- Fourth Quarter Revenue Growth 16% -
HOPKINTON, Mass., Feb. 26 /PRNewswire-FirstCall/ -- Caliper Life Sciences, Inc. (NASDAQ:CALP), a leading provider of tools and services for drug discovery and life sciences research, today reported its fourth quarter and full year financial results for 2007. Fourth quarter revenues were $40.3 million, an increase of 16% from $34.7 million in the same period in 2006. Net loss for the quarter was $5.7 million ($0.12 per share), compared to a net loss of $8.9 million ($0.19 per share) in the same quarter of 2006. Full year 2007 revenues were $140.7 million, up 30% from $107.9 million in 2006. Net loss for the full year was $24.1 million ($0.51 per share), compared to a net loss of $28.9 million ($0.75 per share) in 2006. Caliper attributed its fourth quarter revenue growth to strong performance by its IVIS imaging and its microfluidics products, and attributed its $3.2 million fourth quarter reduction in net loss primarily to product and service gross margin improvements.
Highlights in the quarter include: -- Product revenue increased 19% in comparison with the fourth quarter of
2006. IVIS molecular imaging systems achieved a new record with 44%
revenue growth and 51 unit placements increasing the installed unit
base to 537 systems. Significantly, the company saw an increase in use
of IVIS systems in new therapeutic areas beyond oncology, including
central nervous system (CNS) disorders, infectious and metabolic
disease, and inflammation. Microfluidics instrument revenue recorded
26% revenue growth led by demand for the new EZ Reader products which
are used primarily in kinase screening. Automation instrument revenue
for the quarter was level with the fourth quarter of 2006.
-- Service revenue grew 18% in comparison with the fourth quarter of 2006. Caliper Discovery and Alliances Services ("CDAS") posted strong 29%
growth reflecting the new EPA ToxCast contract awarded in the second
quarter of 2007, plus expanded in vivo phenotyping business with
pharmaceutical companies. Instrument maintenance and other services
posted high single digit growth.
-- Combined product and service gross margins improved to 42% versus the
fourth quarter of 2006. The gain of over 270 basis points in gross
margins compared to the fourth quarter of 2006 reflected increased
volumes, as well as savings from raw materials sourcing initiatives.
-- Operating expenses (R&D plus SG&A) increased by $1.2 million from the
fourth quarter of 2006. This was primarily due to costs associated with
ongoing litigation.
-- Positive operating cashflow was generated in the quarter, and Caliper
ended the period with $19.0 million in cash and marketable securities.
"In the fourth quarter of 2007, we achieved strong revenue performance in all of our key growth drivers: the IVIS Spectrum imaging instrument, the microfluidics-based EZ Reader instrument and the associated ProfilerPro product line of reagents, the Zephyr desktop liquid handler, and CDAS in vitro and in vivo services. This evidence of market support reinforces our belief that our products and services are well positioned for double digit revenue growth in 2008," said Kevin Hrusovsky, president and CEO of Caliper. "Our bottom line reflects a continuing trend of improvement, particularly in product gross margins which gained over 500 basis points in 2007 compared with 2006. There is room to do more. We have 2008 initiatives in place to better manage manufacturing materials and inventory, as well as improve the efficiency of our operating expense spending." 2008 GAAP Guidance Caliper reported that its revenue outlook for the first quarter of 2008 is $26.5 to $29.5 million and its revenue outlook for the full year 2008 is $142 to $148 million. Caliper's revenue outlook encompasses combined product and service revenue for the first quarter of 2008 of $24 to $27 million and for the full year 2008 of $132 to $138 million, representing 5.4% and 12% product and service revenue growth at the midpoint of the respective ranges.
Adjusted Results Caliper supplements its GAAP financial reporting with certain non-GAAP financial measures. A reconciliation of Caliper's GAAP to non-GAAP Statements of Operations is provided at the end of this release under "Adjusted Consolidated Statements of Operations." Adjusted results of operations exclude stock-based compensation charges and acquisition-related revenue adjustments and expenses, such as amortization of intangibles and restructuring charges and credits. Caliper believes that providing this additional information enhances investors' understanding of the financial performance of Caliper's operations and increases the comparability of its current financial statements to prior periods.
