Celera Reports Fiscal Third Quarter 2002 Results
Rockville, MD - April 25, 2002
Celera Genomics Group (NYSE: CRA), an Applera Corporation business, today reported results for its third quarter of fiscal 2002 ended March 31, 2002. All per share amounts refer to per share of Applera Corporation-Celera Genomics Group Common Stock.
For the quarter ended March 31, 2002, Celera reported revenues of $30.5 million, up from $23.4 million for the same quarter in fiscal 2001. The increase in revenues was primarily due to new subscription agreements with commercial and academic customers signed over the past 12 months. Online/Information business revenues for this period were $18.5 million, compared to $12.4 million in the year earlier period. The balance of Celera's revenues was mainly attributable to contract services such as sequencing grants and genotyping, and to Paracel.
Included in the quarter's results are $25.9 million of non-recurring special charges related to the Paracel business. These charges are comprised of $23.0 million related primarily to the impairment of all remaining goodwill and other intangibles, and an accrual for excess lease space included in other special charges, and a $2.9 million write down of inventory included in cost of sales. The Group's net loss before non-recurring charges was $28.5 million, or $0.42 per share, compared with $29.1 million, or $0.48 per share, for the same quarter in fiscal 2001. The lower net loss was attributable primarily to continued growth in subscription revenues and lower R&D expenditures and amortization of goodwill. Higher development expenses within the Celera Diagnostics joint venture with Applied Biosystems and lower interest income partially offset these factors. The reported net loss for the quarter was $49.5 million, or $0.72 per share, including the special charges. At the end of March 2002, the Group had cash and short-term investments of approximately $909 million.
For the nine months ended March 31, 2002, Celera Genomics reported a net loss before special charges of $63.0 million, or $0.97 per share, compared to a net loss of $84.5 million, or $1.40 per share, for the comparable period in fiscal 2001. The special charges during this period included a $99.0 million non-cash charge related to the acquired in-process R&D associated with the Axys acquisition, and the Paracel-related charges described above. Including the special charges, the reported net loss for this period was $183.0 million, or $2.82 per share. Total revenues for this period were $92.8 million, compared to $62.0 million for the same period last year. Online/Information business revenues were $52.8 million, compared to $34.3 million for the same period in fiscal 2001.
Tony L. White, Applera's Chief Executive Officer, said, "When I took on the role of interim President of Celera Genomics three months ago, my goal was to speed the transformation of Celera into a drug discovery and development business with sustainable competitive advantage, and to build a management structure to accomplish this. I believe the recently announced appointment of Kathy Ordoņez and the Celera Discovery System marketing and distribution agreement with Applied Biosystems places Celera Genomics on a solid path toward this goal."
Celera Diagnostics Joint Venture
The comments in the Financial 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. Celera plans to update other aspects of its fiscal 2003 financial and therapeutic programs outlook when it announces results for the fiscal fourth quarter 2002.
Conference Call & Webcast
A conference call with Applera Corporation and Celera Genomics executives will be held today, April 25, 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 who would like to participate should dial (+1) 706-634-4992 (code "applera") between 9:45 a.m. and 10:00 a.m. 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. A digital recording will be available two hours after the completion of the conference call from April 25 to May 5, 2002. Interested parties should call (706) 645-9291 and enter Conference ID 3609219.
About Applera Corporation and Celera Genomics
Applera Corporation comprises two operating groups. The Celera Genomics Group, located in Rockville, MD and South San Francisco, CA, is engaged principally in integrating advanced technologies to discover and develop new therapeutics. Celera intends to leverage its genomic and proteomic technology platforms to identify drug targets and diagnostic marker candidates and to discover novel therapeutics. Its Celera Discovery SystemTM online platform, to be marketed exclusively through the Knowledge Business of Applied Biosystems, is an integrated source of information based on the human genome and other biological and medical sources. 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 diagnostic 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 Financial Outlook section, are forward-looking. These may be identified by the use of forward-looking words or phrases such as "expect," "intend," "anticipate," "should," 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) uncertainty of revenue growth; (3) unproven use of genomics information to develop or commercialize products; (4) intense competition in the industry in which Celera Genomics operates; (5) dependence on customers in, and the risks that affect, the pharmaceutical and biotechnology industries; (6) reliance on its strategic relationship with the Applied Biosystems Group; (7) potential product liability claims; (8) potential liabilities related to use of hazardous materials; (9) lengthy sales cycles; (10) dependence on the unique expertise of its scientific and management staff; (11) 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; (12) dependence on computer hardware, software, and Internet applications; (13) 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; (14) Celera Genomics' need for access to biological materials; (15) legal, ethical, and social issues which could affect demand for products; (16) the possibility of disruptions which could be caused by rapid growth of the business; (17) potential for government regulation of Celera Genomics' or its customers' products and services; (18) risks associated with future acquisitions, including that they may be unsuccessful; (19) uncertainty of the outcome of existing stockholder litigation; (20) the lengthy and uncertain development cycle for therapeutic and diagnostic products, and Celera Genomics' unproven ability to develop or commercialize such products; (21) 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; (22) Celera Diagnostics' unproven ability to discover, develop, and commercialize novel diagnostic tests and the uncertainty that Celera Diagnostics will become profitable; (23) the successful integration of CDS into the Applied Biosystems' Knowledge Business product offering and market acceptance and adoption of the product offering; and (24) other factors that might be described from time to time in Applera Corporation's filings with the Securities and Exchange Commission.
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.