SeraCare first quarter revenue decreases 7% to $10.5 million

SeraCare Life Sciences, Inc. (Nasdaq: SRLS), a global life sciences company providing vital products and services to facilitate the discovery, development and production of human diagnostics and therapeutics, today reported operational and financial results for its first quarter of fiscal year 2011, ended December 31, 2010.

"In the first quarter of fiscal 2011 we took important steps to position ourselves to achieve our long-term strategic goal of doubling SeraCare's revenues during the next three to four years. As we stated during our previous earnings conference call, we anticipated a moderation in our revenues during the first half of fiscal 2011 as we implement comprehensive sales force improvements and completed our work under a significant services contract," commented Susan Vogt, President and Chief Executive Officer of SeraCare. "Additionally, we are in the final stages of converting a key customer to a new, jointly developed, custom-manufactured bulk product. This transition has resulted in some short term disruption in their ordering, but we believe will ultimately enhance our long term relationship. We believe that the completion of these initiatives will yield a positive revenue uptick and improved operating performance in the second half of the fiscal year."

SeraCare reported revenue of $10.5 million for the quarter ended December 31, 2010 compared to $11.3 million for the same quarter of the prior year, reflecting a 7% decrease. Gross margins decreased to 38% for the quarter compared to 44% for the same quarter of the prior year. The Company earned net income of $1.6 million, which included a non-recurring reorganization benefit of $0.8 million, and earnings per share on a basic and diluted basis of $0.08 for the quarter ended December 31, 2010 compared to net income of $1.3 million and earnings per share of $0.07 during the same period in fiscal 2010.

Recent Corporate Highlights:

• Achieved seventh consecutive quarter of profitability during the first quarter of fiscal 2011
• Entered into a loan agreement that provides senior secured credit facilities in the aggregate amount of $20.0 million
• Began optimization of the sales organization to drive growth, with an increased focus on diagnostics and pharmaceutical product sales in both North America and Europe
• Introduced five new products in the first fiscal quarter of 2011
• Increased cash balance to $16.2 million as of December 31, 2010
• Generated $1.4 million in cash from operations during the quarter ended December 31, 2010, marking our eighth consecutive quarter of positive cash from operations

"During the first quarter, SeraCare increased its cash balance to $16.2 million, maintaining our consistent ability to generate cash. We are well positioned to apply the strength of our balance sheet to drive SeraCare's future growth," stated Gregory Gould, Chief Financial Officer. "We are also making adjustments in each of our business segments that we believe will improve gross margins across our business in addition to the increased revenues projected during the second half of fiscal 2011."

SOURCE SeraCare Life Sciences, Inc.