EXHIBIT 99.1
FOR IMMEDIATE RELEASE
INVESTOR CONTACTS:
Kevin W. Quinlan, President & COO
Boston Biomedica, Inc.
(508) 580-1900 (T)
BOSTON BIOMEDICA REPORTS FOURTH QUARTER 2002
AND FISCAL YEAR END 2002 FINANCIAL RESULTS
RECORD REVENUE OF $6.1 MILLION ACHIEVED IN FOURTH QUARTER 2002
WEST BRIDGEWATER, Mass., March 31, 2003 -- Boston Biomedica, Inc. (NASDAQ: BBII)
today announced that revenue from continuing operations for the fourth quarter
ended December 31, 2002 was $6,079,454, an increase of $144,151 or 2.4%,
compared with revenue from continuing operations of $5,935,303 for the same
period in 2001. Net income from continuing operations for the quarter was
$34,933, or $0.01 per diluted share, compared with a net loss from continuing
operations of $(227,483), or $(0.04) per diluted share, for the same period in
2001. In the fourth quarter of 2001, the Company also reported a gain of
$370,000 or $0.06 per share as it adjusted the calculation of gain on the sale
of its clinical laboratory business initially recorded in the first quarter of
2001. This resulted in fourth quarter 2001 net income from both continuing and
discontinued operations to be $142,517, or $0.02 per share. Discontinued
operations had no impact on net income for the fourth quarter of 2002.
For the year ended December 31, 2002, the Company reported revenue from
continuing operations of $22,764,637, an increase of $938,530 or 4.3%, compared
with revenue from continuing operations of $21,826,107 for the year 2001. Net
loss from continuing operations for the year ended December 31, 2002 was
$(1,713,004), or $(0.26) per diluted share, compared with a net loss from
continuing operations of $(886,761), or $(0.14) per diluted share, for the year
ended December 31, 2001. Results of 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 $225,000 or $0.03 per share in
2002, as compared to net income of $4,334,498 or $0.70 per share in 2001. In
summary, net (loss) from both continuing and discontinued operations was
$(1,488,004) or $(0.22) per share for the year ended December 31, 2002, as
compared to net income from both continuing and discontinued operations of
$3,447,737 or $0.56 per share, in 2001.
"During the fourth quarter we focused on increasing our diagnostic product and
contract and grant revenue, and we implemented a number of cost saving measures,
the combination of which enabled us to attain both record revenue of $6.1
million and a small operating income of $88,984", said Kevin W. Quinlan,
President and Chief Operating Officer of Boston Biomedica, Inc. "In addition,
the Company recorded its first commercial sale of PCT-based products in
December. It appears that the selling cycle for this novel, capital
equipment-based technology is longer than originally thought. However, there
have been a number of significant technological accomplishments in proteomics
and small molecule research by researchers at our beta-sites corroborating our
internal results, and we remain optimistic that our PCT Sample Preparation
System will have a positive impact on future results. Regarding future guidance,
we expect the first quarter, always our most difficult quarter, will show an
operating loss on lower revenue than the fourth quarter, and additional costs
including costs incurred as a result of the Board of Directors oversight
activities relating to corporate governance, and a possible impairment in the
value of the Company's receivable from a former officer. However, we believe
that the second quarter will show improved results compared to the first quarter
of 2003 based on orders received to date."
Boston Biomedica News Release
March 31, 2003
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BBI provides products and services to the diagnostics and life sciences
industries to evaluate, monitor, and ensure the quality of infectious disease
test results, to improve the preparation of specimens for genomic/proteomic
testing, and to safely store and retrieve rare and valuable biological
specimens. We also manufacture reagents used in test kits and provide a broad
range of routine and esoteric research services to governments and industry. BBI
has facilities in three states, and conducts research in new applications for
our patented Pressure Cycling Technology (PCT). In 2000, we launched Panacos
Pharmaceuticals, and the Company maintains a significant passive investment in
this novel antiviral drug development company.
