Caliper Life Sciences Reports Fourth Quarter and Full Year 2009 Results
HOPKINTON, Mass., March 9 /PRNewswire-FirstCall/ -- Caliper Life Sciences, Inc. (Nasdaq: CALP), today reported its fourth quarter and fiscal year 2009 results.
Fourth Quarter Results:
- GAAP revenues for the quarter increased to $37.7 million, or 3%, from $36.7 million in the same period in 2008. Fourth quarter revenue growth from the Company's ongoing business operations, which excludes the effects of divested non-core operations (see table entitled "Non-GAAP Revenues"), was 13% compared to the same period in 2008. The double-digit growth in revenue from ongoing operations resulted from continued adoption of Caliper's LabChip and IVIS instrument platforms and a significant one-time microfluidics license fee recognized in the fourth quarter. Foreign currency movements benefited total revenues by approximately 3% compared to the fourth quarter of 2008.
- Total gross margin in the fourth quarter of 2009 was 49.5%, aided by the one-time license fee noted above, compared to 40.6% in the fourth quarter of 2008. The combined gross margin of product and service revenues was 43.9% in the fourth quarter of 2009 compared to 37.6% in the fourth quarter of 2008. The 630 basis point increase in combined product and service gross margin resulted primarily from instrument, consumable and service revenue growth generated by the Company's microfluidic (LabChip) and imaging (IVIS) product lines along with product cost improvements through low-cost sourcing initiatives.
- GAAP net income was $5.9 million for the quarter, or $0.11 per diluted share, compared to net loss of $46.3 million, or $0.95 per diluted share, in the fourth quarter of 2008. The $52.2 million net income improvement over 2008 included approximately $48.8 million of non-recurring benefit compared to 2008 related to goodwill impairment, restructuring charges (credits) and divestiture gains.
- The Company achieved non-GAAP income of $0.05 per diluted share in the fourth quarter of 2009 compared to a non-GAAP net loss per diluted share of $0.02 in the same period in 2008 (see table entitled "Non-GAAP Earnings per Share").
- The Company generated $1.8 million in positive cash flow from operations during the fourth quarter of 2009 compared to $1.2 million in cash flow used in operations for the fourth quarter of 2008.
- Cash, cash equivalents and marketable securities totaled $38.0 million as of December 31, 2009, compared to $26.7 million as of December 31, 2008. Outstanding credit line borrowings were $14.9 million as of December 31, 2009, which was unchanged from December 31, 2008.
- On December 11, 2009, Caliper entered into a First Loan Modification Agreement which extended the maturity of its $25 million bank credit facility to April 1, 2011. The credit facility serves as a source of capital for ongoing operations and working capital needs.
"We were pleased with our financial results and strategic progress in 2009. LabChip and IVIS revenues grew over 20% in 2009 and now represent nearly 70% of total revenues. This revenue is largely derived from patent protected products and is among our most profitable revenue, allowing us to increase gross margins and achieve EBITDA positive performance a year ahead of schedule," commented Kevin Hrusovsky, Caliper's president and CEO. "Most importantly, we are excited about our growth momentum going into 2010, our expected entry into the rapidly expanding next generation sequencing market with the LabChip XT for sample preparation and enhancement, our improved balance sheet, and our sharpened strategic focus," added Hrusovsky.
Recent Business Highlights:
- Completed the strategic sale of our small animal services business (XenBio) to Taconic Farms, Inc. in an all cash transaction valued at approximately $11 million of cash, including $9.7 million of net proceeds received in the fourth quarter.
- Granted a microfluidic patent portfolio license to Becton, Dickinson and Company (BD) to facilitate BD's development of its next generation molecular diagnostics systems.
- Developed an integrated robotic system that gained recognition as TIME Magazine's No. 4 Top Scientific Discovery of 2009. The system, conceived by Dr. Ross King of Aberystwyth University in Wales, and which had its achievements initially published in the journal Science, identified the role and function of uncharacterized yeast genes with virtually no human intervention.
