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 PALO ALTO, Calif., Oct. 22 /PRNewswire/ -- biosys (NASDAQ: BIOS) today announced its financial results for the third quarter, ended Sept. 30, 1993. Consolidated results include operating revenues and expenses for the entire third quarter for the AgriSense pheromone bio-pesticide business acquired on April 30, 1993.
 Total revenues for the third quarter increased by 110 percent to $3,121,000, from $1,488,000 for the corresponding period in 1992. Product sales increased by 251 percent in the quarter to $2,305,000 from $656,000 for the same quarter in 1992, primarily as a result of inclusion of AgriSense sales and biosys contract manufacturing activities. Net loss for the quarter increased to $2,488,000 or $0.31 per share, compared to $645,000, or $0.09 per share for the third quarter of 1992. The increase in the quarterly loss resulted primarily from higher cost of goods sold and increased operating expenses from biosys' nematode business as well as the inclusion of AgriSense operating expenses. Operating expenses as a percentage of revenues decreased from 108 percent in the third quarter of 1992 to 100 percent for the same period of 1993. As a percent of product sales, cost of goods declined slightly from 118 percent in the third quarter of 1992 to 113 percent in the current quarter.
 Total revenues for the nine months ending Sept. 30, 1993 were $7,425,000 compared to $3,342,000 for the same period in 1992, an increase of 122 percent. The increase in product sales of 205 percent was primarily from consolidation of AgriSense revenues and from contract manufacturing activities. Net loss of $9,437,000, or $1.22 per share for the nine months ended Sept. 30, 1993, increased from $2,646,000, or $0.39 per share for the same period in 1992. The loss for 1993 also includes a special charge taken in the second quarter of $3,692,000, or $0.48 per share, relating to the AgriSense acquisition as well as increased expenses from biosys' nematode operations and the incorporation of AgriSense operating expenses for the months of May- September 1993. For the nine months ended Sept. 30, 1993, compared to the same period in 1992, cost of goods sold improved marginally from 138 percent to 118 percent of product sales and operating expenses improved from 127 percent to 104 percent of total revenue.
 "We are pleased with the increase in revenues this year," said Dr. Edwin C. Quattlebaum, COO of biosys. "However, the lack of gross margin underscores the need for further volume to absorb production overhead, and for product improvements that bring down our direct costs."
 The company also announced the promotion of Dr. Ramon Georgis to vice president, Research. Georgis had previously been vice president of Field Development. R. Patrick Simms, previously senior vice president, Manufacturing, has added to his manufacturing duties the responsibility for nematode product development. His new title will be senior vice president, Development and Manufacturing.
 "This completes the realignment of our senior management team," said Dr. Venkat S. Sohoni, CEO of biosys. "We will continue to concentrate our resources to accelerate commercialization of new products and work to increase our margins," he said.
 biosys is a leader in the development and commercialization of biological pesticide products for the control of a wide range of insect pests. Using advanced science and technology, the company develops and manufactures environmentally safe and effective products for detection, monitoring and control in agricultural and consumer markets. biosys, which holds in vitro manufacturing and formulation patents, has diversified its business into the development of baculovirus bioinsecticides and contract manufacturing services for biological pesticides, as well as other industrial fermentation products. biosys shares are traded on the NASDAQ/National Market System under the stock symbol BIOS.
 Condensed Consolidated Statements of Operations
 (Amounts in thousands Three Months Ended Nine Months Ended
 except per share data) September 30, September 30,
 (unaudited) 1993 1992 1993 1992
 Product sales $ 2,305 $ 656 $ 5,021 $ 1,646
 Contract research and
 development revenues 816 832 2,404 1,696
 Total revenues 3,121 1,488 7,425 3,342
 Cost and expenses:
 Cost of product sales 2,609 777 5,925 2,269
 Operating expenses 3,128 1,607 7,726 4,256
 Purchased research
 and development -- -- 3,692 --
 Total cost and expenses 5,737 2,384 17,343 6,525
 Loss from operations (2,616) ( 896) (9,918) (3,183)
 Interest, other income
 and expense, net 128 251 481 537
 Net loss $(2,488) $( 645) $(9,437) $(2,646)
 Net loss per
 common share $ (.31) $ (.09) $ (1.22) $ (.39)
 Weighted average
 common shares and
 equivalents outstanding 7,937 7,397 7,714 6,711
 Condensed Consolidated Balance Sheets
 Sept. 30, Dec. 31,
 (Amounts in thousands) 1993 1992
 Cash, cash equivalents, and
 short-term investments $16,191 $26,903
 Other current assets 4,527 1,577
 Property and equipment, net 4,167 1,656
 Other assets 567 76
 Total assets $25,452 $30,212
 Liabilities & shareholder's equity:
 Current liabilities $ 2,205 $ 799
 Deferred revenue 74 169
 Long-term capitalized
 lease obligations -- 79
 Shareholders' equity 23,173 29,165
 Total liabilities &
 shareholders' equity $25,452 $30,212
 -0- 10/22/93
 /CONTACT: Dr. Venkat S. Sohoni, vice chairman and CEO, or Bruce G. Fielding Jr., Sr. V.P. and CFO, 415-856-9500, both of biosys/

CO: biosys inc. ST: California IN: MTC SU: ERN

KG-TM -- SJ002 -- 5622 10/22/93 09:51 EDT
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Publication:PR Newswire
Date:Oct 22, 1993

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