-- Record Revenues - Up 19% Over Third Quarter 2003 --
RESEARCH TRIANGLE PARK, N.C., Nov. 8 /PRNewswire-FirstCall/ -- Icoria,
Inc. (Nasdaq: ICOR), today reported financial results for the quarter ended
September 30, 2004.
Icoria's strong performance under its existing contracts and growing
acceptance of its gene expression business led to its highest-ever quarterly
revenues. For the third quarter of 2004, overall revenues increased by 19% to
$7.1 million as compared to $6.0 million in the third quarter of 2003.
Revenue for the nine months ended September 30, 2004 increased nearly 17% to
$18.3 million as compared to $15.7 million in the same period in 2003.
"We are very pleased to report the highest ever quarterly revenue in
company history due primarily to increasing revenues earned on our existing
contracts with the National Institute of Environmental Health Sciences and
Pioneer, which offset the expected decline in revenues from our more mature
contracts with Monsanto and Bayer," said Heinrich Gugger, Ph.D. "During the
third quarter, we also expanded the capabilities of our Paradigm Array Labs
("PAL") gene expression service business through the addition of laser capture
microdissection services, microRNA detection and analysis services and Good
Laboratory Practice ("GLP") compliance. These new offerings have led to the
signing of new contracts with pharmaceutical companies, which we expect to
positively impact our PAL revenue during the fourth quarter of 2004."
Dr. Gugger continued, "In addition, our healthcare team is continuing to
work on two customer pilot projects, one of which has entered into a second
phase, and we are hopeful that they will result in larger follow-on contracts.
We also continue to make meaningful progress with our Agriculture programs as
demonstrated by several new fungicide patents granted to Icoria during the
past year. Finally, with the closing of our recently announced $5 million
convertible debt financing in October, we have extended our ability to
vigorously pursue our business opportunities by strengthening our liquidity
position."
Total operating expenses for the third quarter 2004 increased to
$10.1 million, or by 26%, compared to $8.1 million in the third quarter 2003.
For the nine months ended September 30, 2004, total operating expenses
increased to $28.5 million, or by 13%, as compared to $25.1 million in the
same period in 2003. These operating expenses reflect the second full quarter
of costs related to Icoria's acquisition of TissueInformatics.Inc on March 11,
2004. The increases in operating costs for both the quarter and nine month
period ended September 30, 2004 were due primarily to materials costs
associated with higher revenues from the Company's contract with the National
Institute of Environmental Health Sciences, the evolution of its research and
development programs, additional sales and marketing costs associated with the
expansion of our offerings and amortization of intangible assets associated
with the TissueInformatics.Inc acquisition.
Icoria reported a third quarter 2004 net loss of $3.1 million, or
$0.08 per common share, or 36% higher than the third quarter 2003 net loss of
$2.2 million, or $0.07 per common share. For the nine months ended
September 30, 2004, Icoria reported a net loss of $10.3 million, or $0.29 per
common share, which is a 4% increase over the prior period net loss of
$9.9 million, or $0.31 per common share.
As of September 30, 2004, the Company reported unrestricted cash, cash
equivalents and short-term investments in the amount of $7.1 million.
During the third quarter of 2004, the Company reached an agreement with
General Electric Capital Corporation (GECC), which permitted the Company to
prepay without penalty the remaining note balance with GECC through payments
of $0.3 million in each of September and October 2004. In addition, payments
from two customers totaling over $1 million, which were due and expected to be
received during the quarter, were delayed until the first week of October
2004. Excluding the prepayment to GECC and the delay in customer receipts,
the net decrease in cash, cash equivalents and investments ("cash burn") for
the third quarter 2004 was $2.3 million, which consisted of $1.3 million from
operating activities, $0.5 million for capital expenditures and $0.5 million
for recurring term debt and capital lease obligations. During the same period
in 2003 the comparable net cash burn was $2.2 million, excluding the impact of
new borrowings during that quarter.
