Ciphergen Reports Strong Third Quarter 2001 Financial Results
FREMONT, Calif., Oct. 25 /PRNewswire/ -- Ciphergen Biosystems, Inc. (Nasdaq: CIPH - news) reported results for the third quarter of 2001. For the quarter ended September 30, 2001, total revenue increased 131% to $5.4 million, up from revenue of $2.3 million in the third quarter of 2000. Gross profit increased to $3.5 million in the third quarter of 2001, up from $1.3 million in the third quarter of 2000; gross margin improved to 64% in the third quarter of 2001 compared to 56% in the same period last year. The Company reported a net loss of $6.9 million in the quarter ended September 30, 2001, compared to a net loss of $6.2 million in the comparable period of 2000.
For the first nine months of 2001, total revenue increased 97% to $11.7 million, up from revenue of $6.0 million in the comparable period of 2000. Gross profit increased to $7.8 million in the first nine months of 2001, up from $3.4 million in the first nine months of 2000; gross margin improved to 66% in the first nine months of 2001, compared to 57% in the comparable period last year. The Company reported a net loss of $18.7 million in the first nine months of 2001, compared to a net loss of $15.4 million for the comparable period of 2000.
``This was a very strong quarter for Ciphergen, as our revenue growth accelerated and met plan despite the tragic events of September 11,'' commented William Rich, President and CEO of Ciphergen. ``We believe that investment in our sales force and new product offerings are paying off, as well as the delivery of collaboration revenues through our Biomarker Centers(TM). We believe that the continued growth in both ProteinChip® products and Biomarker Center collaboration revenues will enable us to meet analysts' 2001 forecasts for revenue of approximately $18.5 - 19.5 million, growth of roughly 110-120% for the year.''
Highlights of the quarter included:
-- On July 31, Ciphergen completed the acquisition of the BioSepra
bioprocess chromatography business from Invitrogen Corporation for
approximately $12 million in cash. Since that time, the two
organizations have been integrating sales and marketing, and have
initiated a joint development program for a line of products to address
Process Proteomics, an emerging market driven by pharmaceutical company
demand to produce proteins for research, development and therapeutic
manufacturing purposes.
-- Ciphergen received multiple orders during the quarter for its newly
introduced ProteinChip Biomarker System, which includes new Arrays and
Biomarker Patterns(TM) Software. This system is our flagship product
for the expanding Clinical Proteomics market and enables researchers to
rapidly discover, validate and ID protein biomarkers directly from
diseased or abnormal biological tissues and fluids. Potentially, the
new Biomarker Patterns(TM) multivariate analysis software will enable
predictive diagnosis of toxicity in drug development and early,
pre-symptomatic disease diagnosis and treatment preference.
-- Ciphergen's Biomarker Centers announced a collaboration with Pfizer
designed to discover proteins in serum from rat disease models as well
as to evaluate the relative importance and utility of such proteins as
biomarkers associated with drug safety. One of the major bottlenecks
facing the pharmaceutical industry today is the proper selection of
compounds for human clinical trials, where the cost of failure is
enormous. The ProteinChip Biomarker System allows researchers to
rapidly identify multiple protein biomarkers and biomarker patterns, in
animal and cell culture models, that may be predictive of drug toxicity
for screening and optimizing lead compounds.
About Ciphergen
Ciphergen develops, manufactures and markets the ProteinChip® System that enables protein discovery, characterization and assay development to provide researchers with a better understanding of biological functions at the protein level. The ProteinChip System is a novel, enabling tool in the emerging field of protein-based biology research, known as proteomics. Proteomics provides a direct approach to understanding the role of proteins in the biology of disease, monitoring of disease progression and the therapeutic effects of drugs. Ciphergen believes proteomics will be a major focus of biological research by enhancing the understanding of gene function and the molecular basis of disease.
Safe Harbor Statement
Note Regarding Forward-Looking Statements: This press release contains forward looking statements, including statements regarding Ciphergen's revenue expectations for 2001, Ciphergen's plans to develop a new line of Process Proteomics products, the ability of the ProteinChip Biomarker System to identify protein biomarkers and biomarker patterns that correlate with patient health or clinical phenotype including the prediction of likely toxicity problems, and statements about future growth in the field of proteomics. Actual results may differ materially from those projected in such forward- looking statements due to various factors, including Ciphergen's ability to make additional sales of its products and collaboration services to achieve the forecasted revenues for 2001, Ciphergen's ability to develop and introduce new product lines which then meet with market acceptance, Ciphergen's ability to identify protein biomarkers and biomarker patterns that correlate with patient health or clinical phenotype including the prediction of likely toxicity problems, and the continued emergence of proteomics as a major focus of biological research and drug discovery. Investors should consult Ciphergen's filings with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended June 30, 2001, for further information regarding these and the other risks of the Company's business.
NOTE: Ciphergen and ProteinChip are registered trademarks of Ciphergen Biosystems, Inc.
Summary Financial Information
(Unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 2001 2000 2001
Revenue $2,338 $5,404 $5,978 $11,750
Cost of revenue 1,031 1,950 2,543 3,977
Gross profit 1,307 3,454 3,435 7,773
Operating expenses:
Research and development 1,992 3,264 4,868 8,899
Sales and marketing 2,651 3,420 6,204 9,840
General and administrative 2,903 3,275 8,093 9,722
Amortization of intangible assets 76 214 243 366
Write-off of acquired in-process
technology -- 1,000 -- 1,000
Total operating expenses 7,622 11,173 19,408 29,827
Loss from operations (6,315) (7,719) (15,973) (22,054)
Interest and other income, net 269 803 742 3,352
Equity in net loss of joint venture (125) -- (150) (12)
Net loss (6,171) (6,916) (15,381) (18,714)
Net loss attributable to common
stockholders (A) $(6,171) $(6,916) $(42,609) $(18,714)
Net loss per share
attributable to common
stockholders:
Basic and diluted (B) $(0.89) $(0.26) $(6.36) $(0.71)
Shares used in computing net loss
per share attributable to common
stockholders (B) 6,936 26,593 6,704 26,450
December 31, September 30,
2000 2001
Cash, cash equivalents and
investments
in securities $107,633 $81,628
Total assets 118,948 110,740
Stockholders' equity 113,152 98,706
(A) For the nine months ended September 30, 2000, this includes a $27,228
charge for a dividend related to the beneficial conversion feature of
preferred stock.
(B) Preferred stock was converted into common stock upon Ciphergen's
initial public offering on September 28, 2000.
Shares used in computing net loss per share attributable to common
shareholders is based on a weighted average for the periods ending
September 30, 2000 which does not include the preferred shares
outstanding prior to the IPO. |
