Aclara Biosciences (NASDAQ:ACLA)
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ACLARA Announces Third Quarter 2003 Financial Results
MOUNTAIN VIEW, Calif., Nov. 5 /PRNewswire-FirstCall/ -- ACLARA BioSciences ,
today reported financial results for the three months ended September 30, 2003.
Third Quarter 2003 Financial Results
Revenue for the three months ended September 30, 2003 was $276,000, compared to
revenue for the three months ended September 30, 2002 of $505,000. Revenue for
the nine months ended September 30, 2003 was $860,000, compared to $1.8 million
in the first nine months of 2002. Prior year revenue reflects discontinued
microfluidics-related sources of revenue.
Total operating expenses for the three months ended September 30, 2003 were $5.6
million, a decrease of $7.0 million, or 56%, compared to $12.6 million in the
prior year period. Approximately $3.3 million of the $7.0 million reduction in
expenses was due to the Company's cost reduction programs. The remaining $3.7
million of the reduction was due to the elimination of litigation settlement and
restructuring expenses in the three months ended September 30, 2003, compared to
those incurred in the same period last year. Third quarter 2003 expenses were
lower by $415,000 than in the second quarter of 2003.
Reflecting the continued reduction in expenses, net loss for the three months
ended September 30, 2003 was $4.9 million, or a loss of $0.14 per share, less
than half of the net loss of $11.2 million, or $0.31 per share, in the
corresponding prior year period. Net loss for the nine months ended September
30, 2003 was $16.3 million, or $0.46 per share, compared to a net loss of $30.1
million, or $0.84 per share, in the nine months ended September 30, 2002.
Total cash resources, comprising cash and short-term and long-term investments,
were $93.2 million at September 30, 2003, a reduction of $3.6 million from the
end of the second quarter of 2003.
Business Progress
ACLARA reported that it continued to see a high level of customer interest in
the application of eTag(TM) assays to the development of individualized
medicines. Pharmaceutical and biotechnology companies are increasingly looking
for targeted therapies with high efficacy for specific patients, particularly
with the new classes of targeted cancer therapeutics. eTag assays can provide
unique insights to the existence of certain difficult-to-detect protein states
that may facilitate the development of targeted drugs during clinical trials and
their prescription in the market, once approved.
Highlights of the Company's recent progress in developing eTag applications and
customer relationships include:
-- The accomplishment of a milestone and receipt of a related milestone
payment under the previously announced collaboration with Genentech,
Inc.;
-- The execution of an agreement with GlaxoSmithKline ("GSK") under which
GSK will have access to eTag assays for gene expression analysis;
-- The establishment of an agreement with the Tokyo Metropolitan Institute
of Medical Science (TMIMS) for the use of eTag assays in gene and
protein expression analysis;
-- The issuance of a U.S. patent covering the measurement of cell surface
receptors;
-- The launch of an expanded set of eTag gene expression assays, which
are particularly useful for determining a potential drug's metabolism
and toxicity; and
-- The establishment of a Scientific Advisory Board comprised of leading
experts in cancer and immune system disorders.
Conference Call Details
ACLARA will conduct a conference call with the investment community at 5 p.m.
Eastern/ 2 p.m. Pacific, today, November 5, 2003 to discuss the third quarter
2003 results, review the company's progress and provide more specific guidance.
Interested parties may participate in the conference call by calling
1-877-375-2162 domestic (international dial: 1-973-582-2737). The call will
also be available via live audio broadcast over the Internet on the ACLARA
Investor Relations website at http://www.aclara.com/ from the Conference Calls
link. For those unable to participate on the live call, a 24-hour replay will be
available for seven days after the call at http://www.aclara.com/ or by calling
1-877-519-4471 (international dial: 1-973-341-3080) and giving the following
pass code: 4279563.
