DPII reports:
>>SAN DIEGO, Oct. 30 /PRNewswire/ -- Discovery Partners International, Inc. (Nasdaq: DPII - news) today announced financial results for the third quarter and nine months ended September 30, 2001. Revenues for the third quarter 2001 were $9.6 million, compared to $10.2 million for the third quarter 2000. Net loss for the third quarter 2001, which contained a one-time obsolete inventory reserve of $4.4 million, was $6.4 million or $0.27 per share, compared to a net loss of $631,000, or $0.03 per share on a pro forma basis for the third quarter 2000. Net loss for the third quarter 2001, exclusive of the obsolete inventory reserve, was $2.0 million, or $0.08 per share. The increased inventory reserve was primarily associated with non-purified chemical compounds produced by Axys Advanced Technology prior to its acquisition by Discovery Partners in April 2000.
The reported net loss for the third quarter 2001 included $1.7 million of amortization expenses related to stock-based compensation, goodwill associated with earlier acquisitions. EBITDA (Earnings before interest, taxes, depreciation and amortization expense, and obsolete inventory reserve) was a positive $371,000 or $0.02 per share for the third quarter 2001.
Total revenues for the nine months ended September 30, 2001 increased 21.3% to $30.2 million compared to $24.9 million for the same period in 2000. Net loss for the nine months ended September 30, 2001 was $9.5 million, or $0.40 per share (which contained a one-time obsolete inventory reserve of $4.4 million) compared to a loss of $11.6 million, or $0.75 per share (which contained a $9 million write-off of in-process R&D) on a pro forma basis for the same period in 2000. The pro forma per share numbers assume the conversion of redeemable preferred stock into common stock as of the initial date of issuance. All redeemable preferred stock converted into common stock at the closing of the Company's initial public offering in July 2000.
``During the third quarter, we noticed an increase in collaborative agreements that tend to pay out over a longer period. Thus far, during the second half of 2001, Discovery Partners has signed agreements with 18 companies,'' stated Riccardo Pigliucci, President and Chief Executive Officer of Discovery Partners. ``The short term impact is slightly lower than expected revenue levels for the third and fourth quarters of 2001 and a significantly increased backlog of future business.''
In addition to the previously announced collaboration agreements with Merck, The Genomics Company, and DuPont, since June 30, 2001, Discovery Partners also signed collaboration agreements with Xenon Genetics, Microbia and Pfizer among others. The agreements range from multi-year, multi-million- dollar collaborations to fee-for-service arrangements and encompass Discovery Partners' full range of services and products from chemistry and screening to computational drug design.
A conference call discussing the business trends outlined in this release and the actual results for the third quarter will be publicly available via the Company's website, www.discoverypartners.com. The live webcast will begin at 11:00 a.m. Eastern Time on October 30, 2001. Replays of the webcast will be available to the public through Friday, November 9, 2001 on DPII's website and by calling 800/428-6051 (domestic) or 973/709-2089 (international), access code 212432.
About Discovery Partners
Discovery Partners International, Inc. is focused on providing the best platforms, services and information available to complement the internal drug discovery efforts of pharmaceutical and biopharmaceutical companies in the post-genomic era. Discovery Partners' integrated offerings span the drug discovery continuum including computational chemistry services for target characterization, lead generation and lead optimization, advanced chemistry services for the design and synthesis of combinatorial libraries and customized compound synthesis, high throughput synthesis equipment, high throughput screening services for assay development, rapid identification and characterization of active compounds against a broad range of targets, and gene expression analysis. DPII is headquartered in San Diego, California and has operations in San Diego, South San Francisco, Boulder, CO, Fort Lee, NJ, Tucson, AZ and Basel, Switzerland. For more information on Discovery Partners International, Inc., please visit the company's website at discoverypartners.com.
Statements in this press release that are not strictly historical are ``forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a high degree of risk and uncertainty. The Company's actual results may differ materially from those projected in the forward looking statements due to risks and uncertainties that exist in the Company's operations, development efforts and business environment, including integration of acquired businesses, the trend toward consolidation of the pharmaceutical industry, quarterly sales variability, technological advances by competitors, and other risks and uncertainties more fully described in the Company's annual report on Form 10-K for the year ended December 31, 2000 filed with the Securities and Exchange Commission (SEC) and its other SEC filings.
DISCOVERY PARTNERS INTERNATIONAL, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Consolidated Statement Three Months Ended Nine Months Ended
Of Operations Data: September 30, September 30,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Revenue $9,640 $10,159 $30,215 $24,860
Cost of revenue 4,972 5,034 14,932 12,811
Obsolete inventory
reserve 4,397 - 4,397 -
Gross margin 271 5,125 10,886 12,049
Operating expenses:
Research and development 3,088 2,821 9,956 5,317
Selling, general and
administrative 2,664 2,319 8,178 6,009
Amortization of stock-
based compensation 244 377 843 986
Amortization of goodwill 1,472 1,190 4,377 2,191
Write-off of in-process
research and development - - - 9,000
Total operating expenses 7,468 6,707 23,354 23,503
Loss from operations (7,197) (1,582) (12,468) (11,454)
Interest income
(expense), net 717 1,000 2,700 (299)
Other income
(expense), net 58 (49) 257 177
Net loss $(6,422) $(631) $(9,511) $(11,576)
Historical net loss
per share,
basic and diluted $(0.27) $(0.03) $(0.40) $(1.19)
Shares used in
calculating historical
net loss per share,
basic and diluted 24,135 18,732 23,969 9,692
Pro forma net loss
per share,
basic and diluted $(0.03) $(0.75)
Shares used in
calculating pro forma
net loss per share,
basic and diluted 21,598 15,525
Consolidated Balance Sheet Data: September 30, 2001 December 31, 2000
(Unaudited)
Cash and short term investments $79,441 $97,690
Working capital 87,537 106,987
Total assets 170,297 179,780
Long term obligations, less
current portion 873 944
Total stockholders' equity 158,572 166,562<<
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Cheers, Tuck |
