BioSource International, Inc. Announces Record Sales of $9.8M and Diluted EPS of $.03 in 1st Quarter 2002 Before FAS 142 Adjustment.

    Business Editors

      CAMARILLO, Calif.--(BUSINESS WIRE)--April 23, 2002--BioSource
International, Inc. (NASDAQ:BIOI), announced today its operating
results for the quarter ended March 31, 2002.
      Net sales for the quarter ended March 31, 2002 were a record $9.8
million, an increase of $1.1 million, or 13%, (14% after eliminating
the $127,000 negative impact of foreign exchange) compared to net
sales for the quarter ended March 31, 2001. For the three months ended
March 31, 2002, the Company achieved net sales growth in North America
of 21% as compared to the three months ended March 31, 2001. European
sales for the three months ended March 31, 2002 increased 2% (8% in
local currency), as compared to the comparable prior year period.
Sales in Japan and the rest of the world increased 1%, for the three
months ended March 31, 2002 as compared to the three months ended
March 31, 2001.
      Net income per fully diluted share for the three months ended
March 31, 2002, excluding goodwill amortization was $531,000 or $.05
per share compared to $224,000 or $.02 per share for the three months
ended March 31, 2001.
      Net income before the effects of implementing Financial Accounting
Standard (FAS) 142 for the three months ended March 31, 2002 was
$371,000 or $.03 per diluted share compared to a net loss ($50,000) or
($.00) per diluted share for the three months ended March 31, 2001.
      Gross profit margin for the three months ended March 31, 2002 was
57%, an increase from 54% for the three months ended March 31, 2001.
The gross profit margin was higher for the quarter ended March 31,
2002 in part because of increased productivity resulting from higher
demand of certain custom products, but continued to be negatively
impacted by increased raw material costs.
      Selling, marketing and administrative expenses were $3.7 million
for each of the three months ended March 31, 2002 and 2001. As a
percentage of sales, selling, marketing and administrative expenses
represented 38% and 43% for the three months ended March 31, 2002 and
2001, respectively. In the quarter ended March 31, 2002, our
investment in personnel and marketing programs increased $495,000 from
the comparable prior year period. These increased costs were offset by
$495,000 of legal fees and a non-cash stock compensation charge
incurred in the quarter ended March 31, 2001 that was not incurred in
the current quarter.
      Research and development expense for the three months ended March
31, 2002 and 2001 were $1,293,000 and $954,000, respectively. As a
percentage of sales, research and development expenses were 13% and
11% for the three months ended March 31, 2002 and 2001 respectively.
The increase in expenses for the three months ended March 31, 2002
when compared to the comparable prior year period reflects the
Company's previously announced strategy of increasing R & D spending
with the goal of producing more new, novel and proprietary products.
      The effective tax rate for the three months ending March 31, 2002
was 22% and the income tax benefit for the three months ended March
31, 2001 was $22,000. The Company has benefited from R & D and other
tax credits which when applied to the lower income for the periods
presented results in a lower effective tax rate for the three months
ended March 31, 2002 and an income tax benefit for the three months
ended March 31, 2001.
      The Company recognized a non-cash charge, net of applicable income
taxes, of $2,870,000 representing the cumulative effect of a change in
accounting principle resulting from the implementation of FAS 142,
Accounting for Goodwill and Other Intangible Assets. This charge is
shown below net income as a cumulative effect of a change in
accounting principle. With this non-cash charge, the Company recorded
a net loss available to common shareholders of ($2,499,000) or $(.23)
per diluted share for the quarter ended March 31, 2002. The effect of
the implementation of FAS 142 reduced amortization of intangibles on
the condensed consolidated statement of operations from $275,000 for
the quarter ended March 31, 2001 to $160,000 for the quarter ended
March 31, 2002.
      "In the first quarter we aggressively moved forward with our
previously announced intention to increase R & D output," stated Len
Hendrickson, President and Chief Executive Officer of BioSource. "This
program is on track. We are particularly pleased with the first
quarter's performance in that we expect the benefits of the R&D
program to be realized later this year and in 2003. While we
introduced an increased number of new products in the first quarter,
we expect the sales increases from those products to show in future
quarters. We are optimistic about these products and are particularly
enthusiastic about some of the products just now being introduced such
as our p38 ELISA kit launched three weeks ago."
      "Sales were $9.8 million, an increase of 13% over Q1 of 2001,"
said Mr. Hendrickson. "We are pleased with these results and are
comfortable with our projections for operating performance. I want to
reiterate that our goal is to create a sustainable higher long-term
growth rate, improved profitability for the Company and to increase
shareholder value. With this quarter we have started on this path. I
want to thank all the BioSource employees worldwide for their efforts
this past quarter and we look forward to further progress at
BioSource."
      The Company will conduct a conference call today at 10:00 A.M.
pacific time. All interested parties may call 212/346-7491,
reservation number 20487872 to participate in the call.

