Incyte Reports Financial Results for First Quarter of Fiscal 2001 Revenues Up 25%

Apr 25, 2001, 01:00 ET from Incyte Genomics

    PALO ALTO, Calif., April 25 /PRNewswire/ --
 Incyte Genomics, Inc. (Nasdaq:   INCY), the leading genomic information company,
 today reported its consolidated financial results for the first quarter ended
 March 31, 2001.
     Revenue for the first quarter increased 25% to $51.1 million versus
 $40.8 million for the comparable quarter in 2000.  For the quarter, database
 and partnership program revenues were $37.0 million, a 24% increase over the
 same quarter in 2000.  Custom genomics revenues for the quarter were
 $14.1 million, a 31% increase over the same quarter in 2000.  These revenue
 increases reflect the strong synergies between Incyte's genomic database and
 partnership business and demand for custom genomic products and services.
     "This is our fourth consecutive quarter with revenues increasing at an
 annual rate of over 20%.  We continue to focus on the revenue growth of both
 the database and partnership programs as well as the custom genomic businesses
 while expanding our discovery programs and related intellectual property
 generation," said Roy A. Whitfield, Chief Executive Officer for Incyte.
     The net loss for the quarter ended March 31, 2001 was $10.3 million, or
 $0.16 per diluted share compared with $8.2 million, or $0.13 per diluted
 share, for the same quarter in 2000.  The net loss for the quarter includes a
 $2.4 million extraordinary gain resulting from Incyte's repurchase of
 $8.0 million par value of its convertible subordinated notes.  Also included
 in the net loss for the quarter is a "cumulative effect of an accounting
 change."  At the beginning of fiscal 2001 Incyte adopted SFAS 133, "Accounting
 for Certain Derivatives and Certain Hedging Activities."  This resulted in a
 cumulative gain of $2.3 million for the valuation of warrants held in other
 companies as of the beginning of the year and a $0.6 million charge in
 "Interest and Other Expense" related to a change in the value of these same
 warrants for the quarter.  Loss before the extraordinary gain and adoption of
 SFAS 133 for the quarter ended March 31, 2001 was $14.4 million, or $0.22 per
 diluted share.  Per share data have been adjusted to reflect the stock split,
 in the form of a 100% stock dividend, that was paid in August 2000.
     Research and Development expenses for the quarter ended March 31, 2001
 increased 30% to $53.0 million over the comparable quarter of the prior year.
 The increase reflects Incyte's efforts to expand its intellectual property
 portfolio, increase content in the database products and "step-up" its
 activity in discovery programs and related intellectual property generation.
     "We continue to be effective at leveraging our intellectual property
 position through revenue licensing programs," said Mr. Whitfield.  "Several
 companies, including Agilent, Chiron, Corning and Gene Logic, have licensed
 during the first quarter intellectual property from Incyte's industry-leading
 portfolio."
     Selling, General and Administrative expenses for the quarter ended
 March 31, 2001 were $16.6 million compared with $14.8 million for the same
 period in 2000. The growth in expenditures primarily resulted from the
 expansion of the Company's sales and marketing capabilities.
     "The first quarter was a solid beginning of the year for Incyte.  We are
 pleased with the strength of our revenues, and that both our top and bottom
 lines as well as our cash flow were better than we anticipated," said
 John Vuko, Incyte's Chief Financial Officer.
     Company management will host a conference call on Wednesday, April 25,
 2001 at 2:00 p.m. PDT to discuss the company's results. The dial in number for
 the conference call will be 973-633-1010.  A replay of the conference call
 will be available through May 2, 2001 (12:00 midnight PDT). The replay dial in
 number for U.S. and International callers will be 973-341-3080 and the PIN
 number access code will be 2533357.
     Incyte Genomics, Inc. is the leading provider of an integrated platform of
 genomic technologies designed to aid in the understanding of the molecular
 basis of disease. Incyte develops and markets genomic databases and
 partnership programs, genomic data management software, microarray-based gene
 expression services, related reagents and services. These products, programs
 and services assist pharmaceutical and biotechnology researchers with all
 phases of drug discovery and development including gene discovery,
 understanding disease pathways, identifying new disease targets and the
 discovery and correlation of gene sequence variation to disease. For more
 information, visit Incyte's web site at http://www.incyte.com .
     Except for the historical information contained herein, the matters set
 forth in this press release, including statements as to the Company's focus on
 expanding the revenue growth of certain of its programs, are forward-looking
 statements within the meaning of the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.  These forward-looking statements
 are subject to risks and uncertainties that may cause actual results to differ
 materially, including Incyte's ability to obtain and retain customers, the
 impact of competition and of technological advances, the effectiveness and
 extent of utilization of databases in pharmaceutical research and development,
 expenses relating to and the results of the Company's litigation, the ability
 to implement technological improvements, the ability to introduce new products
 and product upgrades in a timely manner, changes in the Company's business
 plan, changes in consumer demand for the Company's products, the success of
 the Company in negotiating future licensing transactions, and other risks
 detailed from time to time in Incyte's SEC reports, including its Annual
 Report on Form 10-K for the year ended December 31, 2000.  Incyte disclaims
 any intent or obligation to update these forward-looking statements.
 
