Celera Genomics Group Reports Third Quarter Revenues of $23.4 Million; Two New Academic Subscription Agreements Announced.Business Editors and Health/Medical Writers ROCKVILLE Rockville, city (1990 pop. 44,835), seat of Montgomery co., W central Md., a NW suburb of Washington, D.C.; settled c.1760s, inc. as a city 1860. It has several scientific research and technology laboratories that focus on the aerospace, electronics, nuclear energy, , Md.--(BW HealthWire)--April 26, 2001 Celera Genomics Group (NYSE NYSE See: New York Stock Exchange :CRA See Community Reinvestment Act. ), an Applera Applera Corporation of Norwalk, Connecticut, at #874 on the 2007 Fortune 1000 list, is one of the largest international biotechnology companies based in the United States. It is the successor company to what was the Life Sciences Division of Perkin-Elmer Corporation. Corporation business, today reported results for its third fiscal quarter ended March 31, 2001. The Group's revenues for the third quarter increased to $23.4 million, in comparison with $11.1 million in the same period last year. The increase in revenues resulted principally from new subscription agreements with commercial and academic customers and from collaborations and services. The net loss after benefit for taxes was $29.1 million, or $0.48 per share, compared with a net loss of $24.1 million, or $0.45 per share, in last year's third quarter. Selling, general, and administrative expenses increased 44% to $15.1 million as Celera continued to expand its sales and marketing group. Included in this quarter's results is a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $10.9 million, or $0.17 per share, for amortization of goodwill and other intangibles primarily related to the acquisition of Paracel, Inc. in June June: see month. 2000. Research and development (R&D) expenditures for the third quarter were $52.2 million, level with the second quarter of fiscal 2001. Celera is continuing to shift its research spending to expand its capabilities in proteomics pro·te·o·mics n. The analysis of the expression, localization, functions, and interactions of the proteins produced by the genes of an organism. and comparative genomics Comparative genomics is the study of relationships between the genomes of different species or strains. Comparative genomics is an attempt to take advantage of the information provided by the signatures of selection to understand the function and evolutionary processes that act on as part of the development of its discovery program. For the nine months ended March 31, 2001, Celera reported revenues of $62.0 million, in comparison with $27.7 million for the comparable period in fiscal 2000. The net loss during the first nine months of fiscal 2001, after benefit for taxes, was $84.5 million, or $1.40 per share, compared with $67.8 million, or $1.29 per share, during the comparable period of the previous fiscal year. Included in these results is a non-cash charge of $33.0 million, or $0.52 per share, for amortization of goodwill and other intangibles primarily related to Celera's acquisition of Paracel. "We are satisfied with this quarter's growth in our online information business and our research collaborations," noted Tony L. White, Applera's chief executive officer. "During the next year we expect continued expansion of our customer base as we increase the content and functionality of our information products. Having completed the sequencing and assembly of the human genome The human genome is the genome of Homo sapiens, which is composed of 24 distinct pairs of chromosomes (22 autosomal + X + Y) with a total of approximately 3 billion DNA base pairs containing an estimated 20,000–25,000 genes. , Celera is entering its next phase of development. We plan to leverage our 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. data and bioinformatics Using computers in biological research to analyze or predict the composition of molecules (nucleic acids, proteins, etc.) and model biologic systems. Bioinformatics is most prominent in the Human Genome Project, which has recorded the three billion chemical base pairs that make up the platform as the foundation for Celera's internal discovery efforts." In November November: see month. 2000, Applera Corporation announced the formation of a major initiative in the field of molecular diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler and the appointment of Kathy Ordonez, formerly president of Roche Molecular Systems, to lead this initiative. The initiative continues to develop as its strategy is refined and resources are built. The Company has evaluated the initiative's anticipated relationships with the Company's two operating groups, 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 Celera Genomics, and decided that it will be optimally positioned as a joint venture between those two groups. Further details and developments regarding this business, which will be named Celera Diagnostics, will be announced as the initiative continues to evolve. "We are excited to be working with the molecular diagnostics management team and the Applied Biosystems Group in the formation of this joint venture initiative," said J. Craig Venter  The introduction of this article is too short.To comply with Wikipedia's lead section guidelines, it should be expanded. , Ph.D., Celera's president and chief scientific officer. "One of our goals will be to coordinate Celera's internal therapeutic research program and the diagnostics initiative which we believe will lead to