Bottom fishing TWTI didn't appear to work, but it once again crushes estimates calling for a seven cent loss and this time raises guidance:
>>MADISON, Wis., July 27 /PRNewswire-FirstCall/ -- Third Wave Technologies Inc. (Nasdaq: TWTI - News) today reported financial results for the second quarter ended June 30, 2004.
Third Wave reported total revenues of $12.6 million and a net loss of $106,000, or $0.00 per diluted share, for the second quarter ended June 30, 2004, compared to total revenues of $8.8 million and a net loss of $2.2 million, or ($0.05) per diluted share, for the same period of 2003. The company also recorded deferred revenue of $5.1 million related to a product shipment to a key customer that is subject to acceptance by that customer.
Third Wave's year-to-date total revenues for the period ended June 30, 2004, were $27.9 million, with net income of $2.7 million, or $0.07 per diluted share. Total revenues during the same period of 2003 were $17.3 million, with a net loss of $5.1 million, or ($0.13) per diluted share.
The company reported gross margins of 72% for the quarter ended June 30, 2004, up from 62% percent for the same period of 2003. Total operating expenses for the second quarter of 2004 were $13.4 million, compared to $11.1 million for the same period of 2003. Included in the second-quarter 2004 operating expenses were non-cash charges of $2.0 million related to the write- off of select assets and other one-time charges. Total operating expenses for the six-month period ended June 30, 2004, were $25.2 million, compared to $22.6 million for the same period of 2003. Third Wave ended the quarter with a cash balance of $69.0 million, an increase of $9.1 million from the prior quarter. The increase in cash during the second quarter includes a prepayment of $5.1 million that is related to deferred revenue at June 30, 2004, pending acceptance of the product by this customer.
"Third Wave delivered another strong financial performance in the second quarter of 2004 and, more importantly, continued to demonstrate growth in our clinical molecular diagnostic business," said John Puisis, president and chief executive officer of Third Wave. "In addition to the important financial milestones we achieved, Third Wave accomplished a significant product milestone with the introduction of our Invader® HCV genotyping reagents. We are very pleased with our progress in transitioning the company to a clinical molecular diagnostic business."
Second-Quarter 2004 Financial Highlights
Third Wave achieved a number of key financial milestones during the second quarter.
* Continued growth in total clinical molecular diagnostic revenue to $3.4
million for the quarter ended June 30, 2004, a 13% increase from the
prior quarter and a 31% increase from the same period of 2003. U.S.
clinical molecular diagnostic revenue increased 88% from the same
period of last year, while Japanese clinical revenue decreased as a
result of the company's deliberate move to reduce the historic reliance
on custom assay sales and to transition the revenue mix towards higher-
margin, standard products.
* Sustained strength in the company's gross margins, which remained above
70% for the second consecutive quarter.
* Continued strengthening of the company's cash position with a second-
quarter increase of $9.1 million, bringing the company's cash balance
to $69.0 million. The company's cash balance has increased by $11.2
million during the first six months of 2004. The second quarter also
was the third consecutive quarter for which the company has reported
positive cash flow from operations.
Second-Quarter 2004 Product and Customer Highlights
During the second quarter, Third Wave achieved a significant product milestone by entering the infectious disease market with the introduction of its Invader® Hepatitis C Virus (HCV) genotyping reagents. The release of Third Wave's HCV genotyping product was made in conjunction with the annual Clinical Virology Symposium in Clearwater, Fla. Mayo Clinic, and Third Wave in collaboration with the Cleveland Clinic Foundation each presented data at the symposium that demonstrates the complete concordance of the Invader® HCV genotyping reagents compared to currently available commercial assays. The studies also highlight the Invader® HCV genotyping reagents' accuracy, robustness, ease of use, and one-hour time to results.
Early response to the new Invader® HCV genotyping product is favorable. Clinical laboratories such as Spectrum Laboratory Network, Greensboro, N.C., and academic medical centers including UCLA Medical Center are among the first purchasers of the product. Several dozen additional laboratories are currently evaluating the HCV genotyping product and the company expects to make additional customer adoption announcements throughout the balance of 2004.
Update on 2004 Strategic Plan and Product Objectives
Third Wave remains committed to its product development and commercialization strategy outlined earlier this year. Moving forward in 2004, the company plans to continue to make progress toward the following key goals:
* Advance product development in each of the following areas:
- Women's Health
* Release HPV detection product (2H 2004)
Update: Third Wave remains on target to release an initial
HPV detection product during the second half of 2004.
- Infectious Disease
* Establish a clinical trials program for an HCV viral load
prototype assay (2004)
Update: Third Wave is making significant progress advancing
its HCV viral load program through feasibility and clinical
studies. The company will continue the prototype program in
the third quarter and begin clinical studies against
in-market products. Third Wave remains on schedule to
initiate a clinical trial program for its HCV viral load
assay during the second half of 2004.
- Chromosomal Analysis
* Broad release of a prenatal chromosomal analysis product
(Q4 2004)
Update: Third Wave remains on track to broadly launch this
product during the fourth quarter of 2004. The company is
also working on a suite of additional chromosomal analysis
products. More details will be provided later in 2004.
