PRESS RELEASE: StemCells Reports 2Q Earnings >STEM
13 Aug 06:10
StemCells, Inc. Announces Second Quarter
2001 Financial Results
BIOWIRE2K
PALO ALTO, Calif.--(BW HealthWire)--Aug. 13, 2001--StemCells, Inc. (Nasdaq:
STEM) today reported financial results for the second quarter ended June 30,
2001. StemCells's second quarter 2001 pro-forma net income, which excludes
stock-based compensation charges, was $2.8 million, or $0.12 per diluted share,
compared to a pro-forma net loss of $0.5 million, or $0.03 per diluted share
for the second quarter of 2000. Net income per share including stock-based
compensation charges was $1.6 million, or $0.07 per diluted share, for the
second quarter of 2001, compared to a net loss of 0.5 million, or $0.03 per
diluted share (excluding deemed dividends), for the second quarter of 2000.
Cash and cash equivalents were $9.4 million at June 30, 2001, compared to
$5.5 million at June 30, 2000. The Company reported assignment of rights
revenue of $300,000 for the second quarter of 2001, compared to no revenue for
the second quarter of 2000. In addition, the Company sold its remaining 103,577
shares of stock in Modex Therapeutics (Modex), a Swiss company, for $5.2
million. In the second quarter of 2000, the stock was considered a restricted
investment, since it was subject to a lock-up agreement.
"The change in net income per share is primarily due to a realized gain from
the sale of our remaining investment in Modex Therapeutics, which the Company
announced in May," said Martin McGlynn, President and CEO of StemCells, Inc.
"This was offset by an increase in expenses attributable to an increase in
personnel, the move to a larger facility, and the effect of compensation cost
recognized in the valuation of non-qualified stock options. The sale of Modex
shares was part of our strategy to divest ourselves of holdings related to our
former Encapsulated Cell Technology."
"As announced on May 11, 2001 we are pleased to have secured a $30,000,000
equity line, which the Company may use at its discretion to fund ongoing
research and development activities, in our research and development programs,
which utilize fetal and adult stem cells." |
