Trickle disaster GNSL reports:
>>ANN ARBOR, Mich., Nov. 1 /PRNewswire/ -- Genomic Solutions Inc. (Nasdaq: GNSL - news), a leading global supplier of automated solutions for genomic and proteomic research, today announced financial results for the three and nine months ended September 30, 2001.
For the third quarter ended September 30, 2001, revenue was $3.6 million, which is in line with the Company's revised guidance but less than the $5 million in revenue achieved in the third quarter of 2000. Revenue for the nine months ended September 30, 2001 was $12.5 million compared to revenue of $13.5 million for the same period last year.
For the three months ended September 30, 2001, the Company's net loss was $7.9 million, or $0.32 per share. This net loss includes $3.6 million related to the Company's restructuring and other unusual charges. The Company's net loss for the same period last year was $869,000, or $0.03 per share, which included a $484,000 gain on the sale of assets. For the nine months ended September 30, 2001, the Company's net loss was $13.8 million, or $0.56 per share, compared with a net loss of $7.6 million, or $0.51 per share for the nine months ended September 30, 2000.
``Our restructuring initiative to reduce operating expenses by 35% is proceeding as planned and is expected to be completed by the end of January 2002,'' stated Jeffrey S. Williams, President and CEO of Genomic Solutions Inc. ``Our primary operating goal remains achieving and maintaining profitability in early 2002.'' Mr. Williams continued, ``Genomic Solutions' financial condition remains strong with approximately $19 million in cash and essentially no long term debt. While significant amounts of cash were invested during 2001 in strategic initiatives, including payments to PerkinElmer to relinquish its call right on our stock and to Affymetrix for access to microarray patents, cash consumed by operations has declined slightly from the first quarter to the third quarter of 2001. Operations consumed slightly more than $900,000 per month during the third quarter, and cash used by operations continues to decline during the fourth quarter as a result of our restructuring.''
Mr. Williams continued, ``We believe we will achieve our financial performance goals through cost savings derived from our restructuring and from our acquisition of Cartesian Technologies, Inc., which we anticipate closing in December subject to customary closing conditions, including approval by the Company's stockholders. As an update regarding Cartesian, it continues to perform at or above its financial plan, its backlog is growing, and our integration planning is proceeding well. We continue to project that the combined company will be profitable and achieve more than $33 million in revenue for 2002.''
In addition to implementing the Company's restructuring plan and signing a definitive agreement to acquire Cartesian Technologies during the third quarter, Genomic Solutions:
-- Achieved sales of 51 large units, defined as the sale of a unit priced
at $25,000 or more, of which 30 were genomic and 21 were proteomic.
The installed base of large units now totals 580;
-- Expanded the Company's genomic and proteomic bioinformatics
capabilities through partnerships with NuTec Sciences and
Proteometrics, Inc.;
-- Launched the GeneMAP(TM) Rat P450 Array, a pre-printed microarray
designed to help researchers more efficiently investigate metabolically
relevant enzyme activity;
-- Divested the Company's proteomic contract services unit;
-- Unveiled the new Genomic Solutions web site;
-- And, as a subsequent event in the fourth quarter, received a U.S.
Patent protecting technology used in the Company's automated proteomic
sample preparation products.
Genomic Solutions anticipates revenues for the fourth quarter of fiscal 2001 of $4.3 to $5.1 million and a net loss per share of between 8 and 10 cents, excluding approximately $350,000 in remaining restructuring charges. This projected revenue and net loss also excludes any revenue, operating expenses or other acquisition-related charges resulting from Cartesian Technologies, should the transaction close this quarter.
The Company's management will hold a conference call to discuss this announcement beginning at 11:00 a.m. Eastern Time, Thursday, November 1, 2001. The Company invites you to listen to the live conference call over the Internet at www.genomicsolutions.com . A playback of this conference call will be available from 3:00 p.m. Eastern Time, Thursday, November 1, until 12 noon, Eastern Time, Thursday, November 8, 2001. The playback phone number is 800.405.2236 and 303.590.3000 if dialing from outside the United States, and the access code number is 406863.
Genomic Solutions Inc. designs, develops, manufactures, markets and sells instruments, software, consumables used to determine the activity level of genes and to isolate, identify and characterize proteins.
Statements in this press release that are not strictly historical are ``forward-looking'' statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a high degree of risk and uncertainty that exist in the Company's operations and business environment. Such statements are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could affect actual events or results include risks associated with performance under the Company's agreements with third parties, research and development progress, competitive products and the strength of the Company's patent portfolio. These factors and others are more fully described under ``Risk Factors'' in Genomic Solutions' Form 10-K for the year ended December 31, 2000 and in Genomic Solutions other filings with the Securities and Exchange Commission, including the Company's most recent quarterly report on Form 10-Q and the Form S-4 filing in connection with the Company's proposed acquisition of Cartesian Technologies, Inc. The Company expressly disclaims any obligation or undertaking to release publicly any updates for revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.
GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Revenue $3,629 $5,038 $12,471 $13,533
Costs and expenses:
Cost of revenue 2,531 2,535 7,497 6,871
Selling, general and
administrative 3,719 3,009 10,651 8,916
Research and development 1,780 1,453 5,400 4,067
Restructuring and other
unusual charges (1) 3,566 -- 3,566 600
Total costs and
expenses 11,596 6,997 27,114 20,454
Loss from operations (7,967) (1,959) (14,643) (6,921)
Other income (expense),
net 43 1,090 874 341
Loss before taxes and
extraordinary loss (7,924) (869) (13,769) (6,580)
Provision (benefit)
for income taxes 71 -- (2) --
Loss before
extraordinary loss (7,853) (869) (13,771) (6,580)
Extraordinary loss on
extinguishment of
subordinated debt -- -- -- (1,050)
Net loss (7,853) (869) (13,771) (7,630)
Non-cash common stock
warrant benefit -- -- -- 1,059
Deemed dividend upon
issuance and subsequent
repurchase of Series P
preferred stock -- -- (2,811) (8,000)
Net loss attributable to
common stockholders $(7,853) $(869) $(16,582) $(14,571)
Net loss per share:
Net loss per share $(0.32) $(0.03) $(0.56) $(0.51)
Net loss per share
attributable to
common stockholders $(0.32) $(0.03) $(0.67) $(0.97)
Weighted average
shares outstanding 24,314 24,881 24,592 15,017
Note (1) Restructuring and other unusual charges include a $1.2 million
charge for inventory impairment which will be classified as a
separate component of cost of revenue in the Company's Form 10-Q,
to be filed for the quarter ended September 30, 2001.
GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2001 2000
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 18,612 $40,159
Accounts receivable, net 4,452 7,788
Inventories 7,507 5,734
Prepaid expenses and other 1,474 1,114
Total current assets 32,045 54,795
Property and equipment, net 3,148 4,735
Other long-term assets 6,401 5,694
Total assets $41,594 $65,224
Liabilities and stockholders' equity
Current liabilities:
Lines of credit $2,500 $--
Current portion of long-term debt 23 754
Accounts payable and accrued liabilities 6,144 9,778
Deferred revenue 163 293
Total current liabilities 8,830 10,825
Long-term liabilities:
Long-term debt, less current portion 2 1,202
Other long-term liabilities 60 1,208
Total long-term liabilities 62 2,410
Stockholders' equity:
Total stockholders' equity 32,702 51,989
Total liabilities and stockholders' equity $ 41,594 $65,224<<
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Cheers, Tuck |
