BioSource Reports Third Quarter 2004 Financial Results.CAMARILLO Camarillo (kă'mərē`yō), city (1990 pop. 52,303), Ventura co., S Calif.; inc. 1964. It is the center of a fertile farm area where citrus fruits and flowers are grown. , Calif. -- BioSource International, Inc. (Nasdaq:BIOI) today announced financial results for its third quarter ended September 30, 2004. For the third quarter ended September 30, 2004, the Company reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $11.3 million, compared with net sales of $10.7 million for the comparable quarter of 2003. In the third quarter of 2004, foreign exchange rates favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted revenues by $0.3 million. Net income for the third quarter of 2004 was breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations as compared to a net loss of $0.1 million, or ($0.01) per share, for the 2003 third quarter. For the nine months ended September 30, 2004, net sales were $35.5 million, a 7% increase as compared to net sales of $33.4 million for the first nine months of fiscal 2003. Without the beneficial impact of foreign exchange for the nine months ended September 30, 2004, net sales would have grown 4%. Net income for the first nine months of fiscal 2004 was $1.2 million, or $0.12 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to net income for the first nine months of fiscal 2003 of $0.3 million, or $0.04 per diluted share. Terrance J. Bieker, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are encouraged by the 14% increase in sales of our cellular pathway pathway /path·way/ (path´wa) 1. a course usually followed. 2. the nerve structures through which an impulse passes between groups of nerve cells or between the central nervous system and an organ or muscle. assays during the third quarter and the significant improvement in our year-over-year earnings. This supports our heightened business focus on the assays and related biologicals for the study of disease." Third Quarter Review Sales of the Company's cellular pathway assay products increased 14% and 13% for the three and nine months ended September 30, 2004, respectively, compared to the same periods in the prior year. Related biological product sales decreased 4% during the third quarter of 2004 but increased 5% for the first nine months of 2004 compared to 2003. In addition, sales of other product lines increased 6% and 3% for the three and nine months ended September 30, 2004, respectively, as compared to the same periods in 2003. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold increased to $5.6 million in the third quarter of 2004 from $5.1 million in the third quarter of 2003. The gross margin of 51% in the third quarter of 2004 decreased from 53% in the comparable quarter of the prior year due primarily to lower margins in the Company's custom businesses. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the third quarter were as follows: --Research and development expenses were $1.5 million in the third quarter of 2004 as compared with $1.7 million in the comparable quarter of 2003. This decrease was primarily due to headcount reduction and related costs and is consistent with the Company's strategy of focusing its R&D investments on its core strength of assay development. --In the third quarter of 2004, sales and marketing expenses increased to $2.5 million as compared to $2.2 million in the third quarter of 2003. This change was due to increased expenditures for personnel. --General and administrative expenses of $1.7 million in the third quarter of 2004 were relatively consistent with the third quarter of 2003 costs. At September 30, 2004, the Company's cash and cash equivalents totaled $4.1 million. The Company announced a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program in July 2004. During the third quarter of 2004, the Company repurchased approximately $2.5 million of the Company's common stock. As previously announced, a live webcast of BioSource International, Inc.'s third quarter financial results conference call will be available over the Internet through its Web site at www.biosource.com in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section beginning today, October 22, at 10:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . A replay of the call will be available at the same site shortly after the call. Event archives are normally available one to two hours after the event ends. For the live event, listeners should go to the Web site at least fifteen minutes before the event starts to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. About BioSource International, Inc. BioSource International, Inc. is a broad-based life sciences company focused on providing integrated solutions in the areas of functional genomics Noun 1. functional genomics - the branch of genomics that determines the biological function of the genes and their products genomics - the branch of genetics that studies organisms in terms of their genomes (their full DNA sequences) , proteomics pro·te·o·mics n. The analysis of the expression, localization, functions, and interactions of the proteins produced by the genes of an organism. , and drug discovery through the development, manufacturing, marketing, and distribution of unique, biologically active reagent reagent /re·a·gent/ (re-a´jent) a substance used to produce a chemical reaction so as to detect, measure, produce, etc., other substances. re·a·gent n. systems which facilitate, enable, and accelerate pharmaceutical development and biomedical research Biomedical research (or experimental medicine), in general simply known as medical research, is the basic research or applied research conducted to aid the body of knowledge in the field of medicine. . For more information, please visit the Company's Web site at www.biosource.com. Statements included in this release that are not historical facts may be considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to a variety of risks and uncertainties. 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. For these statements, we claim the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, possible invalidity in·va·lid 1 n. One who is incapacitated by a chronic illness or disability. adj. 1. Incapacitated by illness or injury. 2. Of, relating to, or intended for invalids. tr.v. or infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. issues related to intellectual property or proprietary rights, changes in customer buying patterns, one-time events, and other important factors disclosed previously and from time to time in our filings with the Securities and Exchange Commission. These factors 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. 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.
BIOSOURCE INTERNATIONAL, INC.
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Net sales $11,308 $10,744 $35,548 $33,377
Cost of goods sold 5,568 5,079 16,516 15,160
Gross profit 5,740 5,665 19,032 18,217
Operating expenses:
Research and development 1,455 1,687 4,255 5,530
Sales and marketing 2,493 2,188 7,355 7,064
General and administrative 1,672 1,729 5,712 4,664
Amortization of intangibles 139 145 416 435
Total operating expenses 5,759 5,749 17,738 17,693
Income (loss) from operations (19) (84) 1,294 524
Interest and other income
(expense), net 25 (21) 13 (75)
Income (loss) before provision for
income taxes 6 (105) 1,307 449
Provision (benefit) for income
taxes (32) (24) 115 103
Net income (loss) $ 38 $ (81) $ 1,192 $ 346
Earnings per share:
Basic $ 0.00 $ (0.01) $ 0.13 $ 0.04
Diluted $ 0.00 $ (0.01) $ 0.12 $ 0.04
Shares used in per share
calculations:
Basic 9,322 9,181 9,384 9,418
Diluted 9,547 9,181 9,673 9,729
BIOSOURCE INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
September 30, December 31,
2004 2003
Assets
Current assets
Cash and cash equivalents $ 4,099 $ 3,297
Accounts receivable, net 6,600 6,308
Inventories, net 8,356 9,074
Other current assets 3,331 3,015
Total current assets 22,386 21,694
Property and equipment, net 5,968 6,235
Intangible assets, net 5,392 5,807
Deferred income taxes 10,078 10,078
Other assets 572 519
Total assets $ 44,396 $ 44,333
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 5,941 $ 5,678
Other current liabilities 839 353
Total current liabilities 6,780 6,031
Stockholders' equity 37,616 38,302
Total liabilities and
stockholders' equity $ 44,396 $ 44,333
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