- Established a scientific advisory board to guide the Company's efforts in automated sample preparation for next generation and third generation sequencing platforms.
- Introduced the LabChip XT, an automated nucleic acid fractionation instrument, at the 2010 Advances in Genome Biology and Technology (AGBT) conference in February. LabChip XT eliminates a key bottleneck in the current workflow for next generation sequencing.
- Filed suit, along with Stanford University, against Carestream Health, Inc. for willful infringement of seven patents (which comprise a portion of Caliper's "Optical Imaging Patent Suite™") that encompass methods for non-invasive in vivo imaging of fluorescence and bioluminescence in animals and that are exclusively licensed to Caliper from Stanford.
Fiscal 2009 Results:
- GAAP revenues for fiscal 2009 decreased to $130.4 million, or 3%, from $134.1 million in 2008, with the decline having resulted primarily from recent strategic divestitures. Full year revenue growth from the Company's ongoing business operations, which excludes the effects of divested non-core operations (see table entitled "Non-GAAP Revenues"), was 7% compared to 2008. Foreign currency movements unfavorably impacted total revenues by approximately 1% on a full year basis.
- Gross margin for fiscal 2009 was 44.4% compared to 41.5% in 2008. The combined gross margin related to product and service revenues was 39.6% in fiscal 2009 compared to 37.4% in 2008. The principal drivers behind the gross margin improvements were an increase in the percentage of sales from higher margin instruments and consumables, primarily associated with the Company's microfluidic (LabChip) and imaging (IVIS) product lines, and product cost reductions.
- GAAP net loss for fiscal 2009 was $8.2 million, or $0.17 per share, compared to net loss of $68.3 million, or $1.42 per share in 2008.
- Non-GAAP net loss per share was $0.12 for fiscal 2009 compared to a non-GAAP net loss per share $0.27 in 2008 (see table entitled "Non-GAAP Earnings per Share").
2010 Guidance
Caliper is currently projecting organic revenue growth of between 3-6% in 2010 over 2009 pro forma revenue of $119.7 million. Assuming current exchange rates, foreign currency is expected to have a positive impact of 1-1.5 percentage points on revenue growth in the first half of 2010, and a slightly unfavorable impact on revenue growth on a full year basis.
Use of Non-GAAP Financial Measures
Caliper supplements its GAAP financial reporting with certain non-GAAP financial measures. Reconciliations of Caliper's GAAP to non-GAAP revenue and earnings per share are provided at the end of this release under "Reconciliation of GAAP to Non-GAAP Financial Measures."
Certain revenue growth percentages in this press release are derived from non-GAAP revenues which exclude the impact of revenue from product lines which were divested in the fourth quarters of 2008 and 2009. The term "organic" revenue growth eliminates the impact of these divestitures and foreign currency movements during the quarter to reflect growth percentages on a constant currency basis. Caliper believes that providing this additional information enhances investors' understanding of the financial performance of Caliper's operations and increases the comparability of its current financial statements to prior periods.
Caliper will discuss its fourth quarter and full year results in a conference call to be held today, March 9 at 9:00 a.m. ET. To participate in the call, please dial 888.679.8040 five to ten minutes prior to the call and use the participant passcode of 59178138. International callers may access the call by dialing 617.213.4851 and entering the same passcode. You may also pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P3JYBQRAK.
A live webcast of the call can be accessed at www.fulldisclosure.com or on the Caliper website at www.caliperLS.com in the Events section of the Investor Relations page. A webcast replay of the call will remain available until Caliper's earnings call for the first quarter of 2010.
Telephone replays of the conference call will be available approximately two hours after the completion of the call. To access a telephone playback of the proceedings from March 9 through March 16, dial 888.286.8010 and use the participant passcode of 42549715. International callers can access the playback by dialing 617.801.6888 and using the same participant passcode.
About Caliper Life Sciences
Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results, enabling the translation of those results into cures for human disease. Caliper's portfolio of offerings includes state-of-the-art microfluidics, lab automation & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions. For more information please visit www.caliperLS.com.
