Hyseq Announces First Quarter Financial Results

Apr 26, 2001, 01:00 ET from Hyseq, Inc.

    SUNNYVALE, Calif., April 26 /PRNewswire/ -- Hyseq, Inc. (Nasdaq:   HYSQ),
 today announced results for the quarter ended March 31, 2001.  Revenues for
 the first quarter of 2001 were $5.7 million, compared to revenues of $1.8
 million recorded for the same period in 2000.  Net loss for the first quarter
 was $6.7 million or $0.49 per share, compared to a net loss of $6.3 million or
 $0.48 per share for the same quarter in the prior year.
     At March 31, 2001, Hyseq had approximately $14.8 million in cash compared
 to approximately $2.7 million at December 31, 2000.  The net increase of
 approximately $12.1 million in cash was due to the draw down of the balance of
 the $20.0 million line of credit from Dr. Rathmann, the Chairman of Hyseq's
 Board of Directors, as well as $5.0 million received under our agreement with
 BASF Plant Sciences GmbH, and is partially offset by higher research and
 development costs resulting from Hyseq's biopharmaceutical development
 efforts.  In addition, Hyseq experienced higher general and administrative
 costs due to continuing patent and litigation expenses, and lower net interest
 income resulting from lower average cash balances.
     Hyseq also recently announced two new key executives.  Peter S. Garcia has
 joined Hyseq as Senior Vice President and Chief Financial Officer, bringing
 five years of experience as a Chief Financial Officer in life science
 companies.  Linda A. Fitzpatrick has joined Hyseq as Senior Vice President of
 Human Resources, bringing seven years of experience in senior roles.
 
     Hyseq is researching and developing biopharmaceutical products from its
 collection of novel genes discovered using its proprietary high-throughput
 technology.  Hyseq has collaborations for discovering gene-based products.
 Information about Hyseq is available at www.hyseq.com or by phoning (408) 524-
 8100.
 
     Statements included in this press release which are not historical in
 nature, are intended to be, and are hereby identified as "forward-looking
 statements" for purposes of the safe harbor provided by the Private Securities
 Litigation Act of 1995. Forward looking statements may be identified by words
 such as "believe," "expect," "anticipate," "should," "may," "estimated" and
 "potential," among others.  The Company cautions readers that forward-looking
 statements, including without limitation, those relating to the Company's
 future business prospects are subject to certain risks and uncertainties that
 could cause actual results to differ materially from those indicated in the
 forward-looking statements. For a discussion of factors that may cause results
 to differ, see the Company's reports filed with the SEC, including its Annual
 Report on Form 10-K for the year ended December 31, 2000.  Hyseq disclaims any
 intent or obligation to update these forward-looking statements.
 
                                  HYSEQ, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (in thousands)
                                  (unaudited)
                                                   Three months ended March 31
                                                         2001           2000
 
     Contract revenues                                 $5,668         $1,805
     Operating expenses:
       Research and development                         9,051          5,788
       General and administrative                       3,003          2,590
     Total operating expenses                          12,054          8,378
     Loss from operations                             (6,386)        (6,572)
     Interest income, net                               (293)            242
     Net loss                                       $ (6,679)      $ (6,330)
 
     Basic and diluted net loss per share            $ (0.49)       $ (0.48)
 
     Shares used in computing basic and
     diluted net loss per share                        13,740         13,155
 
 
 
                   CONSOLIDATED BALANCE SHEET AND OTHER DATA
                                 (in thousands)
                                               March 31, 2001   December 31,
                                                  (unaudited)          2000*
     Cash                                             $14,814         $2,699
     Working capital                                    8,577        (2,577)
     Cash on deposit                                    2,106          2,106
     Total assets                                      35,595         21,288
     Deferred revenue                                   1,320          1,798
     Noncurrent portion of capital
     lease and loan obligations                         4,104          4,722
     Accumulated deficit                             (78,601)       (71,922)
     Total stockholders' equity                        21,933          8,362
 
     * The condensed consolidated balance sheet and other data at December 31,
 2000 has been derived from the audited financial statements as of that date.
 