 
                               INCYTE GENOMICS, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share amounts)
                                    (unaudited)
 
                                                   Three months ended
                                                       March 31,
                                              2001                      2000
 
     Revenues                               $51,121                    $40,754
 
     Costs and expenses:
           Research and development          52,968                     40,736
           Selling, general and
            administrative                   16,561                     14,821
           Goodwill and other intangibles
            amortization                      2,991                        598
     Total costs & expenses                  72,520                     56,155
 
     Loss from operations                   (21,399)                   (15,401)
 
     Interest income and other
      income/expense, net                     9,287                     10,404
     Interest expense                        (2,610)                    (1,897)
     Equity in earnings of joint venture         --                     (1,283)
     Provision for income taxes                 255                         --
 
     Loss before extraordinary item and
       cumulative effect of an accounting
        change                              (14,977)                    (8,177)
 
     Extraordinary gain - debt
      extinguishment                          2,386                         --
     Cumulative effect of an accounting
      change                                  2,279                         --
 
     Net Loss                              $(10,312)                   $(8,177)
 
     Basic and diluted net loss per share    $(0.16)                    $(0.13)
 
     Shares used in computation of:
         Basic and diluted net loss per
          share                              65,745                     60,612
 
     Per share data have been adjusted to reflect the stock split, in the form
     of a 100% stock dividend, that was paid in August 2000.
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (in thousands)
                                    (unaudited)
 
                                                  March 31,        December 31,
                                                     2001              2000
      Assets
            Cash and cash equivalents              $114,689          $110,155
            Marketable securities,
             available-for-sale                     452,651           472,025
            Accounts receivable, net                 21,600            35,022
            Prepaid expenses and other
             current assets                          20,913            30,693
                  Total current assets              609,853           647,895
 
            Property and equipment, net              95,836            98,948
            Long-term investments                    47,584            40,003
            Goodwill and other intangible
             assets, net                             79,953            82,944
            Deposits and other assets                18,717            17,030
                  Total assets                     $851,943          $886,820
 
      Liabilities and stockholders' equity
            Accounts payable                         $8,317           $17,497
            Accrued compensation                     11,644            13,023
            Accrued and other current
             liabilities                             18,395            23,036
            Deferred revenue                         23,952            22,756
                  Total current
                   liabilities                       62,308            76,312
 
            Convertible subordinated notes          179,580           187,814
                  Total liabilities                 241,888           264,126
 
                  Total stockholders'
                   equity                           610,055           622,694
                  Total liabilities and
                   stockholders' equity            $851,943          $886,820
 
