Strategic Diagostics Reports Fourth Quarter and 1999 Results: Revenues Up 57% for the Quarter, 43% For the Year.Business Editors NEWARK Newark, cities, United States Newark. 1 City (1990 pop. 37,861), Alameda co., W Calif., on the east side of San Francisco Bay; inc. 1955. , Del.--(BUSINESS WIRE)--Feb. 24, 2000 Strategic Diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : SDIX) - a leading provider of biotechnology-based test kits for food, water, agriculture and industry use, today reported financial results for the fourth quarter and year ended December December: see month. 31, 1999. Total net revenues were $5.7 million for the fourth quarter of 1999 and $22.5 million for the year. These revenues were approximately 57% above the comparable fourth quarter 1998 amount and 43% above total net revenues for the year ended December 31, 1998. Income, before the acquisition related $3.5 million in-process research and development expense and an income tax benefit of $5.3 million, totaled $2.0 million for the year ended December 31, 1999 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 and $460,000 for the fourth quarter of 1999 or $0.03 per diluted share and excludes the potential impact of the non-recurring gain related to the Macra Lp(a) sales transaction. The results compare to net income of $781,000 or $0.05 per diluted share for the year ended December 31, 1998 and net loss of $454,000 or $0.03 per share in the fourth quarter of 1998. The Company has recorded a tax benefit and eliminated approximately $1.3 million of intangible goodwill in December 1999, all in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards 109 ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 109") since it believes that it is more likely than not that the Company will realize that portion of the benefits of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . Due to the recognition of the Company's tax benefit in 1999, the Company expects that its effective tax rate in future periods will approximate 40%. The recognition of these deferred tax assets under SFAS 109 has no impact on the Company's cash flows for income taxes. The increase in revenues can be primarily attributed to increased agricultural sales resulting from the expansion of the agricultural product line to include kits designed for the quality assurance of foundation seed to the launch of a product line designed for the food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. and grain industry. The increase is also attributable to the growth of the antibody business, Strategic BioSolutions, primarily resulting from the successful acquisition of HTI HTI Haiti (ISO Country code) HTI High Tech Institute HTI Hand Tools Institute HTI Hamilton Island, Queensland, Australia (Airport Code) HTI Horizontal Technology Integration and the operating assets Operating Assets Another term for working capital. of the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and business of Atlantic Antibodies. Product Expansion in the Agriculture Market One of the keys to SDI's success in 1999 were the commercial launches of Trait trait (trat) 1. any genetically determined characteristic; also, the condition prevailing in the heterozygous state of a recessive disorder, as the sickle cell trait. 2. a distinctive behavior pattern. Check and GMO GMO abbr. genetically modified organism Check, products which not only meet the market need for detection of the Roundup Ready(R) trait at a 0.1% level in soybeans, but can be simply performed in less than 5 minutes. This ease-of-use and rapid response time has lent itself to an environment where time is of the essence A phrase in a contract that means that performance by one party at or within the period specified in the contract is necessary to enable that party to require performance by the other party. Failure to act within the time required constitutes a breach of the contract. . In addition to the successful launch of the GMO product line, SDI (1) (Serial Digital Interface) A physical interface widely used for transmitting digital video in various formats. For electrical transmission, it uses a high grade of coaxial cable and a single BNC connector with Teflon insulation. recently announced its entrance into the $20 million diagnostic market for mycotoxins. SDI's unique position as the developer and supplier of the first commercial, rapid, on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. test for the detection of mycotoxins in grain provides an excellent opportunity to introduce companion testing to the same end users. The expansion of product offerings in the agricultural marketplace will enable SDI to offer the industry the tools necessary to ensure the integrity of the supply chain. Strategic BioSolutions With the acquisition of HTI and the operating assets of the OEM business of Atlantic Antibodies, TSD TSD Tay-Sachs disease. BioServices has been enlarged to create Strategic BioSolutions, a division within SDI. This combined unit is one of the largest, independent custom antibody operations in the U.S. and is building on the reputation of the three organizations for a high quality product with dependable service. The combined operation Noun 1. combined operation - a military operation carried out cooperatively by two or more allied nations or a military operation carried out by coordination of sea, land, and air forces has benefited from lower operating costs operating costs npl → gastos mpl operacionales resulting from the complete integration of the three organizations, a single, highly effective sales network that now offers a comprehensive set of products and services to the industry, and a substantial research and development team experienced at developing new products and the technology necessary to establish and maintain a market leadership role. Mr. