>>ANN ARBOR, Mich., Feb. 14 /PRNewswire-FirstCall/ -- Genomic Solutions Inc. (Nasdaq: GNSL - news), a leading global supplier of automated solutions for genomics, proteomics, and high throughput screening, announced today financial results for the three and twelve months ended December 31, 2001.
For the fourth quarter ended December 31, 2001, revenue was $4.4 million, compared to $5.5 million for the fourth quarter of 2000. Revenue for the twelve months ended December 31, 2001 was $16.8 million compared to revenue of $19.1 million for the twelve months ended December 31, 2000.
For the three months ended December 31, 2001, the Company's net loss was $12.3 million, or $0.49 per share. Excluding $8.6 million in restructuring and other unusual charges, the fourth quarter's net loss was $3.8 million, or $0.15 per share. These restructuring and unusual charges consisted of a $4.2 million non-cash charge related to acquired in process research and development in connection with the Company's acquisition of Cartesian Technologies, Inc., a $4 million non-cash charge due to the impairment of certain long lived assets and $345,000 in cost reduction actions incurred as part of the Company's restructuring plan announced in September 2001. The Company's net loss for the three months ended December 31, 2000 was $1.3 million, or $0.05 per share. For the twelve months ended December 31, 2001, the Company's net loss was $26.1 million, or $1.05 per share. Excluding $12.1 million in restructuring and other unusual charges, the Company's net loss for the twelve months ended December 31, 2001 was $14 million, or $0.56 per share. The Company's net loss was $8.9 million, or $0.51 per share, for the twelve months ended December 31, 2000.
``While 2001 did not meet our financial expectations, we made significant strides toward profitability and implementation of our business plan with our cost reduction initiatives and our acquisition of Cartesian Technologies, Inc. on December 18, 2001,'' stated Jeffrey S. Williams, President and CEO of Genomic Solutions. ``Our products are very strong and we have made several changes in marketing, sales and distribution to optimize our ability to sell and support these products. Also, in addition to the Cartesian acquisition, we have further strengthened our product offering with the recently announced exclusive licensing arrangement with Proteometrics, LLC.''
Mr. Williams commented, ``During the fourth quarter of 2001, we completed sales of 61 large units, defined as the sale of a unit priced at $25,000 or more, of which 37 were genomic, 21 were proteomic and 3 were high throughput screening. Our installed base now totals over 640 large units. Our primary operating goal for 2002 remains unchanged. The Company is focused on achieving profitability and generating positive EBITDA during 2002 and we continue to project that revenue for 2002 will exceed $30 million.''
Mr. Williams continued, ``Genomic Solutions' financial condition remains strong with approximately $13.1 million in cash and essentially no long term debt. While significant cash was invested during 2001 in strategic initiatives, including payments to acquire Cartesian, to PerkinElmer to repurchase a portion of our stock which terminated PerkinElmer's call right on our stock, and to license certain genomic technologies, cash consumed by operations has declined in the fourth quarter of 2001 when compared to the fourth quarter of 2000. Cash used by operations declined in the fourth quarter of 2001 to an average of $786,000 per month. Now that the restructuring plan we initiated last September and other cost reduction activities have been completed, we anticipate cash used on a monthly basis to fund our operations will continue to decline rapidly throughout fiscal 2002.''
``We have been active in 2002,'' commented Mr. Williams. ``During the first six weeks of the year we have:
* Amended our distribution agreement with PerkinElmer to broaden the
channels and markets in which our genomic, proteomic and high throughput
screening products can be sold around the world;
* Obtained the exclusive right to develop, support and license the
Proteometrics informatics product line, which includes RADARS(TM),
KNEXUS(TM), PROFOUND(TM), SONAR MS/MS(TM) and other branded products;
* Introduced the Hummingbird(TM) System, which is based on patented
technology exclusively licensed from GlaxoSmithKline, for high speed,
non-contact dispensing of compounds; and
* Concluded all remaining cost reduction activities associated with our
restructuring plan."
Genomic Solutions projects between $30 million and $36 million in revenue for fiscal 2002, earnings before interest, tax, depreciation and amortization (EBITDA) between a loss of $400,000 and positive $2 million, and a net loss per share between $0.04 and $0.12. This net loss per share includes $820,000 in amortization expense of intangibles capitalized in connection with the acquisition of Cartesian in accordance with Statement of Financial Accounting Standards No. 141 and 142. For the first quarter of 2002, the Company projects revenues between $6.7 million and $7.4 million, an EBITDA loss between $800,000 and $1.2 million, and a net loss per share between $0.05 and $0.07 which includes $205,000 in amortization expense of intangibles capitalized in connection with the Cartesian acquisition. The first quarter 2002 earnings forecast has been updated from prior guidance to reflect the costs and expenses associated with the recent events in 2002 of amending the PerkinElmer agreement, entering into an exclusive license agreement with Proteometrics, LLC, and certain costs associated with the Cartesian acquisition.
