ACLARA Announces First Quarter 2000 Financial Results; Revenues up Over 100% as Company Meets Analyst Expectations.Business Editors and Health/Medical Writers MOUNTAIN VIEW, Calif.--(BW HealthWire)--May 3, 2000 ACLARA BioSciences, Inc. (Nasdaq:ACLA ACLA American Comparative Literature Association (Austin, TX) ACLA All China Lawyers Association (China) ACLA American Coalition of Life Activists (anti-abortion group) ), a leading developer of microfluidics, or lab-on-a-chip, technology, today reported financial results for its first quarter ended March 31, 2000. Total revenues were $840,000 for the quarter, as compared to $371,000 in revenues for the same period in 1999, representing a 126% increase. The revenue increase was derived from increased collaboration revenue. Excluding non-cash stock-based compensation expense, net loss for the first quarter was $4.3 million, compared with a net loss of $1.8 million in the first quarter of 1999. Including this expense item, net loss for the quarter was $6.0 million, compared with a net loss of $1.9 million in the first quarter of 1999. The increase in expenses during 2000 was due to increased research and product development activities, additions to pilot manufacturing capabilities, general corporate expenses associated with becoming a public company, on-going intellectual property matters and amortization of non-cash stock-based compensation. Excluding stock-based compensation, first quarter pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss per share was $0.13 compared with pro forma net loss per share of $0.09 in the first quarter of 1999. Including stock-based compensation charges and using the actual weighted average number of shares for the quarter, assuming no conversion of the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. until the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , net loss per share in the first quarter of 2000 was $0.95, compared with $1.28 in the first quarter of 1999. Pro forma net loss per share amounts assume conversion of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. to common at the time of their original issuance, and that shares issued during ACLARA's initial public offering were outstanding for the entire quarter ended March 31, 2000. Cash and investments totaled $211.9 million at March 31, 2000. In the first quarter of 2000, ACLARA raised cash proceeds, net of underwriter's issuance cost, of $202.5 million in an initial public offering of 10,350,000 shares. "We had an exciting first quarter, continuing our steady progress toward commercialization," said Joseph M. Limber, President and Chief Executive Officer. "We have achieved key results in corporate development, product development and strategic relationships. We have also made important additions to our management team and Board of Directors, adding extensive experience in areas critical to our operational success. "As an example, we entered a strategic relationship with Packard BioScience bioscience /bio·sci·ence/ (-si´ens) the study of biology wherein all the applicable sciences (physics, chemistry, etc.) are applied. bi·o·sci·ence n. See life science. for the commercialization of our Oasis LabCard chips, currently anticipated for late 2000. Packard is a leading provider of drug screening equipment and reagents to biotechnology and pharmaceutical companies. These Oasis LabCard chips are designed for homogeneous The same. Contrast with heterogeneous. homogeneous - (Or "homogenous") Of uniform nature, similar in kind. 1. In the context of distributed systems, middleware makes heterogeneous systems appear as a homogeneous entity. For example see: interoperable network. assays in drug screening, and are expected to be compatible with existing instrumentation of customers as well as that marketed by multiple companies, including Packard. This strategy is intended to maximize rapid market adoption of such LabCard chips beginning at the end of this year. "We also finalized See finalization. our agreement with PE Biosystems for the joint development of our GeneMate product, targeted for gene expression analysis and SNPs genotyping Genotyping refers to the process of determining the genotype of an individual with a biological assay. Current methods of doing this include PCR, DNA sequencing, and hybridization to DNA microarrays or beads. . This product will integrate ACLARA's proprietary e-Tag chemistries and LabCard array chips with PE Biosystems' instrumentation and Invader technology, available through PE Biosystems's pending acquisition of Third Wave Technologies. These technologies were introduced by ACLARA and Third Wave at the Screen-Tech 2000 conference in Monterey, CA in March. The GeneMate product is currently planned for introduction in the first half of 2001. "Two key individuals were added to our Board of Directors. These were Dr. Eric Lander Eric Steven Lander (b. February 3, 1957) is a Professor of Biology at the Massachusetts Institute of Technology (MIT), a member of the Whitehead Institute, and director of the Broad Institute