Applera Corporation Teleconference - October 26, 2004
Management Remarks for First Quarter Fiscal 2005 Earnings Call
- October 26, 2004
Good morning. Thanks for joining Applera management to discuss the first quarter 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 12:15 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 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. Our first speaker is Tony White.
Applied Biosystems undertook actions during the first quarter to improve its organizational structure and business processes and to enhance opportunities for its mass spectrometry business.
It began implementing the change from a functional to a divisional organizational structure, a change we expect will improve planning, execution, accountability, and customer focus, as Applied Biosystems manages an increasingly broad and complex product portfolio. During the quarter Applied Biosystems also accelerated programs to re-engineer business processes, using well-tested programs such as lean manufacturing and Six Sigma quality. Cathy Burzik will elaborate on this initiative in a few minutes.
Importantly, in another action resulting from our ongoing strategic and operating review, Applied Biosystems and MDS agreed to expand the scope of their joint venture to incorporate Applied Biosystems' MALDI mass spec systems and related assets. We expect this transaction, which closed last week, will enable more integrated development of future mass spec systems and improved financial performance for our Proteomics and Small Molecule division.
These changes, led by Cathy and her management team, demonstrate the commitment at Applied Biosystems to providing customers with the best life science research products and to providing shareholders with improved financial performance. Applied Biosystems is pursuing these changes in a public funding environment for life science research that remains challenging.
Consequently, we will continue to maintain a disciplined approach to spending. We are also systematically analyzing options to expand our presence in the various end user markets we serve.
During the quarter, Cathy was appointed President of Applied Biosystems, succeeding Mike Hunkapiller following Mike's decision in August to retire. Cathy's appointment caps a smooth transition since she joined Applied Biosystems in September 2003 as Executive Vice President, working very closely with Mike. Mike leaves a strong legacy of outstanding science, technical innovation, excellence in systems integration, and an intellectual property estate second to none in the life sciences. Cathy brings superb general management and marketing skills that are very complementary to the historic strengths of Applied Biosystems. Melding the two sets of capabilities is Cathy's challenge, and she is already well underway.
Next, Cathy will share her perspective and review first quarter performance and highlights.
Thank you, Tony.
Given that this is my first earnings conference call as President of Applied Biosystems, I would like to take a moment to provide you with some insight into my near-term goals and my longer-term vision for Applied Biosystems.
Applied Biosystems is an organization rich with assets, including: outstanding employees; world-class products that continue to enable the most innovative life science research; a broad intellectual property portfolio; and deep financial resources. Despite these rich assets, revenue growth and earnings growth have been challenging for the Group over the last several years. Since February we have utilized the ongoing strategic and operational review to help build a knowledge database that has been, and will continue to be, used to support decisions regarding Applied Biosystems' product portfolio, R&D investment focus, organizational structure, and strategic direction. These decisions are aimed at improving Applied Biosystems' revenue and earnings growth over the long run.
More constrained growth in Government spending for research and development continues to be a challenge facing Applied Biosystems. In light of this, while we are committed to continuing to provide innovative enabling technologies for basic research customers, we also will seek growth through the introduction of innovative life science research tools for both the applied markets and the pharmaceutical discovery and development markets, and through the expansion of our service business. By creating separate divisions to focus on Molecular Biology, Proteomics and Small Molecules, Applied Markets, and Services, we should be better positioned to identify and pursue growth opportunities in each of these areas. I am also a strong proponent of disciplined business processes and am bringing this culture to Applied Biosystems. I have initiated a Process Excellence program in the Group. During the first current quarter, our first class of Black Belts graduated. These employees have been trained to use proven Six Sigma and lean manufacturing tools aimed at driving out cost and reducing process variability. Our Process Excellence program should improve Applied Biosystems' operating effectiveness over time.
Now I will turn to our first quarter results. During the quarter, net revenues increased 2 percent compared to the prior year quarter. Given the positive impact of approximately 2 percent from foreign currency, revenues were essentially flat. Once again, the Real-Time PCR/Other Applied Genomics and Mass Spectrometry product categories, which for each of the past three quarters have together comprised at least 50 percent of our total revenue, grew rapidly, while the remaining product categories offset much of this growth.
Notable within the Real-Time PCR/Other Applied Genomics product category was the growth of TaqManŪ assays and consumables sales, both for gene expression and for SNP genotyping. Sales of the 7300 and 7500 Real-Time PCR Systems, introduced during fiscal 2004 for low-to-medium throughput applications, also contributed to growth in this category. Subsequent to the end of the first quarter, we introduced the 7900 HT Fast Real-Time PCR System, further enhancing our integrated portfolio of quantitative gene expression products. In the applied markets, sales growth of our products for human identification was once again strong, and we were pleased to see sales of our expanding line of biosecurity products contribute significantly to sales growth for this product category for the first time.
