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PRESS RELEASES |
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Current | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 Applera Corporation Teleconference - July 27, 2005 - July 27, 2005 Peter Dworkin Good morning. Thanks for joining Applera management to discuss the fourth quarter and fiscal 2005 financial results that we issued early this morning for Applera Corporation including its Applied Biosystems Group and Celera Genomics Group, as well as Celera Diagnostics, the 50/50 joint venture between Applied Biosystems and Celera Genomics. As in previous earnings calls, this morning we will discuss each of our businesses separately starting with Applied Biosystems, then Celera Diagnostics, and concluding with Celera Genomics. We estimate that the Celera Diagnostics portion of the call will begin at about 11:45 a.m. Eastern Time and the Celera Genomics portion at approximately 12:00 p.m. Eastern Time. But we will move from one business to the next without interruption. Present today are Tony White, Chief Executive Officer of Applera; Dennis Winger, Chief Financial Officer of Applera; Cathy Burzik, President of Applied Biosystems; and Kathy Ordoņez, President of Celera Genomics and Celera Diagnostics. Other business managers also are present to assist in answering your questions. During this call, we will be making forward-looking statements about Applera's businesses. These statements are subject to the risks and uncertainties relating to our businesses and corporate structure that are referred to in the releases issued this morning and in Applera's filings with the SEC. Please note that during this call, the text of these prepared remarks will be posted on the Investor Relations section of the Applera web site and on the separate Investor Relations sites within the Applied Biosystems and Celera Genomics web sites. Tony White will make opening remarks about Applied Biosystems and, later in the call, about Celera Genomics and Celera Diagnostics. Tony White Good morning. We have a lot to communicate this morning so I will keep my remarks brief. Applied Biosystems is a stronger and more focused organization today than it was a year ago. Numerous operational improvements and greater discipline enabled double-digit increases in earnings and cash flow in the fourth quarter and for fiscal 2005 overall. Applied Biosystems entered fiscal 2006 with more than three quarters of a billion dollars in cash, and we intend to deploy these cash balances to maximize shareholder value. This morning we announced a new share repurchase authorization from the Board for up to 10 percent of the roughly 200 million outstanding shares. During this new fiscal year, we also will continue to be both aggressive and deliberate in processing acquisition and other external investment opportunities. We plan to invest approximately $175 million in research and development of new products and technologies. The Group is in the fortunate position to have financial resources to make both external and internal investments and to buy back stock. Our objectives are to build at Applied Biosystems a platform for sustainable higher growth and higher returns to shareholders. I would like to be very clear about these goals and about our resolve to achieve them. Now Cathy will share her perspectives. Cathy Burzik Thank you, Tony. Good morning everyone. I'd like to use this time to comment primarily about our priorities and strategy for our fiscal year 2006, so I will be brief about our fourth quarter fiscal year 2005 results. Applied Biosystems' revenue growth was 4 percent in Q4 and 3 percent in fiscal 2005; earnings per share increased at a double-digit rate in both the fourth quarter and for the full year. We are encouraged by the bottom line performance of the business; however increased revenue growth remains a priority for the management team. Once again we had strong growth in Real-Time PCR/Applied Genomics driven by sales into the Applied Markets, as well as sales of our TaqMan gene expression assays and related consumables. Mass Spec declined 1 percent in Q4 vs the prior year. A challenging pharmaceutical capital spending environment, coupled with time required by customers to evaluate our recently introduced products prior to purchase, slowed mass spectrometry systems sales during the fourth quarter. Revenues from DNA Sequencing increased modestly driven by consumables and sales of the 3130 low-to-medium throughput genetic analyzers. For the quarter, our overall instrument revenue of $225 million declined by 3 percent over the prior year quarter driven by decreased sales of our high throughput 3730 genetic analyzers and decreases in mass spectrometers as described above. Our consumables revenue of $179 million showed an encouraging 17 percent increase. This increase was primarily a result of strong sales into the Applied Markets, sales of sequencing consumables in Europe and TaqManŪ Gene Expression assays, and increased shipments of Tropix and Poros consumables. In addition, an important fourth-quarter event that will have an impact in fiscal 