BOTHELL, Wash., Nov. 13, 2012 /PRNewswire/ -- BioLife Solutions, Inc. (OTCBB: 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 record revenue for the third quarter ended September 30, 2012.
Summary of Q3 2012 Achievements
During the third quarter of 2012, the Company accomplished the following:
- Revenue of $1.7 million, BioLife's ninth sequential record revenue quarter.
- No funds were required from investors in the quarter for the first time since the Company started operations.
- Executed a new private-label distribution agreement to supply HypoThermosol® and CryoStor® to a leading life sciences cell culture tools provider.
- Completed the build-out of its second Good Manufacturing Practice (cGMP) clean room suite.
Mike Rice, Chief Executive Officer, said, "This was another solid quarter for BioLife, as revenue ramped and we made strong progress in all operational areas of the Company. Our presence in the high growth regenerative medicine field continues to expand, with several new accounts adopting HypoThermosol and CryoStor for use in their cellular and tissue therapies. Our contract manufacturing team also reached a significant milestone with over $1.0 million in product shipments to our strategic customers. With our recent investments to expand our manufacturing capacity, we are well positioned to support the immense future growth of the tissue engineering and cellular therapy field while providing a best-in-class, trusted supply chain that is considered so critical to the clinical programs of our customers."
Third Quarter 2012 Financial Results
Total revenue for the third quarter of 2012 was $1.7 million, compared to $0.7 million in the same period of 2011. The increase of 135% from 2011 to 2012 was due primarily to contract manufacturing revenue and higher sales to customers in the cell and tissue banking and regenerative medicine market segments.
Gross margin in the quarter was 35.4% compared to 51.7% in the same quarter last year. The reduction in gross margin was 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 third quarter were $744,000 compared with $655,000 in the third quarter of 2011 primarily attributable to increases related to strategic hires in all departments, partially offset by lower legal costs.
Other income/expense is primarily related to interest expense on the Company's notes payable.
For the third quarter, the Company reported a net loss of $352,000, or $(0.01) per share, a significant improvement over the third quarter of 2011 net loss of $479,000, or $(0.01) per share. Loss from operations in the quarter also improved to $149,000, compared to the $285,000 loss from operations in the third quarter of 2011.
Outlook for 2012
Management is increasing its revenue guidance to $5.0 million for the full year 2012, based on the expectation of higher sales to its contract-manufacturing customers. The Company also expects steady increases in revenue from existing and new customers in the regenerative medicine market segment, as well as continued growth through the Company's distribution network.
The Company expects gross margin to improve in the fourth quarter of 2012, however, to lower levels than the same period last year due to a higher mix of contract manufacturing revenue. Management expects operating expenses in the fourth quarter to remain at approximately the same level as the third quarter.
Finally, management continues to believe the Company will achieve positive cash flow from operations in the fourth quarter of 2012.
About BioLife Solutions
BioLife Solutions develops, manufactures and markets patented hypothermic storage and cryopreservation solutions for cells and tissues. The Company's proprietary HypoThermosol® and CryoStor® platform of solutions are marketed to academic and commercial organizations involved in cell therapy, tissue engineering, cord blood banking, drug discovery, and toxicology testing. BioLife's products are serum-free and protein-free, fully defined, and are formulated to reduce preservation-induced, delayed-onset cell damage and death. BioLife's enabling technology provides academic and clinical researchers significant improvements in post-thaw cell, tissue, and organ viability and function. 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.
BioLife Solutions, Inc.
Statement of Operations
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Cost of product sales
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