Thursday February 15, 4:01 am Eastern Time
Press Release
Genomic Solutions Reports Record Fourth Quarter Revenues Up 62%
Ninth Consecutive Quarter of Vigorous Growth
ANN ARBOR, Mich.--(BUSINESS WIRE)--Feb. 15, 2001--Genomic Solutions Inc. (Nasdaq NM: GNSL - news), a leading global supplier of automated solutions for genomic and proteomic research, today announced financial results for the three and 12 months ended December 31, 2000.
Revenues increased 62% to a record $5.5 million in the fourth quarter of 2000, up from $3.4 million in the prior year's fourth quarter and up 10% over revenues of $5.0 million in the third quarter ended September 30, 2000. Revenue increases are primarily attributed to increased sales of the Company's Investigator(TM) Proteomic System and GeneTAC(TM) Biochip System. In addition, revenue was derived from the Company's state-of-the-art Proteomic Research Center that was opened during the quarter. Gross margins improved to 55% for the fourth quarter of 2000, as compared to 32% for the fourth quarter of 1999. The company expects gross margins in 2001 to range between 52% and 56%.
For the fourth quarter of 2000, selling, general and administrative expenses rose 15% to $3.0 million, compared with $2.6 million for the same period in 1999, while research and development costs increased 27% to $1.5 million, compared with $1.2 million in 1999. Loss from operations was $1.5 million, compared with $2.7 million in the fourth quarter of 1999. Net loss in the fourth quarter of 2000 was $1.3 million, or $0.05 per share, compared with a net loss of $3.8 million, or $1.27 per share last year, excluding a non-cash common stock warrant charge. Including such charge, the net loss attributable to common stockholders for the fourth quarter of 1999 was $1.90 per share.
For the twelve months ended December 31, 2000, revenues were up 58% to $19.1 million, as compared to $12.1 million for the twelve months ended December 31, 1999. This robust revenue growth in 2000 was driven by a 116% increase in revenue from the Company's proteomic product line and a 55% increase from the genomic product line as compared to 1999. Net loss was $7.9 million, or $0.45 per share in 2000 excluding an extraordinary non-cash loss of $1.1 million in extinguishment of subordinated debt, compared with a net loss of $11.1 million, or $3.75 per share in 1999.
``We have ended a year of outstanding company performance, culminating in the ninth consecutive quarter of increasing revenue growth,'' said Jeffrey S. Williams, president and chief executive officer. ``We expect strong growth to continue this year, with profitability realized in the fourth quarter of 2001 as we build upon our current product and service offerings and commercialize new ones.''
Mr. Williams highlighted several corporate events during the past year, saying, ``We completed our IPO in May, raising $61.3 million (gross), which provided us the capital to introduce several new products, including three new GeneMap(TM) preprinted arrays. We also entered a collaboration with Invitrogen (Nasdaq NM: IVGN - news) and licensed certain technology and patents from Affymetrix (Nasdaq NM: AFFY - news) to further strengthen our position in cDNA and oligonucleotide arrays. We launched the ProPic proteomic workstation and Protein Warehouse(TM), a software program that integrates all the data flow in proteomics in one environment, and we designed our Investigator(TM) Proteomic System to function as the front end solution for automated proteomics, with the capability of integrating mass spectrometers from the four major manufacturers.''
Mr. Williams continued, ``Our Proteomic Research Center has been very successful to date. We received several orders for services during the fourth quarter and have a strong backlog of research contracts going into 2001. We expect contract research services, field service and consumables revenues to account for approximately 20% of our top line revenue in the fourth quarter of 2001.''
``The human genome announcements earlier this week highlight the future importance of the new life science technologies. Sequencing the human genome, however, only provides a foundation of data from which truly valuable information can be developed. Researchers are now moving to the much more important tasks of determining gene function and identifying the associated proteins. We believe that Genomic Solutions is positioned to provide the instruments, software, consumables and services necessary for our customers in the pharmaceutical, biotech and academic markets to unlock the value of this new biological information,'' continued Mr. Williams.
Mr. Williams noted that the Company expects top line growth in 2001 of between 46% and 57%, driven by the following milestones:
The launch of six new GeneMap(TM)preprinted arrays
The introduction of next generation proteomic products including protein chips, sample preparation kits and the Investigator(TM) ProPrep System
The launch of a smaller, benchtop version of the GeneTAC(TM)Biochip System, including a dedicated microarrayer and imager
Acceleration of the Company's research services businesses and increasing sales of consumable products for use with the Company's systems
Increased sales by Perkin Elmer Life Sciences, our strategic marketing partner, as a result of their efforts in Europe, Asia and Canada.
