Visible Genetics Reports Third Quarter Results
Sales For The Quarter Exceed Expectations
TORONTO, Nov. 12 /PRNewswire/ -- Visible Genetics Inc. (VGI) (Nasdaq:
VGINF), a developer of DNA-based diagnostic systems, today announced its
financial results for the third quarter. Revenues were $154,000 for the
quarter ending September 30, 1996, VGI's first commercial revenues since its
inception. (All amounts are expressed in United States dollars.) The net
loss in the third quarter was $1.4 million, or 20 cents per share, compared
to $0.7 million (17 cents per share) for the same period in the previous
year. The loss for the nine months ending September 30, 1996 was $3.7
million (66 cents per share) compared to $1.9 million (46 cents per share)
for the nine months ending September 30, 1995.
"Visible Genetics made significant progress this quarter in all areas of its
business, and with our initial beta sales exceeding expectations," commented
John Stevens, Chief Executive Officer of VGI. "During the quarter we
recorded revenues for six OpenGene(TM) beta-units: two were shipped to the
University of Pittsburgh and four to other customers. We also recorded
revenues of $22,000 for the RB1 tests used during clinical trials of the RB1
GeneKit."
"In addition, our Etobicoke, Ontario manufacturing plant became fully
operational, and we expanded our product support and applications group.
With these added resources, we now have the ability to support expected
sales of both our MicroGene Blaster(TM) DNA sequencers and MicroCel(TM)
disposable cassettes for the current quarter, as well as those projected for
the first two quarters of 1997," he continued.
"During the quarter, our intellectual property position also gained in
strength with the issuance of three important U.S. patents. The first is a
broad patent that protects our stratified matrix DNA technology, the basis
for many of VGI's diagnostic test kits under development. Stratified matrix
testing represents an approach to DNA diagnostics and mutation detection
that is significantly faster and more economical than most conventional
methods, and can be applied to virtually all DNA tests. The other two
patents cover methods and test kits permitting the rapid, inexpensive
detection of mutations in two important genes associated with human cancers,
p53 and RB1," Stevens said.
"Finally, we announced the signing of a Letter of Understanding for a
collaboration that represents the first of a series of strategic alliances
aimed at accelerating the development of DNA-based diagnostic tests for our
product platform. Together with the University of Pittsburgh and the
University of Pittsburgh Medical Center we have created a new joint venture
company, called the Gene Foundry Inc. (The Gene Foundry), to be based in
Pittsburgh. As part of the agreement establishing this venture, VGI has
received first right of refusal to manufacture, market and sell new products
generated by the new company. The Gene Foundry is headed by Chief Executive
Officer Alan Seadler, Ph.D., formerly of Amersham Life Science Inc., who
joined VGI during the quarter as Vice President of Test Development and
Reagent Production."
VGI develops, manufactures and markets high performance automated DNA
sequencing systems for genes linked to disease. The company's OpenGene
system employs stratified DNA testing to significantly reduce the time and
cost involved in finding and identifying disease-causing genetic mutations.
Visible Genetics Inc.
Statement of Operations
(Unaudited, United States Dollars)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Sales $153,853 $-- $153,853 $--
Operating costs and expenses
Cost of sales 92,004 -- 92,004 --
Pre-production plant costs 209,394 -- 476,929 --
Sales, general and
administrative 853,439 304,251 1,840,164 860,446
Research and development 698,776 396,351 1,690,137 1,059,904
Total 1,853,613 700,602 4,099,234 1,920,350
Loss from operations before
interest earned (1,699,760) (700,602) (3,945,381) (1,920,350)
Interest income 301,164 3,000 339,966 22,457
Interest expense -- (10,910) (89,741) (12,442)
Net loss for the period $(1,398,596) $(708,512)$(3,695,156)$(1,910,335)
Weighted average number of
common shares outstanding 6,937,200 4,147,565 5,571,078 4,120,089
Net loss per common share $(0.20) $(0.17) $(0.66) $(0.46)
Visible Genetics Inc.
Balance Sheet
(Unaudited, United States Dollars)
September 30, December 31,
1996 1995
Assets
Current assets
Cash and short-term investments $21,488,364 $400,693
Trade receivables 151,205 --
Other receivables 79,937 49,372
Prepaid and deposits 210,430 93,555
Inventory 255,325 15,716
Refundable investment tax credits 496,993 759,200
Total current assets 22,682,254 1,318,636
Fixed assets 652,363 277,500
Intangible assets 317,890 181,104
Total $23,652,507 $1,777,140
Liabilities
Current liabilities
Accounts payable $460,370 $160,648
Accrued liabilities 257,366 227,014
Note payable -- 500,000
Obligations under capital lease 16,824 16,824
Total current liabilities 734,560 904,486
Obligations under capital lease 27,759 38,821
Total 762,319 943,307
Shareholders' equity (deficit)
Share capital 29,983,937 4,282,927
Other capital 256,239 205,738
Retained earnings (deficit) (7,349,988) (3,654,832)
Total shareholders' equity 22,890,188 833,833
Total $23,652,507 $1,777,140
SOURCE Visible Genetics Inc. |
