DPII hits guidance (edit: EBIO also hit estimates; with revenue being $100K better than estimated). They "invested" in the mArcs HTS technology. It used to be called uArcs. This (4th) quarter they were allowed to sell Nanokan systems to folks other than BMS or Aventis, the early development partners. I'll have to check to see if they got any bites.
>>SAN DIEGO, Feb. 12 /PRNewswire-FirstCall/ -- Discovery Partners International, Inc. (Nasdaq: DPII - news) today reported financial results for the quarter and year ended December 31, 2001. The reported results included record revenues of $41.1 million for the year ended December 31, 2001.
During the fourth quarter 2001, the Company had revenues of $10.9 million, slightly over the previously issued financial guidance of $10.5 million. The Company reported a net loss for the fourth quarter 2001 of $1.6 million or $0.068 per share, in line with previously issued guidance.
Expenditures on Research and Development for the quarter ended December 31, 2001 were $3.0 million compared to $3.6 million in the fourth quarter of 2000, a 16% decrease which is primarily attributed to infrastructure consolidation programs instituted in the first quarter 2001. Selling, General and Administrative expenses for the quarter ended December 31, 2001 were $2.8 million compared to $2.4 million in the fourth quarter of 2000.
``The year 2001 ended on an upbeat note at Discovery Partners,'' said Riccardo Pigliucci, president and chief executive officer. ``In December 2001, we announced the signing of a multi-year, multi-million dollar chemistry collaborative agreement with Pfizer Inc. This, combined with the signing of a major chemistry collaborative agreement with Merck in October, provides Discovery Partners with a healthy backlog for 2002 and beyond.''
``During the year, Discovery Partners invested in the development of Micro ARrayed Compound Screening, or mARCS, a new high throughput screening technology,'' continued Pigliucci. ``In addition, we continued to build our customer base, signing contracts with 34 companies, including 13 new customers. Our ongoing business development efforts are focused on developing drug discovery collaborations, integrating the broad range of Discovery Partners' services and products.''
Revenues for the year ended December 31, 2001 were a record $41.1 million compared to $36.3 million in 2000. Net loss for the year ended December 31, 2001 was $11.1 million or $0.464 per share, which includes a one-time $4.4 million charge for obsolete inventory reserve, compared to $11.7 million or $0.888 per share for the year ended December 31, 2000, which includes a $9.0 million non-recurring charge for the write-off of in-process research and development related to the acquisition of Axys Advanced Technologies in April 2000.
Expenditures on Research and Development for the year ended December 31, 2001 were $13.0 million compared to $8.9 million for the same period in 2000. Selling, General and Administrative expenses for the year ended December 31, 2001 were $11.0 million compared to $8.4 million for the same period in 2000. Both of these expense increases are primarily due to the impact of acquisitions made during 2000 and 2001.
As of December 31, 2001, Discovery Partners had approximately $77.3 million in cash, cash equivalents and short-term investments. Discovery Partners expects to remain cash flow neutral for 2002, excluding minor fluctuations in working capital, the impact of acquisitions, if any, and any stock repurchases under the Company's stock repurchase program.
In January 2002, Discovery Partners implemented the new FASB 141 and 142 accounting standards for business combinations and other intangible assets. As a result, the Company will no longer amortize goodwill and certain other intangibles. Due to the number and size of historical acquisitions completed by Discovery Partners, these new accounting standards will have a material impact on Discovery Partners' financial results beginning in 2002. For example, in 2001, Discovery Partners recorded $6.4 million in amortization expense, which is equivalent to $0.26 per share on a pre-tax basis.
A conference call discussing fourth quarter and year end 2001 financial results as well as the financial guidance for 2002 will be publicly available via the Company's Web site, discoverypartners.com. The live webcast will begin at 11:00 am Eastern Time, on Tuesday, February 12, 2002. In addition to the live webcast, replays will be available to the public on DPII's website and by calling 800-428-6051 (domestic) and 973-709-2089 (international), access code: 230679 through Tuesday, February 19, 2002.
About Discovery Partners
Discovery Partners International, Inc. has become a leader in drug discovery collaborations by offering integrated services and products that span the drug discovery continuum including target characterization, high throughput screening, lead generation, lead optimization, high throughput synthesis automation, and gene expression analysis. DPII is headquartered in San Diego, California and has operations in the United States and Europe. For more information on Discovery Partners International, Inc., please visit the company's Web site at discoverypartners.com .
Statements in this press release that are not strictly historical are ``forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a high degree of risk and uncertainty. Discovery Partners' actual results may differ materially from those projected in the forward looking statements due to risks and uncertainties that exist in Discovery Partners' operations, development efforts and business environment, including integration of acquired businesses, the trend toward consolidation of the pharmaceutical industry, quarterly sales variability, technological advances by competitors, and other risks and uncertainties more fully described in Discovery Partners' annual report on Form 10-K for the year ended December 31, 2000 as filed with the Securities and Exchange Commission and Discovery Partners' other SEC reports.
DISCOVERY PARTNERS INTERNATIONAL, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands, except per share amounts)
Consolidated Statement of Three months ended Twelve months ended
Operations Data: December 31, December 31,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Revenue $10,918 $11,403 $41,134 $36,264
Cost of revenue 5,527 5,531 20,460 18,343
Obsolete inventory reserve -- -- 4,397 --
Gross margin 5,391 5,872 16,277 17,921
Operating expenses:
Research and development 3,025 3,617 12,982 8,934
Selling, general and
administrative 2,841 2,405 11,019 8,414
Amortization of deferred
compensation and other
non-cash compensation
charges 231 390 1,074 1,376
Amortization of goodwill 1,472 1,188 5,848 3,379
Write-off of in-process
research and development -- -- -- 9,000
Total operating expenses 7,569 7,600 30,923 31,103
Loss from operations (2,178) (1,728) (14,646) (13,182)
Interest and other income,
net 541 1,607 3,498 1,485
Net loss $(1,637) $(121) $(11,148) $(11,697)
Historical net loss
per share,
basic and diluted $(0.068) $(0.005) $(0.464) $(0.888)
Shares used in
calculating historical
net loss per share,
basic and diluted 24,154 23,629 24,016 13,176
Pro forma net loss
per share, basic and diluted $(0.666)
Shares used in calculating
pro forma net loss per share,
basic and diluted 17,551
Consolidated Balance Sheet Data: December 31, 2001 December 31, 2000
(Unaudited)
Cash and cash equivalents and
short-term investments $77,265 $97,690
Working capital 88,550 106,987
Total assets 167,022 178,849
Long term debt, less current portion 1,082 944
Total stockholders' equity 157,042 166,562<<
Cheers, Tuck |
