Pressure BioSciences, Inc. (PBIO-OTC) has reported its financial results for the third quarter 2014 and year-to-date period ended September 30th. Highlights of these results are an increase in products and services revenue of 14% for the third quarter, while operating loss continues to narrow. Year to date, the company reported products and services revenue up 45% and sales of consumables up 48%, which almost entirely offset the loss in grant revenue.
In addition to reporting positive financial data, Pressure BioSciences also announced this week the installation of its first two Barozyme HT-48 high-throughput systems for independent evaluation and subsequent potential sale. One system was placed in the laboratory of Dr. Radoslav Goldman of Georgetown University while the other was placed in the laboratory of a biotechnology company. In both settings, the company believes the new systems will deliver important and unique capabilities for the analysis and characterization of biological samples. Both groups are current customers of the company's patented pressure cycling technology (PCT)-based products.
The announcement for Pressure BioSciences third quarter 2014 and year to date financial results is included below. For a discussion of these results, tune into the company's earnings call today, November 18, 2014, at 4:30 PM Eastern. To participate in this event, dial 877-407-8031 domestically, or 201-689-8031 internationally, approximately 5 to 10 minutes before the beginning of the call.
SOUTH EASTON, Mass., Nov. 17, 2014 /PRNewswire/ -- Pressure BioSciences, Inc. (PBIO) ("PBI" or the "Company") today announced financial results for the three and nine-month periods ended September 30, 2014, which included record products and services revenue compared to any prior nine-month period. The Company also provided a business update.
Financial Results: Q3 2014 and YTD
Revenue from the sale of products and services was $372,545 for the third quarter of 2014 compared to $327,958 for the same period in 2013, an increase of 14%. Sales of consumables were $51,831 for the three months ended September 30, 2014 compared to $51,450 for the same period in 2013. Grant revenue for the third quarter of 2014 was $0 compared to $92,804 for the comparable period in 2013. Total revenue for the third quarter of 2014 was $372,545 compared to $420,762 for the same period in 2013, an 11% decrease. This decrease ($48,217) was primarily due to the loss of $92,804 in grant revenue in the third quarter of 2014, offset to a significant degree by the increase in products and services revenue, as stated.
Operating loss for the third quarter of 2014 decreased to $797,633 from $844,033 for the same period in 2013. Although total revenue was down for the three months ended September 30, 2014, attributable primarily to the loss of $92,804 in grant revenue, we were able to offset the lost margin through continued increases in products and services revenue combined with strict control of operating costs.
Revenue from the sale of products and services was $1,084,156 for the nine months ended September 30, 2014 compared to $746,050 for the same period in 2013, a 45% increase. Sales of consumables were $154,860 for the nine months ended September 30, 2014 compared to $104,708 for the same period in 2013, a 48% increase. Grant revenue for the first three quarters of 2014 was $0 compared to $403,186 for the same period in 2013. Total revenue for the nine months ended September 30, 2014 was $1,084,156 compared to $1,149,236 for the same period in 2013, a 6% decrease. This decrease was primarily due to the loss of $403,186 in grant revenue in the nine month period ended September 30, 2014, offset almost entirely by the increase in products and services revenue, as stated.
Operating loss for the nine months ended September 30, 2014 was $2,426,756 compared to $2,427,082 for the same period in 2013. Although total revenue was down for the nine months ended September 30, 2014, attributable primarily to the loss of $403,186 in grant revenue, we were able to offset the lost margin through continued increases in products and services revenue combined with strict control of operating costs.
Loss per common share – basic and diluted – was $0.07 for the third quarter of 2014 compared to $0.06 for the same period in 2013. Loss per common share – basic and diluted – was $0.35 for the nine months ended September 30, 2014 compared to $0.28 for the same nine-month period of 2013.
Operating Highlights: Q3 2014
a) Professor Ruedi Aebersold, an international authority in proteomics based at ETH Zurich, announced a breakthrough method enabled by the Company's patented pressure cycling technology ("PCT") platform to permit the quantification of thousands of proteins in needle biopsy samples by mass spectrometry for the first time, offering the potential to vastly improve drug discovery and design. The Company believes there are millions of needle biopsy samples analyzed by other methods worldwide every year.
b) Company partners with Powertech Technology Company Ltd. to develop China market for PCT platform.
c) By invitation, Mr. Schumacher presents at 2nd Global Life Sciences Conference, Warsaw Stock Exchange.
d) Company completes Phase I of Barozyme HT48 commercialization plan (manufacture of first commercial unit); announces progress and time-table for Phase II (shipment of units to independent evaluation sites).
e) Plans to develop front-end sample preparation for Parabase Genomics targeted next generation sequencing platform announced.
Near-Term Milestones: Q4 2014 and Q1 2015
a) Continue to achieve measureable progress in developing and implementing a sound financial roadmap for future growth.
b) Continue to increase products and services revenue over same quarter prior year levels.
c) Complete Barozyme HT48 commercialization plan Phase II (shipment of systems to evaluation sites).
d) Initiate Barozyme HT48 commercialization plan Phase III (initial sales of high throughput systems).
e) Secure a strategic marketing and distribution partner for the Barozyme HT48 high throughput system.
f) Make measurable progress on the possible spin-off of selected PCT applications into new, stand-alone businesses designed to generate a revenue stream and favorable visibility for PBI.
g) Develop and implement a marketing campaign for the recently released, patent-pending micro-Pestle.
h) Continue to expand our sales and marketing reach to new countries, investigators, and fields-of-use.
Mr. Richard P. Thomley, Chief Financial Officer of PBI, said: "We have posted five consecutive quarters in which products and services revenue has increased over the same quarter previous year, and seven consecutive quarters in which consumable sales have done the same. Buoyed by our 2014 product releases, our recent distribution agreement with Powertech (China), and the significant enhancements our strategic partner for international sales (Constant Systems) has recently added to their capabilities, we believe this trend of quarter-over-quarter revenue increases will continue."
Mr. Richard T. Schumacher, President and CEO of PBI, commented: "The financial and operational successes achieved by the PBI team in 2014 have, we believe, set the stage for even more rapid and successful growth in the months and years to come. The near-term milestones we have set are ambitious and challenging, and integral to the growth and success of PBI. But with the drive and focus embodied in our management and support team, combined with their proven ability to succeed, we believe the PBI team will successfully achieve these important near-term milestones."
About Pressure BioSciences, Inc.
Pressure BioSciences, Inc. ("PBI") (PBIO) develops, markets, and sells proprietary laboratory instrumentation and associated consumables to the estimated $6 billion life sciences sample preparation market. Our products are based on the unique properties of both constant (i.e., static) and alternating (i.e., pressure cycling technology, or PCT) hydrostatic pressure. PCT is a patented enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to safely and reproducibly control bio-molecular interactions. To date, we have installed over 250 PCT systems in approximately 160 sites worldwide. There are over 100 publications citing the advantages of the PCT platform over competitive methods, many from key opinion leaders. Our primary development and sales efforts are in the biomarker discovery, drug discovery and design, and forensics areas. Customers also use our products in other areas, such as bio-therapeutics characterization, soil & plant biology, vaccine development, and counter-bioterror applications.