Oct. 10 /PRNewswire/ -- Sangamo BioSciences, Inc. (Nasdaq: SGMO - news) today reported financial results for its third fiscal quarter and nine months ended September 30, 2000. Excluding certain non-cash charges, the core net loss for the third quarter of 2000 was $561,000, or $0.03 per share. Revenues for the third quarter of 2000 increased to $823,000 as compared to third quarter 1999 revenues of $630,000. Third quarter revenues for this year were composed primarily of Universal GeneTools(TM) revenues and revenues from Sangamo's strategic partnership with Edwards Lifesciences Corporation.
Third-quarter highlights included:
* Sangamo established a collaborative research agreement with Merck & Co., Inc. to provide its Universal GeneTools(TM) for Merck's internal use. This collaboration marked the twentieth GeneTools agreement with pharmaceutical and biotechnology partners doing drug discovery research.
* Sangamo initiated a joint research program with Rosetta Inpharmatics, Inc. to apply the companies' complementary technologies in gene regulation and informational genomics to perform functional genomic studies on potential therapeutic targets.
* An article describing Sangamo scientists' research entitled ``Synthetic Zinc Finger Transcription Factor Action at an Endogenous Chromosomal Site: Activation of the Human Erythropoietin Gene'' was published in The Journal of Biological Chemistry. The article describes the use of Sangamo's proprietary zinc finger DNA binding proteins (ZFPs) to activate the expression of the therapeutically important protein erythropoietin (EPO).
* Science published an article entitled ``Active Global Remodeling of Somatic Nuclei in Egg Cytoplasm by the Nucleosomal ATPase ISWI''. Co-authored by Alan Wolffe, Ph.D., Sangamo's chief scientific officer, the article explores the reversibility of processes that lead to cellular differentiation. This research may lead to an understanding of the mechanisms that would allow a differentiated cell to become a stem cell. If these modified cells could then be transformed into a variety of different cell types, they could have utility as cell-based therapeutics.
Excluding the non-cash charges, total third quarter 2000 expenses were $2.7 million as compared to $1.1 million in the prior year period. Research and development expenses were $1.9 million for the three months ended September 30, 2000, as compared to $854,000 for the third quarter of 1999. General and administrative expenses were $775,000 for the third quarter of 2000 as compared to $247,000 for the same period last year.
Including non-cash charges, the net loss for the period was $1.8 million, or $0.08 per share. Non-cash expenses of $1.3 million in the third quarter of 2000 were due to stock-based deferred compensation. During the same quarter of 1999 deferred compensation charges were $131,000.
Excluding non-cash charges, the core loss for the nine-month period ended September 30, 2000 was $2.0 million, or $0.12 per share. Including the non- cash charges, the net loss attributable to common shareholders in the same period was $7.8 million, or $0.47 per share. Revenues for the first nine months of 2000 were $2.4 million as compared to $1.6 million in the same period of 1999. Excluding non-cash charges, total expenses for the nine months ended September 30, 2000 and 1999 were $6.7 million and $3.7 million respectively. Non-cash charges in 2000 included $3.2 million in stock compensation expense, a $1.0 million charge related to the licensing of certain in-process technology, and a $1.5 million deemed dividend related to the issuance of preferred stock prior to the company's initial public offering.
At September 30, 2000, the company had cash, cash equivalents, and investments of $65.9 million as compared to $7.5 million at December 31, 1999. Net interest income for the third quarter of 2000 was $1.3 million as compared to $24,000 in the comparable period last year. The higher net interest income reflects the higher cash balances resulting from the company's initial public offering and its Edwards Lifesciences partnership. Total shares outstanding at September 30, 2000 were 22.1 million.
Sangamo recognizes revenues in accordance with the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 101, which summarizes the SEC's views on applying generally accepted accounting principles to revenue recognition, and specifically addresses revenue recognition for upfront, non-refundable fees earned in connection with research collaboration agreements. Upfront licensing fees are required to be recognized over the term of the individual contract rather than at the time of receipt.... |
