AGNT reports:
>>FOSTER CITY, Calif.--(BUSINESS WIRE)--Feb. 12, 2002--Argonaut Technologies, Inc. (Nasdaq:AGNT - news) today reported financial results for the fourth quarter and year ended December 31, 2001.
For the fourth quarter of 2001, net sales were $5.6 million compared to $5.3 million for the fourth quarter of 2000. For the year ended December 31, 2001, net sales were $17.1 million, compared to $17.4 million for 2000.
``In the fourth quarter of 2001, we put in place several cost savings initiatives to ensure that Argonaut is well positioned once the market resumes growing,'' stated Lissa A. Goldenstein, Argonaut's president and chief executive officer. ``With the announcement yesterday of our definitive agreement to acquire Jones Chromatography, Ltd. and its subsidiaries (the Jones Group), we believe we are entering 2002 with an unparalleled ability to provide chemists with complete solutions to their toughest chemistry problems. The combination of Argonaut and the Jones Group creates a company with global reach and tremendous product breadth. We are excited by the exceptional opportunities facing our combined enterprise.''
In the fourth quarter of 2001, the Company recorded a charge of $384,000 related to the restructuring announced on December 31, 2001.
The Company reported a net loss for the fourth quarter ended December 31, 2001 of $4.0 million, or ($0.21) per share compared to a net loss of $1.2 million, or ($0.07) per share for the fourth quarter of 2000. The net loss for the fourth quarter excludes a possible reduction in the carrying value of goodwill and other intangible assets associated with the acquisition of Camile Products, LLC in March 2001. Due to the downturn in the general economy, weakness in capital spending for instrumentation and the subsequent decline in Argonaut's and similar companies' market valuations, the Company expects that such a reduction in the carrying value will likely range from $5 million to $7 million, or an increase in the net loss per share of ($0.26) to ($0.36), for the fourth quarter of 2001. The Company will resolve this in its Form 10K filing and will update investors then on the resolution of this evaluation.
For the year ended December 31, 2001, the Company reported a net loss of $14.9 million, or ($0.78) per share compared to a net loss of $7.5 million, or a pro forma per share loss of ($0.50) for December 31, 2000. Pro forma net loss per share in 2000 assumes the conversion of all outstanding shares of preferred stock into shares of common stock, which occurred in July 2000, upon the close of the Company's initial public offering. The net loss for December 31, 2001 excludes any potential reduction of the carrying value of goodwill and other intangible assets associated with the acquisition of Camile Products, LLC as described above.
As of December 31, 2001, Argonaut had $57.6 million in cash, cash equivalents and short-term investments.
On February 11, 2002, Argonaut announced the execution of a definitive agreement to acquire the Jones Group, a privately held chemistry consumables company based in Cardiff, Wales, United Kingdom. The Jones Group is a leading manufacturer and distributor of high quality chromatography and purification accessories, consumables and instrumentation. Its products are used for drug discovery, biological and biochemical research, clinical studies, environmental and applied research in the pharmaceutical, contract research organizations (CRO), agrochemical and food industries. The Jones Group has 118 employees worldwide with the majority located in the United Kingdom.
Conference Call Details
Argonaut Technologies will discuss these financial results, its recent acquisition announcement of the Jones Group and its outlook for 2002 during a conference call scheduled for Tuesday, February 12, 2002 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. Those wishing to listen to the call can access it by going to the Investor Relations section of our website at www.argotech.com; a replay will also be available until February 19, 2002. In addition, a 24-hour, telephone replay of the call will be available for seven days by calling 866/219-1444 and giving the following passcode: 1513019.
Argonaut Technologies
Argonaut Technologies, Inc. is a pioneer in the development of innovative products that speed and simplify how chemists discover and test new chemical entities. Our products enable chemists to increase their productivity, reduce their operating costs through automation and process simplification, achieve faster time-to-market for new products, and cost-effectively explore the increasing number of drug targets available for drug development. We provide solutions that are used in over 1,000 pharmaceutical, chemical and academic laboratories worldwide. Our instruments, software and consumables for parallel synthesis enable chemists to perform multiple experiments under a variety of conditions in a fraction of the time and cost of traditional methods.
