SDIX Reports Second Quarter 2010 Results
August 4,
2010
Net Loss Decreases 71%. Progress Made in Life Science Business.
NEWARK, DE (August 4, 2010) - SDIX (Nasdaq: SDIX), a leading provider of biotechnology-based products and services for a broad range of life science, biotechnology, diagnostic and food safety applications, today reported financial results for the second quarter ended June 30, 2010.
Revenues for the quarter ended June 30, 2010 were $6.8 million compared to $6.9 million for the same period in 2009. Year-to-date revenues for the six months ended June 30, 2010 were $13.5 million in 2010, compared to $13.8 million for the same period in 2009.
Second Quarter and Recent Highlights
Launched NOVUS BIOLOGICALS and SDIX Partnership – Novus has seen good initial sales from the over 800 pre-made GAT™ Polyclonal Antibodies provided for their catalog. A joint team is collaborating to create additional novel antibodies using GAT to targets selected by Novus for inclusion in their catalog offering.
Wayne P. Yetter joined SDIX’s Board of Directors, effective May 18, 2010 - currently Chief Executive Officer of ProActive for Patients Media, Inc., Mr. Yetter has a 30-year career in the pharmaceutical industry, with executive positions at Pfizer, Merck, Astra-Merck (now AstraZeneca) and Novartis.
The RapidChek® SELECT™ Salmonella Enteritidis testing system was commercially launched - applicable to both egg and poultry industries, this product is designed specifically to help U.S. commercial egg producers comply with new FDA regulations that require them to test poultry houses and eggs for Salmonella Enteritidis. Initial orders have been placed, and SDIX has begun shipments while final regulatory validations are underway.
Announced multi-year collaboration with Banyan Biomarkers related to biomarker discovery work in the detection of traumatic brain injury – SDIX will provide antibody production from Banyan’s novel set of cell lines and will collaborate with them to utilize our complete range of immunosolutions in the development of additional biomolecules for this critical research.
Mr. Francis DiNuzzo, the Company’s President and CEO, said, “Our results for the second quarter of 2010, though not demonstrating increased revenue year over year, continue to show improvement in our operating model and the impact of our strategic focus on Life Science and Food Safety. A significant portion of our efforts and resources are now focused on driving growth in our target markets. We are seeing the benefits with improved performance in Life Science, and while Food Safety revenue was down year over year, we believe that the outlook for the remainder of the year indicates an improving picture. We recently launched a new testing system that will help U.S. commercial egg producers implement the FDA-mandated testing for Salmonella Enteritidis. We are also collaborating with Banyan Biomarkers in their biomarker work for traumatic brain injury detection. These new developments exemplify the inroads we are making in our target markets.”
Financials
Gross profit (defined as total revenues less manufacturing expenses) for the quarter ended June 30, 2010 was $4.0 million, as compared to $3.6 million for the same period in 2009. Year-to-date gross profit was $8.0 million in 2010, compared to $7.4 million for 2009.
Gross margins were 59% for the second quarter of 2010, compared to 53% for the same period in 2009. Gross margins for the six months ended June 30, 2010 were 59% compared to 54% for the same period in 2009.
Operating loss for the second quarter decreased 72% to $201,000 from $714,000 in the second quarter of 2009. Operating loss for the first six months of 2010 fell 50% to $648,000 from $1.3 million for the first six months of 2009.
Net loss for the second quarter of 2010 fell 71% to $215,000, or $0.01 per diluted share, compared to a net loss of $734,000, or $0.04 per diluted share, for the same period in 2009. For the six month period ended June 30, 2010, the net loss was $674,000, or $0.03 per diluted share, compared to a net loss of $1.3 million, or $0.06 per diluted share, for the same period in 2009.
Life Science Revenues
Life Science revenues were $3.7 million for the quarter ended June 30, 2010, a 10% increase from $3.3 million for the same period in 2009. For the six months ended June 30, 2010, Life Science revenues increased 6% to $7.5 million compared to $7.0 million for the same period in 2009.
Kit Revenues
Kit revenues were $3.1 million, including contract revenues of $75,000, for the second quarter ended June 30, 2010, reflecting a decrease of 13%, from $3.5 million in the second quarter of 2009. For the six months ended June 30, 2010, kit revenues decreased 10% to $6.0 million compared to $6.6 million for the same period in 2009. The decrease in kit sales was primarily attributable to lower revenues in the Water Quality and Ag-GMO markets where SDIX has been reducing its focus.
Quarter Ended June 30,
|
2010
|
2009
|
Life Sciences
|
$ 3.7 million
|
$ 3.3 million
|
Food Pathogen Products
|
$ 1.3 million
|
$ 1.4 million
|
Ag-GMO Products,
including contract revenue
|
$ 0.5 million
|
$ 0.6 million
|
Water and Environmental
Products
|
$ 1.3 million
|
$ 1.5 million
|
Conference Call
The dial-in number for our live conference call, to be held at 4:30 p.m. ET on August 4, 2010, is 877-407-9210 (201-689-8049 outside the U.S.). A live webcast of the conference call will be available on the Company’s website, www.sdix.com, as well as www.investorcalendar.com. For those who cannot listen to the live broadcast, an audio replay of the call will be available on each of these websites for 90 days. Telephone replays of the call will be available from 7:30 p.m. ET on August 4, 2010 through 11:59 p.m. ET on August 19, 2010. To listen to the telephone replay, dial 877-660-6853 (201-612-7415 outside the U.S.) and enter account number 286 and conference ID 354464.
Click to view Consolidated Statements of Operations and Consolidated Balance Sheets.
About SDIX
SDIX is a biotechnology
company with a core expertise in creating better antigens, better
antibodies and better assays for the pharmaceutical, biotechnology and
food safety markets. For over 20 years, SDIX has been a leading
immuno-solutions company, developing results-oriented and innovative
antibody-based solutions that enable customers to meet high performance
research, diagnostic and commercialization objectives.
In
the life science market, SDIX’s technology and capabilities are being
used to help discover disease mechanisms, facilitate development of new
drugs and provide antibodies and assays
for the diagnosis of disease. In the food safety market, SDIX continues
to expand its footprint as an international supplier of rapid pathogen
test technologies that enable more accurate and cost-effective results.
Media Contact
Media Relations
mediarelations@sdix.com
SDIX
111 Pencader Drive
Newark, DE 19702
302-456-6789