>>SUNNYVALE, Calif., Oct. 18 /PRNewswire/ -- Molecular Devices Corporation (Nasdaq: MDCC - news) today announced its revenues and earnings for the quarter ended September 30, 2001.
Revenues for the third quarter ended September 30, 2001, were $22.1 million compared with $24.3 million reported for the third quarter ended September 30, 2000. Pro forma operating income, which excludes the write-off of acquired in-process research and development related to the acquisition of Cytion, was $1.6 million during the quarter compared with pro forma operating income, before merger charges, of $2.8 million for the third quarter of 2000. Pro forma fully diluted earnings per share were $0.09 for the quarter, versus $0.16 as reported in the quarter ending September 30, 2000.
The Company recorded a $12.6 million write-off of acquired in-process research and development related to the July acquisition of Cytion, a Swiss developer of automated patch clamping systems. Also during the quarter the Company completed its repurchase of 1.5 million shares pursuant to the repurchase program that was announced on August 2, 2001.
``The persisting economic slowdown and general market uncertainty, exacerbated by the events of September 11, continue to affect our business and customers with softness in the purchases of higher-end systems that provide us with significant revenue,'' stated Joseph D. Keegan, Ph.D., Molecular Devices' President and Chief Executive Officer. ``At the same time, however, we see promising areas of growth in our business, including in our consumables products, which balance current downturns in other product lines by providing us with a recurring revenue source. We believe that our core strategy of aggressive product development and strategic acquisitions is on track. We continue to address customer needs and broaden our product footprint with a number of planned and realized product launches.''
Over the quarter, the Company announced a number of product introductions and initiatives that expand its reach into new research areas and provide customers with additional capabilities. Third quarter highlights include:
The release of three new reagent products -- the FLIPR® Multidrug Resistance Assay Kit, the CatchPoint(TM) Cyclic AMP Assay Kit, and the FLIPR Calcium Plus(TM) Assay Kit -- which extend FLIPR systems from cardiovascular to oncology laboratories as well as to additional stages in the drug discovery pipeline and provide customers with greater options in speed, sensitivity and flexibility;
The launch of FLIPR 3, an updated version of the FLIPR system used in high-throughput screening applications that will provide additional capabilities with higher sensitivity, faster operation and new liquid handling protocols;
The announcement of IonWorks(TM), a program that will combine products from Cytion and Essen Instruments to provide revolutionary ion channel screening capabilities by automated patch clamping technology and is expected to lead to product offerings in 2002.
Continued Keegan, ``The development of our IonWorks program is a tremendous example of the direction we are taking and the results we are seeking in our strategy to develop business opportunities and expand our reach across all phases of the drug discovery process. Through the combined technologies of Cytion and Essen we have developed a unique platform to distinctly address the rapidly expanding market opportunity in ion channel research.''
The Company also provided guidance for the rest of the year and for 2002. Due to continued economic uncertainties resulting in decreased capital expenditures by customers, as well as increased research and development spending related to the Cytion acquisition, the Company anticipates revenues of $24 to $26 million and fully diluted earnings per share of $0.10 to $0.12 for the fourth quarter of 2001. This brings expected revenues for full year 2001 to $91 to $93 million and fully diluted earnings per share, excluding acquisition-related charges, to $0.42 to $0.44. Noting the uncertain economic environment, the Company announced expected revenues for 2002 of $95 to $105 million and earnings per share of $0.60 to $0.70.
Conference Call Information
An earnings announcement conference call is scheduled for Friday, October 19, at 8:00 a.m. PDT (11:00 a.m. EDT). Interested parties can participate in the call by dialing 877-692-2591 (domestic) or 973-633-6740 (international). A taped replay of this call will be available through October 26, 2001. Replay dial-in numbers are 877-519-4471 (domestic) and 973-341-3080 (international) and the access code for the replay is 2879725.
Investors can also access a live web-cast of the call through a link posted on Molecular Devices' website (www.moleculardevices.com) investor page at corporate-ir.net. A replay of the web-cast will remain at this location through October 26, 2001.
About Molecular Devices Corporation
Molecular Devices Corporation is a leading developer of high-performance, bioanalytical measurement systems that accelerate and improve drug discovery and other life sciences research. The Company's systems and consumables enable pharmaceutical and biotechnology companies to leverage advances in genomics and combinatorial chemistry by facilitating the high-throughput and cost-effective identification and evaluation of drug technologies that integrate its expertise in engineering, molecular and cell biology, and chemistry. Molecular Devices enables its customers to improve research productivity and effectiveness, which ultimately accelerates the complex process of discovering and developing new drugs.
This press release contains ``forward-looking'' statements, including statements related to potential future revenues and earnings. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as ``believes,'' ``anticipates,'' ``plans,'' ``expects,'' ``will,'' and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Molecular Devices Corporation to differ materially from those indicated by these forward-looking statements, including, among others, risks detailed from time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2000 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2001. Molecular Devices Corporation does not undertake any obligation to update forward-looking statements.
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
(Unaudited) 2001 2000 2001 2000
Total Revenues $22,140 $24,341 $66,854 $68,558
Total Cost of Revenues 8,653 9,067 25,963 25,413
Gross Profit 13,487 15,274 40,891 43,145
Operating Expenses
Research and development 3,738 4,292 10,880 12,717
Write-off of acquired
in-process research
& development 12,625 -- 12,625 --
Merger expenses -- 15,181 -- 15,181
Selling, general
and administrative 8,183 8,186 24,368 23,980
Total operating
expenses 24,546 27,659 47,873 51,878
INCOME (LOSS)
FROM OPERATIONS (11,059) (12,385) (6,982) (8,733)
Other income, net $732 $1,734 $3,286 $3,323
INCOME (LOSS) BEFORE
TAXES $(10,327) $(10,651) $(3,696) $(5,410)
Income tax provision (884) (1,744) (3,438) (3,762)
NET INCOME (LOSS) $(11,211) $(12,395) $(7,134) $(9,172)
BASIC AND DILUTED
NET INCOME (LOSS)
PER SHARE $(0.69) $(0.77) $(0.43) $(0.61)
SHARES USED IN
COMPUTING BASIC AND
DILUTED NET INCOME
(LOSS) PER SHARE 16,323 16,001 16,441 14,914
PRO FORMA DATA
(excludes write-off
of acquired in-process
R&D and merger
expenses, net of tax):
INCOME FROM OPERATIONS $1,566 $2,796 $5,643 $6,448
NET INCOME $1,414 $2,786 $5,491 $6,009
DILUTED NET INCOME
PER SHARE $0.09 $0.16 $0.32 $0.37
SHARES USED IN
COMPUTING DILUTED
NET INCOME PER SHARE 16,488 17,283 16,923 16,138
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2001 2000
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $44,446 $41,832
Short-term investments 18,890 55,259
Accounts receivable, net 22,215 27,561
Inventories 18,205 13,056
Deferred tax asset 7,394 10,816
Other current assets 3,125 5,791
Total current assets 114,275 154,315
Equipment and leasehold improvements, net 10,252 9,015
Other assets 22,161 16,703
$146,688 $180,033
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,441 $4,902
Accrued liabilities 7,412 10,912
Current portion of long-term debt -- 317
Total current liabilities 9,853 16,131
Long-term debt, net of current portion -- 269
Stockholders' equity 136,835 163,633
$146,688 $180,033
SOURCE: Molecular Devices Corporation<<
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