significant discoveries in the diagnosis and treatment of disease. During the next quarter, we plan to scale up our proteomics factory, one of our key discovery platforms, as we continue to build new capabilities." Today Celera also announced that it has signed subscription agreements with two internationally renowned research institutions: The Ludwig Institute for Cancer Research The Ludwig Institute for Cancer Research (LICR) is a global non-profit medical research institute that undertakes laboratory and clinical research into cancer, conducting and sponsoring its own early-phase clinical trials to investigate its discoveries. , an international, not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. research organization with 10 branches in seven countries, dedicated to the ultimate goal of eradicating cancer, and BIOCONDA (Biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. Consortium for Data Access), a consortium of principal Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. public research laboratories and centers engaged in biomedical investigation. Over the last three months, Celera has reported a number of developments in its business, including: -- A total of 10 new subscription customers, including agreements with two biotechnology companies: Arena Pharmaceuticals and Vita Genomics. The total number of subscription and service customers for now exceeds 40, up from eight one year ago. -- In February, Celera was awarded a grant from the National Heart, Lung, and Blood Institute (NHLBI) and the National Human Genome Research Institute (NHGRI) to participate in the collaborative sequencing of the rat genome, further validating the whole genome shotgun sequencing methodology employed by Celera. -- In March, Celera acquired a minority interest in Tokyo-based HuBit Genomix. HuBit is initially focused on the association of genes -- particularly single nucleotide polymorphisms, or SNPs -- with disease for use in the development of therapeutics and diagnostics. -- In March, Celera and Lynx Therapeutics announced an agreement to integrate sets of Lynx's high-resolution gene expression data, derived from normal human tissues, into the Celera Discovery System(TM) for distribution to Celera's subscribers. They further agreed that Lynx would apply its MPSS(TM) technology to perform additional gene expression analyses to supplement the gene expression database offering. Outlook For the balance of fiscal 2001, which ends June 30, 2001, Celera expects to see continued strong year-to-year revenue growth comparisons. The actual rate of increase will depend on numerous factors, including the types of customers that it attracts and the timing of those agreements. The Group also faces potentially lengthy selling cycles with some of its customers. Celera begins to recognize revenue from new contracts when its database customers are provided access to its reference libraries. The Group continues to expect that Celera's revenues could double for fiscal 2001, compared with the prior year. This increase in revenues should be more than offset by investments as Celera expands its discovery initiatives. R&D expenditures are dependent on a variety of factors, including the timing of new projects and the work in research and development programs that are undertaken internally or with collaborators. While the rate of increase is dependent on the factors listed above, Celera believes that R&D expenditures will be higher in the fourth quarter than in the prior quarter. Selling, general, and administrative expenditures are also expected to grow modestly during the fourth quarter. These comments reflect management's current outlook. The Company does not have any current intention to update this outlook and plans to revisit re·vis·it tr.v. re·vis·it·ed, re·vis·it·ing, re·vis·its To visit again. n. A second or repeated visit. re 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 today 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 US or Canada who would like to participate should dial 800/230-1092 (ask for Third Quarter Earnings Release) between 9:45 and 10:00 a.m. on April 26. International participants should call (+1) 612.288.0337. 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 Investor relations The process by which the corporation communicates with its investors. section of the web site, or www.appliedbiosystems.com and go to the In the News section, or www.celera.com and go to the Investor Center section. The webcast will be archived for seven days following the conference call. About Celera Applera Corporation, formerly PE Corporation, comprises two operating groups. The Celera Genomics Group, headquartered in Rockville, MD, intends to be the definitive source of genomic and related medical information. Celera has developed three business units: the Information Business, Discovery Sciences, and Discovery Services See service discovery. , all of which build upon Celera's generation, integration, and analysis of biological information. Celera intends to enable therapeutic and diagnostic discoveries both through its own application of its scientific capabilities and in partnership with pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. . The Applied Biosystems Group (NYSE:ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother. (Application Binary Interface) A specification for a specific hardware platform combined with the operating system. ) develops and markets instrument-based systems, reagents, software, and contract services to the life science industry and