      BioSource International, Inc. is a broad based life sciences
company focused on providing integrated solutions in the areas of
functional genomics, proteomics, and drug discovery through the
development, manufacturing, marketing and distribution of unique
biologically active reagent systems which facilitate, enable and
accelerate pharmaceutical development and biomedical research.

      This press release contains statements about expected future
events that are forward-looking and subject to risks and
uncertainties. For these statements, we claim the safe harbor for
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Factors that could cause
actual results to differ and vary materially from expectations
include, but are not limited to, our ability to expand our product
offerings and any transition to new products, product quality and
availability, any change in business conditions, changes in our sales
strategy and product development plans, competitive pricing pressures,
continued market acceptance of our products, name recognition of our
products, delays in the development of new technology, intellectual
property and proprietary rights may not be valid or infringe the
rights of others, changes in customer buying pattern issues, one-time
events and other important factors disclosed previously and from time
to time in our filings with the Securities and Exchange Commission.
These cautionary statements by us should not be construed as
exhaustive or as any admission regarding the adequacy of disclosures
made by us. We cannot always predict or determine after the fact what
factors would cause actual results to differ materially from those
indicated by the forward-looking statements or other statements. In
addition, readers are urged to consider statements that include the
terms "believes," "belief," "expects," "plans," "objectives,"
"anticipates," "intends," "targets," "projections," or the like to be
uncertain and forward-looking. All cautionary statements should be
read as being applicable to all forward-looking statements wherever
they appear. We do not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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            BIOSOURCE INTERNATIONAL, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              Three Months Ended March 31, 2002 and 2001
             (Amounts in thousands, except per share data)
                              (Unaudited)

                                         2002               2001

Net sales                             $  9,781             8,657
Cost of sales                            4,196             3,957

    Gross profit                         5,585             4,700

Operating expenses:
    Research and development             1,293               954
    Sales and marketing                  2,266             1,922
    General and administrative           1,460             1,807
    Amortization of intangibles            160               275

         Total operating expenses        5,179             4,958

Operating income  (loss)                   406              (258)

Interest income (expense), net              40               137
Other income (expense), net                 30                49

Income (loss) before income tax expense
 (benefit)                                 476               (72)
Income tax expense (benefit)               105               (22)

        Net income (loss) before
         cumulative effect of accounting
         change                            371               (50)
Cumulative effect of accounting change
 (net of applicable income taxes of
 $1,759)                                (2,870)               --

Net loss available to common
 shareholders                         $ (2,499)              (50)

Net income (loss) per share before
 accounting change:
    Basic                             $   0.04             (0.00)
                                                       ============
==============
    Diluted                           $   0.03             (0.00)

Net income (loss) per share after
 accounting change:
    Basic                             $  (0.25)            (0.00)
                                                        ============
==============
    Diluted                           $  (0.23)            (0.00)

Shares used to compute net income (loss):
    Basic                               10,190            10,352
    Diluted                             10,757            10,352


            BIOSOURCE INTERNATIONAL, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
             (Amounts in thousands, except per share data)
                              (Unaudited)

                                         March 31,       December 31,
                                           2002              2001
ASSETS

Current assets:
   Cash and cash equivalents             $  6,340           9,471
   Accounts receivable, less allowance
    for doubtful accounts of $249 at
    March 31, 2002 and $261 at
    December 31, 2001                       6,543           6,184
   Inventories, net                         7,313           7,184
   Prepaid expenses and other current
    assets                                    529             540
   Deferred income taxes                    1,584           1,584

                Total current assets       22,309          24,963

Property and equipment, net                 5,645           5,408
Intangible assets net of accumulated
 amortization of $2,174 at
 March 31, 2002 and $3,377 at
 December 31, 2001                          6,864          11,653
Other assets                                  560             491
Deferred tax assets                         9,085           7,326


                                        $  44,463          49,841


                     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                     $   2,849           2,416
   Accrued expenses                         2,365           2,707
   Deferred revenue                           371             404
   Income tax payable                         540             436


                Total current liabilities   6,125           5,963
Commitments and contingencies

Stockholders' equity:
Common stock, $.001 par value. Authorized
 20,000,000 shares: issued 10,461,363 and
 outstanding 9,832,539 shares at March 31,
 2002; issued 10,449,817 shares and
 outstanding 10,353,817 shares at
 December 31, 2001                             10              10
Additional paid-in capital                 45,723          48,761
Accumulated deficit                        (4,829)         (2,330)
Accumulated other comprehensive loss       (2,566)         (2,563)


                Net stockholders' equity   38,338          43,878


                                         $ 44,463          49,841

    --30--ss/la* ec/la

    CONTACT: BioSource International, Inc.
             Charles Best, 805/383-5249
             [e-mail]

    KEYWORD: CALIFORNIA
    INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL CONFERENCE CALLS
EARNINGS
    SOURCE: BioSource International, Inc.