Icoria's Significant Third Quarter and Recent Accomplishments and
Activities:
The Company has previously announced the following accomplishments and
activities (by release date), the full text of which may be found on our web
site at http://www.icoria.com/news :
-- Icoria expands patent portfolio through the grant of its sixth
fungicide target patent (October 26, 2004).
-- Icoria raises $5 million gross proceeds through the sale of a three-
year Secured Convertible Term Note in a private placement With Laurus
Master Fund, Ltd. (October 21, 2004).
-- Icoria signs an agreement with Rosetta Genomics, Ltd. to commercialize
Rosetta Genomics' proprietary MirChip(TM) microRNA technology
(October 18, 2004).
-- Icoria expands partnering with Agilent Technologies to include
$11.7 million ATP grant for Informatics (October 7, 2004).
-- Icoria offers GLP compliant gene expression profiling services through
its Paradigm Array Labs services unit (September 20, 2004).
-- Icoria changes its corporate identity from Paradigm Genetics, Inc. to
Icoria, Inc. to reflect its strategic transformation into a cutting-
edge systems biology company (August 18, 2004).
-- Icoria enters into collaboration with Arcturus Biosciences to provide
microgenomics and laser capture microdissection technology services
(August 12, 2004).
About Icoria
Icoria is an integrated systems biology company applying its proprietary
platform to the discovery and development of safer, more effective drugs and
agrichemicals. Icoria has major contracts with the National Institute of
Environmental Health Sciences, Bayer CropScience, the Monsanto Company,
Pioneer Hi-Bred International (a subsidiary of DuPont) and L'Oreal Inc.
Icoria also has a major grant from the National Institute of Standards &
Technology's Advanced Technology Program. For more information,
visit http://www.icoria.com .
Quarterly Conference Call
Icoria will host a conference call at 8:30 a.m. ET on Monday, November 8,
2004 to review financial results for the three months ended September 30,
2004. This call will be webcast via the Internet at http://www.icoria.com ,
where any supplemental financial information will be available, and will be
accessible through the investor relations section and home page of Icoria's
web site. To listen to the call via telephone, dial 800-500-0311 (U.S. and
Canadian callers) or 719-457-2698 (international callers) and enter conference
ID #820780. A replay of the webcast will be available via telephone from
11:00 a.m. on November 8, 2004 through midnight on November 12, 2004 at
888-203-1112 (U.S. and Canadian callers) or 719-457-0820 (international
callers) and enter conference ID #820780. A replay of the webcast will also
be available via website until November 8, 2005.
ICORIA, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Revenues:
Revenues from
commercial and
government contracts $6,798,000 $5,135,000 $17,073,000 $14,256,000
Grant revenues 322,000 867,000 1,189,000 1,410,000
Total revenues 7,120,000 6,002,000 18,262,000 15,666,000
Operating expenses:
Research and
development 7,524,000 6,172,000 20,555,000 18,516,000
Selling, general and
administrative 2,610,000 1,882,000 7,909,000 6,580,000
Total operating
expenses 10,134,000 8,054,000 28,464,000 25,096,000
Loss from operations (3,014,000) (2,052,000) (10,202,000) (9,430,000)
Other interest
income (expense), net (46,000) (228,000) (173,000) (456,000)
Net loss from
continuing operations (3,060,000) (2,280,000) (10,375,000) (9,886,000)
Discontinued operations 6,000 37,000 32,000 (60,000)
Net loss attributable
to common
stockholders $(3,054,000) $(2,243,000) $(10,343,000) $(9,946,000)
Net loss per share -
basic and diluted
Loss from continuing
operations $(0.08) $(0.07) $ (0.29) $ (0.31)
Loss from discontinued
operations 0.00 0.00 0.00 0.00
Net loss per common share $(0.08) $ (0.07) $ (0.29) $ (0.31)
Weighted average
common shares
outstanding -
basic and diluted 36,300,000 32,564,000 35,325,000 32,226,000
Icoria, Inc.