In the fourth quarter of 2007, Caliper reported adjusted revenue of $40.3 million, an increase of 13% over the fourth quarter of 2006, and an adjusted net loss of $2.0 million ($0.04 per share), in comparison with an adjusted net loss of $2.4 million ($0.05 per share) in the fourth quarter of 2006. For the full year 2007, Caliper reported adjusted revenue of $141.7 million, an increase of 29% over 2006, and an adjusted net loss of $7.9 million or ($0.17) per share in comparison with an adjusted net loss of $10.0 million or ($0.26) per share in 2006.
Caliper will discuss its fourth quarter and full year results in a conference call to be held today, February 26 at 9:00 a.m. EST. To participate in the call, please dial 888-713-4215 five to ten minutes prior to the call and use the participant passcode 54563865. International callers can access the call by dialing 617-213-4867 and entering the same passcode. You may also pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PKKMX3XKF.
A live webcast of the call can be accessed at http://www.fulldisclosure.com/ or on the Caliper website at http://www.caliperls.com/ in the Events section of the Investor Relations page. A webcast replay of the call will remain available until Caliper's earnings call for the first quarter of 2008.
Telephone replays of the conference call will be available approximately two hours after the completion of the call on February 26 until March 4, 2008. To access a telephone playback of the proceedings, dial 888-286-8010 and use the participant passcode 19800700. International callers can access the playback by dialing 617-801-6888 and using the same participant passcode.
About Caliper Life Sciences Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results and then translating those results into cures for human disease. Caliper's portfolio of offerings includes state-of-the-art microfluidics, lab automation & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions. For more information please visit http://www.caliperls.com/.
The statements in this press release regarding future events, including statements regarding Caliper's expected financial results for the first quarter ending March 31, 2008 and for fiscal year 2008, Caliper's beliefs regarding the future growth rate performance of its IVIS imaging products, the strong revenue growth potential of Caliper's microfluidics products, and the effect of the EPA ToxCast contract on future revenues and margins, are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements as a result of a number of factors, including the risks that unexpected difficulties may be encountered in gaining wider commercial adoption of Caliper's new products, that the EPA may not expand the screening of compounds under the ToxCast contract as much or as rapidly as expected by Caliper, and that Caliper's expectations regarding demand for its products and services may not materialize if capital spending by Caliper's customers declines, if competitors introduce new competitive products, or if Caliper is unable to convince potential customers regarding the superior performance of its drug discovery and imaging systems and other products. Further information on risks faced by Caliper are detailed under the caption "Risks Related To Our Business" in Caliper's Annual Report on Form 10-K for the year ended December 31, 2006. Our filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov/. Caliper does not undertake any obligation to update forward-looking or other statements in this release or the conference call.
NOTE: Caliper, Xenogen, IVIS and LabChip are registered trademarks, and Spectrum, Zephyr, EZ Reader and ProfilerPro are trademarks, of Caliper Life Sciences, Inc. or its subsidiaries.
CALIPER LIFE SCIENCES, INC. SELECTED FINANCIAL INFORMATION
(unaudited) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data) Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
Revenue:
Product revenue $28,175 $23,739 $82,961 $69,248
Service revenue 9,513 8,088 37,557 24,454
License fees and contract revenue 2,568 2,893 20,189 14,169 Total revenue 40,256 34,720 140,707 107,871 Costs and expenses:
Cost of product revenue 15,961 14,029 49,760 45,459
Cost of service revenue 5,756 5,184 22,357 14,917
Cost of license revenue 277 146 2,515 219
Research and development 5,702 6,542 24,791 24,591
Selling, general and administrative 15,642 13,630 54,954 43,570
Amortization of intangible assets 2,514 4,314 10,106 8,842
Restructuring charges, net 22 161 52 258 Total costs and expenses 45,874 44,006 164,535 137,856 Operating loss (5,618) (9,286) (23,828) (29,985)
Interest income (expense), net (226) 8 (547) 478
Other income (expense), net 213 90 579 469
Benefit (provision) for income taxes (103) 301 (284) 104 Net loss $(5,734) $(8,887) $(24,080) $(28,934) Net loss per share,
basic and diluted $(0.12) $(0.19) $(0.51) $(0.75)
Shares used in computing net
loss per common share,
basic and diluted 47,561 46,652 47,301 38,743 CALIPER LIFE SCIENCES, INC. SELECTED FINANCIAL INFORMATION CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) December 31,
2007 2006
(unaudited) (Note 1)
Assets
Current assets:
Cash and cash equivalents $15,709 $11,634
Marketable securities 3,246 13,303
Accounts receivable, net 30,248 30,822
Inventories 19,572 18,758
Other current assets 2,353 2,273
Total current assets 71,128 76,790
Property and equipment, net 11,477 13,182
Intangible assets, net 42,862 52,806
Goodwill 80,836 80,776
Other assets 1,626 1,499
Total assets $207,929 $225,053
Liabilities and stockholders' equity
Current liabilities $45,391 $49,938
Loans payable and other long-term obligations 21,352 17,706
Stockholders' equity 141,186 157,409
Total liabilities and stockholders' equity $207,929 $225,053
Note (1): Derived from audited financial statements for the year ended
December 31, 2006.
