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Biotech / Medical : Xenogen (XGEN) -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (26)	8/4/2005 7:42:57 PM
From: tuck	Read Replies (1) \| Respond to of 45

XGEN beats earnings and revenue estimates pretty handily, but is still not cash flow positive. Still has the litigation issue, going to trial in a bit over a month. But the stock has been really beaten up, and this quarter should help. Nevertheless, a financing remains imminent, IMO. >>ALAMEDA, Calif., Aug. 4 /PRNewswire-FirstCall/ -- Xenogen Corporation (Nasdaq: XGEN - News), maker of advanced imaging systems including instruments, biological solutions and software to accelerate drug discovery and development, today reported financial results for the second quarter and six months ended June 30, 2005. Total revenue for the second quarter of 2005 was $9.7 million, a 30% increase over 2004 second quarter revenue of $7.5 million. The revenue growth reflects increased sales in all lines of Xenogen's business, especially sales of IVIS units which accounted for 59% of total growth over the prior year quarter. Loss from operations for the second quarter of 2005 was approximately $3.6 million, compared to a loss from operations of $5.1 million for the 2004 second quarter. Net loss for the second quarter of 2005 was $3.7 million, or a loss of $0.25 per share, compared to a net loss of $5.2 million, or a loss of $5.34 per share, for the second quarter of 2004. "During the second quarter of 2005, we achieved gross margin of 42%, a significant improvement compared to gross margin of 31% reported in the second quarter of last year," said David Carter, Chairman and Chief Executive Officer of Xenogen. "Product gross margin in the second quarter of 2005 increased to 38%, compared to about 28% in last year's second quarter. This improved gross margin primarily reflects higher pricing for IVIS systems and lower overhead per IVIS unit." Total revenue for the first six months of 2005 was $19 million, a 31% increase over total revenue of $14.5 million for the first six months of 2004. The increase primarily reflects increased IVIS unit sales and a higher net average sales price per IVIS unit due to product mix and higher pricing. Loss from operations for the first six months of 2005 was approximately $8.6 million, compared to a loss from operations of $11.4 million for the same period last year. Net loss for the first six months of 2005 was $8.9 million, or a loss of $0.60 per share, compared to a net loss of $11.4 million, or a loss of $11.88 per share, for the same period last year. Mr. Carter continued, "Additionally, Xenogen Biosciences reported its strongest quarterly revenue ever. Our strong second quarter contract revenue reflects completion of a major milestone for a biotechnology client's project work. We also saw improvement in contract gross margin, which was about 22% in the second quarter of 2005 as compared to 7% in the second quarter of 2004. This reflects greater operating leverage at Xenogen Biosciences. Contract revenues grew to $2.9 million in the second quarter of 2005 from $2.4 million in the second quarter of 2004, an increase of 20%. Cost of revenues, however, were only $2.3 million in the second quarter of 2005 as compared to $2.2 million in the same period of 2004, an increase of only about 5%. We continue to vigorously pursue additional large commercial research contracts that we believe will facilitate our business growth and profitability." Second-Quarter 2005 Financial Results Conference Call/Webcast Xenogen management will host a live conference call and webcast with investors today, August 4, 2005, at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time to discuss 2005 second-quarter results and the business outlook going forward. Investors and other interested parties may access the call by dialing 800-946-0783 in the U.S. and 719-457-2658 internationally. Additionally, a live audio webcast will be available through Xenogen's website at xenogen.com . A phone replay will be available for 48 hours following the completion of the call by dialing 888-203-1112 (domestic) or 719-457-0820 (international), and entering in reservation code 221-1404. The web cast will be archived and available on the Xenogen website for 14 days.<< snip Cheers, Tuck