Maybe your investment in the parent will look better to you if sales continue to expand like this. We can hope.
Visible Genetics Reports 1996 Fourth Quarter And Year-End Financial
Results
TORONTO, Feb. 20 /PRNewswire/ -- Visible Genetics Inc.
(VGI, Nasdaq: VGINF), a provider of high performance automated DNA
sequencing
systems for clinical applications, today reported its financial results
for
the fourth quarter and year ended December 31, 1996.
VGI reported revenues of $824,000 for the fourth quarter of 1996 and
$978,000 for the year ended December 31, 1996, compared to zero revenues
in
1995. The net loss was $1.5 million or $0.21 per share for the fourth
quarter
of 1996, compared to a net loss of $0.8 million or $0.l9 per share for
the
same period last year. For the year ended December 31, 1996, the
company
reported a net loss of $5.2 million or $0.89 per share, compared to $2.7
million or $0.65 per share for 1995. The increase in the net loss was
due
primarily to start-up costs for the company's commercial operations,
including
the initial manufacturing and sales of its OpenGene(TM) DNA sequencing
systems. Revenues exclude net interest earned of $0.5 million. Total
operating expense for the year was $6.1 million compared to $2.7 million
in
1995. (All amounts are in United States dollars.)
"We are pleased with our early commercial and marketing successes,"
said
John K. Stevens, president and chief executive officer. "These include
the
establishment of manufacturing operations and the sales of our first
OpenGene
systems, as well as the successful completion of an initial public
offering.
VGI ended the year in a strong financial position, with $18.9 million of
cash
and marketable securities on hand."
Visible Genetics Inc. develops, manufactures and markets high
performance
automated DNA sequencing systems for the clinical analysis of 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.
(In United States dollars)
Statements of Operations and Deficit
Year ended December
31
1994 1995
1996
Sales $ -- $ --
$978,139
Cost of sales -- --
561,021
Gross margin -- --
417,118
Expenses:
Pre-production plant costs -- --
434,659
Sales, general and administrative 449,694 1,475,878
3,377,356
Research and development 482,946 1,241,181
2,309,686
Total 932,640 2,717,059
6,121,701
Loss from operations before interest (932,640) (2,717,059)
(5,704,583)
Interest income 9,252 12,105
608,858
Interest expense -- (19,444)
(68,959)
Net loss for the year $(923,388) $(2,724,398)
$(5,164,684)
Weighted average number of
common shares outstanding 2,902,735 4,181,599
5,791,367
Net loss per common share $(0.32) $(0.65)
$(0.89)
VISIBLE GENETICS INC.
Balance Sheets
December
31
1995
1996
Assets
Current assets
Cash and cash equivalents $403,438
$8,826,602
Marketable securities --
10,100,988
Trade receivables --
851,388
Other receivables 49,709
104,011
Prepaids and deposits 94,196
125,478
Inventory 15,824
345,192
Refundable investment tax credits 764,400
496,993
Total current assets 1,327,567
20,850,652
Fixed assets 281,085
867,278
Patents and licenses 182,345
887,716
Total $1,790,997
$22,6O5,646
Liabilities
Current liabilities
Accounts payable $273,054
$668,289
Accrued liabilities 118,904
102,371
Note payable 500,000
--
Obligation under capital lease 17,478
18,949
Total current liabilities 909,436
789,609
Obligation under capital lease 40,233
20,685
Total 949,669
810,294
Shareholders' Equity
Share capital 4,312,262
30,339,955
Other equity 208,932
299,947
Deficit (3,679,866)
(8,844,550)
841,328
21,795,352
Total $1,790,997
$22,605,646
VISIBLE GENETICS INC.
Statements Of Changes In Financial Position
Year ended December
31
1994 1995
1996
Cash provided by (used in)
Operating activities
Net loss for the year $(923,388) $(2,724,398)
$(5,164,684)
Add: Items not involving cash-
Depreciation and amortization 24,307 84,351
250,436
Deferred compensation costs
related to shares and options 105,105 242,991
339,841
Increase (decrease) from changes in-
Trade receivables -- --
(851,388)
Other receivables (23,593) (17,908)
(54,302)
Prepaids and deposits (173,309) 79,112
(31,282)
Inventory -- (15,824)
(329,368)
Refundable investment tax credits (220,500) (543,900)
267,407
Accounts payable 10,575 98,758
395,235
Accrued liabilities 98,230 110,541
(16,533)
Total (1,102,573) (2,686,277)
(5,194,638)
Financing activities
Common shares issued,
net of expenses 1,913,969 2,398,146
26,027,693
Receipt of bridge financing -- --
1,250,000
Repayment of bridge financing -- --
(1,250,000)
Note payable -- 500,000
(500,000)
Other equity issuances 8,526 (147,689)
74,579
Obligation under capital lease -- 56,026
(18,077)
Total 1,922,495 2,806,483
25,584,195
Investing activities
Marketable securities -- --
(10,100,988)
Fixed assets (113,648) (222,418)
(805,880)
Patents and licenses (53,645) (147,126)
(736,120)
Loan to officer to purchase shares -- --
(323,405)
Total (167,293) (369,544)
(11,966,393)
Increase (decrease) in cash
during the year 652,629 (249,338)
8,423,164
Cash, beginning of year 147 652,776
403,438
Cash, end of year $652,776 $403,438
$8,826,602
SOURCE Visible Genetics Inc.
CONTACT: John Stevens, Chief Executive Officer, 416-813-3242, or Jeffrey
Sherman,
Chief Financial Officer, 416-813-3266, both of Visible Genetics Inc. |
