New Brunswick Scientific Co., Inc., Reports Second-Quarter and First-Half 2005 Financial Results

EDISON, N.J., Aug. 10  /PRNewswire-FirstCall/ -- New Brunswick Scientific Co., Inc. (NBS) (NASDAQ:NBSC), today announced results for the 2005 second quarter and first six months ended July 2, 2005.

Net sales for the second quarter of 2005 increased 1.9% to $15.2 million, compared with last year's second-quarter sales of $14.9 million. Second- quarter net income was $4,000, or breakeven on a per-share basis, versus $432,000, or $0.05 per diluted share, in 2004's comparable period. First-half 2005 net sales advanced to $31.3 million from $29.5 million for the 2004 six- month period-an increase of 6.0%. Net income for the 2005 first half was $411,000, or $0.05 per diluted share, compared with $712,000, or $0.08 per diluted share, for the year-ago first six months. Profitability in 2005 has been negatively impacted by lower margins and higher planned R&D expenses to support the Company's new product development program.

The increase in net sales during 2005's first half was due principally to higher shipments of fermentation equipment, ultra-low temperature freezers and CO2 incubators, and $385,000 was attributable to foreign currency translation. Soft sales in the U.S. were more than offset by higher international sales, particularly in Europe.

During the 2005 second quarter, new orders increased 9.9% versus 2004's second quarter. New orders also rose for the first half of the year -- up 5.6% -- compared with orders received in the first six months of last year. The increased order activity was aided by the positive effect of the weakness of the U.S. dollar on international sales.

Gross margin contracted during the second quarter and first half due primarily to product mix, partially offset by higher absorption of overhead as a result of the increased volume. Gross margin for the quarter was 39.0% compared with 40.4% in second-quarter 2004; and for the 2005 first half, gross margin was 39.0% versus 40.5% in last year's first six months.

Commenting on the results, co-founder and Chairman David Freedman said: "The increase in order activity, especially as of late in the U.S. market, is very encouraging and brightens our outlook for the balance of the year. We continue to invest in our new-product development program and expect these efforts to enhance shareholder value in future periods."

Supporting the Company's new-product development program, research, development and engineering expenses increased 27.3% for the quarter and 26.7% for the half versus last year's respective periods. The increases were due to the cost of outsourcing of certain engineering efforts, prototypes and additional personnel.

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  About New Brunswick Scientific


New Brunswick Scientific Co., Inc., is a leading global provider of a comprehensive line of research equipment and scientific instrumentation for use in the life science industry. The Company's products are used in the creation, maintenance and control of physical and biochemical environments required for the growth, detection and storage of microorganisms for medical, biological and chemical applications, as well as environmental research and commercial product development. NBS is a forerunner in the research and development of pioneering equipment to meet the challenges of new areas of advancement in life science. Established in 1946, New Brunswick Scientific is headquartered in Edison, New Jersey, with sales and distribution facilities strategically located in the United States, Europe and Asia. For more information, please visit http://www.nbsc.com/ .

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of the Company. The forward-looking statements involve a number of risks and uncertainties, including but not limited to, changes in economic conditions, demand for the Company's products, pricing pressures, intense competition in the industries in which the Company operates, the need for the Company to keep pace with technological developments and respond in a timely manner to changes in customer needs, the Company's dependence on third-party suppliers, the effect on foreign sales of currency fluctuations, acceptance of new products, the labor relations of the Company and its customers and other factors identified in the Company's Securities and Exchange Commission filings. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. The Company undertakes no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.

           NEW BRUNSWICK SCIENTIFIC CO., INC., AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share amounts)
                               (Unaudited)

                                    Three Months Ended    Six Months Ended
                                    July 2,     July 3,   July 2,   July 3,
                                     2005        2004      2005      2004
                                               Restated*           Restated*

  Net sales                        $15,180      $14,905  $31,288    $29,527

  Operating costs and expenses:
   Cost of sales                     9,267        8,883   19,073     17,574
   Selling, general and
    administrative expenses          4,601        4,431    9,123      8,703
   Research, development and
    engineering expenses             1,239          973    2,376      1,876

   Total operating costs and
    expenses                        15,107       14,287   30,572     28,153

  Income from operations                73          618      716      1,374
  Other income (expense):
   Interest income                      58           17      111         35
   Interest (expense) credit          (145)          56     (181)      (155)
   Other, net                            2           (5)      21        (69)
                                       (85)          68      (49)      (189)

  (Loss) income before income
    tax (benefit) expense              (12)         686      667      1,185
  Income tax (benefit) expense         (16)         254      256        473
  Net income                       $     4      $   432  $   411    $   712

  Basic income per share           $  0.00      $  0.05  $  0.05    $  0.08

  Diluted income per share         $  0.00      $  0.05  $  0.05    $  0.08

  Basic weighted average number
   of shares outstanding             8,951        8,714    8,922      8,681
  Diluted weighted average
   number of shares outstanding      9,002        8,882    8,988      8,837


                SELECTED CONSOLIDATED BALANCE SHEET ITEMS
                          (Dollars in thousands)
                               (Unaudited)

                                            July 2, 2005   December 31, 2004

  Cash and cash equivalents                    $10,347          $10,846
  Accounts receivable, net                       9,103           11,332
  Inventories                                   13,675           12,139
  Property, plant and equipment, net             6,055            6,495
  Total assets                                  51,694           53,795
  Accounts payable and accrued expenses          7,060            7,592
  Long-term debt, net of current
   installments                                  5,594            6,022
  Shareholders' equity                          35,239           35,955
  Working capital                               26,881           27,198
  Current ratio                               4.1 to 1         3.9 to 1

  * Restatement of consolidated financial statements: On March 21, 2005, the
    Company announced that certain of its historical financial statements
    required restatement because of a misapplication of Statement No. 133
    "Accounting for Derivative Instruments and Hedging Activities" (SFAS No.
    133) as it applies to three interest rate swaps that were entered into
    in 1999 and 2004 to fix the interest rates on variable rate debt
    incurred primarily for acquisitions in 1999 and 2003. The required
    changes affected the previously filed financial statements for the years
    ended December 31, 2001, 2002 and 2003 as well as for the 2003 quarters
    and the 2004 quarters through October 2, 2004. The restatement did not
    affect the Company's reported cash and cash equivalents or income (loss)
    from operations in any of the above periods.


DATASOURCE: New Brunswick Scientific Co., Inc.



CONTACT:  Investor Contacts - Samuel Eichenbaum, Vice President, Finance

and Treasurer, New Brunswick Scientific Co., Inc., [phone],

; Matthew J. Dennis, CFA, NBS Investor Relations, Clear

Perspective Group, LLC, [phone],  



Web site:  http://www.nbsc.com/ 

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