CALIPER LIFE SCIENCES, INC. ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
December 31, 2007
Stock-based Other
Reported Comp Adjustments Adjusted(1) Revenues:
Product revenue (4) $28,175 $- $- $28,175
Service revenue 9,513 - - 9,513
License fees and
contract revenue (4) 2,568 - 20 2,588 Total revenues 40,256 - 20 40,276 Cost and Expenses:
Cost of product
revenue (2),(4) 15,961 (93) - 15,868
Cost of service
revenue (2) 5,756 (22) - 5,734
Cost of license
revenue (4) 277 - - 277
Research and
development (2) 5,702 (212) - 5,490
Selling, general and
administrative (2) 15,642 (865) - 14,777
Amortization of
intangible assets (3) 2,514 - (2,514) -
Restructuring charges (3) 22 - (22) - Total costs and expenses 45,874 (1,192) (2,536) 42,146 Operating loss (5,618) 1,192 2,556 (1,870)
Interest income (expense),
net (226) - - (226)
Other income, net 213 - - 213
Benefit (provision)
for income taxes (6) (103) - - (103) Net income (loss) $(5,734) $1,192 $2,556 $(1,986) Net income (loss) per share
- basic and diluted $(0.12) $(0.04) Shares used in computing net
loss per share - basic and
diluted 47,561 47,561
Three Months Ended
December 31, 2006
Stock-based Other
Reported Comp Adjustments Adjusted(1) Revenues:
Product revenue (4) $23,739 $- $- $23,739
Service revenue 8,088 - - 8,088
License fees and
contract revenue (4) 2,893 - 1,017 3,910 Total revenues 34,720 - 1,017 35,737 Cost and Expenses:
Cost of product
revenue (2),(4) 14,029 (133) - 13,896
Cost of service
revenue (2) 5,184 (40) - 5,144
Cost of license revenue (4) 146 - 95 241
Research and
development (2) 6,542 (252) - 6,290
Selling, general and
administrative (2) 13,630 (1,068) - 12,562
Amortization of
intangible assets (3) 4,314 - (4,314) -
Restructuring charges (3) 161 - (161) - Total costs and
expenses 44,006 (1,493) (4,380) 38,133 Operating loss 9,286 1,493 5,397 (2,396)
Interest income
(expense), net 8 - - 8
Other income, net 90 - - 90
Benefit (provision)
for income taxes (6) 301 - (386) (85) Net income (loss) $(8,887) $1,493 $5,011 $(2,383) Net income (loss) per share
- basic and diluted $(0.19) $(0.05) Shares used in computing net
loss per share - basic and
diluted 46,652 46,652
See accompanying Notes to Adjusted Consolidated Statements of Operations CALIPER LIFE SCIENCES, INC. ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data) Year Ended
December 31, 2007
Stock-
based Other Adjusted
Reported Comp Adjustments (1)
Revenues:
Product revenue (4) $82,961 $- $- $82,961
Service revenue 37,557 - - 37,557
License fees and contract
revenue (4) 20,189 - 1,037 21,226 Total revenues 140,707 - 1,037 141,744 Cost and Expenses:
Cost of product revenue (2),(4) 49,760 (422) - 49,338
Cost of service revenue (2) 22,357 (121) - 22,236
Cost of license revenue (4) 2,515 - 138 2,653
Research and development (2),(5) 24,791 (836) - 23,955
Selling, general and
administrative (2) 54,954 (3,783) - 51,171
Amortization of intangible
assets (3) 10,106 - (10,106) -
Restructuring charges (3) 52 - (52) - Total costs and expenses 164,535 (5,162) (10,020) 149,353 Operating loss (23,828) 5,162 11,057 (7,609)
Interest income, net (547) - - (547)
Other income, net 579 - - 579
Provision for income taxes (6) (284) - - (284) Net income (loss) $(24,080) $5,162 $11,057 $(7,861) Net income (loss) per share -
basic and diluted $(0.51) $(0.17) Shares used in computing net loss
per share - basic and diluted 47,301 47,301
Year Ended
December 31, 2006
Stock-
based Other Adjusted
Reported Comp Adjustments (1)
Revenues:
Product revenue (4) $69,248 $- $273 $69,521
Service revenue 24,454 - - 24,454
License fees and contract
revenue (4) 14,169 - 1,603 15,772 Total revenues 107,871 - 1,876 109,747 Cost and Expenses:
Cost of product revenue (2),(4) 45,459 (506) 9 44,962
Cost of service revenue (2) 14,917 (151) - 14,766
Cost of license revenue (4) 219 - 149 368
Research and development (2),(5) 24,591 (975) (2,898) 20,718
Selling, general and
administrative (2) 43,570 (3,938) - 39,632
Amortization of intangible
assets (3) 8,842 - (8,842) -
Restructuring charges (3) 258 - (258) - Total costs and expenses 137,856 (5,570) (11,840) 120,446 Operating loss (29,985) 5,570 13,716 (10,699)
