Record Fourth Quarter Revenue and Sharply Lower Quarterly Loss
ALAMEDA, Calif., March 2 /PRNewswire-FirstCall/ -- Xenogen Corporation
(Nasdaq: XGEN), maker of advanced imaging systems including instruments,
biological solutions and software designed to accelerate drug discovery and
development, today reported financial results for the 2005 fourth quarter and
full year ended December 31, 2005.
Total revenue for the fourth quarter of 2005 was $12.0 million, a 24%
increase over 2004 fourth quarter revenue of $9.7 million. The increase
resulted from increased sales of IVIS System units, associated licensing fees
and growth in contract revenue from operations in Cranbury, New Jersey. For
the fourth quarter of 2005 compared to the fourth quarter of 2004, product
revenues increased 23%, contract revenues increased 28% and licensing revenues
increased 20%. Loss from operations for the fourth quarter of 2005 was
approximately $2.6 million, or about half the loss from operations of $5.2
million for the 2004 fourth quarter. Net loss for the fourth quarter of 2005
was $2.8 million, or a loss of $0.14 per share, compared to a net loss of $5.0
million, or a loss of $0.34 per share, for the 2004 fourth quarter.
"IVIS System revenues which represent the majority of product revenues and
almost half of total revenues in 2005 increased 40% from $13.4 million in 2004
to $18.7 million in 2005. The growth in IVIS System revenues was lead by over
100% growth in unit sales of our IVIS 200 Systems and increased average
pricing for all IVIS Systems versus 2004. We successfully launched our IVIS
3D system in 2005 with three initial sales, which could build nicely going
forward," said David W. Carter, Chairman and Chief Executive Officer.
Total revenue for the full year 2005 was $39.7 million, a 28% increase
over total revenue of $30.9 million for the full year 2004. The increase
primarily reflects increased IVIS System unit sales and associated licensing
fees as well as contract sales growth for Xenogen's Cranbury operations. In
addition, the average selling price of IVIS Systems increased 21% during 2005
compared to 2004. Loss from operations for the full year 2005 was
approximately $17.1 million, compared to a loss from operations of $21.9
million for the full year 2004. Net loss for the full year 2005 was $17.6
million, or a loss of $1.05 per share, compared to a net loss of $21.8
million, or a loss of $2.99 per share, for the full year 2004.
Mr. Carter continued, "In 2005, Xenogen delivered better operating
leverage and margin improvement. For the full year 2005 compared to the full
year 2004, we increased total revenue 28%, improved gross margin from 34% to
39%, while only growing total operating expense less than 1%. We are excited
about the opportunities our proposed merger with Caliper Life Sciences
presents. We believe that the combination will facilitate our products and
services reaching a broader market more efficiently and boost research and
development productivity for our customers."
Fourth-Quarter 2005 Financial Results Conference Call/Webcast
Xenogen management will host a live conference call and webcast with
investors today, March 2, 2006, at 5:00 p.m. Eastern Time/2:00 p.m. Pacific
Time to discuss 2005 fourth-quarter and full-year results. Investors and
other interested parties may access the call by dialing 800-946-0706 in the
U.S. and 719-457-2638 internationally. Additionally, a live audio webcast will
be available through Xenogen's website at http://www.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 524-4395. The web cast will be archived and available on
the Xenogen website for 14 days.
About Xenogen Corporation
Xenogen Corporation is a leading biotechnology company offering an
integrated suite of biophotonic real-time in vivo imaging and genetic
modification technologies that can help expedite drug discovery and
development, and significantly reduce the cost and time to market for new
therapies. Xenogen's VivoVision(TM) Systems non-invasively illuminate and
monitor biological processes within living mammals, at the molecular level, in
real time. The technology is designed to provide high quality in vivo data
earlier in the drug discovery and development process. VivoVision(TM)
Solutions are designed to improve discovery and pre-clinical research in
multiple therapeutic areas. VivoVision(TM) Biosciences represents more than 15
years of experience in the creation and characterization of animal models,
including genetic modifications, comprehensive phenotyping, compound profiling
and custom design and production of light producing cells, microorganisms and
animals.
More information is available at http://www.xenogen.com. Xenogen(R), Living
Image(R), VivoVision(TM) and IVIS(R) are trademarks of Xenogen Corporation.
