SOURCE: Pacific Biomarkers, Inc.

Pacific Biomarkers, Inc.

May 16, 2011 08:30 ET

Pacific Biomarkers, Inc. Reports Third Quarter Operating Results

SEATTLE, WA--(Marketwire - May 16, 2011) - Pacific Biomarkers, Inc. (OTCBB: PBMC) ("PBI"), a leading provider of biomarker laboratory services and contract research services, today announced its operating results for the third quarter and first nine months of FY2011.

For the three months ended March 31, 2011 (the third quarter of FY2011), revenue decreased 3% to $2,159,014, compared with $2,233,698 for the third quarter of FY2010. Operating loss totaled $381,538 in the third quarter of FY2011, versus operating loss of $238,047 in the prior-year period. The Company reported a net loss of $430,575, or $0.03 per share, for the three months ended March 31, 2011, compared with a net loss of $393,259, or $0.02 per share, for the three months ended March 31, 2010.

Revenue for the nine months ended March 31, 2011 increased 13% to $7,544,616, compared with $6,648,868 during the corresponding period of the previous fiscal year. An operating loss of $631,790 was recorded in the first nine months of FY2011, versus an operating loss of $758,792 in the same period last year. Net loss for the nine months ended March 31, 2011 totaled $982,156, or $0.06 per share, compared with a net loss of $1,124,038, or $0.06 per share, for the year-earlier period.

For additional information, see Pacific Biomarkers' quarterly report filed with the SEC on Form 10-Q for the fiscal quarter ended March 31, 2011 and its annual report filed with the SEC on Form 10-K for the fiscal year ended June 30, 2010.

About Pacific Biomarkers, Inc. (PBI)

Established in 1989, PBI provides biomarker laboratory services 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 and musculoskeletal diseases, diabetes, obesity, 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 custom assays for novel clinical biomarkers, immunogenicity testing, cell-based assays, mass spectrometry, and multiplex testing.

PBI is headquartered in Seattle, Washington, and its common stock trades on the OTC Bulletin Board under the symbol "PBMC". 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, 2010).

PACIFIC BIOMARKERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31,June 30,
ASSETS20112010
(unaudited)
Current assets:
Cash and cash equivalents$1,276,418$1,861,155
Short-term bank deposits200,479468,619
Accounts receivable, net1,182,1771,852,987
Other receivable, net6,5006,500
Inventory231,985239,863
Prepaid expenses and other assets378,773229,802
Total current assets3,276,3324,658,926
Property and equipment, net1,134,1681,309,764
Restricted cash150,172-
Total non-current assets1,284,3401,309,764
Total assets$4,560,672$5,968,690
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$404,578$605,944
Accrued liabilities410,816632,429
Advances from customers647,715408,455
Capital lease obligations - current portion348,906200,806
Secured note - current portion, net of discount889,4281,015,603
Total current liabilities2,701,4432,863,237
Capital lease obligations - long-term portion353,970389,820
Secured note - long-term portion, net of discount2,262,6982,676,969
Total liabilities5,318,1115,930,026
Commitments and contingencies--
Stockholders' equity:
Common stock, $0.01 par value, 30,000,000 shares authorized, 16,909,501 shares issued and outstanding at March 31, 2011, 16,669,856 shares issued and outstanding at June 30, 2010

169,095


166,699
Additional paid-in-capital27,906,68127,723,024
Accumulated deficit(28,833,215)(27,851,059)
Total stockholders' equity (deficit)(757,439)38,664
Total liabilities and stockholders' equity$4,560,672$5,968,690
PACIFIC BIOMARKERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months EndedNine Months Ended
March 31,March 31,
2011201020112010
Revenues$2,159,014$2,233,698$7,544,616$6,648,868
Laboratory expenses and cost of sales1,460,2841,381,2484,654,6674,155,405
Gross profit698,730852,4502,889,9492,493,463
Operating expenses:
Selling, general and administrative1,080,2681,090,4973,521,7393,252,255
Operating loss(381,538)(238,047)(631,790)(758,792)
Other expense:
Interest expense(136,655)(146,204)(410,877)(338,155)
Amortization of discount on debt(13,806)(18,756)(46,371)(36,846)
Other income101,4249,748106,8829,755
Total other expense(49,037)(155,212)(350,366)(365,246)
Net loss before tax expense(430,575)(393,259)(982,156)(1,124,038)
Tax expense----
Net loss$(430,575)$(393,259)$(982,156)$(1,124,038)
Net loss per share$(0.03)$(0.02)$(0.06)$(0.06)
Weighted average common shares outstanding, basic and diluted:16,909,50116,628,57616,909,50117,742,801
PACIFIC BIOMARKERS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended
March 31
20112010
Cash flows from operating activities:
Net income (loss)$(1,124,038)$1,168,742
Reconciliation of net income (loss) to net cash provided by operating activities:
Depreciation and amortization243,447192,000
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 stock36,846-
Discount accretion and premium amortization of held-to-maturity securities6,710-
Warrant expense for equipment lease and financing-3,940
Compensation expense from restricted shares and options73,694101,218
Changes in assets and liabilities:
Accounts receivable1,035,860363,064
Other receivable2,500444,791
Inventory(107,346)34,418
Prepaid expenses and other assets(19,975)(35,134)
Advances from customers46,490(72,380)
Accounts payable(14,662)(221,355)
Accrued liabilities(273,207)(61,060)
Net cash provided by (used in) operating activities(93,681)1,349,134
Cash flows from investing activities:
Purchases of capital equipment(95,103)(42,159)
Purchases of investments(506,710)-
Maturities of investments500,000-
Net cash used in investing activities(101,813)(42,159)
Cash flows from financing activities:
Payments on notes payable-(869,136)
Proceeds from loan4,000,000-
Repurchases of common stock(1,674,335)-
Restricted stock transferred for employee withholding tax liability(65,614)-
Payments on capital lease obligations(119,002)(32,291)
Net cash provided by (used in) financing activities2,141,049(901,427)
Net increase in cash and cash equivalents1,945,555405,548
Cash and cash equivalents, beginning of period1,365,4061,196,310
Cash and cash equivalents, end of period$3,310,961$1,601,858
Supplemental Information:
Cash paid during the period for interest$264,850$61,993
Non-cash investing and financing activities:
Capital expenditures funded by capital lease borrowings$470,458$142,058

Contact Information

  • For additional information, please contact:
    Ron Helm
    CEO
    (206) 298-0068
    Or
    The Investor Relations Group
    Janet Vasquez
    (212) 825-3210