About ACLARA
ACLARA BioSciences, Inc. is commercializing its proprietary eTag Assay System
for drug discovery research and to support preclinical and clinical development
of specific targeted therapies. The eTag Assay System is a high performance,
high throughput system for the simultaneous measurement of 10's to 100's of
genes, proteins, and cell-based antigens across thousands of samples. The eTag
platform makes it possible for researchers to measure multiple aspects of a
complex biological system, enabling the study of gene expression, protein
expression, cell signaling and pathway activation, protein-protein interaction,
post-translational modifications and cell receptor binding -- all in the same
sample and with the same platform. The system uses ACLARA's proprietary eTag
reporters to multiplex the analysis of genes and/or proteins. Specific molecular
binding events result in the release of electrophoretically distinct eTag
reporters, which are then resolved by standard capillary electrophoresis to
provide precise, sensitive quantitation of multiple analytes -- directly from
cell lysates of cultured or primary cells, as well as fresh and fixed tissue
samples. More information on ACLARA can be obtained on the Company's web site at
http://www.aclara.com/.
Forward-Looking Statements
All statements in this news release that are not historical are forward-looking
statements within the meaning of the Securities Exchange Act of 1934 as amended.
Such forward-looking statements are subject to factors that could cause actual
results to differ materially for ACLARA from those projected. Those factors
include risks and uncertainties relating to the performance of the Company's
products, product development, development and commercialization efforts,
successful establishment of and performance under collaborative and commercial
agreements, adoption of the Company's technologies by pharmaceutical and
biotechnology companies, the validity and enforceability of patents, the
possible infringement of the intellectual property of others, technological
approaches of ACLARA and its competitors, and other risk factors identified in
the Company's Form 10-K for the year ended December 31, 2002 and Form 10-Q for
the quarter ended June 30, 2003 as filed with the Securities and Exchange
Commission.
Trademarks
ACLARA BioSciences is a registered trademark and eTag and the ACLARA logo are
trademarks of ACLARA BioSciences, Inc.
ACLARA BIOSCIENCES, INC.
(A Development Stage Enterprise)
CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Revenues $276 $505 $860 $1,768
Costs and Operating expenses:
Research and development 3,847 5,516 12,264 18,576
Selling, general and
administrative 1,714 3,318 6,122 9,229
Litigation settlement -- 396 -- 3,740
Restructuring -- 3,327 -- 3,327
Total costs and operating
expenses 5,561 12,557 18,386 34,872
Loss from operations (5,285) (12,052) (17,526) (33,104)
Interest income, net 364 860 1,234 2,966
Net loss $(4,921) $(11,192) $(16,292) $(30,138)
Net loss per common share, basic
and diluted $(0.14) $(0.31) $(0.46) $(0.84)
Weighted average shares used in
net loss per common share
calculation, basic and diluted 35,681 36,148 35,564 36,020
ACLARA BIOSCIENCES, INC.
(A Development Stage Enterprise)
CONDENSED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(unaudited)
Sept. 30, Dec. 31,
2003 2002
ASSETS
Current assets:
Cash, cash equivalents and short term
investments $67,050 $50,848
Restricted cash -- 34,125
Accounts receivable 302 469
Prepaid expenses and other
current assets 557 422
Inventories 2,767 2,780
Total current assets 70,676 88,644
Long-term marketable investments 26,105 21,612
Property and equipment, net 6,153 7,098
Other assets, net 1,404 1,564
Total assets $104,338 $118,918
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $623 $689
Accrued payroll and related expenses 1,099 1,023
Accrued expenses and other
current liabilities 2,902 1,357
Deferred revenue 206 104
Restructuring -- 501
Current portion of loans payable 196 202
Total current liabilities 5,026 3,876
Loans payable, net of current portion 399 542
Deferred rent 459 414
Total liabilities 5,884 4,832
Stockholders' equity:
Common stock, $0.001 par value:
Authorized 150,000,000 shares;
Issued and outstanding: 35,723,494 shares
at September 30, 2003 and 35,391,018 shares
at December 31, 2002 36 36
Treasury stock at cost (900,000 shares
at September 30, 2003 and at
December 31, 2002) (1,350) (1,350)
Additional paid-in capital 259,110 258,798
Deferred stock-based compensation (108) (627)
Accumulated other comprehensive income 126 297
Deficit accumulated during
development stage (159,360) (143,068)
Total stockholders' equity 98,454 114,086
Total liabilities and stockholders' equity $104,338 $118,918
DATASOURCE: ACLARA BioSciences
CONTACT: Alfred Merriweather, VP, Finance and CFO, +1-650-210-1200, or
Web site: http://www.aclara.com/