2006 was the commencement of our expanded PCR patent licensing program, now including real-time reagents, following the resolution of our dispute with Hoffmann-La Roche over rights to PCR. We were pleased to announce in early July that Invitrogen, our largest PCR licensee under the former licensing program, has become the first licensee under the expanded program. We will offer similar licensing terms to other interested companies, and we will vigorously enforce our intellectual property rights with PCR product vendors who infringe those rights. In view of the settlement with Roche and the successful start to the expanded licensing program, we continue to believe that reduced patent royalties resulting from the expiration of the foundational PCR patents should be offset over time to a substantial degree by income from real-time PCR and other PCR-related technologies that Applied Biosystems owns or licenses. Now let me turn to FY06. As we enter the new fiscal year, Applied Biosystems is well along in its transition to becoming a higher performing business. We have put in place an organizational structure that maps to our complex set of customers and markets. To add breadth and depth to the management team, in the last 12 months we have recruited more than a dozen highly skilled business executives with deep commercial experience for positions at the general manager or vice president level. As an example, two of our four division presidents are new to the Group as are all three business unit leaders in the Molecular Biology division and the heads of our two largest sales regions. During the fourth quarter we made the decision to reduce and rebalance the Applied Biosystems workforce. We eliminated about 250 positions, primarily in research and development, marketing, and operations with the intention to expand personnel during fiscal 2006 in other functional areas including field sales and support, manufacturing quality, and advanced research. Augmenting and upgrading skills in these critical functions should support higher levels of sales over time while also improving customer satisfaction. Revenue growth is our number one goal, without losing sight of the need to maintain fiscal discipline. We have a multipart strategy aimed at increasing revenues more aggressively:
Our next speaker is Dennis Winger, who will review financial highlights for the fourth quarter and provide our financial outlook for fiscal 2006. Dennis Winger Thank you, Cathy. Applied Biosystems' fourth quarter and fiscal 2005 financial results are detailed in the press release, so I am going to focus only on the highlights. During the fourth quarters of both fiscal 2005 and 2004, the Group recorded items that affected the comparability of results. These items are explained in today's press release. EPS from continuing operations on a non-GAAP basis for the fourth quarter of fiscal 2005 were $0.31, compared to $0.27 in the prior year quarter, a 15 percent increase. Non-GAAP EPS from continuing operations for the year increased 22 percent, to $1.05 from $0.86 in fiscal 2004. The Group demonstrated continued earnings leverage improvement as EPS for the fourth quarter and fiscal 2005 grew at a rate significantly in excess of revenues. A reconciliation of GAAP and non-GAAP financials can be found in today's press release which is now posted on our website at www.appliedbiosystems.com in the Financial Reports page of the Investor Relations section. The net effect of foreign currency on fiscal 2005 fourth quarter EPS was a benefit of approximately $0.01, compared to the prior year quarter. The net effect of foreign currency on fiscal 2005 net income was a benefit of approximately $0.07 per share, compared to the prior year. During the fourth quarter of fiscal 2005, cash flow from operations was $116 million, representing a 40 percent increase over the prior year quarter. For fiscal 2005, cash flow from operations was $334 million representing a 16 percent increase over fiscal 2004. Capital expenditures were $20 million for the fourth quarter and $85 million for the fiscal year. At the end of fiscal 2005, accounts receivable were $378 million, representing 56 days sales outstanding, and inventory was $117 million, representing 2.4 months of inventory on hand. As of June 30, 2005, cash and short-term investments were $756 million, up from $676 million as of March 31, 2005 and up from $505 million at the end of fiscal 2004. Applied Biosystems had no debt. Applied Biosystems has the following expectations regarding its financial performance for fiscal 2006.
The Group expects the effective tax rate to be approximately 30 percent, compared to 28 percent in fiscal 2005. Factors contributing to the anticipated increase in the effective tax rate include the phase out of export tax benefits and a change in the mix of U.S. versus foreign income. We continue to analyze certain product manufacturing alternatives that could impact the tax rate. Independent of the expected effective tax rate, we anticipate that outstanding tax issues in multiple taxing jurisdictions may be resolved in the Company's favor during fiscal 2006.
