Wednesday, August 1,
2001
Quarterly and Year-to-Date Life
Sciences Revenues Up 71 Percent and 69 Percent, Respectively, From Comparable
Periods in 2000
OMAHA, Neb., and SAN
JOSE, Calif., Aug. 1 /PRNewswire/ -- Transgenomic, Inc. (Nasdaq: TBIO) today
announced financial results for the quarter and six months ended June 30, 2001.
The company’s historical financial results are presented in tables below.
Life sciences
revenues for the second quarter of 2001 reached a record $9.5 million, up 71
percent over comparable revenues from the second quarter of 2000. Growth was
fueled by increased demand from research centers, commercial entities and the
expansion of the life sciences consumable product line through the previously
announced acquisition of Annovis, Inc.
“We are pleased that,
even as we continually focus on expanded support for our loyal customers, we
are making progress toward the goal of profitability,” said Collin D’Silva,
chief executive officer. “During the second quarter, we experienced continued
strong demand for our WAVE®
analytical instrument from the academic and research sector of the market. This
was offset somewhat by the commercial and industrial segment pushing out some
of its purchasing due to the slow economy. Demand for higher-end instrument
configurations from our stratified product offerings introduced in the first
quarter allowed us to enjoy better margins. Also, the growth in consumables
sales, due in part to the growing installed base of our instruments, and in
part to the expansion of our life sciences consumable product line through the
Annovis acquisition, positions us for future progress toward profitability as
our manufacturing facilities become more fully utilized.”
Greg Duman, executive
vice president and chief financial officer, added, “The growth in consumable
sales is significant not only because of the higher margin potential, but also
because of the recurring nature of those sales. Our growing breadth of
consumable offerings better positions us for solution sales where we can
provide more component links in the solution chain. Higher margin sales coupled
with spreading fixed costs over a growing revenue base are two significant
factors moving us closer to profitability.”
Second quarter
revenues increased 71 percent from $5.6 million in 2000 to $9.5 million in
2001. The net loss for the quarter was $1.6 million, or $0.07 per share. The
net loss for the quarter, excluding goodwill and interest expense associated
with the Annovis acquisition, was $1.4 million, or $0.06 per share, compared to
a net loss of $2.7 million, or $0.21 per share, in 2000. Losses from
operations, excluding goodwill and interest expense associated with the Annovis
acquisition and the gain on the sale of non-life sciences product line, have
declined sequentially each quarter since the first quarter of 2000.
For the six months
ended June 30, 2001, life sciences revenues increased 69 percent from $10.4
million in 2000 to $17.5 million in 2001. The net loss for 2001 was $2.8
million, or $0.13 per share. The net loss, excluding goodwill and interest
expense associated with the Annovis acquisition, was $2.5 million, or $0.11 per
share, as compared to a net loss of $5.5 million, or $0.43 per share, for the
same period in 2000. The current cash position is healthy at $53 million. This
combines with no debt to form a strong balance sheet.
Transgenomic provides
versatile and innovative research tools and related consumable products to the
life sciences industry. Its WAVE® Nucleic Acid Fragment Analysis
System can be used for variation detection, size-based double-strand DNA
separation and analysis, single-strand DNA separation and analysis and DNA
purification. When used for variation detection, these tools enable researchers
to discover and understand variation in the human genetic code, or genome, in
order to accelerate and improve drug development and diagnostics. Transgenomic
believes the WAVE System will become a leading tool to analyze genetic
variations as it allows researchers to analyze both known and unknown genetic
variations faster, with more accuracy and at a lower cost than other
commercially-available techniques. To date, there are over 600 WAVE Systems
placed in over 25 countries around the world.
Its specialty
chemical products consist of a wide variety of nucleic acid-based products and
services for the life sciences sector, including nucleic acid building blocks
(“phosphoramidites”), fluorescent markers and dyes and associated reagents. In
addition, the company is a principle provider of oligomimetics and specialty
chemicals. Oligomimetics are
chemically-modified DNA and RNA molecules exhibiting proven enhancements in
stability, bioavailability, specificity and efficacy making them excellent
candidates for use in clinical applications such as genetic diagnostics and
therapeutics. Oligomimetics also exhibit higher affinity and specificity than
regular DNA making them excellent candidates for DNA diagnostics and chip
technology.
For more information
about the innovative genomics research tools developed and marketed by
Transgenomic, please visit the company’s website at www.transgenomic.com.
This press release
may contain forward-looking statements that reflect management’s current views
and estimates of future economic circumstances, industry conditions, company
performance and financial results. Such statements are subject to certain
factors, risks and uncertainties described from time to time in Transgenomic,
Inc.’s reports to the Securities and Exchange Commission. Any change in such
factors, risks and uncertainties may cause the actual results, events and
performance to differ materially from those referred to in such statements.