In Mass Spectrometry, the sales growth rate of 8 percent, compared to the prior year quarter, represented a deceleration from recent growth rates; however, we do believe we are maintaining our market share position. To remind you, mass spectrometry sales were unusually strong in the fourth quarter of fiscal 2004, increasing 40 percent over the prior year quarter.
Turning to DNA Sequencing, sales of instruments declined compared to the first quarter of last year, primarily due to decreased sales of the Applied Biosystems 3730xl DNA Analyzers. On a more positive note, DNA Sequencing consumables sales increased modestly during the quarter. Yesterday at the American Society for Human Genetics Annual Meeting in Toronto, we introduced a new line of Genetic Analyzers for low- to medium-throughput laboratories, the Applied Biosystems 3130 and 3130xl. Applied Biosystems has had a strong presence in the low- to medium-throughput segment of the sequencing market, and we believe that this segment will be of increasing importance to the Group in the future.
Next, Dennis Winger will cover the financial performance and financial outlook for Applied Biosystems.
Thank you, Cathy.
Applied Biosystems' first quarter fiscal 2005 financial results are detailed in the press release, so I am going to focus only on the highlights and then briefly discuss some of the potential effects of the new tax bill on our Company.
Earnings per share for the first quarter of fiscal 2005 were $0.18 compared to $0.16 in the prior year quarter. During the quarter, the Group recorded items that affected the comparability of the results with the first quarter of fiscal 2004. These items, which netted $1.1 million pre-tax, were comprised of a pre-tax gain of $8.5 million related to the settlement of a patent infringement claim and termination of a joint development agreement with Illumina, Inc., and a pre-tax charge of $7.4 million for severance and benefit costs. Excluding these items, EPS on a non-GAAP basis for the first quarter were also $0.18. 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 EPS was a benefit of approximately $0.02, compared to the prior year quarter.
During the first quarter of fiscal 2005, selling, general, and administrative (SG&A) expenditures increased by $13 million, or 13 percent, to $109 million, compared to the prior year quarter. This increase was led by $4 million of higher litigation-related legal expenses and unfavorable foreign currency effects of approximately $2 million, compared to the prior year quarter.
During the first quarter of fiscal 2005, cash flow from operations was $40 million, and capital expenditures were $9 million. At the end of the quarter, cash and cash equivalents were $535 million, up from $505 million as of June 30, 2004, and Applied Biosystems had no debt.
Applied Biosystems has the following expectations regarding its financial performance for fiscal 2005:
The Group believes this outlook and its fiscal year 2005 financial performance will continue to be affected by, among other things, the timing and level of future NIH funding in the U.S. and the ongoing transition of universities in Japan to Independent Administrative Agency status. Other risks and uncertainties that may affect Applied Biosystems' financial performance are detailed in the "Forward-Looking Statements" section of today's press release.
The Company is currently analyzing the impact of the Corporate Tax Legislation that President Bush signed last week. While the benefit we receive from the existing US export tax regime will be phased out, we expect this will be offset by the tax benefit for manufacturing profit in the U.S. and the new foreign tax credit provisions. Additionally, we anticipate that we will be eligible to repatriate up to $500 million in foreign earnings for reinvestment in the U.S.
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.
We will now turn to Celera Diagnostics, a 50/50 joint venture between Applied Biosystems and Celera Genomics. Tony White will make some introductory remarks, followed by Kathy Ordoņez.
We believe that the Targeted Medicine approach adopted by Celera Diagnostics and Celera Genomics will provide healthcare professionals and patients with products and information to better predict, diagnose, characterize, monitor and treat serious diseases such as cardiovascular disease, autoimmune disorders, Alzheimer's disease and cancer. The productivity of Celera Diagnostics' disease association studies has led to a substantial number of discoveries and scientific presentations, while Celera Genomics' research in proteomics and cancer has identified and validated therapeutic targets. Over the last four months, these businesses have established collaborations with recognized global leaders in drug development and diagnostic technology. Each of these partners is committing intellectual and financial resources to advance programs based on our discoveries.
To transform medicine and to create value for society and for our shareholders, we need to convert our discoveries into products and technologies that have clear medical utility and benefits relative to current practice. The medical utility studies underway at Celera Diagnostics demonstrate one important step we are making in the transition beyond basic research. The results of these studies should give us a clearer picture of the potential diagnostic value of our constellations of markers.
Celera Genomics is sharing data for the cell surface targets it has associated with cancer with its collaborators, an early step in our collaborators' discovery programs for therapeutic antibodies, small molecules, and diagnostic imaging agents. Celera Genomics is focused on moving its most promising small molecule compounds toward clinical trials.
Now I will turn it over to Kathy who will discuss Celera Diagnostics.
