PORTLAND, Ore., May 3 /PRNewswire-FirstCall/ -- Bioject Medical
Technologies Inc. (Nasdaq: BJCT), a leading developer of needle-free drug
delivery systems, today reported financial results for the quarter ended
March 31, 2006.
For the quarter ended March 31, 2006, Bioject reported revenues of $1.7
million compared to $3.3 million reported in the comparable year-ago
quarter. Product sales decreased $1.6 million from the first quarter of
2005 due to lower sales of the Vetjet(R) product to Merial in 2006 compared
to 2005 as a result of Merial's inventory build up of approximately
$900,000 in the first quarter of 2005 for the initial launch of the
Vetjet(R) product into the veterinary market and lower sales to Serono and
Amgen than in the 2005 quarter, offset by increased sales of $200,000 to
Chronimed and Ferring. License and technology fees remained constant year
over year.
The Company reported quarterly operating and net losses of $2.5 million
and $2.6 million, respectively, in the first quarter of 2006 compared to
operating and net losses of $1.9 million and $2.0 million, respectively, in
the comparable year-ago period. The higher operating loss reflects one-time
severance costs of $720,000 as a result of the Company's restructuring
during the first quarter of 2006.
Basic and diluted net loss per share for the quarter ended March 31,
2006 was $0.18 share on 14.1 million weighted average shares outstanding
compared to a net loss of $0.15 per share on 13.7 million weighted average
shares outstanding for the same period last year.
The Company's cash, cash equivalents and marketable securities balances
increased to $3.9 million at March 31, 2006 as a result of the debt
financings completed in the first quarter. In addition, in April 2006, the
Company received proceeds from the sale of the New Jersey headquarters. The
cash received was used to pay down the Company's outstanding debt by
approximately $1.1 million as was required by the terms of the Company's
preexisting debt agreement.
"During the first quarter, we received $2.75 million in debt financing
and completed our corporate restructuring, which will reduce our annual
expenses by approximately $1.2 million going forward. Assuming we receive
shareholder approval of our proposed Series E Preferred Stock financing and
the closing conditions for that financing are satisfied, $1.5 million of
this debt will convert into equity and we will receive an additional $3.0
million in equity financing. As we mentioned on our fourth quarter 2005
earnings call, we anticipated reduced first quarter product sales from our
customers due to high inventory balances and an increased net loss for the
first quarter of 2006 due to the lower revenues and the one-time charge of
approximately $720,000 associated with the restructuring," said Jim O'Shea,
CEO. "Looking forward, we anticipate product sales to increase over the
next few quarters based upon our customers' estimates and we remain
comfortable with the previously given 2006 revenues and operating loss
guidance."
"While license and development fees remained flat in the first quarter
of 2006 compared to the comparable quarter of 2005, we expect to see
increased revenues as we are able to recognize the development fees from
our existing collaborations over the next several quarters. Our business
development pipeline remains strong for future product development and
commercialized products," concluded O'Shea.
The Company will conduct a conference call to review first-quarter
results for the quarter ended March 31, 2006 on Thursday, May 4, 2006 at
10:00 a.m. Eastern Daylight 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 Portland, 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 future product
sales, development fees and royalties, future revenues and earnings,
reduction of operating expenses 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 or maintain existing relationships, the risk that
Bioject's current or new strategic relationships will not develop into
long-term revenue producing relationships, the fact that Bioject's business
has never been profitable and may never be profitable, the uncertainty of
shareholder approval of the Series E Preferred Stock, uncertainties related
to Bioject's dependence on the continued performance of strategic partners
and technology, uncertainties related to the time required for the Company
to complete research and development, obtain necessary clinical data and
government clearances, the risk that the Company may be unable to produce
its products at a unit cost necessary for the products to be competitive in
the market 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
March 31,
2006 2005
RESULTS OF OPERATIONS:
Revenue
Net sales of products $1,259 $2,867
Licensing and technology fees 435 386
1,694 3,253
Operating Expenses
Manufacturing 1,436 2,442
Research and development 1,033 1,746
Selling, general and administrative 1,688 987
Total operating expenses 4,157 5,175
Operating loss (2,463) (1,922)
Interest expense, net (133) (94)
Net loss allocable to common shareholders (2,596) (2,016)
Basic and diluted net loss per common share $ (0.18) $ (0.15)
Shares used in per share calculations 14,051,395 13,740,141
Bioject Medical Technologies Inc.
Condensed Consolidated Balance Sheet Data (Unaudited)
(In thousands)
March 31, December 31,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $2,403 $1,046
Marketable securities 1,500 1,500
Accounts receivable 497 2,390
Inventories 1,944 1,498
Assets held for sale 1,104 1,104
Other 985 426
8,433 7,964
Property and equipment, net 4,446 4,559
Goodwill 94 94
Other assets, net 1,270 1,329
Total assets $14,243 $13,946
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Short-term note payable $3,417 $961
Current portion of long-term debt 1,750 1,083
Accounts payable and accrued liabilities 2,353 1,866
Deferred revenue 1,476 1,908
8,996 5,818
Long term liabilities:
Long-term debt -- 917
Deferred revenue 318 318
Other long-term liabilities 346 350
Shareholders' equity:
Preferred stock 1,879 1,879
Common stock 111,341 110,704
Accumulated deficit (108,637) (106,040)
4,583 6,543
Total liabilities and shareholders' equity $14,243 $13,946
SOURCE Bioject Medical Technologies Inc.
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Related links:
http://www.bioject.com/
CONTACT:
Jim O'Shea, Chief Executive Officer, ext.
4161, or Chris Farrell, Vice President of Finance, ext. 4132,
both of Bioject Medical Technologies Inc., +1-503-692-8001; or
John Baldissera of BPC Financial Marketing, 800-368-1217, for
Bioject Medical Technologies Inc.
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