| NEWARK, Del.--(BUSINESS WIRE)--April 4, 2001--Strategic
Diagnostics Inc. (Nasdaq: SDIX - news) today announced that
its new test kit, the GMO QuickCheck(TM) Bt9 Test Kit has been
evaluated by the USDA and they have verified the performance
of the test to detect the presence of one kernel of
StarLink(TM) corn in 800 kernels (0.125%). GMO QuickCheck(TM)
is available for commercial use and sells for approximately
$3.90 per test. The test is an ELISA microwell format that is
designed to be ideally suited for field confirmation of
screening results for the Cry9C protein in corn. The ability
to analyze multiple samples in less than 15 minutes makes this
test kit an excellent confirmatory method when used in
conjunction with the TraitCheck(TM) Bt9 Test Strip.
This new test kit is also designed to complement the
Company's MycoCheck(TM) product family to detect mycotoxins in
grain. The Company is currently working with the grain
industry to establish annual purchase agreements covering both
MycoCheck(TM) and TraitCheck(TM) that can now include GMO
QuickCheck(TM) Bt9. The new GMO QuickCheck(TM) Bt9 test kit
stands to help sales grow further in the food safety category.
We believe this unique combination of comprehensive analytical
tests for the grain industry is a significant competitive
advantage. Based on customer response so far, we expect to be
able to successfully bundle fumonisin, aflatoxin, Cry9C,
LibertyLink(TM) and Bt Cry1Ab kits to many large corn
distributors and millers.
Separately, the Company announced that preliminary results
for the first quarter of 2001, ended March 31, show revenues
and earnings growth slightly ahead of the Company's
expectations. Revenues are expected to grow between 21% and
24% over the prior year quarter and diluted earnings per share
are expected to grow between 200% and 240% over the prior
year's first quarter results (adjusted for a one-time gain on
the sale of an asset).
Several events of the first quarter contributed to these
preliminary results. Sales in the Company's food safety unit
exceeded expectations. As a result of the heightened awareness
of the need for GMO testing, we are working with an increasing
number of food companies, certain of whom purchased GMO test
kits during the first quarter or 2001, to develop
comprehensive GMO testing protocols and procedures for a
variety of crops including soybeans, corn, and sugar beets,
for genetic traits in commercial production. Sales of
TraitCheck(TM) Bt9 test kits for corn continued to be strong
during the quarter as grain testing for the presence of
StarLink(TM) continued. Sales of the Company's water quality
products also exceeded expectations for the quarter.
In addition during the quarter, the Company entered into
development agreements with two additional customers in the
pharmaceutical industry, to deploy its technology to assist in
the product development process. While these projects are
smaller in scope and potential than its existing projects, the
successful completion of these agreements demonstrates the
utility of the Company's proprietary technology for the
pharmaceutical industry.
Commenting on the results for the quarter, Richard C.
Birkmeyer, President and CEO of Strategic Diagnostics, said,
``We are extremely proud of our performance in the first
quarter. Market demand was strong in all of our markets
despite a weakening economy and we were able to meet that
demand with timely shipments of high-quality products. The
performance in the food safety market particularly helped us
more than offset a significant disappointment since we were
not able to complete the AZUR sales and marketing agreement.
We had hoped to complete a joint sales and marketing agreement
early in the first quarter 2001 while negotiation for the
acquisition of AZUR was pending and had expected as much as
$600 thousand in sales per quarter under such an agreement. We
are still in discussions with AZUR as to a potential
acquisition, as well as a sales and marketing agreement. The
potential benefits from a joint sales and marketing agreement,
as well as the combined operations are still appealing to us
but there can be no assurance we will be able to complete
either transaction. Upon executing a definitive agreement, we
would hope to complete the acquisition in 60 to 90 days.
He continued, ``This type of performance in the first
quarter further highlights the value of product diversity
within our markets. By combining this product with our
MycoCheck(TM) family, we are able to offer the grain industry
a comprehensive solution to their analytical needs. As we look
ahead to the second quarter and the balance of 2001, we
continue to believe we are well positioned to achieve at least
20% revenue growth and 25% - 30% growth in diluted earnings
per share for each period as we described earlier this year.
The Company plans to report its first quarter results on
April 26, 2001 and will host a conference call to discuss
those results at 11:00 am on the same day. The dial-in number
for the live conference call will be 212-346-0164. A live
webcast of the conference call will be available on the
company's Web site, www.sdix.com, as well as www.vcall.com.
For those who cannot listen to the live broadcast, an audio
replay of the call will be available on these sites for 30
days. Telephone replays of the call will be available for 24
hours, from 1:00 p.m. EST on April 26th until 1:00 p.m. EST on
April 27th. To listen to the telephone replay, dial
800-633-8284 (858-812-6440 outside the U.S.) and enter
reservation number 18520288.
About Strategic Diagnostics Inc.
SDI is a leading provider of biotechnology-based diagnostic
tests for a broad range of agricultural, industrial, and water
treatment applications. Through its antibody business,
Strategic BioSolutions, Strategic Diagnostics also provides
antibody and immunoreagent research and development services.
SDI's test kits are produced in a variety of formats suitable
for field and laboratory use, offering advantages of accuracy,
cost-effectiveness, portability, and rapid response. Trait
Check (TM), GMO QuickCheck(TM), and GMO Check(TM) are pending
trademarks for SDI.
This news release contains forward-looking statements
reflecting SDI's current expectation. When used in this press
release, the words ``anticipate'', ``enable'', ``estimate'',
``intend'', ``expect'', ``believe'', ``potential'', ``will'',
``should'', ``project'' and similar expressions as they relate
to SDI are intended to identify said forward-looking
statements. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, which may cause
actual results to differ from those anticipated by SDI at this
time. Such risks and uncertainties include, without
limitation, changes in demand for products, delays in product
development, delays in market acceptance of new products,
inability to obtain required government approvals,
modifications of government regulations, modifications to
development and sales relationships, the ability to meet
increased market demand, the ability to achieve anticipated
growth, increasing dependence on the sale of certain products,
competition, seasonality, and other factors more fully
described in SDI's public filings with the U.S. Securities and
Exchange Commission.
----------------
Contact:
Strategic Diagnostics Inc.
Arthur A. Koch, Jr., 302/456-6789
www.sdix.com
or
Investor Relations Contact:
Lippert/Heilshorn & Associates,
Inc.
William A. Walkowiak, CFA
Klea Theoharis
212/838-3777
klea@lhai.com |