Statements contained in this news release regarding 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 successful in
commercializing the PCT Sample Preparation System, or such activities may take
longer, or may require more financial, technical, and marketing resources than
currently expected. In addition, demand for the PCT Sample Preparation System
may not develop as anticipated. In any of such events, the Company's operating
results will be lower than anticipated, and the Company may not have the
resources necessary to develop additional products in PCT, or to improve upon
existing products. Pressure Cycling Technology may also not be adaptable to any
other commercially viable applications, certain Pressure Cycling Technology
applications may not fall within the claims of the Company's nine issued US
patents, and individuals and groups utilizing such PCT procedures may not be
required to license such technology from BBI. The Company's actual results could
also be materially affected by the Company's inability to retain a qualified
individual to serve as chief executive officer. The financial results for the
quarter and year ended December 31, 2002 are not necessarily indicative of
future results. Future revenue may not meet expectations due to, among other
things, changes in customer needs and technological innovations, failure to
execute orders on a timely basis or an impairment to the Company's receivable
from a former officer of the Company. 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
for the year ended December 31, 2002. Copies of these and other 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,
------------------------------------------------ -------------------------------------------
2002 2001 2002 2001
------------------------------------------------ -------------------------------------------
REVENUE:
Products $ 3,270,307 $ 3,249,632 $ 12,696,830 $ 13,092,771
Services 2,809,147 2,685,671 10,067,807 8,733,336
------------------------------------------------ --------------------------------------------
Total revenue 6,079,454 5,935,303 22,764,637 21,826,107
COSTS AND EXPENSES:
Cost of products 1,702,796 1,602,714 6,535,429 6,337,437
Cost of services 2,155,475 2,246,140 7,727,137 6,783,329
Research and development 513,976 550,975 2,611,060 2,303,350
Selling and marketing 751,885 722,233 3,286,183 2,916,013
General and administrative 866,338 986,271 4,108,734 3,976,568
------------------------------------------------ --------------------------------------------
Total operating costs 5,990,470 6,108,333 24,268,543 22,316,697
and expenses
Operating income (loss)
from continuing operations 88,984 (173,030) (1,503,906) (490,590)
Interest income 7,065 8,308 41,809 57,515
Interest expense (58,180) (62,761) (247,971) (438,008)
------------------------------------------------ --------------------------------------------
Income (loss) from continuing
operations before income taxes 37,869 (227,483) (1,710,068) (871,083)
Provision for income taxes (2,936) - (2,936) (15,678)
------------------------------------------------ --------------------------------------------
Income (loss) from continuing
operations $ 34,933 $ (227,483) $ (1,713,004) $ (886,761)
Discontinued operations
Income from discontinued operations
of Clinical Laboratory Segment,
net of income taxes - 370,000 225,000 4,334,498
------------------------------------------------ --------------------------------------------
Net income (loss) $ 34,933 $ 142,517 $ (1,488,004) $ 3,447,737
================================================ ============================================
Income (loss) from
continuing operations per
share, basic & diluted $ 0.01 $ (0.04) $ (0.26) $ (0.14)
Income per share from
discontinued operations,
basic & diluted $ - $ 0.06 $ 0.03 $ 0.70
Net income (loss) per share,
basic & diluted $ 0.01 $ 0.02 $ (0.22) $ 0.56
Number of shares used to calculate net
income (loss) per share, basic 6,786,335 6,122,762 6,660,662 6,204,384
Number of shares used to calculate net
income (loss) per share, diluted 6,786,335 6,122,762 6,660,662 6,204,384
CONSOLIDATED SUMMARY BALANCE SHEETS
(unaudited)
December 31, December 31,
---------------------------------------------
2002 2001
---------------------------------------------
Current assets $ 13,074,203 $ 13,870,848
Property, plant and equipment, net 5,826,817 6,533,671
Other non-current assets 942,349 1,009,735
---------------------------------------------
Total assets $ 19,843,369 $ 21,414,254
=============================================
Accounts payable and accrued expenses $ 3,375,789 $ 3,181,201
Debt 2,417,749 2,484,890
Other liabilities 712,344 621,304
Net liabilities from discontinued operations 710,441 1,686,547
---------------------------------------------
Total liabilities 7,216,323 7,973,942
Stockholders' equity 12,627,046 13,440,312
---------------------------------------------
Total liabilities and stockholders' equity $ 19,843,369 $ 21,414,254
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