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a C. Birkmeyer, 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. , commented, "We saw many significant developments in the markets for our products in 1999. In agriculture, our business grew 124% over 1998. This growth was principally driven by regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. in many parts of the world adopting and/or implementing labeling regulations, largely in response to consumer demands to be able to know the genetic composition of their finished food products. Also contributing to this growth, the food processing and grain distribution industries began to segregate seg·re·gate v. seg·re·gat·ed, seg·re·gat·ing, seg·re·gates v.tr. 1. To separate or isolate from others or from a main body or group. See Synonyms at isolate. 2. genetically modified genetically modified Adjective (of an organism) having DNA which has been altered for the purpose of improvement or correction of defects genetically modified genetic adj [food etc] → products. Overall, specialization A career option pursued by some attorneys that entails the acquisition of detailed knowledge of, and proficiency in, a particular area of law. As the law in the United States becomes increasingly complex and covers a greater number of subjects, more and more attorneys are within large bulk commodities according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. genetic characteristics began to emerge, and we saw the development of a second tier in the markets and prices of soybeans. "As we look ahead, we expect further adoption of systems to identify genetic characteristics of agricultural products and maintain that identity from the farm to the food processor (identity preservation systems, or IP systems). We believe these developments are forging the modifications to the worldwide agricultural complex necessary to support the use of this valuable technology and to provide consumers with the products they desire at the best possible price. Furthermore, we believe these IP systems are necessary to support further genetically enhanced products currently being developed, including output traits, such as enhanced nutritional content, that will provide the consumer with high value-added characteristics not possible with conventional breeding techniques. We are focused on the further development of IP systems within the agricultural complex. We are working with growers, distributors, processors and retailers to provide a systematic approach supported with analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. testing information to identify genetic characteristics of agricultural commodities. "Our antibody business also contributed significant growth to 1999 revenues. In addition to the revenues and customers we added with the HTI and OEM business acquisitions, in the short time of integrated operations during 1999, we began to observe synergies, including cross-selling monoclonal monoclonal /mono·clo·nal/ (-klon´al) 1. derived from a single cell. 2. pertaining to a single clone. mon·o·clo·nal n. products to polyclonal polyclonal /poly·clo·nal/ (-klon´'l) 1. derived from different cells. 2. pertaining to several clones. polyclonal derived from different cells; pertaining to several clones. customers and polyclonal products to monoclonal customers. We believe we are well positioned for 2000 to continue to realize these synergies and increase revenues through expanding customer relationships. "For the year ahead, we are committed to maintaining and enhancing our leading positions in the markets we serve and we believe we are well positioned to achieve our business objectives." SDI is a leading provider of biotechnology-based diagnostic tests for a broad range of agricultural, industrial and water-treatment applications. Through its antibody business, Strategic BioSolutions, Strategic Diagnostics also provides antibody and immunoreagent research and development services. SDI's test kits are produced in a variety of formats suitable for field and laboratory use, offering advantages of accuracy, cost-effectiveness cost-effectiveness pertaining to cost-effective. cost-effectiveness analysis a comparison of the relative cost-efficiencies of two or more ways of performing a task or achieving an objective. , portability, and rapid response. Trait Check (TM) is a pending trademark for SDI. This news release contains 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. reflecting SDI's current expectation. When used in this press release, the words "anticipate", "enable", "estimate", "intend", "expect", "believe", "potential", "will" and similar expressions as they relate to SDI are intended to identify said forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, which may cause actual results to differ from those anticipated by SDI at this time. Such risks and uncertainties include, without limitation, changes in demand for products, delays in product development, delays in market acceptance of new products, inability to obtain required government approvals, modifications of government regulations, modifications to development and sales relationships, the ability to achieve anticipated growth, competition, seasonality, and other factors more fully described in SDI's public filings with the U.S. Securities and Exchange Commission.