Please see today's press release for a partial list of factors that could affect the Group's fiscal year 2006 outlook and financial performance. The Group continues to develop a plan to repatriate cash balances held outside the U.S. during fiscal 2006 consistent with the repatriation provision of the American Jobs Creation Act of 2004. The Group believes this outlook and its fiscal year 2006 financial performance will continue to be affected by, among other things, the availability of funding in the U.S. for DNA sequencing, competitive pricing pressure on certain PCR-related consumables products, and the level of pharmaceutical company R&D spending. Other risks and uncertainties that may affect Applied Biosystems' financial performance are detailed in the "Forward-Looking Statements" section of today's press release. These comments reflect management's current outlook. Applera does not have any current intention to update this outlook and plans to revisit the outlook for its businesses only once each quarter when financial results are announced. Thank you, we'll now take your questions about Applied Biosystems. Peter Dworkin Next we will turn to Celera Diagnostics, a 50/50 joint venture between Applied Biosystems and Celera Genomics. Tony White will make introductory remarks about both Celera Diagnostics and Celera Genomics, and then Kathy Ordoņez will review these two businesses, starting with the diagnostics business. Tony White Good morning. Celera Genomics and Celera Diagnostics each made substantial progress during fiscal 2005. The proteomics discovery program at Celera Genomics has proven to be highly productive in generating and validating novel targets that may be valuable for oncology. Celera Genomics is developing lead candidates for some of these targets, and other targets in the portfolio are being evaluated by partners. Celera Genomics reached a major milestone last year with the initiation of its first unpartnered clinical trial. Celera Genomics also advanced other preclinical drug candidates toward the clinic. We believe it's time to build further value for these projects through new partnerships. By partnering these assets, we can ensure our most valuable programs are adequately resourced, while managing our use of cash. Celera Diagnostics is coming off of a fine year, with impressive sales growth, a reputation for cutting edge science, and new product flow in its alliance with Abbott. The strategy Applera had when it founded Celera Diagnostics in 2001 is being executed, and we look forward to continued exciting progress from this business in fiscal 2006. Next, Kathy Ordoņez will discuss Celera Diagnostics in more detail. Kathy Ordoņez (Celera Diagnostics) Thank you Tony and good morning everyone. This has been a great quarter for Celera Diagnostics and we've ended the fiscal year on a firm footing. For the fourth quarter of fiscal 2005, end-user sales for all products sold through our alliance with Abbott Laboratories increased 49 percent to $18.2 million from $12.2 million in the same quarter last year. This increase was primarily due to increased sales of Celera Diagnostics sourced HCV genotyping and viral load analyte specific reagents and our Cystic Fibrosis product. Our new m2000 products included in the Abbott alliance, which were recently launched in Europe, are currently being shipped and will be reflected in our FY06 end-user sales. We've also had positive developments in our discovery and development programs, and today I will provide an update of our ongoing medical utility studies and disease association programs, as well as our new product development programs and our business results. We are working closely with our collaborators and clinical partners toward the completion and publication of genetic studies in breast cancer, as well as cardiovascular and liver diseases. We have completed the primary work in cardiovascular disease, and these findings are in the process of analysis and have been submitted, or are in preparation, for publication. This is a complex process that we are working through with our collaborators at multiple institutions. The ongoing publication of this work is pivotal to the demonstration of the utility of our new diagnostic markers as new testing procedures based on this work move toward commercialization. We've made progress in identifying markers that predict risk for breast cancer metastasis, and Celera Diagnostics is in the process of transferring technology to LabCorp as part of an ongoing collaboration between the two businesses to develop methods to predict risk for breast cancer metastasis. Multiple test procedures are resulting from this work. Two separate studies were presented in scientific sessions pertaining to liver disease in this past quarter. One described the role of several genetic variations in liver disease and found a variant in the DDX5 gene associated with a greater than 20-fold increase in risk for Non-Alcoholic Steatohepatitis, or NASH, a common progressive liver disease that often leads to fibrosis and cirrhosis. The other study, which found a variant in a second gene, CPT1A, associated with progression to fibrosis in HCV-infected patients, was presented at the European Society for the Study of the Liver in Paris during April. This variant was also associated with risk for NASH, and these findings were reported at a meeting of the American Association for the Study of Liver Diseases during June. Celera Diagnostics successfully completed its collaboration with Merck to identify novel targets for drug discovery related to Alzheimer's disease. Celera Diagnostics also successfully completed discovery and replication studies to identify novel genes associated with psoriasis, and Celera Genomics plans to use the information in its drug discovery programs. We announced with Abbott that our alliance received CE Mark certification for our RealTime PCR tests for