Pacific Biomarkers announces second-quarter fiscal 2010 results

Feb 12 2010

Pacific Biomarkers, Inc. (OTC Bulletin Board: PBME), a leading provider of specialized biomarker and contract research services, today announced its operating results for the second quarter and first half of FY2010.  

For the three months ended December 31, 2009 (the second quarter of FY2010), revenue decreased 35% to $2,113,795, compared with $3,230,913 in the second quarter of FY2009, and decreased 8% when compared with $2,301,375 in the first quarter of FY2010.  Operating loss was $307,037 in the second quarter of FY2010, versus an operating income of $554,505 in the prior-year period.  The Company reported net loss of $457,629, or $0.03 per share, for the three months ended December 31, 2009, compared with net income of $976,671, or $0.05 per share, in the three months ended December 31, 2008.

Revenue for the six months ended December 31, 2009 decreased 12% to $4,415,170, compared with $5,035,955 during the corresponding period of the previous fiscal year.  Operating loss was $520,745 in the first half of FY2010, versus an operating income of $341,133 in the same period last year.  Net loss for the six months ended December 31, 2009 totaled $730,799, or $0.04 per share, compared with net income of $970,934, or $0.05 per share, for the comparable six-month period in FY2008.

"Our results for the three months ended December 31, 2009 are a reflection of the challenging drug development environment.  Although revenue fell short of the prior year, we remain confident that we are well positioned to execute our strategic plan for continued growth in the specialty laboratory business and our biomarker services area," commented Ron Helm, Chief Executive Officer of Pacific Biomarkers. "We have seen changes in our clinical services market in line with what other Contract Research Organizations (CROs) have reported, which have affected current revenues."

Characterizing the present time in the drug development marketplace as "a time of both challenge and opportunity" for Pacific Biomarkers, Mr. Helm continued, "The Company's exceptional result last year showed that our strategy of broadening our biomarker services offering was a sound move.  The current market conditions may challenge us for a time and we are taking appropriate measures to control costs and realign our business to enhance our support of our clients.  We believe we will be positioned appropriately as the market improves.  Despite our operating loss, we still ended the quarter with a strong balance sheet.  Cash and cash equivalents totaled $3,264,024 as of December 31, 2009 and we have an additional $502,237 in short term investments, which totals $3,766,261.

"We believe PBI's soft financial performance for the first half of Fiscal 2010 will not continue during the second half of Fiscal 2010.  We are encouraged that our expected backlog entering fiscal 2011 will be greater than any previous year.  Therefore, although we may make adjustments to our current operating plan, we anticipate improvement in demand for our broad portfolio of specialty laboratory and biomarker services.  We have identified the biomarker services area as the long-term growth driver in a market segment where demand is strong and there are presently no dominant players," concluded Helm.

For additional information, see Pacific Biomarkers' annual report filed with the SEC on Form 10-K for the fiscal year ended June 30, 2009 and the quarterly report filed with the SEC on Form 10-Q for the fiscal quarter ended December 31, 2009.