Company Completes Financing and Restructuring
PORTLAND, Ore., Aug. 2 /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
June 30, 2006.
For the quarter ended June 30, 2006, Bioject reported revenues of $2.8
million compared to $3.8 million for the comparable year ago period.
Product sales for the period were $2.1 million in the 2006 period compared
to $3.7 million in the 2005 period, primarily due to the build up of
inventory by Merial for the launch of the Vetjet product in 2005. License
and technology fees were $638,000 in the 2006 period compared to $65,000 in
the 2005 period. The Company reported an operating loss of $2.0 million in
the second quarter of 2006 compared to an operating loss of $1.2 million in
the second quarter 2005. The increased operating loss reflects a non-cash
charge of approximately $915,000 in connection with the termination of the
Company's agreement with a contract filler and write-down of the sterile
fill suite and associated equipment. Net loss for the three month period
ended June 30, 2006 was $4.0 million compared to $1.3 million in the
comparable 2005 period. Interest expense for the period was $1.9 million
compared to $134,000 for 2005. This increase was primarily a result of $1.7
million in non-cash debt issuance costs and beneficial conversion charges
related to the conversion of $1.5 million of debt held by Life Sciences
Opportunity Fund II and its affiliates into equity, beneficial conversion
charges associated with the $1.25 million Partners For Growth ("PFG")
convertible debt issuance and the pay down of PFG term debt with the
proceeds from the sale of the New Jersey office.
Basic and diluted net loss per share for the quarter ended June 30,
2006 was $0.28 per share on 14.3 million weighted average shares
outstanding compared to a net loss of $0.09 per share on 13.8 million
weighted average shares outstanding for the same period last year.
For the six months ended June 30, 2006, Bioject reported revenues of
$4.5 million compared to revenues of $7.0 million in the comparable year
ago period. The six month 2006 net loss was $6.6 million, or $0.46 per
share, compared to a net loss of $3.3 million, or $0.24 per share, in the
comparable year ago period.
"We anticipated a greater net loss this quarter than in the comparable
year ago period as a result of our financing and restructuring activities.
However, excluding the non-cash charge to manufacturing of $915,000, our
operating loss remained constant compared to the year ago quarter even
though revenues for the current quarter were lower," said Jim O'Shea,
Bioject's Chairman, President and CEO. "Net loss increased over the year
ago quarter, primarily due to the non-cash charges totaling $915,000 in
connection with write-down of the sterile fill suite and equipment and the
$1.7 million non-cash charge due to the recent financings."
"Our revenues of $2.8 million in the second quarter of 2006 reflect a
63% increase over the first quarter of 2006 and the operating loss of $2.0
million represents a 17% decrease over the first quarter," said Jim O'Shea.
"During this period, we completed our financing activities with the
shareholder approval of the issuance of $3.0 million of Series E Preferred
Stock, the conversion of $1.5 million debt to equity as part of that
issuance and the pay down of our loan with PFG by $1.0 million," said
O'Shea. "These financing activities resulted in approximately $1.7 million
in non-cash charges to interest expense."
"The Company also concluded its corporate restructuring with its
decision to terminate its agreement for future services with a sterile fill
contractor for its Iject(R) prefilled device. The termination was due to
the decision to switch to a more cost effective commercial filling method
and the interest of potential customers in doing their own filling,"
commented O'Shea. "While this decision is expected to save the Company
approximately $2.1 million in cash over the next three years, it resulted
in the write-down of a non-cash charge of $915,000 to manufacturing
expense."
"With the financing and restructuring behind us and the charges
associated with these transactions accounted for, and our promising future
prospects for new license and supply agreements in subsequent quarters, our
outlook continues to remain positive," concluded Jim O'Shea.
The Company will conduct a conference call to review second-quarter
results for the quarter ended June 30, 2006 on Thursday, August 3, 2006 at
10:00 a.m. Eastern Standard Time.
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 savings from
the restructuring and the prospects for new license and supply agreements.
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, 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, 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 Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Revenue:
Net sales of products $2,122 $3,689 $3,381 $6,556
License and
technology fees 638 65 1,073 451
2,760 3,754 4,454 7,007
Operating expenses:
Manufacturing 2,505 2,435 3,941 4,877
Research and development 1,343 1,149 2,376 2,895
Selling, general
and administrative 949 1,346 2,638 2,333
Total operating expenses 4,797 4,930 8,955 10,105
Operating loss (2,037) (1,176) (4,501) (3,098)
Interest income 33 24 78 63
Interest expense (1,941) (134) (2,119) (267)
Loss from operations before
preferred stock dividend (3,945) (1,286) (6,542) (3,302)
Preferred stock dividend (31) -- (31) --
Net loss allocable to
common shareholders $(3,976) $(1,286) $(6,573) $(3,302)
Basic and diluted net
loss per common share $ (0.28) $ (0.09) $ (0.46) $ (0.24)
Shares used in per
share calculations 14,251,962 13,786,099 14,152,233 13,763,247
Bioject Medical Technologies Inc.
Condensed Consolidated Balance Sheet Data (Unaudited)
(In thousands, except share data)
June 30, December 31,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $1,245 $1,046
Short-term marketable securities 2,720 1,500
Accounts receivable, net of allowance
for doubtful accounts of $17 and $12 1,426 2,390
Inventories 1,921 1,498
Assets held for sale -- 1,104
Other current assets 358 426
Total current assets 7,670 7,964
Property and equipment, net of accumulated
depreciation of $4,837 and $4,519 3,371 4,559
Goodwill 94 94
Other assets, net 1,093 1,329
Total assets $12,228 $13,946
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term note payable $1,895 $961
Current portion of long-term debt 368 1,083
Accounts payable 775 1,258
Accrued payroll 398 404
Other accrued liabilities 687 204
Deferred revenue 1,013 1,908
Total current liabilities 5,136 5,818
Long-term liabilities:
Long-term debt -- 917
Deferred revenue 268 318
Other long-term liabilities 337 350
Shareholders' equity:
Preferred stock, no par value, 10,000,000 shares
authorized; issued and outstanding:
Series D Convertible -- 2,086,957 shares
at June 30, 2006 and December 31, 2005,
no stated value, liquidation preference
of $1.15 per share 1,879 1,879
Series E Convertible -- 3,308,394 shares
at June 30, 2006 and zero at December 31,
2005, no stated value, liquidation preference
of $1.37 per share 4,564 --
Common stock, no par, 100,000,000 shares
authorized; issued and outstanding
14,317,659 shares and 13,968,563 shares at
June 30, 2006 and December 31, 2005 112,657 110,704
Accumulated deficit (112,613) (106,040)
Total shareholders' equity 6,487 6,543
Total liabilities and
shareholders' equity $12,228 $13,946
SOURCE Bioject Medical Technologies Inc.
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Related links:
http://www.bioject.com
CONTACT:
Jim O'Shea, Chief Executive Officer,
+1-503-692-8001, ext. 4161, or Chris Farrell, Vice President of
Finance, +1-503-692-8001, ext. 4132, both of Bioject Medical
Technologies Inc.
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