Kathy Ordoņez (CDx)
Thank you Tony and good morning everyone.
Today I will update you regarding the progress in our discovery programs, initiation of medical utility studies and business performance for the recent quarter. First, I would like to reiterate that the mission for Celera Diagnostics and Celera Genomics is to improve human health by leading the development and commercialization of products and technologies for Targeted Medicine. Targeted Medicine employs new diagnostic tests to predict disease predisposition, diagnose and characterize disease, select optimal treatments, and monitor their effectiveness. These new tests are expected to be coupled with novel therapies that treat disease with greater specificity and efficacy compared to traditional drugs. We are making Targeted Medicine possible through our growing understanding of human biology and how human variation relates to disease.
Our disease association and medical utility studies demonstrate how we are implementing our Targeted Medicine strategy. Over the past 14 months, Celera Diagnostics and its scientific collaborators have publicly described 25 novel markers of disease that have been discovered and validated through our disease association studies. This research is addressing common diseases with unmet medical needs including cancer, autoimmune, neurological, cardiovascular and inflammatory diseases. We recently presented additional data regarding an association between a variation in the PTPN22 gene and rheumatoid arthritis at the American College of Rheumatology meeting. Further genetic findings will be presented at the American Society of Human Genetics meeting this week and in the near future at the American Heart Association scientific sessions and the meeting of the American Association for the Study of Liver Diseases.
Last week we made an important announcement regarding the identification of genetic variants associated with late-onset Alzheimer's disease. These variants appear in a family of genes associated with the GAPD enzymes, which are involved in glucose metabolism. These findings, which were published in the Proceedings of the National Academy of Sciences, may have pharmacogenomic implications for drugs in development as well as current and future therapies for Alzheimer's and other neurodegenerative diseases. We are following up this study with an Alzheimer's disease functional genome scan. Under our new collaboration with Merck, we plan to evaluate tens of thousands of functional SNPs in genes for associations with Alzheimer's.
We have initiated medical utility studies related to myocardial infarction, rheumatoid arthritis, and breast cancer metastasis. In each study, we are evaluating the full set of markers we have associated with each condition to determine the predictive value of various combinations of markers versus current standards of practice. Our goal is to identify a subset or constellation of markers that is more informative than standard risk factors or known markers; something that can become the basis of a product. Quest Diagnostics will participate in the selection of markers for myocardial infarction risk. Similarly, we plan to collaborate with LabCorp to select markers prognostic for metastasis in breast cancer. Rheumatoid arthritis findings are not yet partnered and we are evaluating our options as our utility studies move toward completion. All three should be completed in the next few months, followed by communications related to scientific results and product plans.
Both our new product programs and our existing portfolio of products are important to our long-term success. During the first fiscal quarter of 2005, we again reduced our loss and cash use while increasing sales compared to the prior year period. End-user alliance sales for all products, sold primarily by Abbott, were $12.9 million, an increase of 35% over last year's first quarter and the highest quarterly result to date. This increase was primarily due to higher demand for products sourced from third parties during the second half of fiscal 2004, including products for HLA typing, and higher demand for Abbott alliance products. During the recently completed quarter, the pre-tax loss decreased to $9.3 million, compared to $12.0 million in the same quarter last year. This 23% improvement was due primarily to higher revenue and gross margin, and lower SG&A expenses. SG&A expenses for the first fiscal quarter of 2004 included a $1.1 million charge related to a facility lease agreement.
We plan to continue moving toward profitability and to complete medical utility studies expected to serve as the basis for new diagnostic products and for new technology-based arrangements with collaborators. As I mentioned, we should complete our first medical utility studies in the next few months. Our financial outlook for fiscal 2005 remains unchanged:
Now we will take your questions regarding Celera Diagnostics.
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 (CRA)
Thank you, Peter.
On our last call, I stated that our priorities for fiscal 2005 include the formation of one or more new collaborations, additional proteomic discoveries to support our therapeutic and diagnostic alliances and the advancement of our most promising unpartnered small molecule programs toward IND filings and clinical trials. I am pleased to report that we are making progress on all fronts.
During September, we announced a collaboration with Genentech to discover and develop targeted antibody and small molecule therapies for cancer. Genentech is an established global leader in antibody technology and oncology, with a proven track record of commercializing novel treatments for cancer. Genentech plans to develop targeted therapies against some of the proteins that Celera Genomics has validated as potential therapeutic targets. We may realize value through progress-dependent payments, based on achievement of preclinical, clinical and commercial milestones, as well as from royalties on sales of any resulting therapeutic products developed by Genentech. This is the third therapeutic collaboration based on our proteomics targets.
