Growth Reflects Increased Sales in All Business Lines
ALAMEDA, Calif., Aug. 4 /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 second quarter and six
months ended June 30, 2005.
Total revenue for the second quarter of 2005 was $9.7 million, a 30%
increase over 2004 second quarter revenue of $7.5 million. The revenue growth
reflects increased sales in all lines of Xenogen's business, especially sales
of IVIS units which accounted for 59% of total growth over the prior year
quarter. Loss from operations for the second quarter of 2005 was
approximately $3.6 million, compared to a loss from operations of $5.1 million
for the 2004 second quarter. Net loss for the second quarter of 2005 was
$3.7 million, or a loss of $0.25 per share, compared to a net loss of $5.2
million, or a loss of $5.34 per share, for the second quarter of 2004.
"During the second quarter of 2005, we achieved gross margin of 42%, a
significant improvement compared to gross margin of 31% reported in the second
quarter of last year," said David Carter, Chairman and Chief Executive Officer
of Xenogen. "Product gross margin in the second quarter of 2005 increased to
38%, compared to about 28% in last year's second quarter. This improved gross
margin primarily reflects higher pricing for IVIS systems and lower overhead
per IVIS unit."
Total revenue for the first six months of 2005 was $19 million, a 31%
increase over total revenue of $14.5 million for the first six months of 2004.
The increase primarily reflects increased IVIS unit sales and a higher net
average sales price per IVIS unit due to product mix and higher pricing. Loss
from operations for the first six months of 2005 was approximately $8.6
million, compared to a loss from operations of $11.4 million for the same
period last year. Net loss for the first six months of 2005 was $8.9 million,
or a loss of $0.60 per share, compared to a net loss of $11.4 million, or a
loss of $11.88 per share, for the same period last year.
Mr. Carter continued, "Additionally, Xenogen Biosciences reported its
strongest quarterly revenue ever. Our strong second quarter contract revenue
reflects completion of a major milestone for a biotechnology client's project
work. We also saw improvement in contract gross margin, which was about 22%
in the second quarter of 2005 as compared to 7% in the second quarter of 2004.
This reflects greater operating leverage at Xenogen Biosciences. Contract
revenues grew to $2.9 million in the second quarter of 2005 from $2.4 million
in the second quarter of 2004, an increase of 20%. Cost of revenues, however,
were only $2.3 million in the second quarter of 2005 as compared to $2.2
million in the same period of 2004, an increase of only about 5%. We continue
to vigorously pursue additional large commercial research contracts that we
believe will facilitate our business growth and profitability."
Second-Quarter 2005 Financial Results Conference Call/Webcast
Xenogen management will host a live conference call and webcast with
investors today, August 4, 2005, at 5:00 p.m. Eastern Time/2:00 p.m. Pacific
Time to discuss 2005 second-quarter results and the business outlook going
forward. Investors and other interested parties may access the call by
dialing 800-946-0783 in the U.S. and 719-457-2658 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 221-1404. 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 our pursuit
of large commercial contracts their contribution to our business growth and
profitability. 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; our need to raise
additional capital to grow our business; the capital spending policies of
pharmaceutical, biotechnology and chemical companies and biomedical research
institutions that are our primary customers; our limited sales and marketing
organization; our ability to continue to deliver our products and services at
acceptable costs and on a timely basis; our ability to enforce our
intellectual property rights or operate without infringing the patent rights
of others; contamination in our animal populations; 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
Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2005 filed with
the Securities and Exchange Commission on May 16, 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 data
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Revenue:
Product $5,041 $3,720 $10,334 $7,202
Contract 2,873 2,390 5,144 4,580
License 1,788 1,341 3,498 2,709
Total revenue 9,702 7,451 18,976 14,491
Cost of revenue(a): 5,629 5,126 11,645 9,645
Gross margin 4,073 2,325 7,331 4,846
Operating expenses:
Research and
development (a) 2,196 3,190 4,530 6,735
Selling, general and
administrative (a) 4,910 3,425 10,218 7,871
Depreciation and
amortization (a) 585 775 1,220 1,673
Total operating
expenses 7,691 7,390 15,968 16,279
Loss from operations (3,618) (5,065) (8,637) (11,433)
Other income (loss)-net (16) 34 (31) 254
Interest income 61 15 118 56
Interest expense (166) (150) (334) (288)
Net loss $(3,739) $(5,166) $(8,884) $(11,411)
Weighted average
number of common
shares outstanding 14,791,306 968,244 14,776,278 960,810
Loss per share data
(basic and diluted):
Net loss per share
attributable to
common
stockholders (1) (0.25) $(5.34) $(0.60) $(11.88)
(1) Loss per share (LPS) is computed using the weighted average number of
shares outstanding during the quarter while LPS for the year-to-date period is
calculated using the weighted average number of shares outstanding during the
period. Thus, the sum of the LPS for each quarter may not equal the LPS for
the year-to-date period
(a) Includes charges for stock based compensation as follows:
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Cost of revenue:
Product $-- $149 $(15) $296
Contract 2 94 (2) 226
License -- 12 (2) 26
Total cost of revenue $2 $255 $(19) $548
Research and
development $(1) $547 $(78) $1,177
Selling, general
and administrative $168 $444 $312 $1,756
XENOGEN CORPORATION
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
(unaudited)
June 30, December 31,
2005 2004
Cash, cash equivalents and short term
investments $12,761 $21,916
Working capital 5,558 14,071
Total assets 28,758 39,938
Deferred revenue 7,395 8,638
Long term obligations 444 1,054
Stockholders' Equity 7,325 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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