Celera Genomics Group Reports Second Quarter Revenues of $20.3 Million
Rockville, MD - January 25, 2001
Celera Genomics Group (NYSE: CRA), a business of Applera Corporation, today reported results for its second fiscal quarter ended December 31, 2000. The Group’s revenues for the second quarter increased to $20.3 million compared with $8.3 million in the same period last year. The increase in revenues resulted principally from subscription agreements with commercial and academic customers. The net loss after benefit for taxes was $29.7 million, or $0.49 per share, compared with a net loss of $24.3 million, or $0.47 per share, in last year’s second quarter. Selling, general and administrative expenses increased to $14.4 million, as Celera continued to expand its sales and marketing group and its business development team. Included in this quarter’s results is a non-cash charge of $11.0 million for amortization of intangibles primarily related to the acquisition of Paracel, Inc. in June 2000.
Research and development expenditures were $52.7 million. Celera is beginning to put in place the assets to expand its efforts in the development of its proteomics and functional genomics capabilities. Celera recently appointed Scott Patterson, Ph.D., to lead its efforts in proteomics. Dr. Patterson has extensive scientific experience in protein analysis and its application to understanding biological processes. Celera is also currently increasing its scientific research teams, including the recent appointment of Stephen Hoffman, M.D., who will establish and lead a team designed to create and develop immunotherapeutic products from Celera’s potential new discoveries in its proteomics and functional genomics initiatives.
For the six months ended December 31, 2000, Celera reported revenues of $38.6 million, compared with $16.6 million for the comparable period in fiscal 2000. The net loss during the first six months of fiscal 2001, after benefit for taxes, was $55.4 million, or $0.92 per share, compared with $43.7 million, or $0.84 per share, during the first half of the previous year. Included in this year’s results is a non-cash charge of $22.1 million for amortization of intangibles primarily related to Celera’s acquisition of Paracel.
“We expect that the fundamentals of healthcare delivery and medical practice will be transformed by molecular medicine. We believe that the information and bioinformatics platforms developed by Celera are becoming important tools in this transformation,” noted Tony L. White, Applera’s chief executive officer. “We’re committed to accelerating the development of new therapies and targeted diagnostics.”
“As we expand our information platforms and computational biology skills, we are well-positioned to extend our reach into medical discovery,” said J. Craig Venter, Ph.D., Celera’s president and chief scientific officer. “We’re putting in place a set of capabilities, internally and with a growing list of collaborators, that we believe will give us the opportunity to understand the logic of biology. We intend to use these capabilities to discover and develop innovative new therapies and molecular diagnostic information.”
Celera has recently reported a number of developments in its business, including:New customer relationships
A conference call with Applera Corporation and Celera Genomics executives will be held today at 10:00 a.m. (EST) with investors and media to discuss these results. During the call, the Company also will update its outlook for the balance of fiscal 2001. To participate, please phone 212-271-4588 (code “applera”) between 9:45 and 10:00 a.m. (EST). The call will also be webcast live on the Internet, accessible at http://www.celera.com/.
Applera Corporation, formerly PE Corporation, comprises two operating groups. The Celera Genomics Group, headquartered in Rockville, MD, intends to become the definitive source of genomic and related medical information. Celera has developed three business units: the On-line Information Business, Discovery Sciences, and Discovery Services, all of which build upon Celera’s generation, integration, and analysis of biological information. Celera intends to enable therapeutic discoveries both through its own application of its scientific capabilities and in partnership with pharmaceutical and biotechnology companies. The Applied Biosystems Group (NYSE:ABI) develops and markets instrument-based systems, reagents, software, and contract services to the life science industry and research community. Customers use these tools to analyze nucleic acids (DNA and RNA) and proteins in order to make scientific discoveries, develop new pharmaceuticals, and conduct standardized testing. Applied Biosystems is headquartered in Foster City, CA, and reported sales of $1.4 billion for fiscal 2000. Information about Applera Corporation, including reports and other information filed by the Company with the Securities and Exchange Commission, is available on the World Wide Web at www.applera.com, or by telephoning 800.762.6923.
Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential,” 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 Celera Genomics’ businesses include but are not limited to (1) operating losses to date; (2) a unique and expanding business plan; (3) dependence on the final assembly and annotation of the human genome; (4) uncertainty of revenue growth; (5) unproven use of genomics information to develop products; (6) intense competition in the evolving genomics industry; (7) dependence on customers in and subject to the risks of the pharmaceutical and biotechnology industries; (8) heavy reliance on strategic relationship with the Applied Biosystems Group; (9) potential product liability claims; (10) liabilities related to use of hazardous materials; (11) lengthy sales cycle; (12) dependence on the unique expertise of its scientific and management staff; (13) uncertainty of patent, copyright, and intellectual property protection and the ability to protect trade secrets; (14) dependence on computer hardware, software, and internet applications; (15) access to biological materials; (16) legal, ethical, and social issues affecting demand for products; (17) disruptions caused by rapid growth of the business; (18) government regulation of its products and services; (19) risks of future acquisitions; (20) uncertainty of outcome of stockholder litigation; and (21) other factors that might be described in its filings with the Securities and Exchange Commission.
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