GAITHERSBURG, Md., Nov. 6 /PRNewswire-FirstCall/ -- BioVeris Corporation reported today the financial results for its fiscal second quarter ended September 30, 2006.
BioVeris recorded revenues of $5.5 million for the fiscal 2007 second quarter ended September 30, 2006, compared to $6.1 million in the corresponding prior year period. Revenues for the six months ended September 30, 2006 were $9.6 million, compared to $11.0 million in the corresponding prior year period.
Revenues include product sales, which were $5.0 million for the three months ended September 30, 2006, compared to $5.8 million in the corresponding prior year period. Product sales were $8.6 million for the six months ended September 30, 2006, compared to $10.4 million in the corresponding prior year period. Sales of biosecurity products for the three and six months ended September 30, 2006 were $2.1 million and $3.6 million, respectively, compared to $2.9 million and $5.2 million in the respective prior year periods. Sales of products for the life science market for the three and six months ended September 30, 2006 were $2.9 million and $5.0 million, respectively, compared to $2.9 million and $5.2 million in the respective prior year periods. These changes in product sales reflect the change of orders and product deliveries which are based on customers' requirements.
Product costs were $3.4 million (69% of total product sales) for the quarter ended September 30, 2006 compared to $2.1 million (37% of total product sales) in the corresponding prior year period. Product costs were $5.8 million (68% of total product sales) for the six months ended September 30, 2006 compared to $4.2 million (40% of total product sales) in the corresponding prior year period. The current year increase includes approximately $400,000 and $500,000 of costs incurred during the three and six month periods, respectively, in connection with detection module upgrades. Product costs also increased due to higher service costs related to instrumentation.
Research and development expenses were $4.3 million for the quarter ended September 30, 2006, compared to $4.2 million in the corresponding prior year period. Research and development expenses were $8.6 million for the six months ended September 30, 2006, compared to $9.0 million in the corresponding prior year period. Research and development expenditures decreased in the current six month period due primarily to lower facilities and personnel costs. Research and development expenses primarily relate to ongoing development costs and product enhancements associated with vaccines, the M- SERIES family of products, development of new assays and research and development of new systems and technologies, including point-of-care products.
Selling, general and administrative expenses were $6.0 million in the quarter ended September 30, 2006, compared to $6.9 million in the corresponding prior year period. Selling, general and administrative expenses were $12.2 million in the six months ended September 30, 2006, compared to $12.6 million in the prior year period. The decrease in selling, general and administrative costs in the quarter and six months ended September 30, 2006 is primarily attributable to a decrease in personnel costs and professional fees.
The net loss for the quarter ended September 30, 2006 was $7.0 million ($0.26 per common share), compared to a net loss of $6.5 million ($0.24 per common share) in the corresponding prior year period. The net loss for the six months ended September 30, 2006 was $14.4 million ($0.54 per common share), compared to a net loss of $13.2 million ($0.49 per common share) in the corresponding prior year period.
At September 30, 2006, the Company had cash, cash equivalents and short- term investments of $53.3 million.
BioVeris Corporation is a global health care and biosecurity company developing proprietary technologies in diagnostics and vaccinology. The Company is dedicated to the development and commercialization of innovative products and services for healthcare providers, their patients and their communities. BioVeris is headquartered in Gaithersburg, Maryland. Further information about BioVeris is available at http://www.bioveris.com/.
This press release contains forward-looking statements within the meaning of the federal securities laws that relate to future events or BioVeris' future financial performance. All statements in this press release that are not historical facts, including any statements about consolidation of future financial information and future financial or operational plans are hereby identified as "forward-looking statements." The words "may," "should," "will," "expect," "could," "anticipate," "believe," "estimate," "plan," "intend" and similar expressions have been used to identify certain of the forward-looking statements. In this press release, BioVeris has based these forward-looking statements on management's current expectations, estimates and projections and they are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various important factors, including changes in BioVeris' strategy and business plans; BioVeris' ability to develop and introduce new or enhanced products; BioVeris' ability to enter into new collaborations on favorable terms, if at all; and changes in general economic, business and industry conditions. The foregoing sets forth some, but not all, of the factors that could impact upon BioVeris' ability to achieve results described in any forward-looking statements. A more complete description of the risks applicable to BioVeris is provided in the Company's filings with the SEC available at the SEC's web site at http://www.sec.gov/. Investors are cautioned not to place undue reliance on these forward-looking statements. Investors also should understand that it is not possible to predict or identify all risk factors and that neither this list nor the factors identified in BioVeris' SEC filings should be considered a complete statement of all potential risks and uncertainties. BioVeris has no obligation to publicly update or release any revisions to these forward- looking statements to reflect events or circumstances after the date of this press release.
(Financial data follows.)
BioVeris Corporation
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended Ended
September 30, September 30,
2006 2005 2006 2005
REVENUES:
Product sales $ 4,969 $ 5,789 $ 8,559 $ 10,369
Royalty income 517 360 1,015 670
Total 5,486 6,149 9,574 11,039
OPERATING COSTS AND EXPENSES:
Product costs 3,404 2,118 5,788 4,166
Research and development 4,332 4,249 8,594 9,014
Selling, general, and
administrative 6,017 6,897 12,219 12,578
Total 13,753 13,264 26,601 25,758
LOSS FROM OPERATIONS (8,267) (7,115) (17,027) (14,719)
INTEREST INCOME 1,255 1,250 2,456 2,568
OTHER, NET (16) (638) 171 (1,020)
NET LOSS $ (7,028) $ (6,503) $(14,400) $(13,171)
Net loss per common share
(basic and diluted) $ (0.26) $ (0.24) $ (0.54) $ (0.49)
COMMON SHARES OUTSTANDING
(basic and diluted) 26,929 26,808 26,905 26,768
BioVeris Corporation
Consolidated Balance Sheet
(In thousands)
(Unaudited)
September 30, March 31,
2006 2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 32,145 $ 29,693
Short-term investments 21,123 39,938
Accounts receivable, net 4,123 3,360
Note receivable - current 1,286 1,230
Inventory, net 6,538 5,429
Other current assets 2,554 2,508
Total current assets 67,769 82,158
Equipment and leasehold improvements,
net 3,397 3,456
OTHER NONCURRENT ASSETS:
Note receivable, net 4,743 4,436
Technology licenses 14,381 15,356
Other 447 447
TOTAL ASSETS $ 90,737 $ 105,853
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 4,594 $ 5,362
Accrued wages and benefits 1,384 1,862
Other current liabilities 1,336 1,520
Total current liabilities 7,314 8,744
NONCURRENT DEFERRED LIABILITIES 569 546
Total liabilities 7,883 9,290
SERIES B PREFERRED STOCK, 1,000 shares
designated, issued and outstanding 7,500 7,500
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.01 per
share, 15,000,000 shares authorized,
issuable in series:
Series A, 600,000 shares designated,
none issued - -
Common stock, par value $0.001 per
share, 100,000,000 shares authorized,
27,239,000 and 27,238,000 shares
issued and outstanding at September
30, 2006 and March 31, 2006,
respectively 27 27
Additional paid-in capital 204,934 205,997
Deferred compensation - (1,688)
Accumulated other comprehensive loss (17) (128)
Accumulated deficit (129,590) (115,145)
Total stockholders' equity 75,354 89,063
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 90,737 $ 105,853