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SOURCE Incyte Genomics
    PALO ALTO, Calif., April 25 /PRNewswire/ --
 Incyte Genomics, Inc. (Nasdaq:   INCY), the leading genomic information company,
 today reported its consolidated financial results for the first quarter ended
 March 31, 2001.
     Revenue for the first quarter increased 25% to $51.1 million versus
 $40.8 million for the comparable quarter in 2000.  For the quarter, database
 and partnership program revenues were $37.0 million, a 24% increase over the
 same quarter in 2000.  Custom genomics revenues for the quarter were
 $14.1 million, a 31% increase over the same quarter in 2000.  These revenue
 increases reflect the strong synergies between Incyte's genomic database and
 partnership business and demand for custom genomic products and services.
     "This is our fourth consecutive quarter with revenues increasing at an
 annual rate of over 20%.  We continue to focus on the revenue growth of both
 the database and partnership programs as well as the custom genomic businesses
 while expanding our discovery programs and related intellectual property
 generation," said Roy A. Whitfield, Chief Executive Officer for Incyte.
     The net loss for the quarter ended March 31, 2001 was $10.3 million, or
 $0.16 per diluted share compared with $8.2 million, or $0.13 per diluted
 share, for the same quarter in 2000.  The net loss for the quarter includes a
 $2.4 million extraordinary gain resulting from Incyte's repurchase of
 $8.0 million par value of its convertible subordinated notes.  Also included
 in the net loss for the quarter is a "cumulative effect of an accounting
 change."  At the beginning of fiscal 2001 Incyte adopted SFAS 133, "Accounting
 for Certain Derivatives and Certain Hedging Activities."  This resulted in a
 cumulative gain of $2.3 million for the valuation of warrants held in other
 companies as of the beginning of the year and a $0.6 million charge in
 "Interest and Other Expense" related to a change in the value of these same
 warrants for the quarter.  Loss before the extraordinary gain and adoption of
 SFAS 133 for the quarter ended March 31, 2001 was $14.4 million, or $0.22 per
 diluted share.  Per share data have been adjusted to reflect the stock split,
 in the form of a 100% stock dividend, that was paid in August 2000.
     Research and Development expenses for the quarter ended March 31, 2001
 increased 30% to $53.0 million over the comparable quarter of the prior year.
 The increase reflects Incyte's efforts to expand its intellectual property
 portfolio, increase content in the database products and "step-up" its
 activity in discovery programs and related intellectual property generation.
     "We continue to be effective at leveraging our intellectual property
 position through revenue licensing programs," said Mr. Whitfield.  "Several
 companies, including Agilent, Chiron, Corning and Gene Logic, have licensed
 during the first quarter intellectual property from Incyte's industry-leading
 portfolio."
     Selling, General and Administrative expenses for the quarter ended
 March 31, 2001 were $16.6 million compared with $14.8 million for the same
 period in 2000. The growth in expenditures primarily resulted from the
 expansion of the Company's sales and marketing capabilities.
     "The first quarter was a solid beginning of the year for Incyte.  We are
 pleased with the strength of our revenues, and that both our top and bottom
 lines as well as our cash flow were better than we anticipated," said
 John Vuko, Incyte's Chief Financial Officer.
     Company management will host a conference call on Wednesday, April 25,
 2001 at 2:00 p.m. PDT to discuss the company's results. The dial in number for
 the conference call will be 973-633-1010.  A replay of the conference call
 will be available through May 2, 2001 (12:00 midnight PDT). The replay dial in
 number for U.S. and International callers will be 973-341-3080 and the PIN
 number access code will be 2533357.
     Incyte Genomics, Inc. is the leading provider of an integrated platform of
 genomic technologies designed to aid in the understanding of the molecular
 basis of disease. Incyte develops and markets genomic databases and
 partnership programs, genomic data management software, microarray-based gene
 expression services, related reagents and services. These products, programs
 and services assist pharmaceutical and biotechnology researchers with all
 phases of drug discovery and development including gene discovery,
 understanding disease pathways, identifying new disease targets and the
 discovery and correlation of gene sequence variation to disease. For more
 information, visit Incyte's web site at http://www.incyte.com .
     Except for the historical information contained herein, the matters set
 forth in this press release, including statements as to the Company's focus on
 expanding the revenue growth of certain of its programs, are forward-looking
 statements within the meaning of the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.  These forward-looking statements
 are subject to risks and uncertainties that may cause actual results to differ
 materially, including Incyte's ability to obtain and retain customers, the
 impact of competition and of technological advances, the effectiveness and
 extent of utilization of databases in pharmaceutical research and development,
 expenses relating to and the results of the Company's litigation, the ability
 to implement technological improvements, the ability to introduce new products
 and product upgrades in a timely manner, changes in the Company's business
 plan, changes in consumer demand for the Company's products, the success of
 the Company in negotiating future licensing transactions, and other risks
 detailed from time to time in Incyte's SEC reports, including its Annual
 Report on Form 10-K for the year ended December 31, 2000.  Incyte disclaims
 any intent or obligation to update these forward-looking statements.
 
 
                               INCYTE GENOMICS, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share amounts)
                                    (unaudited)
 
                                                   Three months ended
                                                       March 31,
                                              2001                      2000
 
     Revenues                               $51,121                    $40,754
 
     Costs and expenses:
           Research and development          52,968                     40,736
           Selling, general and
            administrative                   16,561                     14,821
           Goodwill and other intangibles
            amortization                      2,991                        598
     Total costs & expenses                  72,520                     56,155
 
     Loss from operations                   (21,399)                   (15,401)
 
     Interest income and other
      income/expense, net                     9,287                     10,404
     Interest expense                        (2,610)                    (1,897)
     Equity in earnings of joint venture         --                     (1,283)
     Provision for income taxes                 255                         --
 
     Loss before extraordinary item and
       cumulative effect of an accounting
        change                              (14,977)                    (8,177)
 
     Extraordinary gain - debt
      extinguishment                          2,386                         --
     Cumulative effect of an accounting
      change                                  2,279                         --
 
     Net Loss                              $(10,312)                   $(8,177)
 
     Basic and diluted net loss per share    $(0.16)                    $(0.13)
 
     Shares used in computation of:
         Basic and diluted net loss per
          share                              65,745                     60,612
 
     Per share data have been adjusted to reflect the stock split, in the form
     of a 100% stock dividend, that was paid in August 2000.
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (in thousands)
                                    (unaudited)
 
                                                  March 31,        December 31,
                                                     2001              2000
      Assets
            Cash and cash equivalents              $114,689          $110,155
            Marketable securities,
             available-for-sale                     452,651           472,025
            Accounts receivable, net                 21,600            35,022
            Prepaid expenses and other
             current assets                          20,913            30,693
                  Total current assets              609,853           647,895
 
            Property and equipment, net              95,836            98,948
            Long-term investments                    47,584            40,003
            Goodwill and other intangible
             assets, net                             79,953            82,944
            Deposits and other assets                18,717            17,030
                  Total assets                     $851,943          $886,820
 
      Liabilities and stockholders' equity
            Accounts payable                         $8,317           $17,497
            Accrued compensation                     11,644            13,023
            Accrued and other current
             liabilities                             18,395            23,036
            Deferred revenue                         23,952            22,756
                  Total current
                   liabilities                       62,308            76,312
 
            Convertible subordinated notes          179,580           187,814
                  Total liabilities                 241,888           264,126
 
                  Total stockholders'
                   equity                           610,055           622,694
                  Total liabilities and
                   stockholders' equity            $851,943          $886,820
 
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 SOURCE  Incyte Genomics