BOTHELL, WA—April 1, 2013,—BioLife Solutions, Inc. (OTCQB: BLFS), a leading developer,
manufacturer and marketer of proprietary clinical grade hypothermic storage and
cryopreservation freeze media for cells and tissues, and contract aseptic media manufacturer,
today announced financial results for the fourth quarter and year ended December 31, 2012.
Summary of Q4 2012 Achievements
During the fourth quarter of 2012, the Company accomplished the following:
? Recorded positive cash from operations for the first time in Company history.
? Delivered over $1.2 million in aseptically formulated and filled product to a contract
? Commenced initial private-labeled product shipments to a new distributor, a leading
supplier of cell culture reagents and tools to the life sciences industry.
? Completed the qualification of a second cGMP clean room suite, doubling
manufacturing capacity and increasing the Company’s ability to leverage contract
manufacturing opportunities while its core biobanking, drug discovery, and
regenerative markets continue to develop.
Mike Rice, Chief Executive Officer, said, “Our focus on high quality cGMP manufacturing and
operational excellence has positioned us to utilize our existing assets and capacity to grow our
business while our high growth regenerative medicine market opportunity develops.” He
continued, “We hold the leading supplier position for pre-formulated, clinical grade
biopreservation media products. We estimate that our HypoThermosol
® cell/tissue storage
medium and CryoStor
® cryopreservation freeze media products are used in more than fifty
clinical trial-stage cell and tissue based therapies in the regenerative medicine field, any one of
which could generate $1 million per year in revenue, if regulatory and marketing approvals are
obtained by our customers.”
Fourth Quarter 2012 Financial Results
Total revenue for the fourth quarter of 2012 was $2.0 million, compared to $0.8 million in the
same period of 2011. The increase of 153% from 2011 to 2012 was due primarily to contract
manufacturing revenue and higher sales to customers in the hair restoration field, where
HypoThermosol is increasingly being utilized as a new standard for ex vivo storage of hair grafts
to improve procedure outcome and patient satisfaction.
Gross margin in the quarter was 36.7% compared to 56.5% in the same quarter last year. The
reduction in gross margin was primarily attributable to higher cost of sales on contract
manufacturing revenue and higher personnel and other costs included in cost of goods sold
related to the expansion of the Company’s facilities and production capacity.
Operating expenses in the fourth quarter were $1.1 million compared with $0.7 million in the
fourth quarter of 2011 primarily attributable to increased personnel costs associated with
strategic hires in all departments. The increase in personnel expenses was partially offset by
lower legal costs during the quarter.
For the fourth quarter, the Company reported a net loss of $0.5 million, or $(0.01) per share,
compared to $0.4 million or $(0.01) per share in the fourth quarter of 2011. Loss from operations
was $0.3 million, compared to the $0.2 million in the fourth quarter of 2011.
Full Year 2012 Financial Results
For the full year ended December 31, 2012, the Company reported revenue of $5.7 million,
compared to $2.8 million in 2011, an increase of 105%. This was the result of growth in our core
business segments and the addition of a contract manufacturing customer in the second quarter
Gross margin was 40.5% for the year ended December 31, 2012, compared to 50.9% in 2011.
The decrease is related primarily to the increase in contract manufacturing services revenue,
which has a higher cost of sales, compared to core product sales. Additionally, gross margin
declined due to additional personnel and other costs included in cost of goods sold related to
the expansion of our production operations.
Operating expenses increased for the year ended December 31, 2012 compared to 2011 due
primarily to increased personnel costs during the year. We expanded our team from 16
members at the end of 2011 to 28 members at the end of 2012, to meet growing demand for our
products and services. Team members were added to our production team, and direct and
indirect sales teams in the period.
For the year ended December 31, 2012 we reported a net loss of $1.7 million, an improvement
over the $2.0 million net loss reported for 2011.
The fourth quarter of 2012 was the first quarter in the Company’s history during which cash was
generated by operating activities. Cash provided by operations was $0.9 million for the year
ended December 31, 2012, a significant improvement over cash used by operations of $1.0
million in 2011.
Outlook for 2013
In 2013, BioLife management expects revenue be in the range of $6.5 million to $7.0 million.
This increase will be driven by continued increases in sales to existing core product and
contract manufacturing customers, the addition of new customers in the regenerative medicine
market as our customers continue to move their cell and tissue based therapies and products
through the clinical trial and regulatory approval processes, and continued focus on sales
through our existing distribution network.
Management expects gross margin as a percentage of revenue of approximately 38% - 41% in
2013 with fluctuation occurring as a result of changes in the mix of core product sales and
contract manufacturing services revenue.
Operating expenses are expected to increase in 2013 by 10% - 20% over 2012, with increases
expected in all areas primarily in personnel related costs.
The Company will continue to focus on generating positive operating income in 2013, and
expects the results for the full year to increase over 2012.
About BioLife Solutions
BioLife Solutions develops, manufactures and markets hypothermic storage and
cryopreservation solutions for cells, tissues, and organs. The Company’s proprietary
® and CryoStor
® platform of solutions are marketed to academic and
commercial organizations in the biobanking, drug discovery, and regenerative medicine
markets. BioLife’s products are serum-free and protein-free, fully defined, and are formulated to
reduce preservation-induced cell damage and death. BioLife’s enabling technology provides
academic and clinical researchers significant improvement in shelf life and post-preservation
viability and function of cells, tissues, and organs. For more information please visit
www.biolifesolutions.com, and follow BioLife on Twitter.
This news release contains forward-looking statements as that term is defined in the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include any statements that relate to the intent, belief, plans
or expectations of the Company or its management, or that are not a statement of historical fact. Any forward-looking
statements in this news release are based on current expectations and beliefs and are subject to numerous risks and
uncertainties that could cause actual results to differ materially. Some of the specific factors that could cause BioLife
Solutions’ actual results to differ materially are discussed in the Company’s recent filings with the Securities and
Exchange Commission. BioLife Solutions disclaims any obligation to update any forward-looking statements as a
result of developments occurring after the date of this press release.
Media Relations: Investor Relations:
Len Hall Matt Clawson
Allen & Caron Inc Allen & Caron Inc
(949) 474-4300 (949) 474-4300