SANTA CLARA, Calif., May 5 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) today announced results for the first quarter ended March 31,
1999.
For the quarter, the company reported revenues of $2.7 million compared to
revenues of $2.7 million for the first quarter of 1998. Although revenues
were flat, sales of cytogenetic products and services were up 9.6% from the
first quarter of last year when adjusted for discontinued product sales and
non-recurring grant revenues. The net loss for the quarter was $1.8 million,
or $0.16 per share calculated on 11.5 million weighted average shares
outstanding, compared to a net loss of $2.5 million or $0.32 per share on
7.7 million shares outstanding in 1998.
Jack Goldstein, Ph.D., President and Chief Executive Officer, said, "I am
pleased with our results for the quarter which reflect the growing market
acceptance of our updated Windows NT(R) -- based product line introduced
during the 4th quarter of 1998. In addition, we have begun to see the
positive impact of our expense reduction programs resulting in a savings of
over $800,000 compared to the first quarter of 1998."
"The company achieved significant milestones in its Micrometastasis
Detection System, a new instrument designed to aid in the detection of
micrometastatic cancer cells in the bone marrow of cancer patients either
being staged or undergoing treatment for various forms of cancer. During the
quarter, we installed the first of these systems in a leading European
research institution for the purpose of a pre-clinical evaluation. Early
results are encouraging and suggest our ability to scan bone marrow
preparations for the presence of micrometastatic cells with accuracy equal to
or greater than that achieved by highly skilled cytologists and pathologists.
We are excited about this novel application of our automated scanning and
imaging system and look forward to completion of this evaluation during the
second quarter. The company plans to introduce a commercial version of this
research system later this year," added Goldstein.
"During the quarter, we also continued to invest in our fetal cell
screening program. In order to address several remaining technical issues the
program was returned to the research phase. Issues that we are now addressing
include immunostaining with embryonic hemoglobin antibodies simultaneous with
genetic diagnosis on the same cell as well as the preservation of the fetal
cells in maternal blood for 24 hours. These problems need to be resolved
before we can continue with the program more aggressively," said Goldstein.
Goldstein added, "We recently announced the appointment of Dr. Pablo
Valenzuela to our Board of Directors. He has over 20 years experience in the
biotechnology industry, and is currently Senior Vice President and co-founder
of Chiron Corporation. He will play an integral role in guiding our
regulatory and clinical programs."
The foregoing statement is a forward-looking statement within the meaning
of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. Actual results could differ materially from those projected in
the forward-looking statement as a result of a number of factors including the
failure of the Company to successfully develop or commercialize its prenatal
screening system, lack of regulatory approval, and other such factors as set
forth in the Company's form 10K for the year ended December 31, 1998 as filed
with the Securities and Exchange Commission.
Applied Imaging Corporation, based in Santa Clara, California, develops,
manufactures, and markets automated clinical analysis systems used by
laboratories for prenatal and other genetic diseases. The Company markets its
products worldwide and has more than 650 customer sites in over 35 countries.
Applied Imaging is a publicly traded company listed on the Nasdaq Stock Market
under the Symbol AICX.
APPLIED IMAGING CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three months ended
March 31,
1999 1998
Revenues $2,665 $2,674
Cost of revenues 1,314 1,241
Gross profit 1,351 1,433
Operating expenses
Research and development 1,131 1,923
Sales and marketing 1,061 1,329
General and administrative 720 727
Restructuring costs 224 -
Total cost and expenses 3,136 3,979
Other income (expense), net (21) 67
Net loss $(1,806) $(2,479)
Net loss per share- basic and diluted $(0.16) $(0.32)
Weighted average shares outstanding 11,530 7,668
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
1999 1998
(Unaudited)
ASSETS
Cash and marketable securities $9,623 $11,728
Other current assets 5,379 5,426
Property and equipment, net 1,450 1,569
Other assets, net 77 85
Total Assets $16,529 $18,808
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $5,838 $6,401
Other liabilities 59 64
Stockholders' equity 10,632 12,343
Total Liabilities and
Stockholders' Equity $16,529 $18,808
SOURCE Applied Imaging Corp.
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CONTACT:
Mike Braden, Corporate Controller of Applied
Imaging Corp., 408-562-0250; or General Info, Traci McCarty, or
Investors, Kate Rajeck, both of The Financial Relations Board,
415-986-1591
NOTE TO EDITORS: For additional information on Applied Imaging
via fax, please dial 1-800-PRO-INFO, (732-544-2850 outside of the
U.S.), code AICX
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