Celera Genomics Reports Second Quarter Fiscal 2003 Results.Business Editors ROCKVILLE, Md.--(BUSINESS WIRE)--Jan. 23, 2003 Celera Genomics Group (NYSE NYSE See: New York Stock Exchange :CRA See Community Reinvestment Act. ), an Applera Corporation business, today reported results for the second quarter of fiscal year 2003 ended December 31, 2002. All per share amounts refer to per share of Applera Corporation-Celera Genomics Group Common Stock. For the recently completed quarter, Celera Genomics reported a net loss of $16.1 million, or $0.23 per share, compared to $117.9 million, or $1.82 per share, in the same period last year. Results for the prior year quarter included a $99.0 million 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. for acquired in-process R&D related to the November 2001 acquisition of Axys Pharmaceuticals. In the recently completed quarter, lower SG&A expenses and higher Online/Information Business operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. were partially offset by increased R&D expenses, lower interest income, and higher development expenses within the Celera 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 joint venture. Revenues for the quarter decreased to $22.9 million from $35.0 million for the same quarter in fiscal 2002, primarily due to Celera's decision not to pursue additional sequencing service business. At the end of the quarter, the Group's cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments were approximately $840 million. The decrease of $41 million from the prior quarter included the conversion of $17 million of short-term investments to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments. Online/Information Business revenue was $20.3 million for the quarter, compared to $17.3 million in the same period last year. Operating income for the Online/Information Business was $9.3 million compared to $1.5 million in the same period last year due to the combination of higher revenues and reduced operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . For the six months ended December 31, 2002, Celera reported a net loss of $35.8 million, or $0.50 per share, compared to $133.5 million, or $2.11 per share for the same period last year. Last year's results included the non-cash charge for acquired in-process R&D mentioned above. R&D expenses increased to $65.5 million, compared to $58.4 million in the same period last year, reflecting increased spending on therapeutic discovery and development programs, including programs acquired with Axys. Revenues for this six-month period were $46.5 million compared to $62.3 million for the first half of fiscal 2002. Year to date, Online/Information Business revenue was $40.9 million and operating income was $18.4 million, compared to $34.3 million and $3.6 million, respectively, for the first half of fiscal 2002. "Celera Genomics has completed hiring its senior management team and its efforts are fully focused on drug discovery and development," said Tony L. White, Applera's Chief Executive Officer. "Celera has communicated a business plan based on the advancement of its therapeutic pipeline, as well as its target discovery and validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. programs, that we believe is both clear and achievable." "Under the leadership of Dr. Jim Yee, our recently hired Head of Development, we are now expanding our development organization to allow us to move selected drug programs forward on our own account," said Kathy Ordonez, President, Celera Genomics. "Our long-term vision entails leveraging the combination of capabilities within Celera Genomics and Celera Diagnostics to practice genomic-based targeted medicine." Recently, Celera Genomics has focused its 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. effort exclusively on the identification of differentially expressed cell surface proteins, the class of proteins believed to represent the most promising targets for near term drug candidates via therapeutic antibodies. Celera Genomics has identified differentially expressed proteins on the surface of pancreatic cancer pancreatic cancer Malignant tumour of the pancreas. Risk factors include smoking, a diet high in fat, exposure to certain industrial products, and diseases such as diabetes and chronic pancreatitis. Pancreatic cancer is more common in men. cells that are undergoing further validation to confirm their viability as targets. The proteomics effort is currently focused on lung cancer lung cancer, cancer that originates in the tissues of the lungs. Lung cancer is the leading cause of cancer death in the United States in both men and women. Like other cancers, lung cancer occurs after repeated insults to the genetic material of the cell. and should move on to colon cancer colon cancer, cancer of any part of the colon (often called the large intestine). Colon cancer is the second most common cancer diagnosed in the United States. by the end of the calendar year. Celera Genomics Outlook Celera Genomics intends to advance its most promising small molecule compounds, such as tryptase tryptase (trip´tās), n See plasmin. tryptase a protease that is active in inflammation and a mediator of anaphylaxis. inhibitors for asthma asthma (ăz`mə, ăs`–), chronic inflammatory respiratory disease characterized by periodic attacks of wheezing, shortness of breath, and a tight feeling in the chest. A cough producing sticky mucus is symptomatic. and allergic rhinitis Allergic Rhinitis Definition Allergic rhinitis, more commonly referred to as hay fever, is an inflammation of the nasal passages caused by allergic reaction to airborne substances. and its Factor VIIa inhibitors for anticoagulation anticoagulation /an·ti·co·ag·u·la·tion/ (-ko-ag?u-la´shun) 1. the prevention of coagulation. 