monitoring hepatitis C and HIV-1 viral load in patients, allowing the tests to be marketed in the European Union on our new RealTime m2000 instrument system. Work is ongoing to secure registration for these assays in other markets. We also intend to expand the menu with Abbott in this large and established market for nucleic acid testing of infectious diseases. Turning to the financial performance for the fiscal fourth quarter of 2005, our pre-tax loss decreased to $4.6 million, while our net cash use was $5.6 million. In the prior year period, our loss was $8.7 million, and cash use was $5.4 million. For fiscal 2005, our pre-tax loss dropped by $12 million to $29.9 million, while end-user alliance sales increased to $61.7 million compared to $45.9 million during fiscal 2004. During fiscal 2006, we plan to reduce our pre-tax losses to be in a range of $19 to $23 million, and net cash use to be in a range of $25 to $30 million. Total end-user sales for the alliance with Abbott are anticipated to grow to a range of $80 to $90 million. Our team at Celera Diagnostics is focused on growing our business through sales of existing and new products as well as leveraging our intellectual property and discovery power. Celera Diagnostics intends to continue advancing its genomic research and its medical utility studies to create value from diagnostic testing and, together with Celera Genomics, to seek partnerships to leverage proteomic capabilities to identify novel targets, pharmacogenomic markers and biomarkers. Now we'll take your questions on Celera Diagnostics. Peter Dworkin In the third and final portion of our call today, Kathy Ordoņez will cover Celera Genomics. For those who may have just joined us this morning, please note that during this call we will be making forward-looking statements about the Company's businesses. These statements are subject to the risks and uncertainties relating to our businesses and corporate structure that are referred to in the releases issued this morning and in Applera's filings with the Securities & Exchange Commission. Kathy Ordoņez (Celera Genomics) This morning I will provide an update on the progress we've made during the last quarter in the expansion of our therapeutic pipeline, the initiation of new proteomic discovery work and the validation of additional targets. Celera Genomics recently moved a small molecule program to lead optimization against a cancer target as a result of findings from our proteomics research activities, and we also initiated a new proteomics discovery program related to gastric cancer. Our scientists are also considering the applicability of our proteomics platform to the study of diabetes and obesity. Twenty-seven cancer targets have been identified and validated through Celera Genomics' proteomics studies in pancreatic, colon, breast, and lung cancer specimens. Partners are being sought to create therapies based on these targets. We had strong developments in our small molecule program during the fourth quarter of fiscal 2005. We initiated Phase I clinical testing for our novel histone deacetylase, or HDAC inhibitor in patients with refractory solid malignancies. This trial is a dose-escalation study, and is being conducted at the University of Chicago Hospitals with up to 40 patients being enrolled. Based on insights we have gained from our preclinical work on this compound, we plan to evaluate potential biomarkers in the clinic to enhance our understanding of its mechanism of action. As we noted in today's release, we advanced a Cathepsin S inhibitor into late preclinical development for the treatment of psoriasis. This compound was developed in South San Francisco as part of a proprietary unpartnered program to develop inhibitors of Cathepsin S. Cathepsin S was the focus of a collaboration between Celera Genomics and Aventis Pharmaceuticals, now sanofiaventis. Sanofi-aventis has informed us that it has terminated this collaborative Cathepsin S program. The Celera Genomics Cathepsin S program is based on different chemical templates from those used in the sanofi-aventis collaboration. Our scientists also presented data describing the efficacy of a tryptase inhibitor for the treatment of allergic asthma at the annual International Conference of the American Thoracic Society. The study showed in vivo efficacy with dose dependent inhibition of airway hyperresponsiveness and inflammation in a mouse model of asthma after treatment with a tryptase inhibitor. This suggests that tryptase inhibition may be an effective treatment for asthma. We have advanced our Factor VIIa program to a stage where we are seeking a partner for its further development. This program has focused on the development of therapeutics for blood clotting disorders, and we believe that the most effective strategy to move this asset forward is with a partner. Celera Genomics has several important strategic assets, including our proteomics platform and targets, our small molecule platform and programs, and our Celera Diagnostics joint venture with Applied Biosystems. With the discontinuation of the Online/Information Business and the progress being made in proteomics and small molecules, and with Celera Diagnostics, we believe we are now in a position to focus our efforts on our most substantial opportunities while managing our use of cash. Now, Dennis Winger will make a few comments regarding the financial results for Celera Genomics and our financial outlook for fiscal 2006. Dennis Winger Thank you, Kathy. Celera Genomics ended the recent quarter with $668 million in cash and short-term investments, an increase of approximately $19 million from the end of the prior quarter and a decrease of approximately $78 million during fiscal 2005. During the fourth quarter of fiscal 2005, Celera Genomics received net proceeds of $42.4 million from the sale of its Rockville facility. For the fourth quarter of fiscal 2005, Celera