ALAMEDA, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Xenogen Corporation
(Nasdaq: XGEN), maker of advanced imaging systems including instruments,
biological solutions and software designed to accelerate drug discovery and
development, today reported financial results for the 2005 third quarter and
nine months ended September 30, 2005.
Total revenue for the third quarter of 2005 was $8.7 million, a 30%
increase over 2004 third quarter revenue of $6.7 million. The increase
resulted primarily from increased sales of IVIS System units and the
associated licensing fees. IVIS System sales and licensing fees accounted for
49% and 30% of the growth, respectively. Loss from operations for the third
quarter of 2005 was approximately $5.9 million, compared to a loss from
operations of $5.3 million for the 2004 third quarter. Net loss for the third
quarter of 2005 was $5.9 million, or a loss of $0.34 per share, compared to a
net loss of $5.4 million, or a loss of $0.43 per share, for the 2004 third
quarter.
"IVIS System unit sales totaled 21 in the third quarter of 2005, which
includes three unit sales to commercial customers. This compares to 18 IVIS
System unit sales in the third quarter last year, which included only one unit
sale to a commercial customer," said David W. Carter, Chairman and Chief
Executive Officer.
Total revenue for the first nine months of 2005 was $27.7 million, a 31%
increase over total revenue of $21.2 million for the first nine months of
2004. The increase primarily reflects increased IVIS System unit sales and
associated licensing fees. In addition, the average selling price of IVIS
Systems increased 30% during the first nine months of 2005 versus the
comparable period in 2004. Loss from operations for the first nine months of
2005 was approximately $14.6 million, compared to a loss from operations of
$16.7 million for the comparable period in 2004. Net loss for the first nine
months of 2005 was $14.8 million, or a loss of $0.94 per share, compared to a
net loss of $16.8 million, or a loss of $3.48 per share, for the comparable
period in 2004.
Mr. Carter continued, "Xenogen is gaining operating leverage in 2005.
Through the first nine months of 2005, we have increased total revenue 31% for
the year over year period while total operating expense has increased only 5%
during that timeframe. With the completion of our debt transactions and
equity financing last quarter, we believe we have the cash required to drive
the Company to profitability."
Third-Quarter 2005 Financial Results Conference Call/Webcast
Xenogen management will host a live conference call and webcast with
investors today, November 3, 2005, at 5:00 p.m. Eastern Time/2:00 p.m. Pacific
Time to discuss 2005 third-quarter results and the business outlook going
forward. Investors and other interested parties may access the call by
dialing 800-475-3716 in the U.S. and 719-457-2728 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 251-4643. The
web cast will be archived and available on the Xenogen website for 14 days.
About Xenogen Corporation
Xenogen Corporation is a leading biotechnology company offering an
integrated suite of biophotonic real-time in vivo imaging and genetic
modification technologies that can help expedite drug discovery and
development, and significantly reduce the cost and time to market for new
therapies. Xenogen's VivoVision(TM) Systems non-invasively illuminate and
monitor biological processes within living mammals, at the molecular level, in
real time. The technology is designed to provide high quality in vivo data
earlier in the drug discovery and development process. VivoVision(TM)
Solutions are designed to improve discovery and pre-clinical research in
multiple therapeutic areas. VivoVision(TM) Biosciences represents more than 15
years of experience in the creation and characterization of animal models,
including genetic modifications, comprehensive phenotyping, compound profiling
and custom design and production of light producing cells, microorganisms and
animals.
More information is available at http://www.xenogen.com. Xenogen(R), Living
Image(R), VivoVision(TM) and IVIS(R) are trademarks of Xenogen Corporation.
Forward-Looking Statements
This press release contains forward-looking statements regarding our
future financial and operating results, including statements about our
operating leverage, capital resources and projected 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; 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; failure
to manufacture and deliver sufficient quantities of our products at acceptable
costs to meet anticipated customer demand; our limited sales and marketing
organization; our ability to attract and retain skilled personell;
difficulties or delays in development, testing, manufacturing, and marketing
of our products under development; our ability to enforce our intellectual
property rights or operate without infringing the patent rights of others;
competition from other companies or alternative technologies; contamination in
our animal populations; and our ability to obtain additional financing as
necessary to support our operations. 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 June 30, 2005 filed with
the Securities and Exchange Commission on August 15, 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.
XENOGEN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenue:
Product $5,157 $3,462 $15,491 $10,664
Contract 1,873 1,962 7,017 6,542
License 1,658 1,271 5,157 3,980
Total revenue 8,688 6,695 27,665 21,186
Cost of revenue:
Product 3,422 2,419 9,987 7,086
Contract 2,181 2,039 6,691 6,602
License 317 201 886 616
Total cost of revenue 5,920 4,659 17,564 14,304
Gross margin 2,768 2,036 10,101 6,882
Operating expenses:
Research and
development 2,218 2,745 6,748 9,480
Selling, general and
administrative 5,894 3,807 16,112 11,678
Depreciation and
amortization 575 740 1,795 2,414
Total operating
expenses 8,687 7,292 24,655 23,572
Loss from operations (5,919) (5,256) (14,554) (16,690)
Other income (loss)-net 126 21 94 277
Interest income 92 49 210 105
Interest expense (222) (184) (557) (472)
Net loss $(5,923) $(5,370) $(14,807) $(16,780)
Weighted average
number of common
shares outstanding 17,460,646 12,437,372 15,676,244 4,816,394
Loss per share data
(basic and diluted):
Net loss per share
attributable to
common stockholders $(0.34) $(0.43) $ (0.94) $(3.48)
(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 Sept 30, Nine Months Ended Sept 30,
2005 2004 2005 2004
Cost of revenue:
Product $14 $(17) $-- $279
Contract 9 (19) 7 207
License 1 (2) (1) 23
Total cost of revenue $24 $(38) $6 $509
Research and development $44 $(75) $(34) $1,103
Selling, general and
administrative $273 $157 $584 $1,913
XENOGEN CORPORATION
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(in thousands)
(unaudited)
Sept 30, December 31,
2005 2004
Cash, cash equivalents and short term
investments $21,769 $21,916
Working capital 20,994 14,071
Total assets 41,281 39,938
Deferred revenue 8,974 8,638
Long term obligations 6,648 1,054
Stockholders' Equity 16,204 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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