>>SAN DIEGO, Apr 30, 2002 /PRNewswire-FirstCall via COMTEX/ -- Nanogen, Inc. (Nasdaq: NGEN chart, msgs) today announced its financial results for the first quarter ended March 31, 2002.
Product revenues for the first quarter were $812,000, more than three times the total for the first quarter of 2001 of $229,000. During the current quarter, seven NanoChip(R) Molecular Biology Workstations were sold and four additional non-title transfer transactions were initiated. Two of the seven units sold during the current quarter were Nanogen's first systems sold in Japan by Hitachi Instruments. Nanogen recognizes a royalty on the sale of instruments in Japan that is included under product revenues. Total revenues for the first quarter ended March 31, 2002 were $1.5 million compared to $2.9 million for the same period in 2001. The decline in total revenues was due to an anticipated decrease in revenues earned in connection with sponsored research programs as the Company's revenue base continues its transition from primarily sponsored research revenues to product revenues. Notably, the Company continued to increase its percentage of product driven revenues, as 53% of total revenues for the current quarter came from product revenues, compared to 30% for the fourth quarter of 2001 and 8% for the first quarter of 2001. Product revenue recognized during the first quarter ended March 31, 2002 primarily included sales of the Company's NanoChip(R) Molecular Biology Workstation.
The Company's cash, cash equivalents and short-term investment balance at March 31, 2002 was $59.5 million. Total operating expenses for the first quarter of 2002 were $9.8 million, as compared to $10.5 million for the same period in 2001 and $10.6 million for the three months ended December 31, 2001. The Company's reported net loss for the quarter ended March 31, 2002 was $7.5 million or $0.35 per share, compared to a net loss of $6.3 million or $0.30 per share, for the same period in 2001.
"This quarter we achieved an important milestone by introducing the Company's first Analyte Specific Reagent (ASR), designed for the detection of Factor V Leiden that can be used on the NanoChip(R) System," said Howard C. Birndorf, Chairman of the Board and Executive Chairman of Nanogen. "This was accomplished by putting in place policies and procedures that enable us to meet the Quality System Regulations, or QSRs, in our facilities. These are regulatory requirements of the FDA that are intended to ensure the quality of medical devices and related products. We are now positioned to expand our current product offerings to include ASRs for CLIA-approved laboratories. This capability is important to our strategy as it increases the potential for revenue capture for every assay performed on the NanoChip(R) System."
"We are encouraged by our continued shift toward product revenues," said Randy White, Chief Executive Officer of Nanogen. "As importantly, we are expanding our global reach, having placed 11 systems across Europe, Japan, Mexico and the United States, and realizing our first workstation sales through Hitachi in Japan. On the technology front, we have continued our progress toward launching an ASR for cystic fibrosis, as well as offering SDA amplification, a cost-effective alternative for DNA amplification, both of which we believe will create more value for our system and customers."
Webcast of Conference Call
Nanogen management will host a conference call to discuss the first quarter financial results today at 4:30 p.m. Eastern Time. Audio of the management's presentation will be available via live webcast on the investor relations section of Nanogen's corporate website at www.nanogen.com . A telephone replay will be available approximately two hours following the conference call until 11:59 p.m. Eastern Time on May 2, 2002, and can be accessed at (800) 642-1687 for US/Canada participants or (706) 645-9291 for international participants, passcode ID #3905172. The webcast will also be archived on Nanogen's website through May 14, 2002.
Nanogen's goal is to become the leading provider of electronic microarray technology with the required accuracy, simplicity and flexibility necessary to bridge the gap between the research and clinical setting in genomics-based diagnostics. The Company is seeking to establish the NanoChip(R) System as the standard platform for the detection of genetic mutations and to develop applications for future clinical use. To date, the Company has developed one ASR for the detection of Factor V Leiden, and internally validated five research protocols, four associated with cardiovascular disease and one associated with hereditary hemochromatosis, the most common form of iron overload disease. Nanogen markets its NanoChip(R) Molecular Biology Workstation to scientists and genomics laboratories. The NanoChip(R) System is intended for laboratory use only. For additional information please visit Nanogen's web site at www.nanogen.com .
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including whether the Company's NanoChip(R) System can be successfully commercialized, whether products under development can be successfully developed and commercialized, whether results reported by our customers or partners can be identically replicated, whether regulatory clearances or approvals will be obtained, whether patented inventions can be successfully incorporated into commercial products, whether Nanogen will be successful in developing FDA-approved molecular diagnostic tests utilizing the NanoChip(R) System, and other risks and uncertainties discussed under the caption "Factors That May Affect Results" and elsewhere in the Company's Form 10-K for the year ended December 31, 2001, filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.
NANOGEN, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31, December 31,
2002 2001
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $7,126 $10,455
Short-term investments 52,393 57,069
Receivables, net 2,285 4,380
Inventories, net 5,879 4,688
Other current assets 1,656 2,473
Total current assets 69,339 79,065
Property and equipment, net 4,914 5,386
Acquired technology rights, net 4,327 4,183
Other assets, net 1,147 1,158
Restricted cash 299 299
$80,026 $90,091
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $835 $1,051
Accrued liabilities 3,953 4,916
Deferred revenue 458 522
Current portion of capital lease obligations 963 1,060
Total current liabilities 6,209 7,549
Capital lease obligations, less current portion 1,433 1,755
Other long-term liabilities 1,659 1,675
Total long-term liabilities 3,092 3,430
Minority interest in consolidated subsidiary 3,401 4,183
Stockholders' equity:
Convertible preferred stock, $.001 par value,
5,000,000 shares authorized; no shares issued and
outstanding at March 31, 2002 and December 31, 2001 -- --
Common stock, $.001 par value, 50,000,000 shares
authorized; 21,653,015 and 21,616,172 shares
issued and outstanding at March 31, 2002 and
December 31, 2001, respectively 22 22
Additional paid-in capital 198,563 198,387
Accumulated other comprehensive income 901 1,253
Deferred compensation (219) (336)
Notes receivable from officers (998) (984)
Accumulated deficit (130,945) (123,413)
Total stockholders' equity 67,324 74,929
$80,026 $90,091
NANOGEN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Three months ended March 31,
2002 2001
Revenues:
Sales $812 $229
Sponsored research 313 2,346
Contract and grant 408 364
Total revenues 1,533 2,939
Operating expenses:
Cost of sales 557 170
Research and development 4,280 4,786
Selling, general and administrative 4,972 4,784
Litigation and settlement of patent matter -- 798
Total operating expenses 9,809 10,538
Loss from operations (8,276) (7,599)
Interest income, net 729 1,320
Other income 15 --
Net loss $(7,532) $(6,279)
Net loss per share - basic and diluted $(0.35) $(0.30)
Number of shares used in computing net loss per
share - basic and diluted 21,620 20,655<<
Cheers, Tuck |
