, compared with revenue from continuing operations of $4,862,313 for the same period in 2000. Net loss from continuing operations for the quarter was $(227,483), or $(0.04) per diluted share, compared with a net loss from continuing operations of $(2,225,077), or $(0.39) per diluted share, for the same period in 2000. As previously disclosed, the net loss from continuing operations for the fourth quarter of 2000 included a non-cash charge for interest expense of $(744,568), or $(0.13) per diluted share, associated with the Senior Subordinated Convertible Debentures issued in August, 2000. Results of operations for both quarters reflect the Company's decision in late 2000 to exit the clinical laboratory business. The results of this segment, reported as discontinued operations, showed income of $370,000 or $0.06 per share for 2001 due to a revised estimate of the gain on the sale of its clinical laboratory business in the first quarter of 2001, versus a loss of $(47,140) or $(0.01) per share in the fourth quarter of 2000. Net income for the fourth quarter of 2001 from both continuing and discontinued operations was $142,517, or $0.02 per share, versus a net loss of $(2,272,217), or $(0.40) per share, in the prior year's fourth quarter.
For the year ended December 31, 2001, the Company reported revenue from continuing operations of $21,826,107, an increase of $2,356,153 or 12.1%, compared with revenue from continuing operations of $19,469,954 for the same period in 2000. Net loss from continuing operations for the year ended December 31, 2001 was $(886,761), or $(0.14) per diluted share, compared with a net loss from continuing operations of $(7,804,208), or $(1.43) per diluted share, for the year ended December 31, 2000. As previously disclosed, the net loss from continuing operations for the year 2000 included charges for three significant non-cash items of $(3,497,414), or $(0.64) per share, related to a write down of goodwill, valuation allowance for deferred tax assets, and charges in connection with the issuance of Senior Subordinated Convertible Debentures, all of which adversely affected the financial results from continuing operations of the Company. See the Company's March 13, 2001 press release for further details. Results of all operations for both years reflect the Company's decision in late 2000 to exit the clinical laboratory business. These discontinued operations resulted in net income of $4,334,498 or $0.69 per share in 2001, versus a loss of $(196,751) or $(0.03) per share in the year ended December 31, 2000. Net income for the year ended December 31, 2001 from both continuing and discontinued operations was $3,447,737, or $0.55 per share, versus a net loss of $(8,000,959), or $(1.46) per share, in the prior year.
"Overall we were very pleased with our results for both the fourth quarter and the entire year," said Kevin W. Quinlan, President and Chief Operating Officer of BBI. "Revenue for 2001 increased 12.1% to $21.8 million led by a rebound in sales to IVD test kit manufacturers and continued strong domestic sales of our flagship ACCURUN line of quality control products, especially those used in nucleic acid (DNA, RNA) testing. In addition, our service revenue continued to show strength in both our repository and commercial research operations. In summary, all three business units showed increased revenue and improved operating results because of greater focus on our core businesses, primarily made possible by the November 2000 spin-off of Panacos Pharmaceuticals and the February 2001 sale of our clinical laboratory business."
Richard T. Schumacher, Founder, CEO, and Chairman of BBI commented: "In addition to the successful financial results of the quarter and year, we were also able to fill key marketing and sales positions, consolidate our repository operations in our (Frederick) Maryland facility, and significantly increase R&D spending on our Pressure Cycling Technology (PCT) platform."
Schumacher continued: "I am also pleased to report that we made major progress toward our goal of commercializing our first PCT product by the middle of this year. Toward this end, we spent considerable time and money during 2001 developing our PCT Sample Preparation System for genomics and proteomics applications, and we will be unveiling the system in mid-March at the Pittcon Meeting, generally regarded as the nation's largest analytical instrumentation exhibition. We remain optimistic that the system, which includes the Barocycler NEP2017 instrument and disposable PULSE Tubes -- both expected to be manufactured and sold by BBI -- will be released for sale by the middle of this year."
