Celera Reports Second Quarter Revenues of $35.0 Million
Rockville, MD - January 23, 2002
Celera Genomics Group (NYSE: CRA), an Applera Corporation business, today reported results for its second quarter of fiscal 2002 ended December 31, 2001. All per share amounts refer to per share of Applera Corporation-Celera Genomics Group Common Stock.
For the quarter, Celera reported revenues of $35.0 million, up from $20.3 million for the same quarter in fiscal 2001. The increase in revenues resulted principally from new subscription agreements with commercial and academic customers and from contract sequencing and other services. Included in the quarter's results is a $99.0 million non-cash, non-recurring charge for acquired in-process research & development related to the acquisition of Axys Pharmaceuticals. The Group's net loss before the non-recurring charge was $18.9 million, or $0.29 per share, compared with $29.7 million, or $0.49 per share, for the same quarter in fiscal 2001. The lower net loss was attributable primarily to continued operating growth in the online business, the completion of R&D related genome sequencing programs and lower amortization of goodwill. Continued investment in the Celera Diagnostics joint venture with Applied Biosystems and lower interest income partially offset these factors. The reported net loss was $117.9 million, or $1.82 per share, including the special charge. At the end of December 2001, the Group had cash and short-term investments of approximately $941 million.
R&D expenditures for the quarter were $30.6 million, in comparison to $42.3 million in the same period last year. R&D expenses associated with therapeutic discovery programs continued to increase in comparison to the prior year. For the quarter, these increases were more than offset by lower R&D expenses associated with the shotgun phase of certain whole genome sequencing programs.
For the six months ended December 31, 2001, Celera reported revenues of $62.3 million, a 61 percent increase over the $38.6 million in revenues for the same period last year. The net loss before the special charge for this period was $34.5 million, or $0.55 per share, compared to a loss of $55.4 million, or $0.92 per share, for the comparable period in fiscal 2001. Including the special charge, the reported net loss for this period was $133.5 million, or $2.11 per share.
"Celera continued to add to its therapeutic discovery capability through internal expansion, the Axys acquisition and new technology collaborations. We are pleased with the progress in the therapeutic collaborations with Merck and Aventis," stated Tony L. White, Applera's Chief Executive Officer. "The online information business continued to expand both its customer base and its product content and functionality, driving large year-over-year increases in revenues and offsetting some of our discovery R&D costs."
Mr. White continued, "In the two months since the Axys acquisition closed, we have made significant progress in the integration of its talented staff and its portfolio of pre-clinical therapeutic programs. Now we are combining the growing output from Celera's proteomics platform with our recently acquired expertise in protease inhibitors and small molecule discovery. We plan to apply high throughput methods for the validation of potential therapeutic targets and the identification of potential new drugs in parallel."
Celera has reported a number of developments in its businesses over the last three months.
The comments in the Outlook Section reflect management's current outlook. The Company does not have any current intention to update this outlook and plans to revisit the Group's outlook only once each quarter when financial results are announced.
Conference Call & Webcast
A conference call with Applera Corporation and Celera Genomics executives will be held January 24, at 10:00 a.m. (ET) with investors and media to discuss these results and management's current financial outlook for the Company. Investors, securities analysts, and representatives of the media calling from the U.S. or Canada who would like to participate should dial 800.598.1707 (code "applera") between 9:45 a.m. and 10:00 a.m. International participants should dial (+1) 706.634.4992. This conference call will also be webcast. Interested parties who wish to listen to the webcast should visit either www.applera.com and go to the Investor Relations section of the web site, or www.celera.com and go to the Investor section. An audio replay of the conference call is expected to be available later tomorrow for 10 days. Callers from the U.S. or Canada should dial 800.642.1687. International callers should dial (+1) 706.645.9291. The conference ID number is 2832090.
About Applera Corporation and Celera Genomics
Applera Corporation comprises two operating groups. The Celera Genomics Group, headquartered in Rockville, MD, is engaged principally in integrating advanced technologies to create therapeutic discovery and development capabilities for internal use and for its customers and collaborators. Celera's businesses are its online information business and its therapeutics discovery business. The online information business is a leading provider of information based on the human genome and other biological and medical information. Through the therapeutic discovery business, Celera intends to leverage its genomic and proteomic capabilities to identify drug targets and diagnostic marker candidates, and to discover novel therapeutic candidates. 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. Applied Biosystems is headquartered in Foster City, CA, and reported sales of $1.6 billion during fiscal 2001. Celera Diagnostics, a joint venture between Applied Biosystems and Celera Genomics, is focused on discovery, development, and commercialization of novel diagnostics tests. 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. Information about Celera is available on the World Wide Web at www.celera.com.
Certain statements in this press release, including the Outlook section, are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "intend," "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) expected operating losses; (2) dependence on the continued assembly and annotation of the human and other genomes; (3) uncertainty of revenue growth; (4) unproven use of genomics information to develop or commercialize products; (5) intense competition in the industry in which Celera Genomics operates; (6) dependence on customers in, and the risks that affect, the pharmaceutical and biotechnology industries; (7) reliance on its strategic relationship with the Applied Biosystems Group; (8) potential product liability claims; (9) potential liabilities related to use of hazardous materials; (10) lengthy sales cycles; (11) dependence on the unique expertise of its scientific and management staff; (12) uncertainty and availability of patent, copyright, and intellectual property protection and the ability to protect trade secrets, and the risk that Celera Genomics may become the subject of infringement claims; (13) dependence on computer hardware, software, and Internet applications; (14) the potential adverse effect on Celera Genomics' intellectual property protection and the value of its products and services due to public disclosure of genomics sequence data; (15) Celera Genomics' need for access to biological materials; (16) legal, ethical, and social issues which could affect demand for products; (17) the possibility of disruptions which could be caused by rapid growth of the business; (18) potential for government regulation of Celera Genomics' or its customers' products and services; (19) risks associated with future acquisitions, including that they may be unsuccessful; (20) uncertainty of the outcome of existing stockholder litigation; (21) the lengthy and uncertain development cycle for therapeutic and diagnostic products, and Celera Genomics' unproven ability to develop or commercialize such products; (22) the risk that the Axys business will not be integrated successfully into Celera Genomics; (23) the risk that the collaborations established by Axys will not be successful and that clinical trials will not proceed as anticipated or may not be successful; (24) Celera Diagnostics' unproven ability to discover, develop, and commercialize novel diagnostic tests and the uncertainty that Celera Diagnostics will become profitable; and (25) other factors that might be described from time to time in Applera Corporation's filings with the Securities and Exchange Commission.
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