Cepheid Reports First Quarter 2001 Results
Apr 23, 2001, 01:00 ET from Cepheid
SUNNYVALE, Calif., April 23 /PRNewswire Interactive News Release/ --
Cepheid (Nasdaq: CPHD), developers of accelerated, integrated DNA testing
systems, today announced financial results for the quarter ended
March 31, 2001. Cepheid reported a net loss of $3.2 million, or $0.12 per
share for the first quarter of 2001, compared to a net loss of $22.4 million,
or $1.22 per share on a pro forma basis for the first quarter of 2000. Pro
forma net loss per share amounts assume conversion of preferred stock to
common at the time of their original issuance.
In connection with Cepheid's initial public offering in June 2000, the
first quarter 2000 financial results include a deemed dividend of
$19.1 million upon the issuance of Series C convertible preferred stock.
Excluding the effect of this deemed dividend, the pro forma net loss per share
for the first quarter of 2000 would have been $0.18 per share, compared to the
loss per share for the first quarter of 2001 of $0.12.
Revenue for the current quarter increased to $3.3 million from
$0.9 million for the same quarter of 2000. The increase in revenues is
primarily due to the initial sales of Cepheid's Smart Cycler(R) system in the
United States launched through the Fisher Scientific Life Sciences Research
sales force in May 2000, and the initial sales from the launch in Japan, South
Korea and Taiwan through Takara Shuzo Co., Ltd (Takara) in the fourth quarter
of 2000. Additionally, the Smart Cycler system was commercially launched in
Europe and Canada in January 2001 through Eurogentec SA and Fisher Scientific
Canada, respectively.
Product sales for the quarter ended March 31, 2001 increased to
$2.4 million from $1.8 million for the quarter ended December 31, 2000. More
than 100 Smart Cyclers and approximately 300,000 tubes were sold in the first
quarter of 2001. The vast majority of these sales were through distributors,
including approximately 50% in North America, 25% in the Far East and 25% in
Europe.
Total contract revenue from both grant and government sponsored research
and commercial research and development increased to $987,000 for the first
quarter of 2001 from $765,000 for the first quarter of 2000. Cepheid
recognizes revenue under these contracts as services are performed, therefore
the contract revenue for the quarter relates to the level of activity on the
contracts during each quarter. As a result, there can be quarter-to-quarter
fluctuations for both government and commercial contract revenue due to the
level of activity relating to government, commercial and company-sponsored
research and development projects in any given quarter. As anticipated, the
company expects that contract revenue will decrease in the second half of this
year due to the fact its three-year DARPA contract is scheduled to end in
mid-2001.
The cost of product sales increased to $1.9 million for the first quarter
of 2001 compared to $131,000 for the same prior year period. Cepheid's gross
margin increased to 18% for the first quarter of 2001 compared to 12% for the
fourth quarter of 2000. The company expects its margins to continue to
improve in 2001 as the number of units being manufactured increases.
Research and development expenses increased to $3.7 million for the first
quarter of 2001 from $3.5 million for the first quarter of 2000. This
increase was primarily due to increased salaries, recruiting and temporary
employee expenses as well as facility and infrastructure costs. Research and
development resources also making a substantial shift from Smart Cycler
development in 2000 to GeneXpert development in 2001.
Selling, general and administrative expenses increased to $1.4 million for
the first quarter of 2001 from $730,000 for the first quarter of 2000. This
increase was due to increased salaries and related personnel costs for
technical and administrative staff in the customer support function related to
the Smart Cycler launch, and ongoing increased expenses associated with being
a public company. Excluding non-cash amortization of stock-based compensation
from both quarters, R&D expenses for the first quarter of 2001 increased 15%
and SG&A expenses increased 11% over the expense level incurred in the fourth
quarter of 2000.
Thomas Gutshall, Chairman and CEO, said, "With the recent launches of the
Smart Cycler by Takara and Eurogentec, we are delighted with the acceptance of
our system in the Japanese and European markets and the variety of roles it
fills in the research laboratory. The initial performance of both Takara and
Eurogentec have certainly fulfilled our expectations. Over the remainder of
the year we will be adding to Cepheid's domestic sales capabilities which will
allow for greater penetration of the industrial and food markets."
