Company Announces Restructuring to Reduce Spending for 2007 and Beyond
PORTLAND, Ore., March 27 /PRNewswire-FirstCall/ -- Bioject Medical
Technologies Inc. (Nasdaq: BJCT), a leading developer of needle-free drug
delivery systems, today reported financial results for the year and
quarter-ended December 31, 2006.
For the year-ended December 31, 2006, Bioject reported revenues of
$10.8 million compared to revenues of $12.3 million in 2005. Product sales
of $8.1 million in 2006 represented a decrease of 29% from 2005 levels.
This decrease was primarily due to decreased sales of Vetjet(TM) product to
Merial and lower sales to Serono. The Company reported operating and net
losses of $6.4 million and $7.3 million, respectively, in 2006 compared to
operating and net losses of $6.1 million and $6.6 million, respectively,
for 2005. The 2006 operating loss of $6.4 million included $2.0 million in
non-cash charges, comprised of $1.0 million for the write-off of assets,
$0.6 million in stock option and restricted stock expense and $0.4 million
charges in acceleration of vesting of restricted stock. Other net expenses
in 2006 included a non-cash charge of $0.9 million related to the
beneficial conversion of debt and the accretion of the convertible debt.
This amount was offset by a $1.1 million gain for the change in the fair
value of the derivative liabilities related to the financings the Company
completed in the second quarter of 2006. Net cash used in operating
activities in 2006 was $3.4 million compared to $3.7 million in 2005. Cash
and cash equivalents and short-term marketable securities at December 31,
2006 were $3.7 million.
Basic and diluted net loss per share for the year ended December 31,
2006 was $0.51 per share on 14.3 million weighted average shares
outstanding compared to a net loss of $0.48 per share on 13.8 million
weighted average shares outstanding for 2005.
For the quarter ended December 31, 2006, Bioject reported revenues of
$3.3 million, compared to revenues of $2.1 million in the comparable
year-ago quarter, a 57% increase. Product sales were $2.2 million compared
to fourth quarter 2005 product sales of $2.0 million. Fourth quarter 2006
license and development fees were $1.1 million compared to $87,000 for the
fourth quarter of 2005. The Company reported quarterly operating and net
losses of $889,000 and $1.2 million, respectively, in the fourth quarter of
2006 compared to operating and net losses of $2.0 million and $2.1 million,
respectively, in the comparable year-ago period.
Basic and diluted net loss per share for the quarter ended December 31,
2006 was $0.08 per share on 14.4 million weighted average shares
outstanding compared to a net loss of $0.15 per share on 13.9 million
weighted average shares outstanding for the same period last year.
"In 2006, our loss from operations remained relatively constant
compared to 2005, despite lower revenues, which reflects our continued
efforts to reduce expenses," said Mr. Jerald S. Cobbs, Chairman and Interim
President and CEO. "In addition, in 2006, we signed and completed several
agreements with Merial, signed a further agreement with our European
biotech partner and received a Small Business Innovative Research ("SBIR")
contract from the Centers for Disease Control and Prevention ("CDC")."
Key 2006 Events
-- Completed a $4.5 million equity financing with Sanders Morris Harris
and a $1.25 million debt financing with Partners for Growth.
-- Signed additional development and supply agreement with Merial for
delivery of one of its proprietary vaccines with a modified Vitajet(TM)
3 for use in the companion animal market.
-- Signed SBIR contract with CDC for further development of a global
immunization device.
-- Technology presented at two conferences showing improved immunogenicity
of cancer and AIDS vaccines when used with the Biojector(R) 2000.
-- Reported delay by Roche and Trimeris in submission to the FDA for
approval of Fuzeon(R) with the B2000.
-- Signed further development agreement with European biotech partner for
novel gas powered device.
-- Announced the retirement of Jim O'Shea, President and CEO, effective at
year-end.
-- Completed additional $2.5 million debt financing with Partners for
Growth.
The Company's independent registered public accounting firm's report on
the Company's financial statements for the fiscal year ended December 31,
2006 will include an explanatory paragraph regarding the Company's ability
to continue as a going concern.
The Company has restructured the corporate organization and has created
an executive committee consisting of Dr. Richard Stout, Executive Vice
President and Chief Medical Officer, and Christine Farrell, Vice President
of Finance, which reports to Mr. Cobbs, Chairman and Interim President and
CEO. In connection with the restructuring, on March 23, 2007, the Board of
Directors authorized the elimination of 14 positions to reduce expenses and
streamline operations. Subject to finalizing severance arrangements, the
Company anticipates recognizing a charge of $651,000 in the first quarter
of 2007 related to these actions. Of the $651,000, $484,000 is expected to
be cash severance and related charges and $167,000 is expected to be a
non-cash charge for the acceleration of vesting of restricted stock awards.
The Company anticipates cost savings of approximately $1.3 million in 2007
and approximately $1.9 million in 2008.
