I'll have to get back to you re AGNT (edit: old notes say consumables was 21% of revenue in 2Q01). Meanwhile, EBIO reports:
BOTHELL, Wash., Feb. 12 /PRNewswire-FirstCall/ -- Epoch Biosciences, Inc. (Nasdaq: EBIO - news), a provider of proprietary products that accelerate genomic analysis, today reported revenues for the fourth quarter increased to $2.3 million compared to $945,000 in the like period in 2000; and, on a sequential basis, increased 16% from the $1.9 million reported in third quarter 2001. The net loss during the quarter was $934,000, or $0.04 per share, compared with a net loss of $1.4 million, or $0.05 per share, in the fourth quarter of 2000.
For the year ended December 31, 2001, revenues increased to $7.5 million from $1.4 million in 2000. The net loss for the year was $4.6 million, or $0.18 per share, down from $4.9 million, or $0.20 per share, in 2000.
William G. Gerber, M.D., Chief Executive Officer, commented, ``Our results for the quarter and the year demonstrate that our plan to transform Epoch into a product-driven company is moving forward. We have diversified our sources of revenue to now include our own products, royalties from partners who incorporate our intermediaries in their brands, and contract research revenues.''
Product and Technology Licensing Highlights
``We introduced our first two product lines this year. They address the fastest growing segments of the genetic analysis business: the Eclipse(TM) Probe System for real-time PCR, used in the analysis of gene expression and single nucleotide polymorphisms, and our DNAnchor(TM) System, our first entry into the microarray market,'' Gerber said.
``During the fourth quarter, we continued to focus on the Eclipse System roll out by introducing web-based software for our MGB Eclipse Probe line and shipping our first MGB Eclipse Probes to Incyte Genomics under an alliance established during the third quarter. We are the preferred provider of customized probes incorporating Incyte's unique gene content and the supplier of Eclipse Probes to Incyte for use in their internal development work.''
``Recently, we completed two distribution agreements designed to expand the availability of our products worldwide. Under these accords, Glen Research will repackage and distribute various proprietary Epoch fluorphores, our Eclipse quencher and modified bases to research laboratories worldwide, and Eurogentec will produce customized oligonucleotides featuring our novel dyes and Eclipse quencher for sales in Europe and Japan.''
``Our relationships with two important partners, Applied Biosystems Group, a unit of Applera Corporation, and Third Wave Technologies, continued strong. Incorporation of Epoch technologies in the genomic detection systems of these leading companies provided Epoch with significantly increased royalty payments this year. Our collaboration with a third company, Specialty Laboratories, a leading clinical reference laboratory, marked our first foray into the diagnostics sector through the licensing of our technology for the development of a highly sensitive test to detect residual leukemia cells in the blood. We continue to initiate and advance scientific collaborations and business discussions with many potential new partners. There are currently over one dozen potential licensees and business partners evaluating our technology or products.''
Research and Development Milestones
``While our emphasis during the year and the quarter was on product development and distribution, our research and development group received important recognition for innovation and gained new leadership. The Company received a key patent for its minor groove binder (MGB) technology, covering compounds that enhance the discrimination power of oligonucleotide probes. Incorporated into our Eclipse Probes, MGBs provide effective, reproducible results for researchers. We also received a Small Business Innovation Grant (SBIR) from the National Institutes of Health to fund the development of a prototype kit utilizing MGB technology for cost-effective DNA fingerprinting. At year-end, Dr. Walt Mahoney, an executive with a broad range of experience from companies such as Roche Diagnostics and Boehringer Mannheim, joined Epoch as Senor Vice President, Research and Development to direct our discovery strategies and product development efforts.''
Other Events in Operations
``In order to build new functions, integrate operations and grow the organization so that it can successfully manage our multiple businesses and support the increasing number of strategic partnerships, in early 2001 we added Merl Hoekstra, Vice President, Corporate Development, and Bert Hogue, Chief Financial Officer. Our strengthened management team has made significant progress in merging our organizations, upgrading skills in manufacturing and marketing, moving closer to our goal of becoming a customer- centered enterprise and, at the same time, managing our costs as we drive towards profitability,'' Gerber said.
Financial Highlights
Revenues for the fiscal year ended December 31, 2001, increased significantly in all categories reflecting the Company's transition to a product company from a research company over the last two years. Product revenues increased to $4.5 million from $923,000 in fiscal 2000, reflecting the impact of a full year of product sales from the company's San Diego custom oligonucleotide operation acquired in late 2000, increased sales of product intermediaries to corporate customers, and the introduction of MGB Eclipse Probe systems. License fees and royalties increased to $936,000 from $74,000 as the result of product sales of corporate partners and contractual minimums. Contract research revenues increased substantially to $2.1 million from $370,000 in fiscal 2000 due to new and ongoing discovery research collaborations with partners in the genomics sector.
