Melville, N.Y., July 20 /PRNewswire/ -- V. I. Technologies, Inc.
(Nasdaq: VITX) today announced financial results for the second quarter and
six months ended July 3, 1999. For the quarter, the Company posted a net loss
of $3,168,000, or $0.26 per share. These results compare to a net loss of
$1,696,000, or $0.18 per share, incurred in the year-ago quarter. Revenue for
the quarter was $9,352,000 compared to $7,946,000 from the year-ago quarter.
Results for the quarter included one-time costs of $2,918,000, or
$0.24 per share, related to the recent recall of PLAS+SD. In addition,
approximately $2,000,000 in minimum shipments of PLAS+SD under the Company's
contract with the American National Red Cross were not made in the quarter due
to production delays caused by the recall. The Company expects to make up the
shipment delays over the balance of the year.
For the six months ended July 3, 1999, revenue was $20,494,000 compared to
$12,067,000 for the first six months of 1998. The Company reported a net loss
of $2,553,000, or $0.21 per share, for the first six months of 1999, compared
to a net loss of $7,911,000, or $0.91 per share, for the same period in 1998.
In the attached Condensed Statements of Operations, the charge related to
product recall of $2,645,000 includes inventory losses, production testing,
recall expenses and a reserve for equitable sharing of recall costs incurred
by the American National Red Cross. Discussions with the American National
Red Cross on this issue are ongoing and are expected to be resolved shortly.
Costs associated with idle production facilities during the recall period in
the amount of $273,000 are included in cost of sales.
John Barr, V.I. Technologies' President and Chief Executive Officer
commented, "While the recall had a major adverse effect on our second quarter
financial results, excluding the one-time recall costs, our results were
generally in line with expectations. The important point here is that the
Company contained the problem to the quarter, quickly implemented experimental
screening techniques and emerged from the event with a stronger product." He
went on to say, "PLAS+SD continues to show gains in market penetration.
However, we are working with the ANRC to explore alternatives to expedite
market acceptance of the product."
VITEX is a leading developer and manufacturer of a broad portfolio of
blood products that utilize its patented viral inactivation technologies
designed to ensure safe blood products. The technologies are tailored for all
blood component applications and other blood-derived products, including
plasma, plasma derivatives, red blood cells and platelets. The first of
VITEX's virally-inactivated products, PLAS+SD, is the only FDA approved method
for viral inactivation of plasma.
Central to VITEX's strategy are collaborations to accelerate the
commercialization of its products. These include agreements with Bayer
Corporation to supply plasma fractions, the American National Red Cross to
distribute PLAS+SD, United States Surgical Corporation for the development and
distribution of fibrin sealant and Pall Corporation for the development and
distribution of systems for the viral inactivation of red blood cells and
platelets.
Except for the historical information contained herein, the matters
discussed are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties, such as quarterly fluctuations in
operating results, the timely availability of new products, market acceptance
of the company's products, the impacts of competitive products and pricing,
government regulation of the company's products and other risks and
uncertainties set forth in the company's filings with the Securities and
Exchange Commission. These risks and uncertainties could cause actual results
to differ materially from any forward-looking statements made herein.
V.I. Technologies, Inc.
Selected Financial Information
Condensed Statements of Operations
(In thousands, except for share data)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
July 3, July 4, July 3, July 4,
1999 1998 1999 1998
(unaudited)(unaudited)(unaudited)(unaudited)
Revenue $9,352 $7,946 $20,494 $12,067
Costs and expenses:
Cost of sales 5,326 5,363 11,386 10,105
Research and development, net 2,104 1,748 4,115 3,395
Selling, general and
administrative expenses 2,496 2,214 4,989 3,538
Charge related to
product recall 2,645 - 2,645 -
Charge related to
Pall research collaboration - - - 2,202
Total operating costs and
expenses 12,571 9,325 23,135 19,240
Loss from operations (3,219) (1,379) (2,641) (7,173)
Interest income (expense), net 51 (317) 88 (738)
Net loss $(3,168) $(1,696) $(2,553) $(7,911)
Basic and diluted net loss
per share $(0.26) $(0.18) $(0.21) $(0.91)
Weighted average shares used
in calculation of:
Basic and diluted net loss
per share 12,417 9,381 12,411 8,738
Condensed Balance Sheets
(In thousands)
July 3, January 2,
1999 1999
Cash and cash equivalents $27,470 $35,264
Trade receivables 5,980 3,967
Inventory 3,098 2,512
Other current assets 1,980 1,895
Property, plant & equipment, net 33,504 30,821
Other assets 503 766
Total assets $72,535 $75,225
Current liabilities $7,988 $6,575
Current portion, long-term debt 4,860 3,960
Long-term debt 8,339 11,055
Stockholders' equity 51,348 53,635
Total liabilities and stockholders' equity $72,535 $75,225
SOURCE V.I. Technologies, Inc.
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CONTACT:
John Barr or Debbie Bailey of V.I.
Technologies, 516-752-7314, ext. 6110, 6185, or Alison Ziegler,
Brian Gill, or Deanne Eagle of The Financial Relations Board-BSMG
Worldwide, 212-661-8030
NOTE TO EDITORS: To receive additional information on V.I.
Technologies, Inc., via fax, at no charge, dial 1-800-PRO-INFO
and enter code VITX.
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