2. the use of drugs to render the blood sufficiently incoagulable to discourage thrombosis. , forward into clinical development. Celera anticipates that at least one of its compounds, most likely one of its partnered compounds, could enter clinical trials during calendar 2003. In addition, Celera Genomics plans to initiate at least one new preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. development program and to make significant progress in building its development organization to support these programs during the coming year. Celera Genomics has obtained pilot-scale quantities of its lead asthma compound, and plans to initiate additional toxicology toxicology, study of poisons, or toxins, from the standpoint of detection, isolation, identification, and determination of their effects on the human body. Toxicology may be considered the branch of pharmacology devoted to the study of the poisonous effects of drugs. and safety evaluations during the third quarter of fiscal 2003. IND-enabling studies with these asthma compounds are anticipated in calendar 2003, pending analysis of the data from these additional evaluations. The financial outlook for Celera Genomics for fiscal 2003 is as follows: -- Fiscal 2003 Cash Burn: Celera Genomics' cash use is expected to be between $75 and $85 million, reflecting reductions in SG&A expenses and increased operating margin from the Online/Information Business arrangement with Applied Biosystems, and including Celera Genomics' portion of the funding for the Celera Diagnostics joint venture. This outlook excludes the recent conversion of $17 million of short-term investments to long-term investments. -- Fiscal 2003 Expenses: The Group anticipates R&D expenses to be in the range of $130 to $140 million, including approximately $10 million for the Group's share of the Applera Genomics Initiative. A larger portion of R&D expenses should support development activities as the year progresses. SG&A expenses are expected to be between $30 and $35 million. Pre-tax losses related to the Celera Diagnostics joint venture are expected to be approximately $50 to $60 million. -- Fiscal 2003 Revenue: Celera Genomics anticipates total revenues between $85 and $95 million. Revenues from CDS subscriptions and from Knowledge Business royalties are expected to be between $75 and $80 million. The comments in the Outlook sections of this press release, including the Celera Diagnostics Joint Venture outlook below, 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 outlook for its businesses only once each quarter when financial results are announced. Celera Diagnostics Joint Venture Celera Diagnostics, a 50/50 joint venture between 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, reported fiscal second quarter 2003 revenues of $7.8 million, compared to $1.9 million in the same period last year. For the six months ended December 31, 2002, reported revenues were $10.8 million compared to $3.7 million in the same period last year. Reported revenues include equalization In communications, techniques used to reduce distortion and compensate for signal loss (attenuation) over long distances. revenue from Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a diversified pharmaceuticals and health care company. It has over 65,000 employees and operates in 130 countries. The corporate headquarters are in Abbott Park, Illinois, a neighborhood of North Chicago, Illinois. resulting from the profit-sharing alliance between Abbott and Celera Diagnostics, and fluctuate from period to period due, in part, to differences in relative expenses between the alliance partners. End-user sales of products manufactured by Celera Diagnostics were $5.0 million and $8.9 million in the fiscal second quarter and six-month periods ended December 31, 2002, respectively, compared to $2.2 million and $4.6 million in the year-earlier periods. These increases were primarily due to adoption of its cystic fibrosis cystic fibrosis (sĭs`tĭk fībrō`sĭs), inherited disorder of the exocrine glands (see gland), affecting children and young people; median survival is 25 years in females and 30 years in males. reagents by several large reference labs. Net cash use was $11.5 million in the second quarter of fiscal 2003 compared to $8.5 million in the second quarter of fiscal 2002. The pre-tax loss for the quarter was $9.9 million, compared to $8.5 million in the same period last year. Pre-tax losses for the six-month period ended December 31, 2002 increased to $23.2 million from $17.9 million in the year-ago period, as higher R&D expenses associated with product development and the Applera Genomics Initiative were partially offset by higher revenue. Last week, Abbott Laboratories (NYSE:ABT ABT About ABT Abteilung (German: Department) ABT Abbott Laboratories (stock symbol) ABT American Ballet Theatre ABT Associação