STRATEGIC DIAGNOSTICS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
December 31, December 31,
1999 1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,491 $ 1,864
Short-term investments - 3,990
Receivables, net 6,021 3,653
Inventories 5,524 1,855
Other current assets 281 469
-------- --------
Total current assets 14,317 11,831
-------- --------
PROPERTY AND EQUIPMENT, net 3,289 835
OTHER ASSETS 431 494
DEFERRED TAX ASSET 7,071 -
INTANGIBLE ASSETS, net 4,564 1,933
-------- --------
Total assets $29,672 $15,093
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,375 $ 802
Accrued expenses 697 788
Taxes payable 55 -
Deferred revenue 162 -
Current portion of LTD 1,898 83
-------- --------
Total current liabilities 4,187 1,673
-------- --------
LONG TERM DEBT 6,275 265
-------- --------
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value,
17,500,000 shares authorized,
no shares issued or outstanding
Series A preferred stock, $.01 par value,
2,164,362 authorized, no shares issued and
outstanding at December 31, 1999;
2,164,362 shares issued and outstanding,
liquidation value $6,378,000
at December 31, 1998 - 22
Common stock, $.01 par value,
35,000,000 authorized, 16,470,106 and
13,262,157 issued and outstanding
at December 31, 1999 and
December 31, 1998, respectively 164 133
Additional paid-in capital 26,241 23,946
Accumulated deficit (7,170) (10,921)
Cumulative translation adjustments (25) (25)
-------- ---------
Total stockholders' equity 19,210 13,155
-------- ---------
Total liabilities and
stockholders' equity $29,672 $ 15,093
-------- ---------
STRATEGIC DIAGNOSTICS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
1999 1998 1999 1998
------- ------- -------- --------
Net Revenues
Product related $ 5,349 $ 3,026 $ 21,225 $ 14,172
Contract and other 332 596 1,309 1,553
------- ------- -------- --------
Total net revenues 5,681 3,622 22,534 15,725
------- ------- -------- --------
Operating expenses
Manufacturing 1,829 1,663 9,078 6,222
Research and development 695 604 2,450 1,922
Selling, general
and administrative 2,557 1,909 8,668 7,156
Acquired research
and development - - 3,500 -
------- ------- -------- --------
Total operating expenses 5,081 4,176 23,696 15,300
------- ------- -------- --------
Operating income (loss) 600 (554) (1,162) 425
Interest and other
income (expense), net (140) 100 (372) 356
------- ------- -------- --------
Income before taxes 460 (454) (1,534) 781
------- ------- -------- --------
Income taxes (benefit) (5,317) - (5,317) -
------- ------- -------- --------
Net income 5,777 (454) 3,783 781
Preferred stock dividends - - 32 -
------- ------- -------- --------
Net income (loss)
applicable to
common stockholders 5,777 (454) 3,751 781
======= ======= ======== ========
Basic income (loss)
per share applicable
to common stockholders $ 0.35 $ (0.03) $ 0.26 $ 0.06
------- ------- -------- --------
Shares used in computing
basic net income
(loss) per share
applicable to common
stockholders 16,403,000 13,174,000 14,374,000 13,174,000
========== ========== ========== ==========
Diluted income
(loss) per share
applicable to
common stockholders $ 0.33 $ (0.03) $ 0.22 $ 0.05
------- ------- -------- --------
Shares used in computing
diluted net income
(loss) per share
applicable to
common stockholders 17,625,000 13,174,000 17,088,000 16,103,000
========== ========== ========== ==========
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