Pacific Biomarkers Inc., Seattle based provider of specialized central laboratory and contract research services supporting pharmaceutical and diagnostic manufacturers, today reported financial results for the second quarter of FY2010, together with first half results for the fiscal year.
Revenue for the three months ended December 31, 2009 (their second quarter FY2010), decreased 35%, to $2,113,795, compared with the same quarter last year, and decreased 8% compared with the previous quarter. The company reported an operating loss of $307,037 (and net loss of $457,629) for the quarter, versus an operating income of $554,505 (and net income of $976,671) for the same quarter last year.
First half results for the fiscal year showed a 12% decrease in revenue, to $4,415,170, compared with the first half of the previous fiscal year. They also showed an operating loss of $520,745 for the half, versus an operating income of $341,133 for the first half of the previous fiscal year, and showed a net loss of $730,799 for the half, versus a net income of $970,934 for the first half of the previous fiscal year.
Pacific CEO, Ron Helm, commented on the downturn. “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. 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.”
Mr. Helm emphasized the company’s continued strong position, in spite of the recent losses. “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.”
He concluded, “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.”