Added PLDI at 10.35
Good earnings also.
Protein Design Labs Reports First Quarter 2003 Financial Results
Tuesday April 29, 4:00 pm ET
FREMONT, Calif., April 29 /PRNewswire-FirstCall/ -- Protein Design Labs, Inc. (Nasdaq: PDLI - News; PDL) today reported net income of $4.1 million, or $0.05 per basic and diluted share, for the three months ended March 31, 2003, compared with net income of $1.9 million, or $0.02 per basic and diluted share, in the first quarter of 2002.
PDL reported total revenues in the 2003 first quarter of $22.7 million, compared with $14.3 million in total revenues for the 2002 first quarter, an increase of 59%. The largest component of PDL's revenues is royalties on marketed products licensed under PDL's antibody humanization patents. PDL reported royalty revenues of $17.1 million in the first quarter of 2003, a 25% increase from $13.7 million in royalties in the first quarter of 2002. License and other revenues increased to $5.6 million in the first three months of 2003, compared with $0.7 million in the same three months of 2002. License and other revenues in the 2003 first quarter included a license fee, a milestone payment and maintenance fees.
Total costs and expenses in the 2003 first quarter were $21.5 million, compared with $17.3 million in the first quarter of 2002. Research and development expenses were $16.4 million in the 2003 first quarter, compared with $13.2 million in the year-earlier period. General and administrative expenses were $5.1 million and $4.2 million in the 2003 and 2002 first quarters, respectively. PDL reported interest income of $4.7 million in the first quarter of 2003, compared with interest income of $7.1 million in the first three months of 2002. Interest expense was $1.7 million in the 2003 first quarter compared with interest expense of $2.2 million in the same period a year earlier.
At March 31, 2003, PDL had cash, cash equivalents and marketable securities totaling $592.2 million, compared with $606.4 million at December 31, 2002. The March 31, 2003 balances reflect approximately $15 million in capital expenditures in the 2003 first quarter primarily related to construction of PDL's manufacturing plant at Brooklyn Park, Minn.
Outlook
The following paragraphs provide forward-looking financial guidance that PDL believes to be correct as of April 29, 2003. This guidance is updated from that provided in PDL's financial press release issued February 26, 2003. PDL does not plan to update this information until its next financial press release and expressly disclaims any duty to update information contained in this press release.
Revenues
For the year ending December 31, 2003, PDL currently expects that total revenues will increase by approximately 22-26% compared with total revenues in 2002, as a result of anticipated increases in royalties and license and other revenues. This estimate is unchanged from prior guidance of February 26, 2003.
Costs and Expenses
PDL currently anticipates that total costs and expenses will increase approximately 42-46% in 2003 compared with total costs and expenses in 2002, excluding a charge related to the acquisition of Eos Biotechnology, Inc. (Eos). The charge, for acquired in-process research and development, is currently anticipated to be approximately $39 million. PDL expects to report this charge in its financial results for the second quarter of 2003. Including the charge, PDL anticipates that total costs and expenses will increase approximately 92-96% in 2003. The increase in total costs and expenses is expected to be related primarily to increased operating costs associated with the acquisition of Eos, to expanded clinical trial activity, including associated direct scale-up and manufacturing expenses, and to the additional headcount required to execute PDL's clinical trial programs and to continue to develop its research, manufacturing and process development infrastructure. The estimate of the increase in total costs and expenses is consistent with the previous guidance of February 26, 2003, given separately for the anticipated increase in PDL expenses and for the expected increase in expenses associated with the acquisition of Eos.
Capital Expenditures
PDL currently anticipates capital expenditures of approximately $115 million in 2003. Of these, approximately $105 million are expected to be related to construction of its principal manufacturing center at Brooklyn Park, Minn. PDL estimates an additional expenditure of approximately $50 million for that facility in 2004. Both of these estimates are unchanged from prior guidance of February 26, 2003.
Personnel
At March 31, 2003, PDL had a workforce of 423. PDL currently expects that its worldwide workforce will total approximately 500 individuals at year-end 2003, as previously estimated. PDL's current workforce is approximately 463, including approximately 40 personnel formerly associated with Eos.
Cash, Cash Equivalents and Marketable Securities
PDL currently anticipates having available cash, cash equivalents and marketable securities in a range of approximately $450 million to $470 million at year-end 2003. This estimate is consistent with prior guidance of February 26, 2003.
Earnings (Loss) Per Share
For the fiscal year ending December 31, 2003, PDL currently expects a net loss in the range of approximately $38 million to $43 million, or approximately $0.41 to $0.46 per share, excluding the charge related to the Eos acquisition. Including the charge, PDL anticipates a net loss in the range of approximately $77 million to $82 million, or approximately $0.82 to $0.88 per share.
The timing and amounts of revenues are dependent upon numerous factors and may be particularly dependent upon the seasonality of sales of licensed products, including Synagis® from MedImmune, Inc., and PDL's ability to enter into new collaborative, humanization and patent licensing agreements, as well as its ability to recognize revenue under any new and existing agreements. As a result, PDL does not provide forward-looking guidance with respect to its expected quarterly financial results.
PDLI develops human and humanized antibodies and other potential drugs to prevent or treat certain disease conditions, including viral infections, autoimmune diseases and certain cancers. For the fiscal year ended 12/31/02, revenues rose 4% to $46.4 million. Net loss totalled $14.6 million vs. an income of $2.6 million. Revenues reflect increased royalties received. Net loss suffered from decreased interest income, and $1.4 million in investment impairment charges.
Recent Earnings Announcement
For the 3 months ended 03/31/2003, revenues were 22,747; after tax earnings were 4,069. (Preliminary; reported in thousands of dollars.)
52-Week Low on 7-Mar-2003 $6.85
Recent Price $10.19
52-Week High on 3-May-2002 $14.37
Market Capitalization $908.8M
Shares Outstanding 89.2M
Float 85.9M
Price/Book (mrq*) 1.67
Price/Earnings N/A
Price/Sales N/A
Debt/Equity (mrq*) 0.29
Total Cash (mrq*) $606.4M
EBITDA (ttm*) -$25.9M
Profitable finally. Chart is good.
Jack |
