Product Revenue up 52% Led by Strong System Unit Sales
ALAMEDA, Calif., May 11 /PRNewswire-FirstCall/ -- Xenogen Corporation
(Nasdaq: XGEN), maker of advanced imaging systems including instruments,
biological solutions and software to accelerate drug discovery and
development, today reported financial results for the 2005 first quarter ended
March 31, 2005.
Total revenue for the first quarter of 2005 was $9.3 million, a 32%
increase over 2004 first quarter revenue of $7.0 million. The revenue growth
reflects increased IVIS unit sales and a higher average sales price per IVIS
unit. Loss from operations for the first quarter of 2005 was approximately
$5.0 million, compared to $6.4 million for the 2004 first quarter. Net loss
for the first quarter was $5.1 million, or a loss of $0.35 per share, compared
to a net loss of $6.2 million, or a loss of $6.55 per share, for the same
quarter last year.
"We see continued strong demand for our state-of-the-art imaging systems,"
said David Carter, Chairman and Chief Executive Officer. "Instrument sales
were seasonally strong in our academic market and our international
distributors sold more units this past quarter than ever before. Demand for
our flagship system, the IVIS 200, has exceeded our plans and we are adding
capacity to raise production volume accordingly. We believe our continued
strong sales momentum reflects increasing customer recognition of the power of
biophotonic imaging."
Xenogen introduced its next generation imaging system, the IVIS 3D, at the
scientific meeting of the American Association of Cancer Research in April
2005, where it began taking orders. Xenogen expects that the IVIS 3-D Imaging
System will be commercially available in the Fall of 2005. This permits the
Company to incorporate certain new performance features and industrial design
elements to enhance its value proposition. When launched, the IVIS 3-D
Imaging System, as well as Xenogen's other imaging systems, will include a new
look and feel.
"In the first quarter, we sold three commercial IVIS systems, which is a
strong start for Xenogen historically. We are continuing to develop new
commercial accounts. New commercial customers during the first quarter of
2005 include Infinity Pharmaceuticals, Wyeth Pharmaceuticals and MIR
Preclinical Services. In the second quarter 2005, we completed an agreement
with Genentech."
First-Quarter 2005 Financial Results Conference Call/Webcast
Xenogen management will host a live conference call and webcast with
investors today, May 11, 2005, at 5:00 p.m. Eastern Time/2:00 p.m. Pacific
Time to discuss 2005 first-quarter results and the business outlook going
forward. Investors and other interested parties may access the call by
dialing (800) 406-5356 in the U.S. and (913) 981-5572 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 892-4348.
The web cast will be archived and available on the Xenogen website for
14 days.
About Xenogen Corporation
Xenogen combines systems biology and low-light optical imaging to create
powerful new biophotonic imaging technology that advances the ability of
scientists to explore genes, proteins, pathogens and tumor cells in living
animals in real time, providing predictive data that is designed to
substantially improve the success rate in drug development. Xenogen
incorporates into living animals the bioluminescent gene that makes a firefly
glow and harnesses the resulting light using an ultra-sensitive camera and
sophisticated software. This biophotonic imaging technology creates images and
analyzes the resulting data on cellular activity, gene expression, and spread
of disease or the effect of a new drug candidate. Xenogen's biophotonic
imaging technology is used by leading academics and pharmaceutical and
biotechnology companies to provide more accurate and previously unavailable
data that is intended to result in the ability to make more timely and
cost-effective decisions at every step in the drug development process.
Forward-Looking Statements
This press release contains forward-looking statements regarding our
future financial and operating results, including statements about positive
sales momentum for our products, the anticipated launch of our new IVIS 3-D
Imaging System, our anticipated revenue growth and the addition of production
capacity. 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: 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
receive anticipated revenue under long term customer agreements that may not
be renewed or may be cancelled; our ability to obtain additional financing as
necessary to support our operations; failure to manufacture and deliver
sufficient quantities of our products at acceptable costs to meet anticipated
customer demand; difficulties or delays in development, testing,
manufacturing, and marketing of our products under development; our ability to
continue to deliver our products on a timely basis; product recalls; our
limited sales and marketing organization; our ability to enforce our
intellectual property rights or operate without infringing the patent rights
of others; and competition from other companies or alternative technologies.
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 Annual Report on Form 10-K for the
Year Ended December 31, 2004 filed with the Securities and Exchange Commission
on March 21, 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.
NOTE: Xenogen(R) and IVIS(R) are registered trademarks of Xenogen
Corporation.
XENOGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended
March 31,
2005 2004
Revenue:
Product $5,293 $3,482
Contract 2,271 2,190
License 1,710 1,368
Total Revenue 9,274 7,040
Total Cost of Revenue (a) 6,016 4,519
Gross Margin 3,258 2,521
Operating Costs and Expenses:
Research and Development (a) 2,334 3,545
Selling , General, and Administrative (a) 5,308 4,446
Depreciation and Amortization Expense 635 898
Total Operating Costs and Expenses 8,277 8,889
Loss from Operations (5,019) (6,368)
Other Income - net (15) 220
Interest Income (Expense) 57 41
Interest Expense (168) (138)
Net Loss Attributable to Common Stockholders $(5,145) $(6,245)
Weighted Average Number
of Common Shares Outstanding 14,821,840 953,377
Loss per Share Data:
Net Loss Attributable
to Common Stockholders (1) $(0.35) $(6.55)
(1) Loss per share (LPS) is computed using the weighted average number
of shares outstanding during the quarter.
(a) Includes charges for stock based compensation as follows:
Three Months Ended
March 31,
2005 2004
Cost of Revenue:
Product $(15) $147
Contract (4) 132
License (2) 14
Total Cost of Revenue $(21) $293
Research and Development $(77) $630
Selling, General, and Administrative $144 $1,312
XENOGEN CORPORATION
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
(unaudited)
March 31, December 31,
2005 2004
Cash, cash equivalents
and short term investments $16,514 $21,916
Working capital 9,120 14,071
Total assets 33,294 39,938
Deferred revenue 7,315 8,638
Long term obligations 735 1,054
Stockholders' Equity 10,880 15,947
Note: The selected balance sheet information at December 31, 2004 has
been derived from the audited 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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