The statements in this press release regarding future events, including statements regarding Caliper's expected organic revenue growth in 2010, Caliper's expectations regarding the impact of currency translation adjustments on reported revenue and Caliper's expected entry into the next generation sequencing market with its new LabChip XT instrument are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements as a result of a number of factors, including that Caliper's expectations regarding demand for its products and services may not materialize if capital spending by Caliper's customers declines, if competitors introduce new competitive products, or if Caliper is unable to convince potential customers regarding the superior performance of its drug discovery and imaging systems and other products, and unanticipated difficulties may be encountered in Caliper's planned introduction of the LabChip XT instrument into the next generation sequencing market. Further information on risks faced by Caliper are detailed under the caption "Risks Related To Our Business" in Caliper's Annual Report on Form 10-K for the year ended December 31, 2008. Our filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Caliper does not undertake any obligation to update forward-looking or other statements in this release or the conference call.
NOTE: Caliper, IVIS, and LabChip are registered trademarks of Caliper Life Sciences, Inc.
CALIPER LIFE SCIENCES, INC.
SELECTED FINANCIAL INFORMATION
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
Product revenue $25,389 $25,495 $86,149 $85,149
Service revenue 7,709 8,873 31,471 37,734
License fees and
contract revenue 4,558 2,327 12,792 11,171
Total revenue 37,656 36,695 130,412 134,054
Costs and expenses:
Cost of product
revenue 13,606 15,857 49,636 52,178
Cost of service
revenue 4,966 5,604 21,398 24,739
Cost of license
revenue 430 323 1,487 1,477
Research and
development 4,474 4,395 17,881 19,921
Selling, general
and
administrative 11,651 12,043 44,886 48,987
Impairment of
goodwill - 43,365 - 43,365
Amortization of
intangible assets 1,927 1,592 6,589 8,313
Restructuring charges
(credits), net (357) 1,939 739 4,605
Total costs and
expenses 36,697 85,118 142,616 203,585
Operating income (loss) 959 (48,423) (12,204) (69,531)
Interest expense, net (146) (210) (681) (794)
Gain on divestiture
of product lines 4,942 2,119 4,942 2,119
Other income
(expenses), net 139 613 (63) 521
Provision for
income taxes (43) (378) (219) (607)
Net income (loss) $5,851 $(46,279) $(8,225) $(68,292)
Net income (loss)
per share, basic $0.12 $(0.95) $(0.17) $(1.42)
Net income (loss)
per share, diluted $0.11 $(0.95) $(0.17) $(1.42)
Shares used in
computing net
income (loss) per
common share, basic 49,131 48,490 48,896 48,114
Shares used in
computing net
income (loss)
per common
share, diluted 51,066 48,490 48,896 48,114
Reconciliation of GAAP to Non-GAAP Financial Measures
Non-GAAP Earnings per Share (see explanation of adjustments below)
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
GAAP EPS - Basic $0.12 $(0.95) $(0.17) $(1.42)
Adjustments:
Acquisition related
intangible
amortization(1) 1,927 1,592 6,589 8,313
Restructuring
and severance
costs(2) (357) 2,222 739 5,889
Impairment of
goodwill(3) - 43,365 - 43,365
Gain on divestiture
of product lines(3) (4,942) (2,119) (4,942) (2,119)
------ ------ ------ ------
Total Adjustments $(3,372) $45,060 $2,386 $55,448
Per share effect of
total adjustments (0.07) 0.93 0.05 1.15
Adjusted earnings
(loss) per share -
Basic $0.05 $(0.02) $(0.12) $(0.27)
Adjusted earnings
(loss) per share -
Diluted $0.05 $(0.02) $(0.12) $(0.27)
We use the term "adjusted earnings per share" or "adjusted EPS" to refer to GAAP earnings per share excluding amortization of intangible assets, impairment charges and restructuring and severance costs. Adjusted earnings per share is calculated by subtracting the total per share effect of these adjustments from GAAP EPS.