Brasileira de Telemarketing ABT Abort ABT Availability Based Tariff ) announced plans to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the manufacture of its LCx assays for chlamydia chlamydia (kləmĭd`ēə), genus of microorganisms that cause a variety of diseases in humans and other animals. Psittacosis, or parrot fever, caused by the species Chlamydia psittaci, and gonorrhea gonorrhea (gŏnərē`ə), common infectious disease caused by a bacterium (Neisseria gonorrhoeae), involving chiefly the mucous membranes of the genitourinary tract. , products that had been anticipated to be included in the Celera Diagnostics-Abbott alliance beginning July 1, 2003. In light of Abbott's decision, Celera Diagnostics and Abbott negotiated an amendment to their alliance agreement to provide Celera Diagnostics with ongoing compensation for profits it had expected from the sale of these products. Other developments at Celera Diagnostics over the last three months include the following: -- In December, Celera Diagnostics received clearance from the U.S. Food and Drug Administration to market its ViroSeq(TM) HIV-1 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. System as an in vitro in vitro /in vi·tro/ (in ve´tro) [L.] within a glass; observable in a test tube; in an artificial environment. in vi·tro adj. In an artificial environment outside a living organism. diagnostic product. The system is being manufactured by Celera Diagnostics and distributed by Abbott Diagnostics. -- Celera Diagnostics recently initiated large-scale disease association studies in breast cancer, with the goal of identifying novel genetic markers genetic marker n. A gene phenotypically associated with a particular, easily identified trait and used to identify an individual or cell carrying that gene. associated with the disease. One of these studies is in collaboration with the University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). , San Francisco Comprehensive Cancer Center. -- Last week, Celera Diagnostics announced the signing of a collaborative agreement with Genomics Collaborative, Inc. supporting Celera Diagnostics' efforts to identify genetic patterns associated with rheumatoid arthritis rheumatoid arthritis Chronic, progressive autoimmune disease causing connective-tissue inflammation, mostly in synovial joints. It can occur at any age, is more common in women, and has an unpredictable course. . Celera Diagnostics now has six disease association studies underway: Alzheimer's disease, two in cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease , host response, breast cancer and rheumatoid arthritis. Celera Diagnostics Joint Venture Outlook For fiscal 2003, Celera Diagnostics continues to anticipate end-user sales, including those from its alliance with Abbott Laboratories, to be in a range of $18 to $22 million. This outlook assumes continued demand growth, both for new products and from higher sales of existing products. For fiscal 2003, Celera Diagnostics anticipates pretax losses pretax loss A loss reported before tax benefits are considered. of $50 to $60 million and net cash use in the range of $55 to $65 million, including capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. of approximately $10 million. During calendar 2003, Celera Diagnostics anticipates it will launch several new products, including analyte specific reagents The FDA defines analyte specific reagents (ASRs) in 21 CFR 864.4020 as “antibodies, both polyclonal and monoclonal, specific receptor proteins, ligands, nucleic acid sequences, and similar reagents which, through specific binding or chemical reaction with (ASRs) for hepatitis hepatitis (hĕp'ətī`tĭs), inflammation of the liver. There are many types of hepatitis. Causes include viruses, toxic chemicals, alcohol consumption, parasites and bacteria, and certain drugs. viral load viral load n. The concentration of a virus, such as HIV, in the blood. viral load, n a measure of the number of virus particles present in the bloodstream, expressed as copies per milliliter. and genotyping. In addition, Celera Diagnostics plans to commercialize new ASRs for at least two diseases, contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent success in its disease association studies. Conference Call & Webcast A conference call with Applera Corporation executives will be held January 23, 2003, at 10:00 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) with investors and media to discuss these results and management's current outlook for the Company. The call will be formatted to focus on each of the Applera businesses separately, approximately at the times indicated below, although the exact timing may be different as the call will proceed without pause between segments: -- Applied Biosystems Group 10:00 a.m. (EDT) -- Celera Diagnostics 10:45 a.m. -- Celera Genomics Group 11:00 a.m. During each segment, the management team will make prepared remarks and answer questions from securities analysts and investment professionals. Investors, securities analysts, representatives of the media and other interested parties who would like to participate should dial (+1) 706/634-4992 (code "applera") at any time from 9:45 a.m. until the end of the call. 