Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Incyte (INCY) -- Ignore unavailable to you. Want to Upgrade?

To: software salesperson who wrote (1833)	10/25/2001 5:15:49 PM
From: software salesperson	Respond to of 3202

10/25/01 conference call notes 1. 3 q events exited custom microarray business because of poor pricing and poor demand; will continue to license technology a la agilent and motorola medx; dna; search for president cash = 518 M 4 q guidance: rev. = 50-55 M; loss = 10-15 M 2. q&a (i) affx litigation settlement?- - what a great idea! with our exit from the business and our recent court victories, sounds good (ii) my survey of 5 large pharma says microarray business is growing?- - taken aback by the question, whitfield brusquely replied no (iii) do agreements with microarray partners require you to continue litigation?- - no (iv) why is there a greater loss in 4 q than 3 q? - - some expenses will not be characterized as restructuring charges (v) is there a new office in japan? - - yes (vi) why are you discontinuing your internal snp program?- - pharma has no interest (vii) is ivgn suing you?- - yes (viii) comments on dna deal?- - didn’t license targets; licensed claims to proteins and associated antibodies ( which are outside of lifeseq agreement); anyone who is developing therapeutic antibodies should be interested in our technology and ip (ix) what’s the difference in revenue opportunity between dna and medx deals? - - dna is classic deal( initial license payment/royalties); medx is joint development for select targets with 50/50 cost/revenue-sharing (x) how many $ will be saved by cutting 400 people ?- - no direct answer, but a lot (xi) your revenue growth rate has slowed? why?- - not unusual (( say what??)) (xii) are market conditions affecting database renewal negotiation rates?- - we have a dominant position 3. impressions: seemed like a rather sudden decision to abandon the custom microarray business; didn’t seem to be as prepared for the detailed questions on that topic; for faithful readers of these harangues, one wonders how many of the newly hired 90 sales/marketing people were among those who were cut (maybe mgmt. now sees why you don’t go from 10 --> 100 in one jump); wonder how much revenue they brought in? seems like affx really outflanked them; the database business and the royalty agreements are 2 pillars of strength, but operationally, recent missteps demonstrate that they ought stick to science completely; with the stock up after this conference call, it’s safe to say that the street likes cost savings; one silver lining on the operational side: they have implemented a toll-free # for the conference call. with more thinking along those lines, the sky’s the limit. sales