>>FREMONT, Calif., May 9 /PRNewswire-FirstCall/ -- Protein Design Labs, Inc. (PDL) (Nasdaq: PDLI - news) today reported net income of $1.9 million, or $0.02 per basic and diluted share, for the three months ended March 31, 2002, compared with net income of $6.6 million, or $0.08 per basic and $0.07 per diluted share, in the first quarter of 2001.
Revenues in the first three months of 2002 totaled $21.5 million compared with $26.2 million in revenues for the comparable period in 2001. Revenues in the 2002 first quarter included royalty revenues, a product license option fee, maintenance fees and interest income. Revenues under agreements with third parties were $14.3 million in the 2002 first quarter, compared with $16.7 million of revenues under agreements with third parties in the first quarter of 2001. Interest income was $7.1 million in the 2002 first quarter, compared with $9.5 million in the first quarter of 2001.
Total costs and expenses in the 2002 first quarter were $19.6 million, compared with $19.5 million in the first quarter of 2001. Research and development expenses were $13.2 million in the 2002 first quarter, compared with $13.7 million in the year-earlier period. General and administrative expenses were $4.2 million and $3.6 million in the 2002 and 2001 first quarters, respectively. Interest expense was $2.2 million in the 2002 first quarter, unchanged from the first quarter of 2001.
In October 2001, a two-for-one stock split was effected in the form of a stock dividend. Each stockholder received one additional share of common stock for every share of PDL common stock held. PDL's financial results in the reported periods reflect the effect of the stock split.
At March 31, 2002, PDL had cash, cash equivalents and marketable securities totaling $638.1 million, compared with $650.3 million at December 31, 2001.
Outlook
The following paragraph provides forward-looking financial guidance that PDL believes to be correct as of May 9, 2002. This guidance is unchanged from that provided in PDL's financial press release issued February 28, 2002. PDL does not plan to update this information until its next financial press release and expressly disclaims any duty to update information contained in this press release.
For the year ending December 31, 2002, PDL currently anticipates total costs and expenses will increase approximately 12-18% compared with total costs and expenses in 2001. The increase in total costs and expenses is expected to be related primarily to expanded clinical trial activity and the additional headcount required to execute PDL's clinical trial programs and to continue to develop its manufacturing and process development infrastructure.
PDL's revenues under agreements with third parties are anticipated to increase modestly, primarily as a result of expected higher royalty revenues. However, interest income is expected to be approximately $10 million less in 2002 compared with 2001, primarily as a result of anticipated lower interest rates. As a result of lower interest rates, total revenues for 2002 are expected to decrease by approximately 10-15% compared with total revenues in 2001.
For the fiscal year ending December 31, 2002, PDL currently expects a net loss in the range of approximately $15 million to $23 million, or approximately $0.17 to $0.26 per share.
The timing and amounts of non-interest revenues are dependent upon numerous factors and may be particularly dependent upon the seasonality of sales of licensed products, including Synagis® from MedImmune, Inc., and PDL's ability to enter into new collaborative, humanization, and patent licensing agreements, as well as its ability to recognize revenue under any new and existing agreements. As a result, PDL does not provide forward-looking guidance with respect to its expected quarterly financial results.
PDL will webcast a conference call live at 4:30 p.m. Eastern time today to review its first quarter financial results. During the conference call, PDL will also review its clinical pipeline. A link to the conference call webcast will be available through the PDL website: www.pdl.com. Please connect to this website at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. A replay of the webcast will be available from approximately one hour after the call through 11:59 p.m. Eastern time on May 16, 2002. A replay of the conference call will also be available by telephone from approximately 6:30 p.m. Eastern time on May 9 through May 14, 2002. To access the replay, dial 800-633-8284 from inside the U.S. and 858-812-6440 from outside the U.S. and enter reservation number 20557916.
The foregoing contains forward-looking statements involving risks and uncertainties and PDL's actual results may differ materially from those, express or implied, in the forward-looking statements. Factors that may cause such differences include, but are not limited to, the following: Financial results for the fiscal year ending December 31, 2002, are dependent on the level of revenues and expenses recognized by PDL, both of which are unpredictable and may fluctuate from quarter to quarter. Our expenses depend in part on the timing of expenses, which may include payments by us and to us under collaborative agreements for reimbursement of expenses and which are reported under our policy during the quarter such expenses are reported to us or to our collaborative partners and agreed to by us or our partner. Our revenues depend on numerous factors and may be particularly dependent upon the seasonality of sales of licensed products, including Synagis from MedImmune, Inc., and our ability to enter into new, if any, collaborative, humanization, and patent licensing agreements and our ability to recognize revenue under any new and existing agreements. In addition, other factors which may cause our actual results to differ materially from those, express or implied, in the forward-looking statements in this press release are discussed in our Annual Report on Form 10-K for the year ended December 31, 2001, as amended, and in other filings made with the Securities and Exchange Commission.
Protein Design Labs is a leader in the development of humanized antibodies to prevent or treat various disease conditions. PDL currently has antibodies under development for autoimmune and inflammatory conditions, asthma and cancer. PDL holds fundamental patents for its antibody humanization technology. Further information on PDL is available at www.pdl.com.
NOTE: Protein Design Labs is a registered U.S. trademark and the PDL Logo is a trademark of Protein Design Labs, Inc. Synagis is a registered U.S. trademark of MedImmune, Inc.
PROTEIN DESIGN LABS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except net income per share data) Three months ended
March 31,
2002 2001
Revenues:
Revenue under agreements with third parties $14,326 $16,710
Interest and other income 7,139 9,460
Total revenues 21,465 26,170
Costs and expenses:
Research and development 13,187 13,671
General and administrative 4,157 3,620
Interest expense 2,240 2,248
Total costs and expenses 19,584 19,539
Net income $1,881 $6,631
Net income per share:
Basic $0.02 $0.08
Diluted $0.02 $0.07
Weighted average number of shares:
Basic 88,645 87,230
Diluted 91,750 92,564
CONSOLIDATED BALANCE SHEET DATA
(unaudited)
March 31, December 31,
2002 2001*
Cash, cash equivalents and investments $638,087 $650,315
Total assets 725,802 729,898
Total stockholders' equity 557,824 558,443<<
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Cheers, Tuck |
