SANTA CLARA, Calif., Nov. 5 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) today announced results for the third quarter and nine months
ended September 30, 1997.
For the quarter, the company reported revenues of $2.8 million, resulting
from the sales of cytogenetic products and product-related services, compared
with revenues of $2.7 million for the corresponding prior year quarter. For
the nine-month period ending September 30, 1997, revenues were $9.6 million,
an 11% increase over revenues of $8.7 million for the comparable period in
1996.
Net loss for the third quarter was $2.4 million, or $0.32 per share,
compared to a net loss of $0.7 million, or $0.12 pro forma net loss per share
for the third quarter of 1996. For the nine months ended September 30,
1997, net loss was $5.3 million, or $0.73 per share, compared to a net loss of
$1.9 million, or $0.34 pro-forma net loss per share, for the comparable period
in 1996. The increased loss was primarily attributable to planned increases
in research and development, regulatory, and clinical site expenditures
associated with the company's fetal cell screening program.
"We are pleased with the performance of the company's core business," said
Jack Goldstein, Ph.D., President and Chief Executive Officer. "As part of our
efforts to further strengthen that business, we recently announced an
exclusive worldwide license agreement with the University of Cambridge for the
commercialization of a technology known as Cross Species Color Banding. This
technology represents an advancement in fluorescent in situ hybridization
(FISH) methods used for the identification of chromosomal abnormalities that
may be associated with various genetic diseases, cancers, and prenatal genetic
disorders. It is expected to provide our customers with another innovative
solution in chromosomal analysis, and it represents the first step in our
efforts to add a reagent component to our business.*"
Goldstein continued, "Our primary efforts continue to be on developing the
company's fetal cell screening system. During the third quarter, the company
responded to questions from the FDA on 510k applications filed in December
1996 for two components of our system. One part concerns the enrichment of
mononuclear blood cells and the other part is the scanning imaging system to
identify nucleated red blood cells on slides. Pre-clinical studies of our
entire system, performed at external clinical sites on maternal blood samples
obtained following a CVS (chorionic villus sample) or amniocentesis procedure,
continue to demonstrate the system's ability to isolate and identify fetal
cells in maternal blood after such procedures. During these studies, the
first successful abnormal diagnosis (Triple X Syndrome) at an external site
was made using the Applied Imaging system. We are now concentrating our
efforts on sensitivity experiments on pre-procedure samples and on further
development of the test for ease of use under clinical laboratory conditions,
which needs to be completed prior to entering clinical trials."
Applied Imaging Corp., based in Santa Clara, California, develops,
manufactures, and markets automated clinical analysis systems used by
laboratories for prenatal, cancers, and other genetic diseases. The company
markets its products worldwide and has more than 500 customer sites in over
30 countries. For further information on Applied Imaging, visit the Company
web site at http://www.aicorp.com.
*Designates a forward-looking statement within the meaning of Section
27A of the Securities Act and Section 21E of the Securities Exchange Act.
Actual results could differ materially from those projected in the
forward-looking statement as a result of a number of factors including the
failure of the company to successfully develop or commercialize the new
technology, lack of regulatory approval, and other such factors as set forth
in the company's Form 10-K for the year ended December 31, 1996 as filed with
the Securities and Exchange Commission.
For further information on Applied Imaging via fax, dial 800-PRO-INFO, or
908-544-2850 outside of the U.S., code AICX.
APPLIED IMAGING CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Revenues $ 2,750 $2,707 $9,641 $ 8,702
Cost of revenues 1,315 1,322 4,466 4,444
Gross profit 1,435 1,385 5,175 4,258
Research and development 2,267 838 5,519 2,536
Sales and marketing 1,061 774 2,767 2,250
General and
administrative 622 453 2,408 1,402
Total operating expenses 3,950 2,065 10,694 6,188
Other income (expense),
net 90 (9) 258 6
Net loss $(2,425) $(689) $(5,261) $(1,924)
Net loss per share $ (0.32) $ (0.73)
Pro forma net loss per
share $(0.12) $(0.34)
Weighted average shares
outstanding 7,634 5,755 7,209 5,708
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1997 1996
(Unaudited)
ASSETS
Cash and marketable
securities $10,053 $12,318
Other current assets 3,756 2,621
Property and equipment, net 1,755 1,234
Other assets, net 301 300
Total Assets $15,865 $16,473
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities: $4,559 $4,239
Other liabilities 291 229
Stockholders' equity 11,015 12,005
Total Liabilities and
Stockholders' Equity $15,865 $16,473
SOURCE Applied Imaging Corp.
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CONTACT:
Neil Woodruff, Chief Financial Officer of
Applied Imaging Corp., 408-562-0250; or Paula Berg, or analysts,
Kate Rajeck of Financial Relations Board, 415-986-1591, for
Applied Imaging Corp.
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