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 the extraction of nucleic acids and proteins, the inactivation of pathogens in human plasma and therapeutics, 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 operational, scientific or technical difficulties in the implementation of its strategies and changes in customer demand, Boston Biomedica's sales to IVD test kit manufacturers and sales of ACCURUN and other quality control products may not continue to be as strong as in 2001; Boston Biomedica 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, 2001 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 Annual Report on Form 10-K (as amended) for the year ended December 31, 2000 and Quarterly Reports on Form 10-Q for the three months ended March 31, June 30, and September 30, 2001 and Current Report on Form 8-K filed March 8, 2001. 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 Year Ended
December 31, December 31,
2001 2000 2001 2000
REVENUE:
Products $3,249,632 $3,132,075 $13,092,771 $12,387,416
Services 2,685,671 1,730,238 8,733,336 7,082,538
Total revenue 5,935,303 4,862,313 21,826,107 19,469,954
COSTS AND EXPENSES:
Cost of products 1,602,714 2,699,410 6,337,437 7,269,817
Cost of services 2,246,140 872,360 6,783,329 5,581,636
Research and
development 550,975 436,167 2,303,350 2,443,779
Selling and marketing 722,233 609,573 2,916,013 2,659,935
General and
administrative 986,271 1,454,220 3,976,568 4,918,899
Impairment of
intangible asset - - - 1,464,220
Total operating costs
and expenses 6,108,333 6,071,730 22,316,697 24,338,286
Operating (loss) from
continuing operations (173,030) (1,209,417) (490,590) (4,868,332)
Interest income 8,308 22,134 57,515 23,598
Interest expense (62,761) (830,896) (438,007) (1,617,311)
(Loss) from continuing
operations
before income taxes (227,483) (2,018,179) (871,082) (6,462,045)
(Provision for) income
taxes - (16,675) (15,679) (1,151,940)
(Loss) from continuing
operations before
cumulative effect
of change in
accounting
principle. $(227,483) $(2,034,854) $(886,761) $(7,613,985)
Cumulative effect of
change in accounting
principle $(190,223) $(190,223)
Net (loss) from
continuing
operations $(227,483) $(2,225,077) $(886,761) $(7,804,208)
Discontinued operations
Income (loss) from
discontinued
operations of Clinical
Laboratory Segment, net
of income taxes 370,000 (47,140) 4,334,498 (196,751)
Net income (loss) $142,517 $(2,272,217) $3,447,737 $(8,000,959)
(Loss) from continuing
operations $(0.04) $(0.39) $(0.14) $(1.43)
per share, basic &
diluted
Income (loss) per share
from discontinued $0.06 $(0.01) $0.69 $(0.03)
operations, basic &
diluted
Net income (loss) per
share, basic & diluted $0.02 $(0.40) $0.55 $(1.46)
Number of shares used
to calculate net
income (loss) per
share, basic &
diluted 6,285,805 5,648,684 6,245,480 5,465,358
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
December 31, December 31,
2001 2000
Current assets $13,870,867 $12,579,084
Property, plant and equipment, net 6,533,670 7,459,283
Other non-current assets 1,009,917 1,272,894
Net assets from discontinued
operations - 1,237,535
Total assets $21,414,454 $22,548,796
Accounts payable and accrued expenses $3,181,201 $3,044,107
Debt 2,455,780 11,078,996
Other liabilities 650,615 676,118
Accrued liabilities to exit Clinical
Laboratory testing business 1,686,547 -
Total liabilities 7,974,143 14,799,221
Stockholders' equity 13,440,311 7,749,575
Total liabilities and
stockholders' equity $21,414,454 $22,548,796
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X57916668
SOURCE Boston Biomedica, Inc.
Web site: http: //www.bbii.com
CONTACT: Investor Contacts: Richard T. Schumacher, CEO & Chairman, or Kevin W. Quinlan, President & COO, both of Boston Biomedica, Inc., +1-508-580- 1900; or Media Contact: Jennifer Viera of Schneider & Associates, +1-617-536- 3300, jviera@schneiderpr.com