Message #23 From:
NewsBot Date: February 13, 2007 12:43:00 AM
PBME News Pacific Biometrics Inc. Reports Fiscal 2007 Second Quarter Results
SEATTLE--(BUSINESS WIRE)--Pacific Biometrics, Inc. (OTCBB:PBME) (“PBI”), a leading provider of specialized central laboratory and contract research services, released its financial results for the second quarter of fiscal 2007, ended December 31, 2006. Revenues for the second quarter decreased 29% to $2,218,846 from $3,113,248 for the comparable period last year. Operating income for the second quarter of 2007 was reduced to a net operating loss of $64,587 compared to a net operating income of $800,118 for the same period last year. Total net loss for the second fiscal quarter was $399,392, or $0.02 per share, compared with a net income of $556,456, or $0.04 per share, for the same period during fiscal 2006. Revenues for the six months ended December 31, 2006 were $4,823,730, compared to $4,947,690 for the same period last year. Net cash flow from operations for the six months ended December 31, 2006 improved, however, with net cash provided by operating activities of $4,889, compared to net cash used of $545,603 for the same period last year. Net decrease in cash and cash equivalents for the six months ended December 31, 2006 was $601,890, compared to $960,629 for the same period last year, and the cash and cash equivalents balance improved to $4,895,847 at the end of the period, compared to $477,914 for the same period last year.
“Clearly the second quarter did not meet our revenue goals and expectations,” commented Ron Helm, Pacific Biometrics’ President and Chief Executive Officer. “We had a great first quarter, but in the second quarter we were hit by the indefinite postponement of two significant studies, which negatively impacted our revenues and our expenses, as we had increased staffing to accommodate these studies. We are also concerned about the recent announcement by Pfizer that it has discontinued development of Torcetrapib, the class leader in the CETP inhibitor field of HDL-raising drugs. This development did not impact second-quarter revenues, and no current studies have been terminated or suspended. However, because of current uncertainty about the significance of these developments, potential effects on our future revenues are unclear. It is uncertain how the current issues will affect the clinical development of CETP inhibitors at other pharmaceutical companies, or the effect on other drug classes currently being evaluated for their favorable effects on HDL (“good”) cholesterol levels and on reverse cholesterol transport. There is an expectation in the industry that several pharmaceutical companies may make announcements regarding their plans in the 2nd quarter of calendar 2007, which we hope will provide insights into future changes in our market, specifically regarding the CETP pathway for increasing HDL cholesterol.”
“Having said that, we remain confident that the pipeline for cholesterol-modifying drugs remains robust,” Mr. Helm continued. “As before, we believe PBI is ideally positioned to take advantage of multiple classes of drugs in early-stage development for the treatment of atherosclerosis and reduction of cardiovascular risk. Indeed, we are involved with many top pharmaceutical companies in providing testing services for drugs related to but distinct from the CETP inhibitors. We are continuing our vigorous business development efforts and we are focused on the growth of our backlog and on revenues.”
For additional information, see Pacific Biometrics' quarterly report on Form 10-QSB filed with the SEC for the fiscal quarter ended December 31, 2006, as well as its prior Annual Report on Form 10-KSB for the fiscal year ended June 30, 2006 and its quarterly report on Form 10-QSB for the fiscal quarter ended September 30, 2006.
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.
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 to but not limited to our strategic planning and business development plans, 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, decisions by clients to suspend or terminate early their clinical studies, 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, 2006 and our quarterly reports on Form 10-QSB for the quarters ended September 30, 2006 and December 31, 2006).
