Here is the latest financial report:
Tuesday May 12, 5:00 pm Eastern Time
Company Press Release
SOURCE: IGEN International, Inc.
IGEN Reports Fiscal Year 1998 Results
GAITHERSBURG, Md., May 12 /PRNewswire/ -- IGEN International, Inc. (Nasdaq: IGEN - news) reported financial
results today for the fourth quarter and the fiscal year ended March 31, 1998. Total revenue for the fourth quarter rose to $3.3
million up from $2.2 million in the same period a year ago. The Company reported a net loss of $2.8 million, or $0.22 per
share, for the fourth quarter, as compared to a net loss of $4.4 million, or $0.29 per share, for the same period a year ago. For
the fiscal year, revenue was $13.4 million versus $16 million for the year earlier period. The net loss for fiscal 1998, was $11.8
million, or $0.82 per share, versus a net loss of $9.9 million, or $0.66 per share, for fiscal 1997.
Revenue during the fourth quarter and fiscal 1998 reflects a significant change in mix compared to prior periods, as the
Company's license and contract revenue converted to royalty income based on product sales of corporate licensees. During the
fiscal year, $10.6 million of the Company's revenue was generated from the sale of products, either directly by IGEN or from
royalties on licensees' sales, a 47% increase from revenue of $7.2 million from comparable sources recorded in the prior year.
The Company explained that revenues from licensee fees and contract research are substantially replaced by royalties based on
sales. Thus while royalty revenue increased during fiscal 1998, revenue from license fees and contract research decreased to
$2.8 million from $8.8 million in the prior year.
In 1992, the Company entered into a License and Technology Development Agreement with Boehringer Mannheim GMbH
(''BMG''), pursuant to which BMG launched its Elecsys product line, which is based on IGEN's ORIGEN technology. The
Company is involved in litigation with BMG arising out of the Agreement. One of the disputes at issue in the litigation relates to
the computation of royalties to which the Company is entitled under the Agreement, which the Company believes have been
understated by BMG. For the year ended March 31, 1998, royalties recorded by IGEN under the Agreement totaled $4.4
million.
The Company had previously adjusted royalty revenue recognized during the first three quarters of fiscal 1998 to reflect only
amounts reported by BMG. Under the Company's interpretation of the Agreement, which BMG is disputing, estimated
cumulative royalties due from BMG (from the inception of the Agreement's Royalty Provisions, in January 1997 through March
31, 1998) which have not been recorded in the financial statements, total at least $2.6 million.
At March 31, 1998, the Company had $23.1 million in cash and investments with total assets of $30.4 million.
IGEN develops, manufactures and markets diagnostic systems utilizing its patented ORIGEN technology, which is based on
electrochemiluminescence. The ORIGEN technology provides uniform assay formats for conducting a multitude of diagnostic
tests, including immunoassay, nucleic acid probe and clinical chemistry tests. Products using the ORIGEN technology include
systems marketed by IGEN and its licensees, Boehringer Mannheim, Organon Teknika and Eisai Co., Ltd.
Statements in this release that relate to revenue growth and trends in
financial or operational performance are deemed to be forward-looking
statements. Actual results might differ materially from these statements due
to risks and uncertainties, including the impact of competitive products and
pricing, the timely development and market acceptance of new products, market
conditions, litigation, and enforcement of intellectual property rights. A
more detailed description of these risks and other risks applicable to IGEN
appears in IGEN's annual report on form 10-K for the year ended march 31,
1997, filed with the Securities and Exchange Commission and available upon
request from IGEN. IGEN disclaims any intent or obligation to update these
forward looking statements.
IGEN and ORIGEN are registered trademarks of IGEN International, Inc.
IGEN International, Inc.
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended Year ended
March 31, March 31,
1998 1997 1998 1997
REVENUES:
Product sales $1,494 $1,328 $5,614 $6,360
Royalty income 1,781 756 5,024 843
License fees and
contract revenue -- 70 2,795 8,802
Total 3,275 2,154 13,433 16,005
OPERATING COSTS AND EXPENSES:
Product costs 308 479 1,716 2,448
Research and development 3,123 3,081 11,615 13,114
Marketing, general and
administrative 2,771 2,919 11,761 10,910
Total 6,202 6,479 25,092 26,472
LOSS FROM OPERATIONS (2,927) (4,325) (11,659) (10,467)
OTHER INCOME (EXPENSE)
- NET 93 (85) (171) 586
NET LOSS $(2,834) $(4,410) $(11,830) $(9,881)
BASIC AND FULLY DILUTED
LOSS PER SHARE $(0.22) $(0.29) $(0.82) $(0.66)
SHARES USED IN COMPUTING NET
LOSS PER SHARE 15,214 14,983 15,116 14,959
SUMMARY BALANCE SHEET DATA
(In Thousands)
March 31, March 31,
1998 1997
CASH AND SHORT TERM INVESTMENTS$23,123 $9,044
TOTAL ASSETS 30,391 17,794
STOCKHOLDERS' EQUITY 20,862 7,882 |
