Wednesday, January 2, 2002
Quarter Caps Successful
Year, Positions Company for Successful 2002
OMAHA, Neb., and SAN JOSE,
Calif., Jan. 2 / -- Transgenomic, Inc. (Nasdaq:TBIO) today
announced that it expects fourth quarter 2001 revenue to be in the range of
$10.3 million to $10.6 million. Although 12 to 15 percent below previous
guidance, revenue has increased over 40 percent year over year and sequentially
exceeds third quarter 2001 revenue. This extends the company’s quarterly
consecutive revenue growth to 16 quarters and brings its full year 2001 revenue
to at or just above $38.0 million, an increase of over 60 percent from 2000
life sciences revenue of $23.7 million.
The primary reason for the
shortfall according to Greg Duman, chief financial officer, is capacity
constraints and efforts to reconfigure facilities to provide additional
shipments of the company’s synthetic nucleic acid products. This resulted in a
greater carryover of orders as well as additional period expenses. “We’re
participating in a rapidly growing market for our nucleic acid products,” said
Duman. “We experienced delays in our cutover to new production equipment and
processes on the first phase of our significant expansion plans to meet the
growing demand.” Duman added that the company expects this first phase of new
manufacturing enhancements to be fully integrated by the end of this year’s
first quarter.
With regard to the full year
of 2001, Duman expressed satisfaction with the results the company has
achieved. “We are enthusiastic about the many accomplishments and positive
signs coming out of 2001,” said Duman. “We successfully introduced two new
models of our WAVE® System for genetic analysis. We also launched
new software and consumables to enhance the power of the WAVE instrument.”
Duman points to the revenue levels achieved as indications that the company
continues to demonstrate its ability to capitalize on the growing markets in
which it participates. “Another quarter of positive revenue growth and over 60
percent growth for the year makes us optimistic going into 2002.”
Collin D’Silva, chief
executive officer, echoed Duman’s optimism when he stated, “I am enthusiastic
about our future not only because of our accomplishments in 2001 but also
because of our prospects for 2002.” D’Silva indicated the company has
additional new products slated to be introduced starting in the first quarter.
He is particularly pleased that more long-term supply agreements for synthetic
nucleic acid products are anticipated, a trend started in 2001. D’Silva
commented, “We are excited about the growing market opportunity in nucleic
acids and are diligently working on expanding capacity, including additional
production facilities, to ensure our ability to meet that demand.” He noted
that key management additions needed to handle this business are already in
place and anticipates staffing changes for 2002 to be only those needed to keep
up with manufacturing demand.
D’Silva summed up the
company’s expectations for 2002 when he stated, “We feel we are positioned to
take advantage of current market opportunities and expect to continue
historical revenue growth patterns of 45 to 55 percent. We also expect to turn
the corner to profitability by the end of the year.”
Transgenomic provides
versatile and innovative research tools and related consumable products to the
life sciences industry for the synthesis, separation, analysis and purification
of nucleic acids and a wide variety of nucleic acid-based specialty chemicals.
Transgenomic’s specialty chemicals consist of nucleic acid building blocks
(“phosphoramidites”), fluorescent markers, dyes and associated reagents, as
well as oligomimetics (chemically-modified DNA and RNA molecules) which exhibit
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.
Transgenomic’s WAVE®
System is a versatile system that can be used for genetic variation detection,
size-based double-strand DNA separation and analysis, single-strand DNA
separation and analysis and DNA purification. Because of this versatility, the
WAVE System can essentially replace the use of traditional gel electrophoresis
in the molecular biology laboratory. This patented technology uses a process
known as high-performance liquid chromatography to separate DNA material so
that genetic variation may be identified and analyzed. Proprietary software
controls the process and produces the results of the operation in an
easy-to-read chart format. Once the DNA sample is loaded into the instrument
and necessary data is entered into the software, the process requires virtually
no additional input from the researcher.
In four years, Transgenomic
has installed WAVE Systems in 25 countries, evidence that it is a global leader
in solutions for nucleic acid analysis. For
more information about the innovative genomics research tools developed and
marketed by Transgenomic, please visit the company’s Web site 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, including expectations
of attracting long-term sales contracts and successfully expanding capacity for
synthetic nucleic acids products, achieving revenue growth of 45-55%, and
becoming profitable in 2002. 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.
# # #
Investor Contact:
Mitchell
L. Murphy
Transgenomic,
Inc.
402-452-5437
Media Contact:
Chris
K. Joseph
For
Transgenomic, Inc.
510-339-2293