Interest income, net 478 - - 478
Other income, net 469 - - 469
Provision for income taxes (6) 104 - (386) (282) Net income (loss) $(28,934) $5,570 $13,330 $(10,034) Net income (loss) per share -
basic and diluted $(0.75) $(0.26) Shares used in computing net
loss per share - basic and
diluted 38,743 38,743
Notes to Adjusted Consolidated Statements of Operations (1) To supplement the financial results presented on a GAAP basis, the
Company uses adjusted measures of gross profit margins, costs and
expenses, net loss and net loss per share which are non-GAAP
financial measures. Caliper's management uses these adjusted
financial measures to gain an understanding of its comparative
operating performance, and also in financial and operating decision-
making because management believes they better reflect the underlying
economics of Caliper's ongoing business. Management believes that
comparisons of adjusted financial measures may be more meaningful
because operating results presented under GAAP may include, from time
to time, items that management believes are not necessarily relevant
to understand Caliper's business. Caliper's management believes that
these adjusted financial measures provide useful information to
investors and others in understanding and evaluating Caliper's
current operating performance and future prospects. The adjusted
financial measures have limitations, however, because they do not
include all items of income and expense that impact Caliper's
operations. The adjusted measures exclude: (a) Expense associated with the amortization of acquisition-related
intangible assets, impairment of acquired intangible assets and in-
process research and development. This exclusion allows comparisons
of operating results that are consistent over time for both the
Company's newly acquired and long-held business activities and with
both acquisitive and non-acquisitive peers. (b) Deferred revenue adjustments recorded in purchase accounting that
reduce revenues that would otherwise be recognized on a continuing
GAAP basis. (c) Restructuring expense related reductions in force and costs to
discontinue activities including idle capacity costs. The costs
largely relate to restructuring activities associated with business
combinations and are not indicative of the Company's normal operating
costs. (d) The Company adopted Statement of Financial Accounting Standards
(SFAS) No. 123R on January 1, 2006, which requires non-cash stock
compensation expense to be recorded when stock options and other
stock-related awards vest. The Company is using the Modified-
Prospective Transition method in its adoption of SFAS No. 123R and,
as such, is not required to restate prior year results for the impact
of stock-related awards expensing. The Company believes that
available valuation methodologies and assumptions may result in
estimates that are misleading in the comparison of its financial
results to previous periods or to its peers, and do not provide
meaningful insight into the Company's ongoing operations.
(2) Adjustment represents stock-based compensation expense. (3) Adjustment represents intangible asset amortization and impairment
charges and restructuring activities related to business
combinations. (4) Adjustment represents revenues and related costs that were recorded
at fair value in accordance with the provisions of SFAS No. 141 and
EITF No. 01-03. As a result, these amounts were excluded from the
reported results on a GAAP basis, however, due to the fact they
relate to purchase accounting, they have been added back on an
Adjusted basis. (5) Adjustment represents in-process research and development charge
related to the Xenogen acquisition. (6) Adjustment represents tax effect of intangible asset impairment
charges. DATASOURCE: Caliper Life Sciences, Inc.
CONTACT: Thomas Higgins, Chief Financial Officer of Caliper Life Sciences, Inc., +1-508-497-2809, Media, Stacey Holifield or Melissa Bruno of Schwartz Communications, +1-781-684-0770 Web site: http://www.caliperls.com/
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