2004 Third-Quarter Results
Condensed Balance Sheet Data
September 30, December 31,
2004 2003
(unaudited)
Assets:
Cash, cash equivalents, short-term investments $7,087,000 $16,285,000
Other current assets 4,029,000 4,005,000
Total Current Assets 11,116,000 20,290,000
Property plant & equipment net 15,638,000 17,337,000
Other noncurrent assets 5,068,000 1,827,000
Total Assets $31,822,000 $39,454,000
Liabilities and Stockholders' Equity:
Current liabilities 14,101,000 16,094,000
Long-term obligations 3,689,000 3,846,000
Stockholders' equity 14,032,000 19,514,000
Total Liabilities and Stockholders' Equity $31,822,000 $39,454,000
Icoria, Inc.
Supplemental Information Re: Increase/(Decrease) in Cash, Cash Equivalents,
Short - Term and Long - Term Investments (See Note Below)
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2004 2003 2004 2003
Net cash used in
operating activities $(2,277,000) $(2,059,000) $(6,001,000) $(5,505,000)
Net cash (used in)
provided by investing
activities, excluding
purchases and maturities
of short-term and
long-term investments (527,000) (103,000) 1,294,000 (242,000)
Net cash (used in) provided
by financing activities (832,000) 2,701,000 (4,491,000) 544,000
Net decrease in cash, cash
equivalents, short-term
investments and long-
term investments (3,636,000) 539,000 (9,198,000) (5,203,000)
Cash, cash equivalents,
short-term investments
and long term investments,
beginning of period 10,723,000 15,490,000 16,285,000 21,232,000
Cash, cash equivalents,
short-term investments
and long term investments,
end of period $7,087,000 $16,029,000 $7,087,000 $16,029,000
Note: The above presentation of the change in cash and investments is not
meant to be in accordance with generally accepted accounting principles
("GAAP") in the U.S. GAAP requires the presentation of a statement of cash
flows only (i.e., excluding changes in short and long-term investments). In
order to fully assess the Company's liquidity position, management believes
that the cash flow measure presented above, which includes short-term
investments, is an appropriate measure for evaluating the Company's liquidity,
because this reflects all liquid resources available for strategic
opportunities including, among others, to invest in the business and continue
operating activities. However this measure should be considered in addition
to, and not as a substitute for, or superior to, cash flows prepared in
accordance with generally accepted accounting principles in the U.S.
Under GAAP, cash flows from investing activities above would improve by
net maturities of investment securities in the amount of $3.0 million and
$0.05 million for the three months ended September 30, 2004 and 2003,
respectively, and by $6.1 million and $6.2 million for the nine months ended
September 30, 2004 and 2003, respectively. Also under GAAP, cash and cash
equivalents at the beginning and end of the period would be less, as they
would exclude investments of $6.0 million and $3.0 million, and $9.2 million
and $9.2 million for the three months ended September 30, 2004 and 2003,
respectively and by $9.1 million and $3.0 million, and $15.3 million and
$9.2 million for the nine months ended September 30, 2004 and 2003,
respectively. Cash, cash equivalents, short-term and long-term investments
exclude restricted cash.
This press release contains forward-looking statements, including
statements regarding the Company's expectations for using its systems biology
platform to discover biomarkers and inaccessible targets for small molecule
discovery. Such forward-looking statements are based on management's current
expectations and are subject to a number of risks, factors and uncertainties
that may cause actual results, events and performance to differ materially
from those referred to in the forward-looking statements. These risks, factors
and uncertainties include, but are not limited to, Icoria's early stage of
development, history of net losses, technological and product development
uncertainties, reliance on research collaborations, uncertainty of additional
funding and ability to protect its patents and proprietary rights. Certain of
these and other risks are identified in Icoria's annual report on Form 10-K
for the year ended December 31, 2003 and in its quarterly report on Form 10-Q
for the quarter ended June 30, 2004, each filed with the Securities and
Exchange Commission. The Company does not intend to update any of the forward-
looking statements after the date of this release to conform these statements
to actual results or to changes in our expectations, except as may be required
by law.
SOURCE Icoria, Inc.
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Related links:
http://www.icoria.com
http://www.icoria.com/news
CONTACT:
Brian Ritchie or Mark Vincent both of Euro
RSCG Life NRP, +1-212-845-4200
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