Forward-Looking Statements
This press release contains forward-looking statements regarding future
sales of our IVIS Systems, our proposed merger with Caliper Life Sciences, and
the increased reach of our products and services and boost in research and
development productivity for our customers resulting from the merger. Our
forward-looking statements are based on our current expectations, estimates
and assumptions and are subject to many risks, uncertainties and unknown
future events that could cause actual results to differ materially. Actual
results may differ materially from those set forth in this release due to the
risks and uncertainties inherent in our business, including, without
limitation: Caliper and Xenogen may not complete the merger, and if completed,
the expected benefits from combining Caliper with Xenogen may not be realized;
our expectations regarding growth in acceptance of our products, services and
technology; the capital spending policies of pharmaceutical, biotechnology and
chemical companies and biomedical research institutions that are our primary
customers; failure to manufacture and deliver sufficient quantities of our
products at acceptable costs to meet anticipated customer demand; our limited
sales and marketing organization; our ability to attract and retain skilled
personnel; competition from other companies or alternative technologies; our
ability to enforce our intellectual property rights or operate without
infringing the patent rights of others; and our ability to obtain additional
financing as necessary to support our operations. For a discussion of these
and other factors that could impact our financial results and cause our
results to differ materially from those in the forward-looking statements,
please refer to our filings with the Securities and Exchange Commission,
particularly our Quarterly Report on Form 10-Q for the Quarter Ended September
30, 2005 filed with the Securities and Exchange Commission on November 14,
2005. Xenogen is under no obligation to (and specifically disclaims any such
obligation to) update or alter its forward-looking statements whether as a
result of new information, future events or otherwise.
Participants in the Solicitation
In connection with the proposed merger, Xenogen Corporation will be filing
a proxy statement with the Securities and Exchange Commission. Investors and
security holders of Xenogen Corporation are advised to read the proxy
statement regarding the proposed merger referred to in this communication when
it becomes available because it will contain important information. Xenogen
Corporation expects to mail a proxy statement about the proposed merger to its
stockholders. In addition to the proxy statement, Xenogen Corporation files
annual, quarterly, and special reports, proxy statement and other information
with the Securities and Exchange Commission. Investors and security holders
may obtain a free copy of the proxy statement and any other documents filed by
Xenogen Corporation at the Securities and Exchange Commission's web site at
http://www.sec.gov and directly from Xenogen Corporation.
Xenogen Corporation and its officers and directors may be deemed to be
participants in the solicitation of proxies from stockholders of Xenogen
Corporation with respect to the proposed merger. Information regarding such
officers and directors is included in Xenogen Corporation's Annual Report on
Form 10-K for the fiscal year ended December 31, 2004 and in its proxy
statement for its 2005 annual meeting, filed with the Securities and Exchange
Commission. This document is available free of charge at the Securities and
Exchange Commission's web site at http://www.sec.gov and directly from Xenogen
Corporation.
XENOGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
Revenue:
Product $7,061 $5,747 $22,552 $16,411
Contract 3,052 2,383 10,069 8,925
License 1,888 1,567 7,044 5,547
Total revenue 12,001 9,697 39,665 30,883
Cost of revenue:
Product 4,383 3,734 14,370 10,820
Contract 2,096 2,159 8,786 8,761
License 337 293 1,225 909
Total cost of
revenue 6,816 6,186 24,381 20,490
Gross margin 5,185 3,511 15,284 10,393
Operating expenses:
Research and
development 2,148 3,034 8,896 12,514
Selling, general
and administrative 5,098 4,976 21,210 16,654
Depreciation and
amortization 510 679 2,305 3,092
Total operating
expenses 7,756 8,689 32,411 32,260
Loss from operations (2,571) (5,178) (17,127) (21,867)
Other income (loss)
- net (24) 318 71 593
Interest income 132 42 342 147
Interest expense (283) (178) (839) (650)
Net loss $(2,746) $(4,996) $(17,553) $(21,777)
Weighted average
number of common
shares outstanding 20,047,203 14,678,215 16,777,965 7,295,321
Loss per share data
(basic and diluted)(1):
Net loss per share
attributable
to common
stockholders $(0.14) $(0.34) $(1.05) $(2.99)
(1) Loss per share (LPS) is computed using the weighted average number of
shares outstanding during the quarter while LPS for the year-to-date
period is calculated using the weighted average number of shares
outstanding during the period. Thus, the sum of the LPS for each
quarter may not equal the LPS for the year-to-date period
The Statements of Operations include charges for stock based compensation
as follows:
Three Months Ended Twelve Months Ended
Dec 31, Dec 31,
2005 2004 2005 2004
Cost of revenue:
Product $23 $112 $22 $391
Contract 11 50 18 257
License 2 9 1 32
Total cost of revenue $36 $171 $41 $680
Research and development $75 $378 $41 $1,481
Selling, general and
administrative $299 $451 $884 $2,364
XENOGEN CORPORATION
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
(2005 unaudited)
December 31, December 31,
2005 2004
Cash, cash equivalents and
short term investments $20,737 $21,916
Working capital 20,212 14,071
Total assets 42,829 39,938
Deferred revenue 9,739 8,638
Long term obligations 8,099 1,054
Stockholders' Equity 13,905 15,947
Note: The selected balance sheet information at December 31, 2005 and
December 31, 2004 has been derived from audited and unaudited financial
statements but does not include all of the information and footnotes required
by generally accepted accounting principals for complete financial statements.
SOURCE Xenogen Corporation
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Related links:
http://www.xenogen.com
CONTACT:
William A. Albright, Chief Financial Officer
of Xenogen Corporation, +1-510-291-6100
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