research community. Customers use these tools to analyze nucleic acids Nucleic acids The cellular molecules DNA and RNA that act as coded instructions for the production of proteins and are copied for transmission of inherited traits. (DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. and RNA RNA: see nucleic acid. RNA in full ribonucleic acid One of the two main types of nucleic acid (the other being DNA), which functions in cellular protein synthesis in all living cells and replaces DNA as the carrier of genetic ) and proteins to make scientific discoveries, leading to the development of new pharmaceuticals, and to conduct standardized testing A standardized test is a test administered and scored in a standard manner. The tests are designed in such a way that the "questions, conditions for administering, scoring procedures, and interpretations are consistent" [1] . Applied Biosystems is headquartered in Foster City, CA, and reported sales of $1.4 billion during fiscal 2000. 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. 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," "anticipate," "should," "planned," "estimated," and "potential," among others. These 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. are based on Applera Corporation's current expectations. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " 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) operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. to date; (2) a unique and expanding business plan; (3) dependence on the final assembly and annotation 1. (programming, compiler) annotation - Extra information associated with a particular point in a document or program. Annotations may be added either by a compiler or by the programmer. of the human genome; (4) uncertainty of revenue growth; (5) unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy use of genomics information to develop products; (6) intense competition in the evolving genomics industry; (7) dependence on customers in and subject to the risks of the pharmaceutical and biotechnology industries; (8) heavy reliance on strategic relationship with the Applied Biosystems Group; (9) potential product liability claims; (10) liabilities related to use of hazardous materials; (11) lengthy sales cycle; (12) dependence on the unique expertise of its scientific and management staff; (13) uncertainty of patent, copyright, and intellectual property protection and the ability to protect trade secrets; (14) dependence on computer hardware, software, and internet applications; (15 ) potential adverse effect on the Celera Genomics group's intellectual property protection and the value of its products and services due to public disclosure of genomics sequence data. (16) access to biological materials; (17) legal, ethical, and social issues affecting demand for products; (18) disruptions caused by rapid growth of the business; (19) government regulation of its products and services; (20) risks of future acquisitions; (21) uncertainty of outcome of stockholder 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. ; (22) lengthy and uncertain development cycle for therapeutic and diagnostic products; and (23) 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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APPLERA CORPORATION
CELERA GENOMICS GROUP
COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
2001 2000 2001 2000
---------- ---------- ---------- ----------
Net revenues $ 23.4 $ 11.1 $ 62.0 $ 27.7
Costs and expenses
Research and
development 52.2 43.5 151.7 113.8
Selling, general and
administrative 15.1 10.5 42.5 28.4
Amortization of
goodwill and other
intangibles 10.9 33.0
---------- ---------- ---------- ----------
Operating loss (54.8) (42.9) (165.2) (114.5)
Interest income, net 15.2 5.8 49.7 10.2
Other expense, net (0.2) (0.2)
---------- ---------- ---------- ----------
Loss before income taxes (39.8) (37.1) (115.7) (104.3)
Benefit for income taxes 10.7 13.0 31.2 36.5
---------- ---------- ---------- ----------
Net loss $ (29.1) $ (24.1) $ (84.5) $ (67.8)
========== ========== ========== ==========
Net loss per share
Basic and diluted $ (0.48) $ (0.45) $ (1.40) $ (1.29)
Average common shares
outstanding
Basic and diluted 61,071,000 53,884,000 60,480,000 52,430,000
APPLERA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
2001 2000 2001 2000
---------- ---------- ---------- ----------
Net revenues $ 447.1 $ 363.1 $ 1,227.8 $ 979.3
Cost of sales 202.5 158.6 557.1 438.4
---------- ---------- ---------- ----------
Gross margin 244.6 204.5 670.7 540.9
Selling, general and
administrative 119.3 104.2 331.5 305.7
Research, development
and engineering 89.1 69.4 257.0 186.8
Amortization of goodwill
and other intangibles 10.9 33.0
---------- ---------- ---------- ----------
Operating income 25.3 30.9 49.2 48.4
Gain on investments 15.0 25.8
Interest income, net 19.0 8.4 61.5 16.7
Other income (expense),
net (1.2) 5.1 (4.3) (3.8)
---------- ---------- ---------- ----------
Income before income
taxes 43.1 44.4 121.4 87.1
Provision for income
taxes 14.8 11.6 41.1 25.0
---------- ---------- ---------- ----------
Net income $ 28.3 $ 32.8 $ 80.3 $ 62.1
========== ========== ========== ==========
Applied Biosystems Group
Net income $ 57.7 $ 56.1 $ 164.8 $ 129.6
Basic per share $ 0.27 $ 0.27 $ 0.78 $ 0.63
Diluted per share $ 0.26 $ 0.26 $ 0.74 $ 0.60
Celera Genomics Group
Net loss $ (29.1) $ (24.1) $ (84.5) $ (67.8)
Basic and diluted per
share $ (0.48) $ (0.45) $ (1.40) $ (1.29)
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