Pacific Biometrics, Inc. today reported to investors its operating results for FY2009. For the twelve months ended June 30, 2009 (FY2009), the company generated a record $10,881,107 in revenues, a 32% increase compared to a year earlier. Operating income improved to $613,430, compared with an operating loss of $566,026. FY2009 net income totaled $1,235,947, or $0.07 per basic and $0.06 per diluted share, compared with a FY2008 net loss of $571,429, or $0.03 per share.
“While the nature of our business is subject to numerous uncertainties surrounding the ongoing consolidation within the pharmaceutical industry, the availability of capital for biotech companies, and a trend towards smaller, more adaptive clinical trials, I am confident that PBI is on the right track with its growing focus upon traditional and novel biomarkers,” stated Ron Helm, Chief Executive Officer of Pacific Biometrics. “We are pleased to report record sales and an impressive earnings turnaround for the fiscal year that ended June 30, 2009, including a 32% revenue increase that reflects our investments in business development initiatives over the last two fiscal years. Throughout Fiscal 2009, we benefited from strong levels of testing revenue in the diabetes, rheumatoid arthritis, and clinical biomarker therapeutic areas.”
He added, “Although the primary component of our business development efforts has been directed towards pharmaceutical and biotech companies, during Fiscal 2009 we saw an increase in revenues from our work with other large clinical trial laboratories that refer specialty laboratory testing to us. The majority of our referral business has been at the direction of clients that are familiar with the experience, expertise and quality of services that we provide. This speaks to the strong reputation for specialty testing services that we have developed within the pharmaceutical and biotech industries in recent years. We also witnessed growth in our biomarker services revenues during the second half of the fiscal year, generating 8% of full-year revenues, compared with 5% in Fiscal 2008. We expect our biomarker services business to represent a growing portion of our revenues in the 2010 fiscal year.”
“The Company’s profitability improved by more than $1.8 million during Fiscal 2009, when compared with the previous fiscal year,” continued Helm. “Gross profit margins expanded from 41.4% of revenues in Fiscal 2008 to 45.6% in the most recent fiscal year, despite higher reagent costs, an increase in laboratory staff to perform many new and more complex assays, and the addition of a separate facility for a new class of assays in our biomarker services area. Meanwhile, our selling, general and administrative expense ratio declined to 40.0% of revenues in Fiscal 2009, from 48.2% in Fiscal 2008, as we leveraged our semi-fixed operating infrastructure expenses across a significantly higher revenue base.”
Commenting on cash flow and the balance sheet, Helm stated, “We generated over $1.1 million in cash from operating activities during the most recent fiscal year, compared with a cash ‘burn’ of over $1.0 million in Fiscal 2008. This allowed us to repay all of the outstanding Laurus convertible notes and to pay off the amounts outstanding on our equipment credit line with Franklin Funding. Even after payments of $921,000 on notes payable and capital lease obligations, we ended the fiscal year with cash and cash equivalents of almost $1.4 million on our balance sheet. We reduced our total liabilities by 48% during the fiscal year, to approximately $2.0 million, and increased our stockholders’ equity by 153% to $2.8 million.