The Company will hold a conference call to discuss these results beginning at 11:00 a.m. Eastern Time today, February 15, 2001. Individual investors are invited to listen to the conference call over the Internet at www.genomicsolutions.com. In addition, a replay will be available at the company's website beginning shortly after the call has ended.
Genomic Solutions Inc. designs, develops, manufactures, markets and sells instruments, software, consumables and services used to determine the activity level of genes and to isolate, identify and characterize proteins. The Company's products and systems enable researchers to perform complex, high volume experiments at a lower cost and in less time compared with traditional techniques. As a result, the Company's products and systems facilitate more rapid and less expensive drug discovery. Genomic Solutions markets products through its corporate headquarters in Ann Arbor, and through offices in the United Kingdom and Japan. Distribution throughout the rest of the world is provided by PerkinElmer Life Sciences through a strategic alliance with Genomic Solutions. The two companies also cooperate to sell co-branded products and collaborate to leverage their intellectual property and technologies.
Statements in this press release that are not strictly historical are ``forward-looking'' statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a high degree of risk and uncertainty that exist in the Company's operations and business environment. Such statements are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could affect actual events or results include risks associated with performance under the Company's agreements with third parties, research and development progress, competitive products and the strength of the Company's patent portfolio. These factors and others are more fully described under ``Risk Factors'' in the Final Prospectus included in the Company's Registration Statement on Form S-1 (File No. 333-30246) as filed with the Securities and Exchange Commission and declared effective by the SEC on May 4, 2000, and in the Company's most recent quarterly report on Form 10-Q. The Company expressly disclaims any obligation or undertaking to release publicly any updates for revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.
GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(audited; in thousands)
December 31, December 31,
2000 1999
Assets
Current assets:
Cash and cash equivalents $ 40,159 $ 1,328
Accounts receivable, net 7,788 3,812
Inventories 5,734 3,645
Prepaid expenses and other 1,114 285
Total current assets 54,795 9,070
Property and equipment, net 4,735 3,105
Other long-term assets 5,694 1,683
Total assets $ 65,224 $ 13,858
Liabilities and stockholders'
equity (deficit)
Current liabilities:
Lines of credit $ - $ 1,800
Current portion of long-term debt 754 712
Accounts payable & accrued
liabilities 9,778 4,335
Deferred revenue 293 173
Total current liabilities 10,825 7,020
Long-term liabilities:
Subordinated debt - 7,526
Long-term debt, less current portion 1,202 1,152
Other long-term liabilities 1,208 100
Total long-term liabilities 2,410 8,778
Common stock warrants - 7,441
Commitments
Stockholders' equity (deficit):
Total stockholders'
equity (deficit) 51,989 (9,381)
Total liabilities and stockholders'
equity (deficit) $ 65,224 $ 13,858
GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Month Ended Years Ended
December 31, December 31,
2000 1999 2000 1999
(Unaudited)(Unaudited) (Audited) (Audited)
Revenue $ 5,544 $ 3,422 $ 19,077 $ 12,092
Costs and expenses:
Cost of revenue 2,504 2,340 9,374 6,990
Selling, general
and administrative 3,002 2,616 11,919 8,652
Research and development 1,529 1,203 5,596 4,830
Unusual charge - - 600 438
Total costs and
expenses 7,035 6,159 27,489 20,910
Loss from operations (1,491) (2,737) (8,412) (8,818)
Other income
(expense), net 217 (1,101) 558 (2,324)
Loss before taxes
and extraordinary
loss (1,274) (3,838) (7,854) (11,142)
Income taxes - - - -
Loss before
extraordinary loss (1,274) (3,838) (7,854) (11,142)
Extraordinary loss
on extinguishment
of subordinated debt - - (1,050) -
Net loss (1,274) (3,838) (8,904) (11,142)
Non-cash common stock
warrant benefit
(charge) - (1,920) 1,059 (3,861)
Deemed dividend upon
issuance of series P
preferred stock - - (8,000) -
Net loss attributable
to common stockholders $ (1,274) $ (5,758) $(15,845) $(15,003)
Net loss per share:
Net loss per share $ (0.05) $ (1.27) $ (0.51) $ (3.75)
Net loss per share
attributable to
common stockholders $ (0.05) $ (1.90) $ (0.90) $ (5.04)
Weighted average
shares outstanding 24,999 3,033 17,526 2,974 |
