Diversa Exceeds Revenue and Earnings Expectations for Quarter And Six Months Ended June 30, 2001
Diversa Reports $17.0 Million in Year-to-Date Revenues And Reaffirms Financial Guidance for 2001
SAN DIEGO, July 16 /PRNewswire/ -- Diversa Corporation (Nasdaq: DVSA - news) today reported revenues of $8.8 million for the quarter ended June 30, 2001, a 63% increase over second quarter 2000 revenues, and $17.0 million for the first half ended June 30, 2001, a 74% increase over first half 2000 revenues. The net loss was $2.9 million, or $0.08 per share, in the second quarter of 2001, compared to a net loss of $637 thousand, or $0.02 per share, in the second quarter of 2000. The net loss for the first half of 2001 was $4.3 million, or $0.12 per share, compared to $6.6 million, or $0.21 per share on a pro forma basis, for the first half of 2000. The year-to-date reported losses for 2001 and 2000 include non-cash, stock-based compensation charges of $1.4 million and $7.4 million, respectively.
The revenue increases for the quarter and year-to-date result from the Company's new and expanded strategic collaboration agreements. The two most significant components of second quarter and year-to-date revenues are related to Zymetrics, the Company's agricultural products joint venture with Syngenta Seeds AG, and Innovase LLC, the Company's 50/50 industrial enzyme joint venture with The Dow Chemical Company.
Total operating expenses for the quarter and year-to-date, respectively, were $14.4 million and $27.2 million, compared to $9.0 million and $20.5 million for the same periods in 2000. Excluding non-cash, stock-based compensation charges, operating expenses increased by $6.5 million and $12.6 million for the quarter and year-to-date, respectively, compared to the same periods in 2000. These increases were primarily attributable to higher research and development expenses as a result of expanded research activities associated with the Company's collaborations and increased investment in several key internal products and technologies.
Interest and other income for the quarter and year-to-date, respectively, were $2.7 million and $5.9 million, compared to $3.1 million and $4.5 million for the same periods in 2000. The year-to-date increase was primarily due to interest income as a result of higher average cash balances following Diversa's initial public offering in February 2000.
At June 30, 2001, the Company had cash, cash equivalents, short-term investments and receivables totaling $206.7 million compared to $211.8 million at December 31, 2000.
``In the first half of 2001 we have exceeded all of our financial goals and have increased our intellectual property estate through the issuance of 10 new patents,'' stated Jay M. Short, Ph.D., President and Chief Executive Officer. ``Additionally, we have made significant advances in technology development, including the introduction of Tunable GeneReassembly(TM) (TGR), the automation of our GigaMatrix(TM) screening system, and the completion of the sequencing of the Streptomyces diversa(TM) genome. These combined technology developments have most significantly impacted Diversa's pharmaceutical capabilities by advancing our programs for small molecule drug discovery and optimization of protein therapeutics and antibodies. They have also allowed more rapid and efficient screening and increased our capability to optimize products, which will assist Diversa in achieving our commercialization goal of launching a total of 22 products by the end of 2004 and achieving profitability.''
Diversa Corporation is a global leader in developing and applying proprietary technologies to discover and evolve novel genes and gene pathways from diverse environmental sources. The Company is utilizing its fully integrated approach to develop novel enzymes and other biologically active compounds, such as orally active drugs, produced by these genes and gene pathways. The Company's proprietary evolution technologies facilitate the optimization of genes to enable product solutions for the pharmaceutical, agricultural, chemical processing, and industrial markets. Within these broad markets, the Company is targeting key multi-billion dollar market segments where it believes its technologies and products will create high value and competitive advantages for strategic partners and customers. The Company's strategic partners are market leaders and include Aventis Animal Nutrition S.A., Celanese Ltd., Celera Genomics, Finnfeeds International Ltd (a unit of Danisco Cultor), The Dow Chemical Company, GlaxoSmithKline plc, Invitrogen Corporation, and Syngenta Agribusiness Biotechnology Research, Inc. The Company has also formed joint ventures with The Dow Chemical Company (named Innovase LLC) and with Syngenta Seeds AG (named Zymetrics). Additional information is available at Diversa's website: www.diversa.com... |