Net loss in 2001 decreased to $4.6 million, or $0.18 per share, from $4.9 million, or $0.20 per share, in 2000. The ongoing transition of the Company's operations to support the development, manufacturing and marketing of its own products resulted in increases in all categories of operating expenses, as anticipated.
Fourth quarter's increase in revenues was driven by an increase in license fees and royalties to $722,000 from $30,000 in the fourth quarter of 2000 due in part to payment of annual contractual minimums from an existing partner and initial payments from a different partner. Product sales increased to $946,000 compared to $665,000 in the fourth quarter of the prior year, although sales decreased when compared to the third quarter 2001 due to anticipated fluctuations in orders from larger customers and, to a lesser degree, a slowdown in overall business activity early in the quarter. Contract research revenues increased to $585,000 from $250,000 in the fourth quarter of 2000 due to a new research collaboration and the initiation of work on the SBIR grant awarded to the company during 2001.
Total operating expenses for the fourth quarter were $3.3 million compared to $2.6 million in the comparable quarter of 2000. Cost of product sales increased to $595,000 from $266,000 in the fourth quarter of 2000 due to increased product sales and a different product mix. Research and development expenses increased to $1,429,000 from $1,064,000 in the comparable quarter of 2000 due to higher level of activity and increased personnel, recruiting and relocation expenses. Sales, general and administrative expenses decreased slightly to $1,229,000 from $1,237,000 in the comparable quarter of the prior year.
At December 31, 2001, the Company had unrestricted cash and cash equivalents of $7.5 million.
Conference Call Information
Epoch management will hold a conference call at 11:00 a.m. EST (8:00 a.m. PST) today, Tuesday, February 12, 2002, to discuss fourth quarter and full year financial results. To access the call, dial 800-633-8476 for domestic and 212-346-0306 for international. An audio replay will be available until February 19, 2002: domestic callers dial 800-633-8284 and international callers dial 858-812-6440. The passcode for the call and the replay is 20277979. A live webcast of the call may be accessed at vcall.com. To listen, go to vcall.com approximately 15 minutes prior to the call to register and download/install any necessary audio software. A replay will be available for 45 days.
About Epoch Biosciences
Epoch Biosciences develops proprietary products with commercial applications in the genomics and molecular diagnostics fields. Epoch's technology has numerous applications including the detection of inherited diseases and single nucleotide polymorphisms (SNPs) to identify individuals at risk for disease or adverse drug reactions. The Company's chemical reagents enhance the performance of genetic analysis procedures, and are compatible with the majority of DNA analysis systems currently employed or under development for research and diagnostic uses. The Company licenses its chemistries to leading genomics companies for incorporation in their systems and distribution to end-users. Epoch also manufactures and sells specialty oligonucleotides and genetic detection systems employing its proprietary chemistry. Information about Epoch is available at epochbio.com.
Epoch Biosciences Cautionary Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, including but not limited to the possibility that the potential products utilizing the Company's technology may be ineffective or, although effective, may be uneconomical to market; or, that third parties hold proprietary rights that preclude Epoch or its licensees from marketing them; or, that third parties market a superior product. These factors and others may cause actual results to differ materially from the anticipated results. Additional information about potential risk factors that could affect Epoch Biosciences' business and financial results is included in Epoch's annual report on Form 10-KSB for the year ended December 31, 2000 and in other reports filed from time to time with the Securities and Exchange Commission. These forward-looking statements speak only as to the date of this release and Epoch undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.
Epoch Biosciences, Inc. Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Years Ended
December 31, December 31,
2001 2000 2001 2000
Revenues:
Product sales $946 $665 $4,461 $923
License fees and royalties 722 30 936 74
Contract research revenue 585 250 2,124 370
Total revenues 2,253 945 7,521 1,367
Operating expenses:
Cost of product sales 595 266 3,092 317
Research and development 1,429 1,064 4,834 3,468
Selling, general
and administrative 1,229 1,237 4,602 3,390
Total operating expenses 3,253 2,567 12,528 7,175
Operating loss (1,000) (1,622) (5,007) (5,808)
Other income:
Interest income, net 66 242 430 913
Net loss $(934) $(1,380) $(4,577) $(4,895)
Net loss per share
- basic and diluted $(0.04) $(0.05) $(0.18) $(0.20)
Weighted average number of
common shares outstanding
- basic and diluted 25,645 24,948 25,589 24,037
Epoch Biosciences, Inc.
Balance Sheet Highlights
(in thousands)
December 31, December 31,
2001 2000
(unaudited)
Cash and cash equivalents $7,489 $12,122
Accounts receivable and other current assets 948 616
Non-current assets 8,869 8,197
Total assets $17,306 $20,935
Current liabilities $2,192 $2,815
Deferred revenue and other non-current liabilities 3,174 2,059
Stockholders' equity 11,940 16,061
Total liabilities and stockholders' equity $17,306 $20,935<<
Cheers, Tuck |