      Contact:
      Dawn Nakao
      Investor Relations Manager
      Hyseq, Inc.
      408-524-8100
 
      Hershel Berry (Investors)
      The Trout Group
      415-567-3300
 
      Andy Cutler or Amy Bergstrom (Media)
      Feinstein Kean Healthcare
      617-577-8110
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57956481
 
 

SOURCE Hyseq, Inc.
    SUNNYVALE, Calif., April 26 /PRNewswire/ -- Hyseq, Inc. (Nasdaq:   HYSQ),
 today announced results for the quarter ended March 31, 2001.  Revenues for
 the first quarter of 2001 were $5.7 million, compared to revenues of $1.8
 million recorded for the same period in 2000.  Net loss for the first quarter
 was $6.7 million or $0.49 per share, compared to a net loss of $6.3 million or
 $0.48 per share for the same quarter in the prior year.
     At March 31, 2001, Hyseq had approximately $14.8 million in cash compared
 to approximately $2.7 million at December 31, 2000.  The net increase of
 approximately $12.1 million in cash was due to the draw down of the balance of
 the $20.0 million line of credit from Dr. Rathmann, the Chairman of Hyseq's
 Board of Directors, as well as $5.0 million received under our agreement with
 BASF Plant Sciences GmbH, and is partially offset by higher research and
 development costs resulting from Hyseq's biopharmaceutical development
 efforts.  In addition, Hyseq experienced higher general and administrative
 costs due to continuing patent and litigation expenses, and lower net interest
 income resulting from lower average cash balances.
     Hyseq also recently announced two new key executives.  Peter S. Garcia has
 joined Hyseq as Senior Vice President and Chief Financial Officer, bringing
 five years of experience as a Chief Financial Officer in life science
 companies.  Linda A. Fitzpatrick has joined Hyseq as Senior Vice President of
 Human Resources, bringing seven years of experience in senior roles.
 
     Hyseq is researching and developing biopharmaceutical products from its
 collection of novel genes discovered using its proprietary high-throughput
 technology.  Hyseq has collaborations for discovering gene-based products.
 Information about Hyseq is available at www.hyseq.com or by phoning (408) 524-
 8100.
 
     Statements included in this press release which are not historical in
 nature, are intended to be, and are hereby identified as "forward-looking
 statements" for purposes of the safe harbor provided by the Private Securities
 Litigation Act of 1995. Forward looking statements may be identified by words
 such as "believe," "expect," "anticipate," "should," "may," "estimated" and
 "potential," among others.  The Company cautions readers that forward-looking
 statements, including without limitation, those relating to the Company's
 future business prospects are subject to certain risks and uncertainties that
 could cause actual results to differ materially from those indicated in the
 forward-looking statements. For a discussion of factors that may cause results
 to differ, see the Company's reports filed with the SEC, including its Annual
 Report on Form 10-K for the year ended December 31, 2000.  Hyseq disclaims any
 intent or obligation to update these forward-looking statements.
 
                                  HYSEQ, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (in thousands)
                                  (unaudited)
                                                   Three months ended March 31
                                                         2001           2000
 
     Contract revenues                                 $5,668         $1,805
     Operating expenses:
       Research and development                         9,051          5,788
       General and administrative                       3,003          2,590
     Total operating expenses                          12,054          8,378
     Loss from operations                             (6,386)        (6,572)
     Interest income, net                               (293)            242
     Net loss                                       $ (6,679)      $ (6,330)
 
     Basic and diluted net loss per share            $ (0.49)       $ (0.48)
 
     Shares used in computing basic and
     diluted net loss per share                        13,740         13,155
 
 
 
                   CONSOLIDATED BALANCE SHEET AND OTHER DATA
                                 (in thousands)
                                               March 31, 2001   December 31,
                                                  (unaudited)          2000*
     Cash                                             $14,814         $2,699
     Working capital                                    8,577        (2,577)
     Cash on deposit                                    2,106          2,106
     Total assets                                      35,595         21,288
     Deferred revenue                                   1,320          1,798
     Noncurrent portion of capital
     lease and loan obligations                         4,104          4,722
     Accumulated deficit                             (78,601)       (71,922)
     Total stockholders' equity                        21,933          8,362
 
     * The condensed consolidated balance sheet and other data at December 31,
 2000 has been derived from the audited financial statements as of that date.
 
      Contact:
      Dawn Nakao
      Investor Relations Manager
      Hyseq, Inc.
      408-524-8100
 
      Hershel Berry (Investors)
      The Trout Group
      415-567-3300
 
      Andy Cutler or Amy Bergstrom (Media)
      Feinstein Kean Healthcare
      617-577-8110
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57956481
 
 SOURCE  Hyseq, Inc.