Genomica Corporation Reports First Quarter 2001 Financial Results
BOULDER, Colo.--(BW HealthWire)--April 30, 2001--Genomica Corporation (Nasdaq: GNOM - news), a leading developer of innovative software products that facilitate drug discovery and development, today announced financial results for the quarter ended March 31, 2001.
For the quarter, the Company posted a pro forma net loss of $3.2 million, or $0.14 per share, compared to a pro forma net loss of $2.2 million, or $0.18 per share, for the same period in 2000.
Total revenues for the first quarter were $444,000, an increase of 20% from $370,000 during the same period of 2000. The increase in revenues was primarily due to an increase in the number of customers licensing the Company's Discovery Manager(TM) software.
Total operating expenses for the first quarter, excluding non-cash compensation charges, were $5.6 million, compared to $2.7 million during the same period of 2000. The increase in operating expenses reflects a 25% increase in the Company's employee base, with additions primarily in software development and sales and marketing.
Pro forma net loss for the first quarter excludes non-cash compensation charges of $2.1 million and $4.1 million during the same period in 2000. Pro forma weighted-average common shares outstanding used to compute pro forma net loss per share takes into account the effects of an assumed conversion of the Company's preferred stock into shares of common stock at the beginning of the reporting period, or the date of original issuance if later.
Genomica ended the quarter with cash and investments of $119.7 million.
``The first quarter of 2001 was a productive period for Genomica in executing our strategy to be the market leader combining software and information based on genetic variation as the basis for personalized medicine,'' said Teresa W. Ayers, Chief Executive Officer of Genomica Corporation. ``While our first quarter loss was greater than anticipated, the increase resulted from hiring additional quality people who will contribute to the overall growth and success of the Company. During the quarter, we released the next upgrade to Discovery Manager, continued the development of our Java(TM)/Oracle(TM) based products, began co-marketing the LinkMapper(TM) product with Applied Biosystems (''AB``) and continued our strategy of expanding collaborations by advancing our relationship with Celera Genomics. Earlier today we announced a formal agreement with Celera Genomics, finalizing our strategic alliance. We continue to support our collaboration with AB by providing it with the latest iteration of our Java/Oracle product so that AB may continue its product development, which utilizes certain portions of our technology.''
Highlights and Accomplishments
In March, the Company released Discovery Manager(TM) 3.0. This upgrade extends Discovery Manager's genotyping, sequencing, and visualization capabilities.
The Company continued to advance its relationship with AB by supporting it in incorporating the Company's object model into its genotyping hardware product plans.
Throughout the first quarter, the Company added substantially to its employee base, increasing from 104 employees to 130, primarily in software development and sales and marketing.
During the quarter, three new research organizations licensed the Discovery Manager software suite, including Rockefeller University, University of Colorado and University of Tasmania.
The Company entered into a definitive agreement with Celera Genomics that was outlined in a Letter of Intent between the two parties in August 2000. Under the terms of the contract, Genomica will create a special ``Celera Edition'' of its Discovery Manager genetic analysis software suite to integrate with the SNP Reference Database module of the Celera Discovery System. We anticipate this product should enhance lead generation to major pharma companies, shorten the sales cycle to customers interested in genetic analysis, and improve sales margins.
2001 Financial Outlook
The Company anticipates its earnings outlook for the year to be below previous expectations. 2001 pro forma net loss, excluding non-cash compensation charges, is expected to be in the range of $15.2 million to $16.2 million, or $0.68 to $0.73 per share, compared to previous analyst estimates of $11.2 million, or $0.48 per share.
Genomica anticipates total revenues will be in the range of $1.7 million to $2.0 million, down from previous estimates of $3.3 million. The Company is lowering its revenue expectations primarily as a result of AB lowering its sales expectations associated with the Company's LinkMapper product, sold in conjunction with AB's GeneMapper product. Revenues from the sale of LinkMapper are now expected to be $100,000 to $125,000 for the year, compared to previous estimates of $900,000, which were based on AB's marketing projections. Sales and additional penetration of Discovery Manager are expected to remain low as customers delay orders in anticipation of the release of the Company's additional Java/Oracle based products. Revenues from the sale of Discovery Manager are expected to be $1.6 million to $1.8 million for 2001.
Total operating expenses, excluding non-cash compensation charges, are anticipated to be in the range of $24.8 million to $25.5 million, higher than previous estimates of $22.2 million. The higher expenses are due to the Company increasing its employee base in the areas of research and development to position the Company to take advantage of anticipated strategic partnership opportunities and to help meet current product development timelines. Excluding non-cash compensation charges, the operating expense breakdown is as follows: R&D expenses in the range of $12.9 million to $13.2 million; sales and marketing expenses in the range of $6.1 million to $6.2 million; and, general and administrative expenses in the range of $5.0 million to $5.2 million. Non-cash compensation charges are expected to remain in the $8.2 million to $8.3 million range.
The above targets represent the Company's current revenue and earnings goals and expectations as of the date of this release and are based on current conditions. Genomica does not undertake to update these goals or expectations in any way or for any reason.
Business Outlook
While the Company's short-term results will be affected by the factors described above, the Company's long-term outlook remains positive. The conversion to the Java/Oracle platform is progressing and the Company still anticipates releasing three to five new Java/Oracle products this year.
Genomica remains well positioned to seize opportunities in the growing fields of genomics-based drug discovery and development with a clearly defined strategy and $119.7 million in capital resources.
Genomica continues to pursue the strategies it has previously discussed: expanding product offerings, broadening existing corporate relationships, establishing new industry collaborations, and acquiring complementary technologies. Genomica believes the successful execution of these strategies will position the Company to meet the needs of the industry in numerous places across the drug discovery and development continuum. |