The adjustments are as follows:
- We exclude amortization of intangible assets from this measure because we believe intangible asset amortization charges do not represent what our management and our investors believe are the costs of developing, producing, supporting and selling our products and the costs to support our internal operating structure.
- We exclude restructuring and severance costs from this measure because they tend to occur as a result of specific events such as acquisitions, divestitures, repositioning our business or other unusual events that could make comparisons of long-range trends difficult for management or investors and could distort performance measures involving our internal investments and the costs to support our operating structure.
- We exclude the impairment of goodwill and the gain on divestiture of subsidiaries and product lines from this measure because they tend to occur as a result of specific events and also do not represent what our management and our investors believe are the costs of developing, producing, supporting and selling our products and the costs to support our internal operating structure.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Non-GAAP Revenues
Fourth Quarter Ended December 31,
GAAP Non-GAAP Adjustments
---- --------------------
(in thousands)
--------------
2009 2008 2009 2008
---- ---- ---- ----
Imaging $16,000 $14,383 $(46) $(106)
Research 18,396 17,630 - (2,114)
CDAS 3,260 4,682 (1,847) (2,799)
----- ----- ------ ------
Total revenue $37,656 $36,695 $(1,893) $(5,019)
------- ------- ------- -------
Non-GAAP
2009 2008 GAAP % Chg Non-GAAP % Chg
---- ----- ---------- --------------
Imaging $15,954 $14,277 11% 12%
Research 18,396 15,516 4% 19%
CDAS 1,413 1,883 (30)% (25)%
----- -----
Total revenue $35,763 $31,676 3% 13%
------- -------
Year Ended December 31,
GAAP Non-GAAP Adjustments(1)
---- --------------------
(in thousands)
--------------
2009 2008 2009 2008
---- ---- ---- ----
Imaging $51,837 $45,765 $(215) $(342)
Research 62,706 68,519 (342) (11,308)
CDAS 15,869 19,770 (10,127) (10,896)
------ ------ ------- -------
Total revenue $130,412 $134,054 $(10,684) $(22,546)
-------- -------- -------- --------
Non-GAAP
2009 2008 GAAP % Chg Non-GAAP % Chg(2)
---- ---- ---------- -----------------
Imaging $51,622 $45,423 13% 14%
Research 62,364 57,211 (8)% 9%
CDAS 5,742 8,874 (20)% (35)%
----- -----
Total revenue $119,728 $111,508 (3)% 7%
-------- --------
(1) For purposes of comparing growth rates for each of the three principal
areas of our business, the above non-GAAP table reconciliations exclude
revenues related to the PDQ and AutoTrace product lines divested in
November 2008, as well as revenues related to Xenogen Biosciences
Corporation which was divested in December 2009.
(2) Currency effects reduced the above full year growth rates by 1% for
both the Research and Imaging strategic business units, and by 2% on a
total revenue basis for the full year.
CALIPER LIFE SCIENCES, INC.
SELECTED FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2009 2008
---- ----
(unaudited) *
Assets
Current assets:
Cash, cash equivalents and
marketable securities $38,047 $26,701
Accounts receivable, net 26,816 27,396
Inventories 11,525 17,579
Other current assets 2,385 2,481
----- -----
Total current assets 78,773 74,157
Property and equipment, net 9,107 10,735
Intangible assets, net 25,222 34,399
Goodwill 21,011 22,905
Other assets 359 882
--- ---
Total assets $134,472 $143,078
======== ========
Liabilities and stockholders' equity
Current liabilities $36,773 $39,367
Credit facility 14,900 14,900
Other long-term obligations 9,789 12,073
Stockholders' equity 73,010 76,738
------ ------
Total liabilities and
stockholders' equity 134,472 143,078
======= =======
*Note: Derived from audited financial statements for the year ended
December 31, 2008.
SOURCE Caliper Life Sciences, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article