Revenues Increase 39% Over 2003
BEDMINSTER, N.J., July 28 /PRNewswire-FirstCall/ -- Bioject Medical
Technologies Inc. (Nasdaq: BJCT), a leading developer of needle-free drug
delivery systems, today announced financial results for the second quarter of
2004, which ended June 30, 2004.
For the second quarter, Bioject reported revenues of $2.0 million, a 39%
increase over the previous year's second-quarter revenues of $1.4 million.
Second-quarter product sales were $2.0 million compared to $1.2 million in the
prior year, due to increased Vial Adapter product sales to Amgen and increased
sales of the cool.click(TM) to Serono. The Company reported a second-quarter
operating loss and net loss allocable to common shareholders of $3.3 million,
compared to an operating loss of $2.5 million and a net loss allocable to
common shareholders of $2.4 million in the comparable year-ago quarter. The
second-quarter results reflect higher-than-anticipated product development
costs for the Iject(TM) resulting from increased design builds for potential
partners as well as increased expenditures related to sterile fill
capabilities for the Iject(TM). In addition, the Company incurred
approximately $484,000 of severance costs associated with the restructuring of
its operations during the quarter, as well as $90,000 of manufacturing expense
associated with the move of its manufacturing facility during the quarter.
Basic and diluted net loss per common share for the quarter were $0.24 per
share on 13.6 million weighted average shares outstanding, compared to a net
loss of $0.22 per share on 10.7 million weighted average shares outstanding
for the same period last year.
For the six months ended June 30, 2004, Bioject reported a net loss
allocable to common shareholders of $4.8 million on revenues of $5.0 million.
This compares to a net loss allocable to common shareholders of $4.6 million
on revenues of $2.5 million for the same period last year.
Basic and diluted net loss per share for the six months ended June 30,
2004 were $0.37 per share on 13.0 million weighted average shares outstanding
compared to a net loss of $0.43 per share on 10.7 million weighted average
shares outstanding for the comparable period last year.
"During the second quarter, we made significant progress in our two Merial
collaborations and continue to anticipate milestone payments later this year
from that partnership. As we announced last week, we signed an agreement with
PATH, an international nonprofit organization, whereby Bioject will design and
develop a needle-free, single-dose cartridge immunization system that will be
evaluated by PATH using testing and focus groups in the developing world,"
said Jim O'Shea, Chairman, President and CEO. "In addition, as mentioned
above, we completed a corporate reorganization during the quarter which will
eliminate layers of management, help reduce our negative cash flow in future
periods, and allow a more direct interface with senior management and
operations. We anticipate annual savings of approximately $800,000 to $1.0
million in salary, taxes and benefits and associated administrative costs from
the corporate restructuring over the next 12 months. Looking forward, we also
expect research and development expenses to decrease significantly in 2005
compared to 2004 as the Iject(TM) enters the production phase and Merial
products get closer to commercialization."
"Although we are pleased that our revenues during the first half of 2004
doubled compared to 2003, we continue to be challenged by the timing of
closing of new business development transactions. Our potential partners are
continuing with extensive testing of our Iject and other needle-free products
and we continue to remain confident that we will be successful in executing
our strategy," O'Shea concluded.
The Company will conduct a conference call to discuss second quarter
results on Thursday, July 29, 2004 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 Bedminster, New Jersey, and
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 revenues and earnings
and 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)
and the SeroJet(TM), 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, 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 our 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 on 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 Six months ended
June 30, June 30,
2004 2003 2004 2003
Revenue
Net sales of products $1,958 $1,155 $3,965 $1,939
Licensing/technology fees 17 264 1,016 581
1,975 1,419 4,981 2,520
Expenses
Manufacturing 1,982 1,191 3,784 2,120
Research and development 1,651 1,290 3,147 2,430
Selling, general and
administrative 1,672 1,395 2,956 2,732
Total operating expenses 5,305 3,876 9,887 7,282
Operating loss (3,330) (2,457) (4,906) (4,762)
Other income 6 66 70 156
Net loss allocable to common
shareholders $(3,324) $(2,391) $(4,836) $(4,606)
Basic and diluted net loss per
common share $(0.24) $(0.22) $(0.37) $(0.43)
Shares used in per share
calculations 13,569,658 10,708,247 13,028,847 10,661,539
Bioject Medical Technologies Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
June 30, Dec 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $5,181 $6,894
Marketable securities 1,456 2,259
Accounts receivable 1,152 1,300
Receivable from related party, current portion 37 74
Inventories, net 1,501 1,388
Other current assets 391 227
Total current assets 9,718 12,142
Long-term marketable securities -- 3,087
Restricted funds 1,500 1,500
Property and equipment, net 5,273 4,760
Other assets, net 1,068 979
Total assets $17,559 $22,468
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $276 $175
Accounts payable and accrued liabilities 2,131 2,012
Deferred revenue 70 434
Total current liabilities 2,477 2,621
Long-term liabilities:
Long-term lease payable 100 82
Long-term debt 1,157 1,325
Deferred revenue 451 484
Shareholders' equity:
Preferred stock -- 19,549
Common stock 108,580 88,777
Accumulated deficit (95,206) (90,370)
13,374 17,956
Total liabilities and shareholders' equity $17,559 $22,468
SOURCE Bioject Medical Technologies Inc.
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Related links:
http://www.bioject.com
CONTACT:
John Gandolfo, Chief Financial Officer, or
Cecelia C. Heer, Director, Investor Relations, both of Bioject
Medical Technologies Inc., +1-908-470-2800, ext. 5103
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