of MIT and Harvard who has devoted his career toward realizing the promise of the human , a founder and director of Millennium Pharmaceuticals Millennium Pharmaceuticals NASDAQ: MLNM is a biotechnology company based in the Cambridge, Massachusetts area of the United States of America. Founded in 1993, the company conducts research in various scientific areas, currently focusing on inflammation and oncology. as well as the Director of the Whitehead Institute Founded in 1982, the Whitehead Institute for Biomedical Research is a non-profit research and teaching institution located in Cambridge, Massachusetts. The Whitehead Institute was founded as a fiscally independent entity from Massachusetts Institute of Technology, and its members for Genomic genomic pertaining to a genome. genomic clone see clone. genomic DNA the DNA sequences making up the genome of an individual. genomic library see gene bank. Research, and Andre Marion, a founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Applied Biosystems Applied Biosystems, Inc. (formerly NASDAQ: ABIO) is the original name of a pioneer biotechnology company founded in 1981 in Foster City, California, among the Silicon Valley cities of the southern San Francisco Bay Area. , and current director of Molecular Devices Molecular Devices Corporation is a leading supplier of high-performance bioanalytical measurement systems that accelerate and improve drug discovery and other life sciences research. . Dr. Lander and Mr. Marion will provide important perspectives on the rapidly growing genomics markets, valuable industry expertise and broad product development experience. "ACLARA's senior technical management was enhanced by the addition of Drs. Maureen Cronin and Rolfe Anderson. Dr. Cronin is Director, Genomics Applications and brings a strong background in DNA microarrays DNA microarray A small solid support, usually a membrane or glass slide, on which sequences of DNA are fixed in an orderly arrangement. DNA microarrays are used for rapid surveys of the expression of many genes simultaneously, as the sequences contained on a and pharmacogenomics Pharmacogenomics is the branch of pharmacology which deals with the influence of genetic variation on drug response in patients by correlating gene expression or single-nucleotide polymorphisms with a drug's efficacy or toxicity. , given her experience at both Protogene and Affymetrix. Dr. Anderson joined us from Affymetrix, where he successfully developed devices that integrated various analytic functions In mathematics, an analytic function is a function that is locally given by a convergent power series. Analytic functions can be thought of as a bridge between polynomials and general functions. with DNA hybridization DNA hybridization Molecular medicine A technique for determining the presence of a target DNA in a sample of tissue or cells. See HLA analysis, Paternity testing, RFLP analysis. chips. He is Director of Integrated Device Development at ACLARA, responsible for integrating multiple chemical and biological processes onto LabCards for genomics applications. "Our pilot manufacturing facility has been readied for production as we continue to provide LabCard chips to our Technology Access and strategic partners, and to support process development and technology transfer to outside manufacturers for commercial scale production. The joint project with Cellomics to develop a new cell-chip system through the application of LabCard array chips to their live-cell assay technology, also continues to move forward. "In late March, we were fortunate to accomplish one of the largest IPO's ever in biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. . ACLARA is in a solid position to keep investing in the broadening of our technology and its applications, as well as possibly technology acquisitions, while maintaining our concentration on product development and commercialization. "Finally, while a lawsuit was initiated by Caliper caliper Instrument that consists of two adjustable legs or jaws for measuring the dimensions of material parts. Spring calipers have an adjusting screw and nut; firm-joint calipers use friction at the joint to hold the legs unmoving. Technologies in early 2000 alleging infringement of patents known as the 'Ramsey patents,' we have asserted in our court filings that we do not infringe in·fringe v. in·fringed, in·fring·ing, in·fring·es v.tr. 1. To transgress or exceed the limits of; violate: infringe a contract; infringe a patent. 