SOURCE: Pacific Biometrics, Inc.

May 15, 2008 08:45 ET

Pacific Biometrics, Inc. Reports Third Quarter Fiscal 2008 Results

Company Reports Profitable Quarter With 31% Revenue Growth

SEATTLE, WA--(Marketwire - May 15, 2008) - Pacific Biometrics, Inc. (PBI) (OTCBB: PBME), a leading provider of specialized central laboratory and contract research services, released its financial results for the third quarter of fiscal 2008, ended March 31, 2008. Revenues for the third quarter increased 31% to $2,296,000 from $1,755,000 for the comparable period last year. The company recorded net operating income for the third quarter of fiscal 2008 of $236,000 compared with a net operating loss of $287,000 for the same period last year. Total net income for the third fiscal quarter was $282,000, or $0.01 earnings per share, compared with a total net loss of $427,000, or $0.02 loss per share, for the same period during fiscal 2007.

"We are extremely pleased with our robust third quarter results," commented Ron Helm, Chairman and Chief Executive Officer of Pacific Biometrics. "After a slow start to the fiscal year, the third quarter is a significant improvement over the first two quarters of fiscal 2008 and is also substantially better than the third quarter of fiscal 2007. We ascribe this success to several factors. First, the softness in the lipid testing market, which lasted through most of calendar 2007, is slowly improving and several pharma companies are reactivating cholesterol drug programs. Second, activity in the diabetes and obesity drug-development space has picked up noticeably and we have seen strong demand for our services in this area. Third, over the past several quarters we have signed a number of large, long-term contracts for services for arthritis drugs, as previously announced, some of which are now beginning to generate revenue. And fourth, we have seen rapid growth in demand for our new biomarker services, which has also begun to impact our financial results."

Commenting on the performance of the new biomarker services unit, Dr. Mario Ehlers, President of Pacific Biomarkers, Inc., said: "Since introducing clinical biomarker services less than 12 months ago we have seen rapid growth in that area and the new subsidiary is already making a meaningful contribution to overall financial results. This is related in part to the fact that contract periods tend to be shorter, bringing in revenues after shorter lead times, as well as the higher gross margins of this business. We feel confident that there will be robust demand for our biomarker services going forward and that this will be a strong driver for future growth for the company. A recent report by BCC Research, released October 25, 2007, indicated that the clinical trial segment of the biomarker market will increase by a CAGR of 23.5% over the next 5 years, reaching $1.8 billion in 2012. This is a hot space and we feel that Pacific Biomarkers is extremely well positioned to capture a share of this rapidly growing market."

Mr. Helm concluded by saying: "We are confident that PBI's performance will steadily improve despite the vagaries in the clinical trials testing market. Over the past several quarters, we have announced large clinical study contracts with some of the biggest pharmaceutical and biotech companies in the world, which has substantially added to our backlog for fiscal 2009, 2010 and beyond. These contracts are in our core areas of cardiovascular disease, diabetes, metabolic syndrome, osteoporosis, and arthritis. Further, by creating Pacific Biomarkers as a new, wholly owned subsidiary of PBI we have added an additional driver for growth in a market segment where we are seeing strong demand and where there are presently no dominant players."

For additional information, see Pacific Biometrics' quarterly report filed with the SEC on Form 10-QSB for the fiscal quarter ended March 31, 2008, as well as our annual report filed on Form 10-KSB for the fiscal year ended June 30, 2007.

About Pacific Biometrics, Inc. (PBI):

Established in 1989, PBI provides specialized central laboratory 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 disease, diabetes, osteoporosis, arthritis, and nutrition. The PBI laboratory is accredited by the College of American Pathologists, and through its non-profit affiliate Pacific Biometrics Research Foundation, is one of only three U.S.-based members of the Centers for Disease Control (CDC) Cholesterol Reference Method Laboratory Network. PBI's clients include many of the world's largest pharmaceutical, biotech, and diagnostic companies.

Pacific Biomarkers, Inc., incorporated February 1, 2008 as a wholly owned subsidiary of Pacific Biometrics, Inc., focuses specifically on the emerging field of biomarker assay development and testing. Services include validating and performing ligand-binding assays for novel clinical biomarkers, immunogenicity testing, and multiplex testing.

For more information about Pacific Biometrics, 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 growth in revenues and backlog that may result from established and new services, our strategic planning and business development plans, impacts on our financial results, our future growth, and the viability and acceptance of our products and services in the market. 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, our ability to bid on and win laboratory services contracts, the success of our marketing and business development efforts, competition in the industry, and our ability to manage growth, as well as the risks and other factors set forth in our periodic filings with the U.S. Securities and Exchange Commission (including our Form 10-KSB for the year ended June 30, 2007 and our Form 10-QSB for the quarters ended September 30, 2007, December 31, 2007, and March 31, 2008).

Contact Information

  • Contacts:

    Pacific Biometrics, Inc.
    Ron Helm
    Chairman and CEO
    (206) 298-0068

    Kari Charbonnel
    (206) 298-0068

    Pacific Biomarkers, Inc.
    Mario Ehlers
    President and CEO
    (206) 298-0068