Genomics reported a net loss of $16.4 million, or 22 cents per share, compared to a net loss of $5.8 million, or 8 cents per share, in the same quarter last year. The fourth quarter fiscal 2005 results included a $3.6 million pre-tax favorable adjustment to a previous charge recorded in fiscal 2004 associated with the sale of Celera Genomics' Rockville facility, a tax benefit of $2.2 million related to additional U.S. R&D credits and a $3.4 million pre-tax charge for severance and asset impairments related to the discontinuation of the Online/Information Business. The fourth quarter fiscal 2004 results included a $24.8 million pre-tax gain associated with the sale of our investment in Discovery Partners International, and a pre-tax charge of $18.1 million associated with the decision to sell the Rockville facility. In the recent quarter, R&D expenses decreased by $1.4 million compared to the same quarter last year, due primarily to lower Online/Information Business expenses and the discontinuation of most of the operations of Paracel during the first fiscal quarter of 2005. These decreases were partially offset by increased expenditures to support preclinical development. The expiration of Online/Information Business customer agreements is the primary factor behind the $7.4 million year-over-year decrease in revenues. As we announced in our third quarter fiscal 2005 earnings release, these expirations were expected, and are consistent with Celera Genomics' strategic decision to focus on therapeutic discovery and development. For fiscal 2005, Celera Genomics reported a net loss of $77.1 million, or $1.05 per share, compared to a net loss of $57.5 million, or 79 cents per share, for fiscal 2004. R&D expenses for the year increased to $103.5 million from $101.4 million in the prior year, due primarily to increased expenditures to support preclinical development activities and the hiring of additional therapeutic research and development personnel. These increases were partially offset by lower Online/Information Business expenses and the discontinuation of most of the operations of Paracel during the first fiscal quarter of 2005. Revenues were $31.0 million, compared to $60.1 million for the prior fiscal year, due primarily to the expiration of Online/Information Business customer agreements. Fiscal 2005 results included the favorable adjustment related to the Rockville facility, the tax benefit for additional U.S. R&D credits and the pre-tax charge for the Online/Information business. In addition, results for fiscal 2005 included a $4.5 million pre-tax charge related to the discontinuation of most of the operations of Paracel. Fiscal 2004 results included the pre-tax gain associated with the sale of the investment in Discovery Partners International and the pre-tax loss related to the Rockville facility. Excluding the potential effects of Celera Genomics' partnering initiatives in fiscal 2006, and the proceeds from the sale of the Rockville facility and the Axys notes repayment in fiscal 2005, we expect the fiscal 2006 net cash use to be approximately the same as the fiscal 2005 level. This includes an anticipated $10 to $15 million in fiscal 2006 for Celera Genomics' portion of Celera Diagnostics' funding. R&D expenses for fiscal 2006 are anticipated to be in the range of $95 to $105 million, and SG&A expenses to be in the range of $25 to $30 million. Revenues are expected to be in the range of $5 to $10 million, which reflects the discontinuation of the Online/Information Business. Pre-tax losses related to the Celera Diagnostics joint venture are expected to be in the range of $19 to $23 million. These comments reflect management's current outlook. Applera does not have any current intention to update this outlook and plans to revisit the outlook for its businesses only once each quarter when financial results are announced. We will now take your questions about Celera Genomics. Peter Dworkin Thank you for participating in this call today. Management's remarks should now be posted on our websites. The audio replay will be available later today using the phone numbers listed in today's press releases. Forward-Looking Statements Certain statements in this press release, including the Outlook sections, are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "should," "anticipate," and "planned," among others. These forward-looking statements are based on Applera Corporation's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Applera Corporation notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, and results of Applied Biosystems include but are not limited to: (1) rapidly changing technology could adversely affect demand for Applied Biosystems' products, and its business is dependent on development and customer acceptance of new products; (2) Applied Biosystems' sales are dependent on customers' capital spending policies and government-sponsored research; (3) Applied Biosystems' significant overseas operations, with attendant exposure to fluctuations in the value of foreign currencies; (4) risks associated with Applied Biosystems' growth strategy, including difficulties in integrating acquired operations or technologies; (5) the risk of earthquakes, which could interrupt Applied Biosystems' or Celera Diagnostics' operations; (6) risks associated with lawsuits, arbitrations, investigations, and other legal actions with private parties and governmental entities, particularly involving claims for infringement of patents and other intellectual property rights; (7) Applied Biosystems' dependence on the operation of computer hardware, software, and Internet applications and related technology for its businesses, particularly those focused on the development and marketing of information-based products and services; (8) Celera Diagnostics' reliance on existing and future collaborations, including its strategic alliance with Abbott