Conference Call
The Company's management will hold a conference call to discuss this announcement beginning at 11:00 a.m. Eastern Time, Thursday, February 14, 2002. The Company invites you to listen to the live conference call over the Internet at www.genomicsolutions.com . A playback of this conference call will be available from 3:00 p.m. Eastern Time, Thursday, February 14, until 12 noon Eastern Time, Thursday, March 7, 2002. The playback phone number is 800.428.6051 and 973.709.2089 if dialing from outside the United States, and the access code number is 230698.
About Genomic Solutions Inc.
The company develops, manufactures, and sells instruments, software, and consumables used to determine the activity level of genes, to isolate, identify and characterize proteins, and to dispense small volumes of biologically important materials. The company's products and systems, marketed under the GeneTAC(TM) Biochip System, Investigator (TM) Proteomic System, Cartesian(TM) nanoliter dispensing systems, and GeneMAP(TM) preprinted arrays brands, enable researchers to perform complex, high volume experiments at a lower cost and in less time than traditional techniques. As a result, Genomic Solutions products and systems facilitate more rapid and less expensive drug discovery.
Special Note
This press release contains ``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. For this purpose, any statements contained in this press release that relate to prospective events or developments are deemed to be forward-looking statements. Words such as ``believes,'' ``forecasts,'' ``anticipates,'' ``plans,'' ``expects,'' ``will'' and similar expressions are intended to identify forward-looking statements. While we may elect to update forward-looking statements in the future, we specifically disclaim any obligation to do so, even if our estimates change, and you should not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: a downturn in our customers' markets or in general economic conditions; our failure to introduce new products in a timely manner; economic, political and other risks associated with international sales and operations; difficulties integrating technologies, operations and personnel of recent acquisitions; competition from third parties, including pricing pressure; governmental regulation; research and development progress, and our level of debt and the possible incurrence of additional debt in the future. These and other important factors that may affect our actual results are more fully described under ``Risk Factors'' in Genomic Solutions' Form 10-K for the year ended December 31, 2001 and in Genomic Solutions other filings with the Securities and Exchange Commission, including the Company's most recent quarterly report on Form 10-Q and the Form S-4 filing in connection with the Company's acquisition of Cartesian Technologies, Inc.
For more information, contact Genomic Solutions at corporatecommunications@genomicsolutions.com or visit the company's Web site, at www.genomicsolutions.com .
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GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
(unaudited) (unaudited) (audited) (audited)
Revenue $4,369 $5,544 $16,840 $19,077
Costs and expenses:
Cost of revenue 3,115 2,504 10,612 9,374
Selling, general and
administrative 3,485 3,002 14,136 11,919
Research and development 1,397 1,529 6,797 5,596
Restructuring and other
unusual charges(a) 8,550 - 12,116 600
Total costs and
expenses 16,547 7,035 43,661 27,489
Loss from operations (12,178) (1,491) (26,821) (8,412)
Other income (expense),
net (153) 217 721 558
Loss before taxes and
extraordinary loss (12,331) (1,274) (26,100) (7,854)
Benefit from income
taxes (2) - - -
Loss before
extraordinary
loss (12,329) (1,274) (26,100) (7,854)
Extraordinary loss on
extinguishment of
subordinated debt - - - (1,050)
Net loss (12,329) (1,274) (26,100) (8,904)
Non-cash common stock
warrant benefit - - - 1,059
Deemed dividend upon
issuance and subsequent
repurchase of Series P
preferred stock - - (2,811) (8,000)
Net loss attributable
to common
stockholders $(12,329) $(1,274) $(28,911) $(15,845)
Net loss per share:
Net loss per share $(0.49) $(0.05) $(1.05) $(0.51)
Net loss per share
attributable to
common stockholders $(0.49) $(0.05) $(1.17) $(0.90)
Weighted average
shares outstanding 25,380 24,999 24,791 17,526
Note (a) Restructuring and other unusual charges of $12.1 million for the twelve months ended December 31, 2001 includes a $1.2 million charge for inventory impairment in the third quarter ended September 30, 2001 which will be classified as a separate component of cost of revenue in the Company's Form 10-K, to be filed for the year ended December 31, 2001.
GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(audited, in thousands)
December 31, December 31,
2001 2000
Assets
Current assets:
Cash and cash equivalents $ 13,097 $40,159
Accounts receivable, net 5,466 7,788
Inventories 9,622 5,734
Prepaid expenses and other 948 1,114
Total current assets 29,133 54,795
Property and equipment, net 3,261 4,735
Goodwill and intangible assets, net 13,649 954
Other long-term assets 1,881 4,740
Total assets $47,924 $65,224
Liabilities and stockholders' equity
Current liabilities:
Lines of credit $2,500 $-
Current portion of long-term debt 57 754
Accounts payable and accrued liabilities 9,968 9,778
Deferred revenue 842 293
Total current liabilities 13,367 10,825
Long-term liabilities:
Long-term debt, less current portion 66 1,202
Other long-term liabilities 52 1,208
Total long-term liabilities 118 2,410
Stockholders' equity:
Total stockholders' equity 34,439 51,989
Total liabilities and stockholders' equity $ 47,924 $65,224<<
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Cheers, Tuck |
