Pacific Biomarkers, Inc. Reports Second Quarter Operating Results
SEATTLE, Feb. 12 /PRNewswire-FirstCall/ -- Pacific Biomarkers, Inc. (OTC Bulletin Board: PBME), a leading provider of specialized biomarker and contract research services, today announced its operating results for the second quarter and first half of FY2010.
For the three months ended December 31, 2009 (the second quarter of FY2010), revenue decreased 35% to $2,113,795, compared with $3,230,913 in the second quarter of FY2009, and decreased 8% when compared with $2,301,375 in the first quarter of FY2010. Operating loss was $307,037 in the second quarter of FY2010, versus an operating income of $554,505 in the prior-year period. The Company reported net loss of $457,629, or $0.03 per share, for the three months ended December 31, 2009, compared with net income of $976,671, or $0.05 per share, in the three months ended December 31, 2008.
Revenue for the six months ended December 31, 2009 decreased 12% to $4,415,170, compared with $5,035,955 during the corresponding period of the previous fiscal year. Operating loss was $520,745 in the first half of FY2010, versus an operating income of $341,133 in the same period last year. Net loss for the six months ended December 31, 2009 totaled $730,799, or $0.04 per share, compared with net income of $970,934, or $0.05 per share, for the comparable six-month period in FY2008.
"Our results for the three months ended December 31, 2009 are a reflection of the challenging drug development environment. Although revenue fell short of the prior year, we remain confident that we are well positioned to execute our strategic plan for continued growth in the specialty laboratory business and our biomarker services area," commented Ron Helm, Chief Executive Officer of Pacific Biomarkers. "We have seen changes in our clinical services market in line with what other Contract Research Organizations (CROs) have reported, which have affected current revenues."
Characterizing the present time in the drug development marketplace as "a time of both challenge and opportunity" for Pacific Biomarkers, Mr. Helm continued, "The Company's exceptional result last year showed that our strategy of broadening our biomarker services offering was a sound move. The current market conditions may challenge us for a time and we are taking appropriate measures to control costs and realign our business to enhance our support of our clients. We believe we will be positioned appropriately as the market improves. Despite our operating loss, we still ended the quarter with a strong balance sheet. Cash and cash equivalents totaled $3,264,024 as of December 31, 2009 and we have an additional $502,237 in short term investments, which totals $3,766,261.
"We believe PBI's soft financial performance for the first half of Fiscal 2010 will not continue during the second half of Fiscal 2010. We are encouraged that our expected backlog entering fiscal 2011 will be greater than any previous year. Therefore, although we may make adjustments to our current operating plan, we anticipate improvement in demand for our broad portfolio of specialty laboratory and biomarker services. We have identified the biomarker services area as the long-term growth driver in a market segment where demand is strong and there are presently no dominant players," concluded Helm.
For additional information, see Pacific Biomarkers' annual report filed with the SEC on Form 10-K for the fiscal year ended June 30, 2009 and the quarterly report filed with the SEC on Form 10-Q for the fiscal quarter ended December 31, 2009.
Investor Conference Call
Pacific Biomarkers, Inc. has scheduled an investor conference call to discuss its operating results for the second quarter and first half of FY2010, along with other relevant subjects.
Shareholders and other interested parties may participate in the investor conference call by dialing 800-860-2442 (international/local participants dial 412-858-4600) and requesting participation in the "Pacific Biomarkers, Inc. Conference Call" a few minutes before 11:15 a.m. EST on February 12, 2010. A replay of the conference call will be available one hour after the call through Friday, February 19, 2010 at 5:00 p.m. EST by dialing 877-344-7529 (international/local participants dial 412-317-0088) and entering the Conference ID # 437808.
About Pacific Biomarkers, Inc. (PBI)
Established in 1989, PBI provides specialized central laboratory and contract research services to support pharmaceutical and diagnostic manufacturers conducting human clinical trial research. The Company provides expert services in the areas of cardiovascular disease, diabetes, osteoporosis, arthritis, and nutrition. The PBI laboratory is accredited by the College of American Pathologists, New York State, and the Lipid Standardization Program. PBI's clients include many of the world's largest pharmaceutical, biotech, and diagnostic companies. PBI also provides clinical biomarker services focusing on the emerging field of biomarker assay development and testing. Services include validating and performing ligand-binding assays for novel clinical biomarkers, immunogenicity testing, cell based assay testing and multiplex testing.
PBI is headquartered in Seattle, Washington, and its common stock trades on the OTC Bulletin Board under the symbol "PBME". For more information about PBI, visit the company's web site at www.pacbio.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release includes forward-looking statements including, but not limited to, the following: growth in revenues and backlog; results of business development activities; financial results; future growth; and the viability and acceptance of its established and new services, including the Company's biomarker services. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those described in the forward-looking statements. These risks include, but are not limited to, the following: the Company's ability to enter into contracts for its laboratory testing or biomarker services; client changes or early terminations of studies; variability in backlog; the success of marketing and business development efforts, and competitive factors; the Company's ability to manage growth; and other risks and uncertainties set forth in periodic filings with the U.S. Securities and Exchange Commission (including Form 10-K for the year ended June 30, 2009).
For additional information, please contact: |
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Ron Helm, CEO at (206) 298-0068 |
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or |
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RJ Falkner & Company, Inc., Investor Relations at (800) 377-9893 or via email at [email protected] |
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PACIFIC BIOMARKERS, INC.