- Pharmacogenetics
* Introduce various CYP450 products for the identification of
drug response variability to minimize adverse drug reactions
and optimize therapy (2004)
Update: The company remains on track to launch additional
pharmacogenetic products by the end of 2004.
* Further expand product pipeline opportunities based on customer input
Update: Third Wave continues to evaluate and develop additional
products in infectious disease, oncology and genetics/pharmacogenetics
that complement one or more of the company's existing products, meet an
unmet customer need, or both. The company intends to articulate its
product development in a more expanded fashion during the second half
of 2004.
* Continue to service strategic research relationships
Update: Third Wave continues to foster productive collaborations with
several of the world's foremost genomic researchers, including Dr.
Yusuke Nakamura of the International HapMap Project, Japanese
Millennium Project and the BioBank Japan Project; Japan's National
Cancer Center; and other thought-leading institutions around the world.
In conjunction with the company's second-quarter 2004 update, Third Wave announced separately this morning that its board of directors has authorized the initiation of a stock repurchase plan that permits the company to purchase up to 5% of the company's outstanding shares.
2004 Guidance Update
Third Wave raises its guidance on total product revenue to approximately $42.0 million for the year 2004. The company continues its primary focus on its transition to a clinical molecular diagnostic business and believes that its clinical product revenue will continue to grow steadily, as anticipated. The company maintains its previous guidance of $15.0 million in clinical molecular diagnostic product revenue.
Conference Call & Webcast
Company management will host a conference call on Tuesday, July 27, 2004, at 10 a.m. EDT to discuss first-quarter results and ongoing corporate activities. Domestic callers should dial (800) 299-7089 and international callers should dial (617) 801-9714. The access code for both domestic and international callers is 94565507. Please dial in five to 10 minutes prior to the start of conference call. A live webcast and a replay of the conference call will be available at twt.com. The conference call, webcast and replay are open to all interested parties.
About Third Wave Technologies
Third Wave Technologies is a leader in the development and marketing of molecular diagnostics for a variety of DNA and RNA analysis applications, providing physicians and researchers with superior tools to diagnose and treat disease. Third Wave's Invader® technology provides the company's customers with exceptional accuracy, scalability and ease of use. The company offers a number of clinical products based on its Invader® technology for genetic testing related to multiple disease areas. For more information about Third Wave and its products, please visit the company's website at twt.com.
All statements in this news release that are not historical are forward- looking statements within the meaning of the Securities Exchange Act of 1934 as amended. Such forward-looking statements are subject to factors that could cause actual results to differ materially for Third Wave from those projected. Those factors include risks and uncertainties relating to technological approaches of Third Wave and its competitors, product development, manufacturing, market acceptance, cost and pricing of Third Wave products, dependence on collaborative partners and commercial customers, successful performance under collaborative and commercial agreements, competition, the strength of the Third Wave intellectual property, the intellectual property of others and other risk factors identified in the documents Third Wave has filed, or will file, with the Securities and Exchange Commission. Copies of the Third Wave filings with the SEC may be obtained from the SEC Internet site at www.sec.gov. Third Wave expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Third Wave's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based. Third Wave Technologies, Invader and the Third Wave logo are trademarks of Third Wave Technologies, Inc.
Third Wave Technologies, Inc.
Statement of Operations
(In thousands, except for per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Revenues:
Product $12,544 $8,515 $27,758 $16,701
Development 0 250 0 500
License & royalty 40 28 81 54
Grant 48 24 69 54
12,632 8,817 27,908 17,309
Operating expenses:
Cost of goods sold
Product cost of goods sold 3,114 2,999 6,810 5,712
Intangible amortization 376 376 752 752
Total cost of goods sold 3,490 3,375 7,562 6,464
Research and development 3,363 2,912 6,307 5,832
Selling and marketing 2,696 2,521 5,321 4,861
General and administrative 3,080 2,246 5,265 5,417
Impairment 759 0 759 0
9,898 7,679 17,652 16,110
Total operating expenses 13,388 11,054 25,214 22,574
Income (loss) from operations (756) (2,237) 2,694 (5,265)
Other income (expense):
Interest income 143 160 270 331
Interest expense (59) (92) (116) (184)
Other 566 8 (105) 34
650 76 49 181
Net income (loss) ($106) ($2,161) $2,743 ($5,084)
Net income (loss) per diluted share ($0.00) ($0.05) $0.07 ($0.13)
Weighted average diluted shares
outstanding 40,325 39,699 41,875 39,362
Third Wave Technologies, Inc.
Balance Sheets
(Unaudited)
June 30, December 31
2004 2003
Assets:
Cash, cash equivalents, and
short-term investments $68,998 $57,816
Other current assets 5,854 3,941
Equipment and leasehold improvements, net 6,359 8,527
Intangible assets, net of amortization 4,899 5,651
Goodwill and indefinite lived intangible
assets 1,497 1,497
Other assets 2,862 2,990
Total assets $90,469 $80,422
Liabilities and shareholders' equity
Accounts payable, accrued expenses
and other liabilities $11,697 $11,553
Deferred revenue 5,644 68
Debt 9,713 9,513
Shareholders' equity 63,415 59,288
Total liabilities and shareholders' equity $90,469 $80,422<<
Cheers, Tuck |