Forward Looking Statements
Statements included in this press release that are not historical in nature may be ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of such forward-looking statements include, without limitation, statements regarding the ability of our products to enhance chemical development, anticipated growth in the market for our products, the expected impact of our combination with the Jones Group, and the timing or the amount of any potential reduction in the carrying value of goodwill and other intangible assets associated with our acquisition of Camile Products, LLC. Any such forward-looking statements reflect the judgment of our management as of the date of this release, and involve risks and uncertainties, including the risk that intervening events and other factors may delay the closing of our acquisition of the Jones Group, the risk that the expected benefits of our combination with the Jones Group are not realized as quickly as anticipated or at all, the risk that we incur unanticipated costs or problems in connection with the combination of the two organizations and the risk that the current slow period in our industry continues for longer than we expect, and the risk that the current estimated reduction in the carrying value of goodwill and other intangible assets associated with our acquisition of Camile Products, LLC will change as a result of the outcome of the ongoing evaluation of such goodwill and intangible assets, each of which could significantly impact our business and results of operations. These and other risk factors are discussed in Argonaut's Annual Report on Form 10-K for the year ended December 31, 2000 filed on April 2, 2001, as amended, in its most recent quarterly report on Form 10-Q for the quarter ended September 30, 2001 filed on November 13, 2001, and its other filings with the Securities and Exchange Commission. Argonaut disclaims any intent or obligation to update these forward-looking statements. The Company claims the protection of the Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Argonaut Technologies, Inc.
Condensed Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Net sales $ 5,618 $ 5,290 $ 17,063 $ 17,449
Costs and Expenses:
Cost of sales 3,303 2,573 9,431 7,994
Research and
development (Note 1) 2,054 1,266 7,089 5,057
Selling, general
and administrative (Note 1) 4,134 3,807 16,686 13,819
Amortization of
purchased intangibles 245 -- 749 --
Acquired in-process research
and development expense -- -- 270 --
Restructuring charges 384 -- 384 --
-------- -------- -------- --------
Total costs and expenses 10,120 7,646 34,609 26,870
-------- -------- -------- --------
Loss from operations (4,502) (2,356) (17,546) (9,421)
Interest and other income 567 1,199 2,914 2,403
Interest and other expense (24) (37) (235) (503)
-------- -------- -------- --------
Net loss $ (3,959) $ (1,194) $ (14,867) $ (7,521)
======== ======== ======== ========
Net loss per common
share, basic and diluted $ (0.21) $ (0.07) $ (0.78) $ (0.79)
======== ======== ======== ========
Weighted-average shares
used in computing net loss
per common share,
basic and diluted 19,258 18,250 19,048 9,538
======== ======== ======== ========
Pro forma net loss
per common share,
basic and diluted $ (0.21) $ (0.07) $ (0.78) $ (0.50)
======== ======== ======== ========
Weighted-average shares
used in computing pro
forma net loss per
common share,
basic and diluted 19,258 18,250 19,048 15,009
======== ======== ======== ========
Note 1: Research and development expenses and selling, general and
administrative expenses include charges for stock-based compensation
as follows:
Research and development $ 72 $ 161 $ 603 $ 1,191
Selling, general
and administrative 56 593 1,088 2,296
-------- -------- -------- --------
$ 128 $ 754 $ 1,691 $ 3,487
======== ======== ======== ========
Note 2: Does not include any adjustment for potential reduction in
carrying value of goodwill and other intangible assets associated with
the acquisition of Camile Products, LLC.
Argonaut Technologies, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
Dec. 31, Dec. 31,
2001 2000
----------- ---------
(unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $ 17,996 $ 39,147
Short-term investments 39,636 34,225
Accounts receivable, net 4,187 4,088
Inventories 4,096 2,782
Prepaid expenses & other current assets 784 1,021
--------- ---------
Total current assets 66,699 81,263
Property, plant, and equipment, net 3,084 1,743
Goodwill and other intangible assets, net (2) 8,141 --
Other assets 175 26
--------- ---------
$ 78,099 $ 83,032
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,681 $ 1,004
Accrued compensation 1,421 1,097
Other accrued liabilities 1,679 1,209
Deferred revenue 3,439 1,534
Current portion of capital lease obligations 187 288
--------- ---------
Total current liabilities 8,407 5,132
Non-current portion of capital lease obligations -- 180
--------- ---------
Stockholders' equity 69,692 77,720
--------- ---------
$ 78,099 $ 83,032
========= =========
(1) The condensed consolidated balance sheet at December 31, 2001 has
been derived from the audited consolidated financial statements at
that date but does not include all of the information and footnotes
required by accounting principles generally accepted in the United
States for complete financial statements.
(2) Does not include any adjustment for potential reduction in
carrying value of goodwill and other intangible assets associated with
the acquisition of Camile Products, LLC.<<
Cheers, Tuck |
