DPII reports record financial results (IPO'd at 18 on 7/27, pretty flat around same level since then). Also note broker coverage initiated yesterday -- Chase H&Q (the underwriter) calling it a Strong Buy, Lehman rating it Outperform...
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Wednesday August 23, 7:01 am Eastern Time
Discovery Partners Reports Record Financial Results for Second Quarter 2000
SAN DIEGO--(BW HealthWire)--Aug. 23, 2000--Discovery Partners International, Inc. (Nasdaq:DPII - news) today announced record financial results for the second quarter ended June 30, 2000. During the second quarter 2000, the Company reported revenues of $9.5 million, an increase of 183% over revenues of $3.4 million for the second quarter 1999. Net loss for the second quarter 2000, which contained significant one-time expenses related to recent acquisitions by the Company, was $9.3 million or $.55 per share on a pro forma basis, compared to a net loss of $552,000 or $.07 per share on a pro forma basis for the second quarter 1999. The non-cash acquisition-related expenses included $9.0 million of in-process R&D written off upon the acquisition of Axys Advanced Technologies, Inc. and $845,000 of goodwill amortized during the quarter. EBITDA, or earnings before interest, tax, depreciation, and amortization expenses, was a positive $1.6 million or $.10 per share on a pro forma basis for the second quarter 2000, compared to a loss of $371,000 or $.05 per share on a pro forma basis for the second quarter 1999. The loss per share on a pro forma basis assumes the conversion of the redeemable preferred stock into common stock as of the date of issuance. The redeemable preferred stock converted into common stock at the closing of the Company's initial public offering in July 2000.
Total revenues for the six months ended June 30, 2000 were $14.7 million, compared to $6.3 million for the same period in 1999. Net loss for the six months ended June 30, 2000 was $10.9 million, or $.88 per share on a pro forma basis, compared to a loss of $1.5 million, or $.20 per share on a pro forma basis, for the same period in 1999.
``I am very encouraged by our recent results, which demonstrate the successful implementation of our business strategy,'' said Riccardo Pigliucci, Chairman, President and CEO. ``The record revenue as compared to the prior period results from contributions by our recently acquired businesses, Axys Advanced Technologies, Discovery Technologies, and Structural Proteomics, as well as internal growth.''
``In addition, on July 27, 2000, the Company completed its Initial Public Offering with net proceeds to the Company of approximately $82.5 million,'' Pigliucci added. ``The Company intends to utilize its net proceeds to fund operations, to acquire new businesses and technologies, and for general corporate purposes. We are well-poised to achieve our objective to create and commercialize a complete, integrated and highly efficient offering of drug discovery technologies to address the limitations of the current drug discovery process.''
Discovery Partners International, Inc. is focused on providing the best platforms, services and information available to augment the internal drug discovery efforts of pharmaceutical and biopharmaceutical companies in the post-genomic era. The Company's comprehensive and integrated suite of drug discovery services currently include combinatorial chemistry products and technologies, high output medicinal chemistry services, industrialized ultra high throughput screening services, and informatics. DPII is headquartered in San Diego, California. |
