BioLife Solutions Announces 7th Consecutive Quarter of Record Revenue Gross Margin Increase; Facility Expansion Underway to Support New Manufacturing Agreement; Guidance of 50% Annual Revenue Growth

BOTHELL, Wash., May 14, 2012 /PRNewswire/ -- BioLife Solutions, Inc. (OTCBB: BLFS), a leading developer, manufacturer and marketer of proprietary clinical grade hypothermic storage and cryopreservation freeze media for cells and tissues, and contract aseptic media manufacturer, today announced record revenue for the first quarter of 2012.

(Logo:  http://photos.prnewswire.com/prnh/20090814/BIOLIFELOGO)

Summary of Q1 2012 Achievements

  • Revenue and BioLife's customer base continued to grow with shipments of the core products, CryoStor®, HypoThermosol®, and BloodStor® to customers in the Company's key market segments of biobanking, drug discovery and regenerative medicine. Revenue to direct customers increased 84% compared to the first quarter of 2011 and 15% sequentially over the fourth quarter of 2011.
  • Gross margin increased to a record level of 59% of revenue in the first quarter, due to improved utilization of BioLife's manufacturing facility.
  • The Company executed an amendment to its current commercial lease to double the square footage of its existing facilities.  The additional space will be dedicated to the build-out of an additional GMP manufacturing clean room suite to support increasing demand for the Company's biopreservation media products and also to fulfill the production obligations of a high value multi-year contract manufacturing agreement that was executed in late 2011.

Mike Rice, Chief Executive Officer, commented on the Company's continued revenue growth by stating, "We had another solid quarter with a number of significant orders from regenerative medicine customers, whose demand for our products should increase as their clinical trials progress, and as they incorporate our biopreservation media products into the manufacturing, storage, freezing, shipping, and patient infusion processes for additional cell- and tissue-based clinical products and therapies."

First Quarter Financial Results

Total revenue for the first quarter of 2012 was $835,880, compared to $610,799 in the same period of 2011. The increase of 37% from 2011 to 2012 was due primarily to higher sales to customers in the drug discovery and regenerative medicine market segments, which were both up significantly over 2011. Sales to direct customers in the first quarter of 2012 increased 84% compared to the first quarter of 2011.

Gross margin in the first quarter was a record high of 59% due mainly to improved utilization of the Company's manufacturing facility.

Total operating expenses in the first quarter of 2012 were $669,015, compared to $696,476 in the first quarter of 2011. The primary driver for the increase in expenses was due to higher personnel costs in 2012, offset somewhat by a reduction in consulting expenses due to the termination of a consulting agreement in the third quarter of 2011.

Other income/expense is primarily related to interest expense on the Company's notes payable. In the first quarter of 2012, the Company also recorded $87,215 in other income related to a non-reciprocal, non-monetary receipt of raw materials.

For the first quarter of 2012, the Company reported a net loss of $296,877, or $(0.00) per share, compared with a net loss of $630,122, or $(0.01) per share, for the first quarter of 2011. Loss from operations in the first quarter of 2012 was $179,264, which was 61% lower when compared to the $454,277 loss from operations in the first quarter of 2011.

Outlook for 2012

Management expects revenue to continue to increase to approximately $4.1 million in 2012. The Company also expects sales to its contract manufacturing customers to increase significantly with the commencement of deliveries to the previously announced new customer. The Company also expects steady increases in revenue shipments to existing and new direct customers, specifically in the regenerative medicine market segment, as customers continue to move their cell- and tissue-based therapies and products through the clinical trial and regulatory approval processes.

The Company expects slightly lower gross margins as a percentage of revenue in 2012, as a result of increased contract manufacturing, in addition to increased operating expenses associated with selling and product development activity. 

Finally, management believes the Company will achieve positive cash flow from operations in 2012 and that cash generated from customer collections will provide sufficient funds to operate the business.

About BioLife Solutions

BioLife Solutions develops, manufactures and markets patented hypothermic storage and cryopreservation solutions for cells and tissues.  The Company's proprietary HypoThermosol® and CryoStor® platform of solutions are marketed to academic and commercial organizations involved in cell therapy, tissue engineering, cord blood banking, drug discovery, and toxicology testing. BioLife's products are serum-free and protein-free, fully defined, and are formulated to reduce preservation-induced, delayed-onset cell damage and death.  BioLife's enabling technology provides academic and clinical researchers significant improvements in post-thaw cell, tissue, and organ viability and function.  For more information please visit www.biolifesolutions.com, and follow BioLife on Twitter.

This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include any statements that relate to the intent, belief, plans or expectations of the Company or its management, or that are not a statement of historical fact.  Any forward-looking statements in this news release are based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Some of the specific factors that could cause BioLife Solutions' actual results to differ materially are discussed in the Company's recent filings with the Securities and Exchange Commission.  BioLife Solutions disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. 

Media Relations:

Investor Relations:


Len Hall

Matt Clawson


Allen & Caron Inc

Allen & Caron Inc


(949) 474-4300

(949) 474-4300


len@allencaron.com

matt@allencaron.com











BioLife Solutions, Inc.

Statement of Operations

 


Three Months

Ended March 31,


2012


2011

Revenue






         Product sales

$

830,880


$

605,799

         Licensing revenue


5,000



5,000

Total revenue


835,880



610,799

       Cost of product sales


346,129



368,600

          Gross profit


489,751



242,199

          Gross margin %


58.6%



39.7%







 

Operating expenses






          Research and development


116,521



158,793

          Sales and marketing


73,381



83,308

          General and administrative


479,116



454,375

Total operating expenses


669,015



696,476







Operating loss


(179,264)



(454,277)







     Total other income (expenses)


(117,613)



(175,845)







     Net Loss

$

(296,877)


$

(630,122)







Basic and diluted net loss per common share

$

(0.00)


$

(0.01)







Basic and diluted weighted average common






 shares used to calculate net loss per common share


69,679,854



69,679,854



















Selected Balance Sheet Data

March 31,


December 31,


2012


2011

Cash and cash equivalents

$

70,524


$

16,864

Accounts receivable


471,816



547,143

Inventories


763,967



505,956

Total current assets


1,374,606



1,160,407

Total current liabilities


687,813



579,248

Promissory notes payable, related parties


10,303,127



10,128,127

Accrued interest, related parties

Total liabilities


2,204,738



2,025,961


13,299,845



12,842,503

Total shareholders' equity (deficiency)


(11,430,675)



(11,180,486)

 

SOURCE BioLife Solutions, Inc.



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