Commenting on the financial results, Cathy Smith, Vice President and CFO,
said, "With distributors in place in all the major markets, we are starting to
see some solid sales momentum in both Smart Cycler systems and our proprietary
single-use disposable reaction tubes. In 2000, we sold just over 200 Smart
Cyclers and over 340,000 reaction tubes. In the three months ended
March 31, 2001, we sold over 100 Smart Cyclers and almost 300,000 reaction
tubes."
At March 31, 2001, cash, cash equivalents and marketable securities
totaled $37 million. The company's operations used $2.4 million in cash
during the first quarter. We forecast the company's monthly cash burn will
continue to be between $1.0 million and $1.5 million per month for the
remainder of 2001. As previously stated, the amount and the timing of payments
for the company's diagnostic thermal cycling license from Applied Biosystems
is not known at this time, and may affect the rate at which cash is consumed.
Cepheid will host a conference call to discuss the results for the first
quarter at 4:30 p.m. EDT on April 23, 2001. The call will be available via
web cast live through the Street Events web site at www.streetevents.com or
through Cepheid's website at www.cepheid.com. Interested investors and media
can also call 800-946-0712, passcode 689994 to listen to the conference call.
Cepheid is applying proprietary microfluidic and microelectronic
technologies to the development of fast, versatile, miniaturized systems that
can perform all the steps required to analyze complex biological samples
-- including sample preparation, amplification, and detection -- with a single
platform. Cepheid is initially focused on the detection of DNA and RNA in such
application areas as life sciences research, clinical diagnostics, industrial
testing and pharmacogenomics. For additional information about Cepheid, visit
the company's web site at www.cepheid.com.
Statements in this release other than statements of historical fact are
forward looking statements. Forward looking statements include those that may
relate to revenue growth, trends in financial or operational performance and
cash flows, new product plans, business prospects and margins. Actual results
might differ materially from these statements due to risks and uncertainties,
including the impact of competitive products and pricing, market acceptance of
new products, market conditions, reliance on efforts of distributors and
enforcement of intellectual property rights. A more detailed description of
these risks and other risks applicable to Cepheid appears in Cepheid's reports
filed with the Securities and Exchange Commission and available upon request
from Cepheid. Cepheid disclaims any intent or obligation to update these
forward-looking statements. Cepheid and Smart Cycler(R) are registered
trademarks of Cepheid.
Cepheid
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended
March 31,
2001 2000
(unaudited)
Product sales $2,361 $151
Grant and government sponsored
research revenue 980 655
Research and development
contract revenue 7 110
Total revenues 3,348 916
Operating costs and expenses:
Cost of product sales 1,940 131
Research and development 3,701 3,467
Selling, general and administrative 1,405 730
Total costs and operating expenses 7,046 4,328
Loss from operations (3,698) (3,412)
Interest income, net 513 159
Net loss $(3,185) $(3,253)
Deemed dividend upon issuance of
convertible preferred stock -- (19,114)
Net loss attributable to
common shareholders $(3,185) $(22,367)
Basic and diluted net
loss per common share $(0.12) $(4.42)
Weighted average shares used in
computing net loss per common share 25,680 5,064
Pro forma basic and diluted net loss
per common share $(0.12) $(1.22)
Weighted average shares used in
computing pro forma net loss
per share (A) 25,680 18,391
(A) Assumes conversion of preferred stock into common stock at date of
issuance.The preferred stock automatically converted to common stock
upon the initial public offering of the Company's common stock.
Cepheid
SUMMARY CONSOLIDATED BALANCE SHEET DATA
(in thousands)
March 31, December 31,
2001 2000
(unaudited) (B)
Cash and cash equivalents $37,038 $39,698
Other current assets 5,463 4,709
Property and equipment, net 2,995 2,892
Other assets 54 54
Total assets 45,550 47,353
Current liabilities 3,729 3,148
Long-term portion of debt and
capital lease obligations 1,562 1,504
Other liabilities 47 54
Common stock 64,931 64,944
Other shareholders' equity 5,790 5,027
Accumulated deficit (30,509) (27,324)
Total shareholders' equity 40,212 42,647
Total liabilities and
shareholders' equity $45,550 $47,353
(B) Derived from the audited financial statements for the year ended
December 31, 2000.