Accordingly, the company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995 with respect to all statements contained in this press
release.
TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands, except per share amounts)
LIFE SCIENCES STATEMENT OF OPERATIONS
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||
|
|
2001 |
2000 |
2001 |
2000 |
|
Net Sales |
$9,545 |
$5,593 |
$17,475 |
$10,366 |
|
Cost of Sales |
4,137 |
2,681 |
7,804 |
5,079 |
|
Gross Margin |
5,408 |
2,912 |
9,671 |
5,287 |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
Selling, General and Administrative |
5,406 |
3,283 |
9,559 |
6,406 |
|
Research and Development |
2,176 |
1,858 |
4,266 |
3,333 |
|
Stock-based Compensation |
52 |
41 |
85 |
177 |
|
Operating Loss |
(2,226) |
(2,270) |
(4,239) |
(4,629) |
|
Other
Income/(Expenses) |
585 |
(443) |
1,479 |
(912) |
|
Loss Before Income
Taxes |
(1,641) |
(2,713) |
(2,760) |
(5,541) |
|
Income Tax Expense |
7 |
-- |
16 |
-- |
|
Net Loss |
$(1,648) |
$(2,713) |
$(2,776) |
$(5,541) |
|
|
|
|
|
|
|
Acquisition Related
Expenses: |
|
|
|
|
|
Goodwill Amortization |
238 |
-- |
238 |
-- |
|
Interest Expense |
48 |
-- |
48 |
-- |
|
|
|
|
|
|
|
Operating Loss
Excluding Acquisition |
(1,988) |
(2,270) |
(4,001) |
(4,629) |
|
Net Loss Excluding
Acquisition Related |
(1,362) |
(2,713) |
(2,490) |
(5,541) |
|
|
|
|
|
|
|
Shares Used in
Computing Net Loss Per |
|
|
|
|
|
Basic and Diluted |
22,504 |
13,025 |
21,861 |
13,017 |
|
Basic and Diluted
Net Loss Per Share |
$(0.07) |
$(0.21) |
$(0.13) |
$(0.43) |
|
Basic and Diluted
Net Loss Per Share |
$(0.06) |
$(0.21) |
$(0.11) |
$(0.43) |
NOTE: The
Life Sciences Statement of Operations reflects the sale of our non-life
sciences product line as if the sale had occurred on January 1, 2000.
Earnings
per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly per
share losses may not equal the year-to-date loss per share.
TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands, except per share amounts)
HISTORICAL STATEMENTS OF OPERATIONS
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||
|
|
2001 |
2000 |
2001 |
2000 |
|
Net Sales |
$9,545 |
$5,593 |
$17,475 |
$12,536 |
|
Cost of Sales |
4,137 |
2,681 |
7,804 |
6,511 |
|
Gross Margin |
5,408 |
2,912 |
9,671 |
6,025 |
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
Selling, General and Administrative |
5,406 |
3,283 |
9,559 |
6,822 |
|
Research and Development |
2,176 |
1,858 |
4,266 |
3,752 |
|
Stock-based Compensation |
52 |
41 |
85 |
750 |
|
Operating Loss |
(2,226) |
(2,270) |
(4,239) |
(5,299) |
|
Other
Income/(Expenses) |
585 |
(443) |
1,479 |
(912) |
|
Loss Before Income
Taxes |
(1,641) |
(2,713) |
(2,760) |
(6,211) |
|
Income Tax Expense |
7 |
-- |
16 |
-- |
|
Net Loss |
(1,648) |
(2,713) |
(2,776) |
(6,211) |
|
|
|
|
|
|
|
Shares Used in
Computing Net Loss Per |
|
|
|
|
|
Basic and Diluted |
22,504 |
13,025 |
21,861 |
13,017 |
|
Basic and Diluted
Net Loss Per Share |
$(0.07) |
$(0.21) |
$(0.13) |
$(0.48) |
TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands)
BALANCE SHEET
|
|
June 30, |
December 31, |
|
|
2001 |
2000 |
|
Cash, Cash
Equivalents and Short-term |
$53,094 |
$61,921 |
|
Other Current
Assets |
14,804 |
8,248 |
|
Current Assets |
67,898 |
70,169 |
|
Net Property and
Equipment |
6,875 |
4,591 |
|
Other Assets |
17,373 |
3,103 |
|
Total Assets |
92,146 |
77,863 |
|
|
|
|
|
Current Liabilities |
7,503 |
3,897 |
|
Stockholders Equity |
84,643 |
73,966 |
|
Total Liabilities
and Stockholders Equity |
92,146 |
77,863 |
For confirmation of
release or further information contact:
Mitchell
L. Murphy
Transgenomic,
Inc.
402-452-5418