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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 8, 1999
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SEROLOGICALS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 0-26126 58-2152225
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(State of other jurisdiction) (Commission file number)
(IRS Employer Identification No.)
780 Park North Blvd.
Suite 110
Clarkston, Georgia 30021
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(Address of Principal executive offices) (Zip code)
Registrant's telephone number, including area code: (404) 296-5595
(Former name or former address, if changed since last report)
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Item 5. Other Events
On September 8, 1999, Serologicals Corporation issued a press release,
the text of which is attached hereto as Exhibit 99.1 and is incorporated
herein by reference, announcing that it expects a loss in its third fiscal
quarter due to shipping days, other product related issues and certain one-
time, non-cash charges.
Item 7. Financial Statements and Exhibits
a) Exhibits
99.1 Press Release of the Company dated September 8, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Serologicals Corporation
(Registrant)
September 10, 1999 By: /s/ Russell H. Plumb
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Russell H. Plumb
Vice President, Finance and
Chief Financial Officer
NEWS
Contact: Russell H. Plumb
Chief Financial Officer
(404) 296-5595
SEROLOGICALS EXPECTS LOSS IN THIRD QUARTER
AND TO RECORD CERTAIN ONE TIME CHARGES
ATLANTA (Sept. 8, 1999) - Serologicals Corporation (Nasdaq/NM: SERO) today
announced that shipping delays and other product-related issues could have
a negative impact on pre-tax earnings of up to $9 million for the three
months ended September 26, 1999, which would result in the Company recording
a net loss for that period. Of this amount, approximately $4 million relates
to shipments of approximately $15-$20 million in revenue that will likely be
deferred from the third quarter to the fourth quarter of 1999. This delay was
due to certain product testing issues at the Company's laboratory in Atlanta
that have now been resolved. The other product-related issues involve the
return of certain shipments from a customer due to non-conforming
specifications and potential losses relating to a shipment of an unsuitable
unit of plasma.
The Company also announced that it expects to record non-cash charges
in the third quarter of up to $6.7 million, pre-tax, related to the
cancellation of a custom software development project, which the Company
anticipates replacing with another software solution, and the potential
disposition of its clinical trial site operation.
In the year-earlier quarter, Serologicals reported net income of $4.1
million, or $0.16 per share diluted.
Serologicals Corporation, headquartered in Atlanta, is a leading
worldwide provider of biological materials and services to major healthcare
companies. The Company provides value-added antibody-based products that
are used as the active ingredients in therapeutic products for the treatment
and management of diseases such as Rh incompatibility in newborns, rabies and
hepatitis and in diagnostic products such as blood typing reagents and
diagnostic test kits. Additionally, the Company, through its protein
fractionation facility, provides a variety of proteins used in the
manufacturing of diagnostic reagents and tissue culture media components for
use as additives in biotech products.
This release may contain certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 including,
without limitation, statements regarding expected losses for the third quarter
and the reasons therefor; the expected timing of shipments; potential customer
returns or claims; expected one time charges, the reasons therefor; and an
anticipated replacement of a software solution. These forward-looking
statements are subject to certain risks, uncertainties and other factors,
including, the ability to ship product on a timely basis; the Company's
ability to continue to attract and retain qualified donors; the ability to
reach an agreement with another software vendor; the impact of competition;
changes in government and industry mandated regulations or customer
specifications, and changes in the markets for the Company's products and
services, which could cause actual results to differ materially. Additional
information on factors that could potentially affect the Company or its
financial results may be found in the Company's filings with the Securities
and Exchange Commission.
Serologicals and Pentex are registered trademarks of Serologicals Royalty
Company.
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