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SOURCE Cepheid
SUNNYVALE, Calif., April 23 /PRNewswire Interactive News Release/ --
Cepheid (Nasdaq: CPHD), developers of accelerated, integrated DNA testing
systems, today announced financial results for the quarter ended
March 31, 2001. Cepheid reported a net loss of $3.2 million, or $0.12 per
share for the first quarter of 2001, compared to a net loss of $22.4 million,
or $1.22 per share on a pro forma basis for the first quarter of 2000. Pro
forma net loss per share amounts assume conversion of preferred stock to
common at the time of their original issuance.
In connection with Cepheid's initial public offering in June 2000, the
first quarter 2000 financial results include a deemed dividend of
$19.1 million upon the issuance of Series C convertible preferred stock.
Excluding the effect of this deemed dividend, the pro forma net loss per share
for the first quarter of 2000 would have been $0.18 per share, compared to the
loss per share for the first quarter of 2001 of $0.12.
Revenue for the current quarter increased to $3.3 million from
$0.9 million for the same quarter of 2000. The increase in revenues is
primarily due to the initial sales of Cepheid's Smart Cycler(R) system in the
United States launched through the Fisher Scientific Life Sciences Research
sales force in May 2000, and the initial sales from the launch in Japan, South
Korea and Taiwan through Takara Shuzo Co., Ltd (Takara) in the fourth quarter
of 2000. Additionally, the Smart Cycler system was commercially launched in
Europe and Canada in January 2001 through Eurogentec SA and Fisher Scientific
Canada, respectively.
Product sales for the quarter ended March 31, 2001 increased to
$2.4 million from $1.8 million for the quarter ended December 31, 2000. More
than 100 Smart Cyclers and approximately 300,000 tubes were sold in the first
quarter of 2001. The vast majority of these sales were through distributors,
including approximately 50% in North America, 25% in the Far East and 25% in
Europe.
Total contract revenue from both grant and government sponsored research
and commercial research and development increased to $987,000 for the first
quarter of 2001 from $765,000 for the first quarter of 2000. Cepheid
recognizes revenue under these contracts as services are performed, therefore
the contract revenue for the quarter relates to the level of activity on the
contracts during each quarter. As a result, there can be quarter-to-quarter
fluctuations for both government and commercial contract revenue due to the
level of activity relating to government, commercial and company-sponsored
research and development projects in any given quarter. As anticipated, the
company expects that contract revenue will decrease in the second half of this
year due to the fact its three-year DARPA contract is scheduled to end in
mid-2001.
The cost of product sales increased to $1.9 million for the first quarter
of 2001 compared to $131,000 for the same prior year period. Cepheid's gross
margin increased to 18% for the first quarter of 2001 compared to 12% for the
fourth quarter of 2000. The company expects its margins to continue to
improve in 2001 as the number of units being manufactured increases.
Research and development expenses increased to $3.7 million for the first
quarter of 2001 from $3.5 million for the first quarter of 2000. This
increase was primarily due to increased salaries, recruiting and temporary
employee expenses as well as facility and infrastructure costs. Research and
development resources also making a substantial shift from Smart Cycler
development in 2000 to GeneXpert development in 2001.
Selling, general and administrative expenses increased to $1.4 million for
the first quarter of 2001 from $730,000 for the first quarter of 2000. This
increase was due to increased salaries and related personnel costs for
technical and administrative staff in the customer support function related to
the Smart Cycler launch, and ongoing increased expenses associated with being
a public company. Excluding non-cash amortization of stock-based compensation
from both quarters, R&D expenses for the first quarter of 2001 increased 15%
and SG&A expenses increased 11% over the expense level incurred in the fourth
quarter of 2000.
Thomas Gutshall, Chairman and CEO, said, "With the recent launches of the
Smart Cycler by Takara and Eurogentec, we are delighted with the acceptance of
our system in the Japanese and European markets and the variety of roles it
fills in the research laboratory. The initial performance of both Takara and
Eurogentec have certainly fulfilled our expectations. Over the remainder of
the year we will be adding to Cepheid's domestic sales capabilities which will
allow for greater penetration of the industrial and food markets."