2. the patents in question and further that these patents are unenforceable Adj. 1. unenforceable - not enforceable; not capable of being brought about by compulsion; "an unenforceable law"; "unenforceable reforms" enforceable - capable of being enforced and invalid. "ACLARA is focused on achieving our business goals steadily and surely, creating sustainable value Sustainable Value Sustainable Value is an approach to measure and manage sustainability performance. The concept was developed by researchers who are working today for Queen's University Belfast for our customers, shareholders and employees. Our 2000 goals encompass continued progress in product development, expanded strategic alliances, and adding to our assets as represented by technology, intellectual property and our people." Note: ACLARA will conduct a conference call with the investment community at 11 a.m. ET (8 a.m. PT) on May 4, 2000 to discuss the first quarter financial results and review the Company's progress. Interested parties can access this call at http://www.vcall.com/NASApp/VCall/EventPage?ID=19078. If you are not able to listen to the live call, a replay will be available at 800/252-6030, Access Code: 6142642 for 48 hours following the conference call. ACLARA BioSciences is a leading developer of microfluidic lab-on-a-chip technology, having access to the wide range of technology and intellectual property required to broadly address the genomics and pharmaceutical drug screening markets. The company is developing advanced tools for drug discovery and genomics using its proprietary microfluidics array technology and assay chemistries. By performing integrated sample processing and analysis on plastic microfluidic array LabCard chips, these tools enable the rapid, parallel processing parallel processing, the concurrent or simultaneous execution of two or more parts of a single computer program, at speeds far exceeding those of a conventional computer. of large numbers of samples while requiring only minute volumes of expensive or rare reagents. Note: Except for the historical information contained herein, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Actual results may differ materially from those discussed herein. In particular, the foregoing discussion of ACLARA's expectations as to its financial performance, the additional applications and capabilities it expects to develop with PE Biosystems, Packard BioSciences, and Cellomics, and its expectations regarding the commercialization of its LabCard chips involve risks and uncertainty, including the risks that ACLARA's LabCard systems are new and may not achieve market acceptance; that ACLARA's partners may encounter technological or other difficulties preventing or delaying the introduction of new products or enhancements; that ACLARA's partners may not perform under the agreements as ACLARA expects; and that patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in which ACLARA is currently involved may prevent ACLARA from developing new products or enhancing or marketing current products. These and other risks related to ACLARA are under the heading "Risk Factors" contained in ACLARA's Prospectus dated March 20, 2000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Registration Statement on Form S-1 filed with the SEC.
ACLARA BIOSCIENCES, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
March 31,
2000 1999
Unaudited
Revenue:
Grant and collaboration $ 840 $ 371
Total revenue 840 371
Operating expenses:
Research and development 4,117 1,600
General and administrative 2,512 646
Total operating expenses 6,629 2,246
Loss from operations (5,789) (1,875)
Interest income 93 73
Interest expense (288) (98)
Net loss ($ 5,984) ($ 1,900)
Net loss per common share
-- basic and diluted ($ 0.95) ($ 1.28)
Shares used in net loss per common
share calculation - basic and diluted 6,282 1,483
Supplemental data:
Pro forma net loss per share - basic
and diluted (a) ($ 0.18) ($ 0.10)
Adjusted net loss (b) ($ 4,285) ($ 1,766)
Adjusted pro forma net loss per share
-- basic and diluted (a)(b) ($ 0.13) ($ 0.09)
Shares used in calculating supplemental
net loss per share 33,436 19,944
(a) Pro forma assumes the conversion of convertible preferred
stock into an equivalent number of common stock at the time of
their original issuance and that the shares issued during the
IPO were outstanding for the entire quarter ended 3/31/00.
(b) Excludes charges for stock-based compensation.
BALANCE SHEET
March 31, December 31,
2000 1999
(Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $ 5,960 $ 10,250
Short-term investments 205,945 3,479
Accounts receivable 627 615
Prepaid expenses and
other current assets 581 434
Total current assets 213,113 14,778
Property and equipment, net 5,375 5,171
Restricted cash 625 625
Other assets, net 50 --
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Total assets $ 219,163 $ 20,574
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LIABILITIES & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 1,553 $ 412
Accrued liabilities 1,138 1,204
Current portion of capital lease
obligations 282 286
Current portion of loans payable 956 820
------------------------
Total current liabilities 3,929 2,722
Capital lease obligations, less current
portion 275 284
Loans payable, less current portion 2,845 3,087
------------------------
Total liabilities 7,049 6,093
Mandatorily redeemable convertible
preferred stock -- 40,973
Total stockholders' equity (deficit) 212,114 (26,492)
------------------------
Total liabilities and stockholders'
equity $ 219,163 $ 20,574
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