"In 2007, we will continue to focus our efforts on our current
strategic programs and signing agreements with new partners that leverage
our technology and provide funding for any initiatives. We believe that the
current reductions will streamline operations and narrow our loss in the
future, said Mr. Cobbs. "The steps that have been taken will allow the
Company to move toward profitability."
2007 Key Initiatives
-- Sign agreements with strategic partners.
-- Sign additional clinical collaborations.
-- Complete key programs optimizing the Bioject needle-free platform.
-- Reduce operating loss by reducing expenditures and increasing
efficiencies.
The Company will conduct a conference call to review fourth-quarter and
year end results for the twelve months ended December 31, 2006 on
Wednesday, March 28, 2007 at 10:00 a.m. Eastern Standard Time. The
conference call will be webcast and can be accessed through the Bioject
website at http://www.bioject.com.
Bioject Medical Technologies Inc., based in Tualatin, Oregon, is an
innovative developer and manufacturer of needle-free drug delivery systems.
Needle-free injection works by forcing medication at high speed through a
tiny orifice held against the skin. This creates a fine stream of
high-pressure fluid penetrating the skin and depositing medication in the
tissue beneath. The Company is focused on developing mutually beneficial
agreements with leading pharmaceutical, biotechnology and veterinary
companies.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding Bioject's expectations with respect to reduction of
operating losses, reducing expenditures and increasing efficiencies,
restructuring charges and cost savings, and new or additional agreements
with strategic partners. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company, or industry results,
to be materially different from any future results, performance, or
achievements expressed or implied by such forward-looking statements. Such
risks, uncertainties and other factors include, without limitation, the
risk that the Company's products, including the cool.click(TM) SeroJet(TM),
Vetjet(R) and Vial Adapter, will not be accepted by the market, the risk
that the Company will be unable to successfully develop and negotiate new
strategic relationships, uncertainties related to the time required for the
Company to complete research and development, obtain necessary clinical
data and government clearances, , and the risk that the Company may be
unable to comply with the extensive government regulations applicable to
Bioject's business. Readers of this press release are referred to the
Company's filings with the Securities and Exchange Commission, including
the Company's reports on Form 10-K and Forms 10-Q for further discussions
of factors that could affect the Company's business and its future results.
Forward-looking statements are based on the estimates and opinions of
management on the date the statements are made. The Company assumes no
obligation to update forward-looking statements if conditions or
management's estimates or opinions should change.
For more information about Bioject, visit http://www.bioject.com.
Bioject Medical Technologies Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
Three months ended Year ended
December 31, December 31,
2006 2005 2006 2005
RESULTS OF OPERATIONS:
Revenue
Net sales of products $2,217 $2,048 $8,089 $11,343
Licensing/technology 1,120 87 2,706 945
fees
3,337 2,135 10,795 12,288
Expenses
Manufacturing 1,779 2,074 7,869 9,096
Research and
development 1,063 1,005 4,493 4,922
Selling, general and 1,384 1,058 4,842 4,389
administrative
Total operating 4,226 4,137 17,204 18,407
expenses
Operating loss (889) (2,002) (6,409) (6,119)
Other income (expense), net (178) (123) (588) (470)
Preferred stock dividend (94) - (226) -
Beneficial conversion on - - (109) -
preferred stock
Net loss allocable to common $(1,161) $(2,125) $(7,332) $(6,589)
shareholders
Basic and diluted net loss
per common share $(0.08) $(0.15) $(0.51) $(0.48)
Shares used in per
share calculations 14,448,083 13,915,381 14,276,331 13,825,294
Bioject Medical Technologies Inc.
Condensed Consolidated Balance Sheet Data (Unaudited)
(In thousands)
December 31,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $1,978 $1,046
Marketable securities 1,675 1,500
Accounts receivable 1,324 2,390
Inventories 1,058 1,498
Assets held for sale - 1,104
Other 320 426
6,355 7,964
Property and equipment, net 2,984 4,559
Goodwill 94 94
Other assets, net 1,191 1,329
Total assets $10,624 $13,946
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Short-term note payable $839 $961
Current portion of long-term debt 333 1,083
Accounts payable and accrued 2,626 1,866
liabilities
Deferred revenue 1,167 1,908
4,965 5,818
Long term liabilities:
Long-term lease payable 358 350
Long-term debt 167 917
Deferred revenue 52 318
Shareholders' equity:
Preferred stock 6,801 1,879
Common stock 111,653 110,704
Accumulated deficit (113,372) (106,040)
5,082 6,543
Total liabilities and shareholders' $10,624 $13,946
SOURCE Bioject Medical Technologies Inc.
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Related links:
http://www.bioject.com/
CONTACT:
Jerald S. Cobbs, Chairman, Interim President
and CEO, +1-503-692-8001, ext. 4161, or Christine M. Farrell,
Vice President of Finance, +1-503-692-8001, ext. 4132, both of
Bioject Medical Technologies Inc.
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