Laboratories, which may not be successful; (9) Celera Diagnostics' unproven ability to discover, develop, or commercialize proprietary diagnostic products; (10) the risk that clinical trials of products that Celera Diagnostics does discover and develop will not proceed as anticipated or may not be successful, or that such products will not receive required regulatory clearances or approvals; (11) the uncertainty that Celera Diagnostics' products will be accepted and adopted by the market, including the risks that these products will not be competitive with products offered by other companies, or that users will not be entitled to receive adequate reimbursement for these products from fourth party payors such as private insurance companies and government insurance plans; (12) Celera Diagnostics' reliance on access to biological materials and related clinical and other information, which may be in limited supply or access to which may be limited; (13) legal, ethical, and social issues which could affect demand for Celera Diagnostics' products; (14) Celera Diagnostics' limited commercial manufacturing experience and capabilities and its reliance on a single principal manufacturing facility; (15) Applied Biosystems' and Celera Diagnostics' reliance on a single supplier or a limited number of suppliers for key components of some of their products; (16) potential product liability or other claims against Celera Diagnostics as a result of the testing or use of its products; (17) intense competition in the industry in which Celera Diagnostics operates; and (18) other factors that might be described from time to time in Applera Corporation's filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Applera does not undertake any duty to update this information, including any forward-looking statements, unless required by law. The risks and uncertainties that may affect the operations, performance, development, and results of Celera Genomics' businesses include but are not limited to: (1) Celera Genomics expects operating losses for the foreseeable future; (2) the uncertainty that Applied Biosystems can successfully commercialize royalty-bearing products covered by the marketing and distribution agreement between Celera Genomics and Applied Biosystems, and therefore the uncertainty that the agreement will generate significant royalty payments to Celera Genomics; (3) Celera Genomics' and Celera Diagnostics' unproven ability to discover, develop, or commercialize proprietary therapeutic or diagnostic products; (4) the risk that clinical trials of products that Celera Genomics or Celera Diagnostics do discover and develop will not proceed as anticipated or may not be successful, or that such products will not receive required regulatory clearances or approvals; (5) the uncertainty that Celera Genomics' or Celera Diagnostics' products will be accepted and adopted by the market, including the risk that these products will not be competitive with products offered by other companies, or that users will not be entitled to receive adequate reimbursement for these products from third party payors such as private insurance companies and government insurance plans; (6) reliance on existing and future collaborations, including, in the case of Celera Diagnostics, its strategic alliance with Abbott Laboratories, which may not be successful; (7) Celera Genomics' and Celera Diagnostics' reliance on access to biological materials and related clinical and other information, which may be in limited supply or access to which may be limited; (8) intense competition in the industries in which Celera Genomics and Celera Diagnostics operate; (9) potential product liability or other claims against Celera Genomics or Celera Diagnostics as a result of the testing or use of their products; (10) Celera Genomics' reliance on scientific and management personnel having the training and technical backgrounds necessary for Celera Genomics' business; (11) potential liabilities of Celera Genomics related to use of hazardous materials; (12) uncertainty of the availability to Celera Genomics and Celera Diagnostics of intellectual property protection, limitations on their ability to protect trade secrets, and the risk to them of infringement claims; (13) Celera Genomics' dependence on the operation of computer hardware, software, and Internet applications and related technology; (14) legal, ethical, and social issues which could affect demand for Celera Genomics' or Celera Diagnostics' products; (15) risks associated with future acquisitions by Celera Genomics, including that they may be unsuccessful; (16) uncertainty of the outcome of existing stockholder litigation; (17) Celera Diagnostics' limited commercial manufacturing experience and capabilities and its reliance on a single principal manufacturing facility; (18) Celera Diagnostics' reliance on a single supplier or a limited number of suppliers for key components of certain of its products; (19) the risk of earthquakes, which could interrupt Celera Diagnostics' and/or Celera Genomics' operations; and (20) other factors that might be described from time to time in Applera Corporation's filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Applera does not undertake any duty to update this information, including any forward-looking statements, unless required by law. Notice To Readers: Celera's press releases, presentations and printed remarks are included on this website for historical purposes only. The information contained in these documents should be considered accurate only as of the date of the relevant document. This information may change over time, and therefore visitors to this website should not assume that the information contained in these documents remains accurate at a later time. We do not have any current intention to update any of the information in these documents.
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