In July, we announced collaborations with Seattle Genetics and Abbott Laboratories. These relationships also leverage our proteomics discoveries and provide broad opportunities for new targeted therapies. We believe these collaborations diversify our risk and our opportunities for potential downstream value. The Genentech agreement is a conventional out-license arrangement. Under the Abbott and Seattle Genetics agreements, Celera Genomics can opt in and co-fund clinical development and share profits for resulting products. Alternatively, we can opt out at various points and receive milestones and royalties. We believe all three relationships are complementary. Each collaborator provides different technological approaches to the discovery and development of monoclonal antibodies and each collaborator has different priorities related to target attributes. These therapeutic alliances are complemented by our collaboration with General Electric to develop diagnostic imaging agents and by programs to develop in vitro diagnostic products at Celera Diagnostics.
In our proteomics studies, we are continuing to discover and validate potential targets related to pancreatic, lung, colon and breast cancer and in cell lines representing ten additional types of cancer. To date, 16 targets have been validated and 83 additional proteins have been selected for validation and are in various stages of analysis. Our validation includes mRNA expression analysis, immunohistochemistry, functional testing and IP evaluation. We have begun submitting some of the validated targets to our collaborators for consideration. Recently we initiated a new program to identify protein biomarkers in serum and tissue that are associated with cancer. These biomarkers could have both diagnostic and therapeutic utility. We are also evaluating the next disease areas for investigation through proteomics.
We remain focused on advancing our most promising unpartnered small molecule programs toward IND filings and clinical trials. While we are not providing a specific update on our small molecule programs today, I can tell you we are continuing to make progress toward our first IND filing. We also plan to identify and validate additional targets within our ongoing proteomic oncology programs, to initiate at least one new proteomics study and to collaborate with Celera Diagnostics to exploit any diagnostic value from our proteomics discoveries.
Now, Dennis Winger will make a few comments regarding the financial results for Celera Genomics and our financial outlook for fiscal 2005.
Thank you, Kathy.
Celera Genomics ended the recent quarter with $704 million in cash and short-term investments, a decrease of approximately $42 million during the first quarter of fiscal 2005, compared to a decrease of approximately $12 million during the first quarter of fiscal 2004. During the recent quarter, approximately $6 million was used to retire the outstanding convertible debt assumed in conjunction with the acquisition of Axys Pharmaceuticals. Operating cash use was higher relative to the same quarter last year primarily due to lower cash receipts from Online/Information business subscribers and higher R&D expenses. During the prior year period, the balance of cash and short-term investments was increased by the reclassification of $16.2 million from long-term assets to short-term assets.
For the first quarter of fiscal 2005, Celera Genomics reported a net loss of $20.3 million, or 28 cents per share, compared to $16.3 million, or 23 cents per share, in the same quarter last year. In the recent quarter, R&D expenses increased approximately 12 percent compared to last year's quarter, as higher expenses attributable to preclinical development and target discovery were partially offset by lower Online/Information Business related expenses. The ongoing expiration of Online/Information Business customer agreements is the primary factor behind the $7.7 million year-over-year decrease in revenues. These expirations were expected, and are consistent with Celera Genomics' strategic decision to focus on therapeutic discovery and development. During the recent quarter, SG&A expenses decreased to $5.5 million, approximately one-third less than the first quarter of fiscal 2004, primarily due to lower Online/Information Business expenses.
During September 2004, Celera Genomics discontinued promotion of products and most operations at Paracel. Paracel is continuing to provide ongoing support to its current contract customers. Since the focus of Celera Genomics shifted to targeted therapeutics, Paracel is no longer deemed strategic. Results for the first quarter of fiscal 2005 included a $4.5 million pre-tax charge related to this decision. Celera Genomics anticipates modest expenses related to the closure of the business and completion of remaining service obligations over the next several quarters.
In July 2004, we announced our decision to sell the Rockville, MD campus and stated that leasing back a portion of this space is our preferred option.
Our fiscal 2005 financial outlook is unchanged from our July 28 outlook:
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 regarding Celera Genomics.
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.
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 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) uncertainty of the availability to Applied Biosystems or Celera Diagnostics of intellectual property protection, limitations on the ability of Celera Diagnostics to protect trade secrets, and the risk to Applied Biosystems and Celera Diagnostics of infringement claims; (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) Celera Genomics' reliance on Applied Biosystems for incremental revenues to Celera Genomics from the Celera Discovery System and Celera Genomics' related information assets; (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 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.
Copyright 2004. Applera Corporation. All Rights Reserved. Applied Biosystems, Celera and AB (Design) are registered trademarks and Applera, Celera Diagnostics, and Celera Genomics are trademarks of Applera Corporation or its subsidiaries in the U. S. and/or certain other countries. Q TRAP is a registered trademark of Applied Biosystems/MDS SCIEX, which is a joint venture between Applera Corporation and MDS Inc. TaqMan is a registered trademark of Roche Molecular Systems, Inc.
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