April 25 /PRNewswire/ -- Sangamo BioSciences, Inc. (Nasdaq: SGMO - news) today reported financial results for the first quarter ended March 31, 2001. The core net loss, which excludes non-cash charges, was $1.3 million, or $0.06 per share. In the comparable quarter of 2000, Sangamo reported a core net loss of $837,000, or $0.15 per share. Non-cash charges were $803,000 in the first quarter of 2001 as compared to non-cash charges of $3.4 million in the first quarter of 2000. Including the non-cash charges, the net loss was $2.1 million, or $0.09 per share in the first quarter of 2001 as compared to a net loss of $4.2 million, or $0.71 per share, in the same period last year.
Revenues for the first quarter of 2001 were $634,000 as compared to first quarter 2000 revenues of $807,000. The principal components of first quarter 2001 revenues were Universal GeneTools(TM) revenues and revenues from Sangamo's partnerships in the areas of human therapeutics and plant agriculture. During the first quarter of 2001, the company received payments of approximately $2 million from collaborators that management expects will be recognized as revenues in 2001. As previously stated, Sangamo expects revenues to vary significantly by quarter. The company also reiterated that management expects annual revenues to increase two to three times the level achieved in 2000.
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 fees are required to be recognized over the term of the individual contract rather than at the time of receipt.
Excluding the non-cash charges, total first quarter 2001 expenses were $2.9 million as compared to $1.7 million in the prior year period. The increase in expenses was primarily due to greater research and development activity, which resulted in a 65 percent increase in expenses over last year and costs associated with being a public company. Research and development expenses were $2.2 million for the three months ended March 31, 2001 as compared to $1.3 million for the first quarter of 2000. General and administrative expenses were $644,000 for the first quarter of 2001 as compared to $371,000 for the same period last year.
Non-cash expenses in the first quarter of 2001 totaled $803,000, as compared to $3.4 million during the same quarter of 2000. Non-cash expenses in the first quarter of 2001 were due to stock-based deferred compensation charges. The non-cash charges during the same period last year included a one-time expense of approximately $1.0 million for the issuance of common stock related to the licensing of certain technology and stock-based deferred compensation charges of $831,000. The company also incurred a $1.5 million deemed dividend related to issuance of preferred stock during the first quarter of 2000.
Net interest income for the first quarter of 2001 was $961,000 as compared to $70,000 in the comparable period last year. The higher net interest income reflects the higher cash balances resulting principally from the company's initial public offering completed in April 2000.
At March 31, 2001, the company had cash, cash equivalents, and investments of $63.9 million. Cash used in operations during the first quarter of 2001 was approximately $500,000. Total shares outstanding at March 31, 2001 were 22.3 million. One year earlier there were 6.6 million shares outstanding. The change in the number of shares outstanding was due primarily to the conversion of the company's preferred stock into common stock and the completion of the company's initial public offering.
First-Quarter 2001 Highlights
Highlights of the first quarter included:
-- Sangamo was granted a patent in the United Kingdom that includes claims
covering the activation or repression of any endogenous gene in any
cell type, or organism, using ZFP transcription factors. Similar
applications with similar claims have been filed in many countries
throughout the world.
-- Sangamo established its first plant agriculture collaboration with
Renessen LLC, a joint venture between Cargill and Monsanto Company
using Sangamo's proprietary gene regulation technology to enhance the
value of certain crops for the animal feed and processing industries.
-- Sangamo reported the use of the company's proprietary zinc finger
DNA-binding proteins (ZFPs) to regulate the production of vascular
endothelial growth factor A (VEGF), a protein that plays a critical
role in the formation of new blood vessels, and may be useful in the
treatment of certain forms of cardiovascular disease.
-- Sangamo obtained worldwide rights to a novel cell-based molecular
screening system developed at The Massachusetts Institute of Technology
and to certain technology developed at Harvard University. |