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
ASSETS 2009 2009
(unaudited)
----------- -----------
Current assets:
Cash and cash equivalents $3,264,024 $1,365,406
Short-term investments 502,237 -
Accounts receivable, net 1,175,432 2,238,912
Other receivable, net 3,500 9,000
Inventory 172,904 171,885
Prepaid expenses and other assets 159,834 230,974
------- -------
Total current assets 5,277,931 4,016,177
Property and equipment, net 754,266 813,258
Total assets $6,032,197 $4,829,435
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $550,217 $678,818
Accrued liabilities 377,440 660,284
Advances from customers - current portion 203,008 155,471
Capital lease obligation - current portion 67,171 62,709
Secured note - current portion, net discount
of $31,802 646,148 -
------- ---
Total current liabilities 1,843,984 1,557,282
Advances from customers - long - term portion 272,032 272,032
Capital lease obligations - long - term
portion 121,565 156,309
Secured note - long - term portion, net
discount of $155,833 3,166,217 -
--------- ---
Total liabilities 5,403,798 1,985,623
--------- ---------
Commitments and contingencies - -
Stockholders' equity:
Common stock, $0.01 par value, 30,000,000
shares authorized, 16,642,418 shares issued
and outstanding at December 31, 2009,
19,099,539 shares issued and outstanding at
June 30, 2009 166,424 190,995
Additional paid-in capital 27,661,271 29,121,334
Accumulated deficit (27,199,296) (26,468,517)
Treasury stock - -
--- ---
Total stockholders' equity 628,399 2,843,812
Total liabilities and stockholders' equity $6,032,197 $4,829,435
========== ==========
PACIFIC BIOMARKERS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ----------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $2,113,795 $3,230,913 $4,415,170 $5,035,955
---------- ---------- ---------- ----------
Laboratory expenses and
cost of sales 1,380,457 1,570,235 2,774,157 2,673,604
--------- --------- --------- ---------
Gross profit 733,338 1,660,678 1,641,013 2,362,351
------- --------- --------- ---------
Operating expenses:
Selling, general and
administrative 1,040,375 1,106,173 2,161,758 2,021,218
--------- --------- --------- ---------
Operating income (loss) (307,037) 554,505 (520,745) 341,133
-------- ------- -------- -------
Other income (expense):
Interest expense (138,851) (28,628) (191,951) (139,686)
Gain on adjustment of
embedded and freestanding
derivatives to fair
value - 343,121 - 675,691
Amortization of deferred
financing costs - secured
convertible debt - - - (18,447)
Amortization of discount
on debt (12,132) - (18,090) -
Other income 391 107,673 7 112,243
--- ------- --- -------
Total other income
(expense) (150,592) 422,166 (210,034) 629,801
Net income (loss) before
tax expense (457,629) 976,671 (730,779) 970,934
-------- ------- -------- -------
Tax expense - - - -
Net income (loss) $(457,629) $976,671 $(730,779) $970,934
========= ======== ========= ========
Net income (loss) per
share $(0.03) $0.05 $(0.04) $0.05
====== ===== ====== =====
Weighted average common
shares outstanding, basic
and diluted: 16,711,096 19,039,524 18,141,744 18,964,873
========== ========== ========== ==========
PACIFIC BIOMARKERS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six Months Ended
December 31,
------------
2009 2008
---- ----
Cash flows from operating activities:
Net income (loss) $(730,779) $970,934
Reconciliation of net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 151,114 121,940
Accretion of fair value assigned to
conversion feature and warrants - 88,134
Amortization of deferred financing costs on
secured convertible note - 18,447
Gain from embedded and freestanding
derivative liabilities relating to secured
convertible note - (675,691)
Amortization of fair value assigned to
repurchased shares of common stock 18,090 -
Discount accretion and premium amortization
of held-to-maturity securities 4,473 -
Warrant expense for equipment lease and
financing - 3,943
Compensation expense from restricted shares
and options 49,590 90,485
Changes in assets and liabilities:
----------------------------------
Accounts receivable 1,063,480 123,692
Other receivable 5,500 451,291
Inventory (1,019) (48,593)
Prepaid expenses and other assets 71,140 (73,901)
Advances from customers 47,537 80,425
Accounts payable (128,601) (104,933)
Accrued liabilities (282,844) (58,305)
-------- -------
Net cash provided by operating
activities 267,681 987,868
------- -------
Cash flows from investing activities:
Purchases of capital equipment (92,122) (14,783)
Purchases of investments (506,710) -
-------- ---
Net cash used in investing activities (598,832) (14,783)
-------- -------
Cash flows from financing activities:
Payments on notes payable - (869,136)
Proceeds from loan 4,000,000 -
Repurchases of common stock (1,674,334) -
Restricted stock transferred for employee
withholding tax liability (65,614)
Payments on capital lease obligations (30,283) (20,626)
Net cash provided by (used in)
financing activities 2,229,769 (889,762)
--------- --------
Net increase in cash and cash equivalents 1,898,618 83,323
Cash and cash equivalents, beginning of period 1,365,406 1,196,310
--------- ---------
Cash and cash equivalents, end of period $3,264,024 $1,279,633
========== ==========
Supplemental Information:
Cash paid during the period for interest $136,606 $59,505
Non-cash investing and financing activities:
Capital expenditures funded by capital lease
borrowings $- $108,316
SOURCE Pacific Biomarkers, Inc.
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