Commenting on the financial results, Cathy Smith, Vice President and CFO,
said, "With distributors in place in all the major markets, we are starting to
see some solid sales momentum in both Smart Cycler systems and our proprietary
single-use disposable reaction tubes. In 2000, we sold just over 200 Smart
Cyclers and over 340,000 reaction tubes. In the three months ended
March 31, 2001, we sold over 100 Smart Cyclers and almost 300,000 reaction
tubes."
At March 31, 2001, cash, cash equivalents and marketable securities
totaled $37 million. The company's operations used $2.4 million in cash
during the first quarter. We forecast the company's monthly cash burn will
continue to be between $1.0 million and $1.5 million per month for the
remainder of 2001. As previously stated, the amount and the timing of payments
for the company's diagnostic thermal cycling license from Applied Biosystems
is not known at this time, and may affect the rate at which cash is consumed.
Cepheid will host a conference call to discuss the results for the first
quarter at 4:30 p.m. EDT on April 23, 2001. The call will be available via
web cast live through the Street Events web site at www.streetevents.com or
through Cepheid's website at www.cepheid.com. Interested investors and media
can also call 800-946-0712, passcode 689994 to listen to the conference call.
Cepheid is applying proprietary microfluidic and microelectronic
technologies to the development of fast, versatile, miniaturized systems that
can perform all the steps required to analyze complex biological samples
-- including sample preparation, amplification, and detection -- with a single
platform. Cepheid is initially focused on the detection of DNA and RNA in such
application areas as life sciences research, clinical diagnostics, industrial
testing and pharmacogenomics. For additional information about Cepheid, visit
the company's web site at www.cepheid.com.
Statements in this release other than statements of historical fact are
forward looking statements. Forward looking statements include those that may
relate to revenue growth, trends in financial or operational performance and
cash flows, new product plans, business prospects and margins. Actual results
might differ materially from these statements due to risks and uncertainties,
including the impact of competitive products and pricing, market acceptance of
new products, market conditions, reliance on efforts of distributors and
enforcement of intellectual property rights. A more detailed description of
these risks and other risks applicable to Cepheid appears in Cepheid's reports
filed with the Securities and Exchange Commission and available upon request
from Cepheid. Cepheid disclaims any intent or obligation to update these
forward-looking statements. Cepheid and Smart Cycler(R) are registered
trademarks of Cepheid.
Cepheid
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months ended
March 31,
2001 2000
(unaudited)
Product sales $2,361 $151
Grant and government sponsored
research revenue 980 655
Research and development
contract revenue 7 110
Total revenues 3,348 916
Operating costs and expenses:
Cost of product sales 1,940 131
Research and development 3,701 3,467
Selling, general and administrative 1,405 730
Total costs and operating expenses 7,046 4,328
Loss from operations (3,698) (3,412)
Interest income, net 513 159
Net loss $(3,185) $(3,253)
Deemed dividend upon issuance of
convertible preferred stock -- (19,114)
Net loss attributable to
common shareholders $(3,185) $(22,367)
Basic and diluted net
loss per common share $(0.12) $(4.42)
Weighted average shares used in
computing net loss per common share 25,680 5,064
Pro forma basic and diluted net loss
per common share $(0.12) $(1.22)
Weighted average shares used in
computing pro forma net loss
per share (A) 25,680 18,391
(A) Assumes conversion of preferred stock into common stock at date of
issuance.The preferred stock automatically converted to common stock
upon the initial public offering of the Company's common stock.
Cepheid
SUMMARY CONSOLIDATED BALANCE SHEET DATA
(in thousands)
March 31, December 31,
2001 2000
(unaudited) (B)
Cash and cash equivalents $37,038 $39,698
Other current assets 5,463 4,709
Property and equipment, net 2,995 2,892
Other assets 54 54
Total assets 45,550 47,353
Current liabilities 3,729 3,148
Long-term portion of debt and
capital lease obligations 1,562 1,504
Other liabilities 47 54
Common stock 64,931 64,944
Other shareholders' equity 5,790 5,027
Accumulated deficit (30,509) (27,324)
Total shareholders' equity 40,212 42,647
Total liabilities and
shareholders' equity $45,550 $47,353
(B) Derived from the audited financial statements for the year ended
December 31, 2000.
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