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.celera.com and go to the Investor section. A digital recording will be available two hours after the completion of the conference call from January 23 to February 1, 2003. Interested parties should call 706/645-9291 and enter conference ID 7527541. About Applera Corporation and Celera Genomics Applera Corporation comprises two operating groups. The Celera Genomics Group, located in Rockville, MD, and South San Francisco South San Francisco, city (1990 pop. 54,312), San Mateo co., W Calif.; inc. 1908. South San Francisco has several industrial parks; its manufactures include medical supplies and equipment, foods, paint, paper products, consumer goods, and clothing. , CA, is engaged principally in integrating advanced technologies to discover and develop new therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. . Celera intends to leverage its proteomic, bioinformatic and 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. capabilities to identify and validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data drug targets and diagnostic marker marker /mark·er/ (mahrk´er) something that identifies or that is used to identify. tumor marker candidates, and to discover and develop new therapeutics. Its Celera Discovery System(TM) online platform, marketed exclusively through the Applied Biosystems Knowledge Business, is an integrated source of information based on 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. and other biological and medical sources. 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. Applied Biosystems is headquartered in Foster City, CA, and reported sales of $1.6 billion during fiscal 2002. Celera Diagnostics, a 50/50 joint venture between Applied Biosystems and Celera Genomics, is focused on discovery, development, and commercialization of novel diagnostic products. Information about Applera Corporation, including reports and other information filed by the company with the Securities and Exchange Commission, is available at www.applera.com, or by telephoning 800/762-6923. Information about Celera Genomics is available at www.celera.com. 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," "intend," "anticipate," "should," "planned" 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) Celera Genomics expects 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. for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future; (2) Celera Genomics' reliance on Applied Biosystems' emerging Knowledge Business for incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenues to Celera Genomics from the Celera Discovery System and Celera Genomics' related information assets; (3) Celera Genomics' and Celera Diagnostics' 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 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 en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive adequate reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. 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 The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. claims; (13) Celera Genomics' dependence on the operation of computer hardware, software, and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 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. ; (17) Celera Diagnostics' limited commercial manufacturing experience and capabilities and its reliance on a single 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 electricity shortages and earthquakes, which could interrupt A signal that gets the attention of the CPU and is usually generated when I/O is required. For example, hardware interrupts are generated when a key is pressed or when the mouse is moved. Software interrupts are generated by a program requiring disk input or output. 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. Note to Editors: Applied Biosystems, Celera, Celera Diagnostics and Celera Genomics are registered trademarks of Applera.
APPLERA CORPORATION
CELERA GENOMICS GROUP
COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended Six months ended
December 31, December 31,
2002 2001 2002 2001
--------- --------- --------- ---------
Net revenues $22.9 $35.0 $46.5 $62.3
Costs and expenses
Cost of sales 3.7 18.0 7.1 29.9
Research and development 32.9 30.6 65.5 58.4
Selling, general and
administrative 7.0 13.9 14.0 26.5
Amortization of
intangible assets 1.7 1.6 4.4 2.1
Acquired research
and development 99.0 99.0
--------- --------- --------- ---------
Operating loss (22.4) (128.1) (44.5) (153.6)
Loss on investments (0.3) (0.3)
Interest income, net 4.7 8.5 9.9 19.4
Other income
(expense), net 0.6 (1.0) (2.6) (1.7)
Loss from joint venture (9.9) (8.5) (23.2) (17.9)
--------- --------- --------- ---------
Loss before income taxes (27.3) (129.1) (60.7) (153.8)
Benefit for income taxes 11.2 11.2 24.9 20.3
--------- --------- --------- ---------
Net loss $(16.1) $(117.9) $(35.8) $(133.5)
========= ========= ========= =========
Net loss per share
Basic and diluted $(0.23) $(1.82) $(0.50) $(2.11)
Average common shares
outstanding
Basic and diluted 71,404,000 64,693,000 71,254,000 63,258,000
APPLERA CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended December 31, 2002
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera
Group Group Diagnostics Eliminations Consolidated
---------- ------- ----------- ------------ ------------
Net revenues $444.7 $22.9 $7.8 $(2.4) $473.0
Cost of sales 225.8 3.7 2.2 (1.4) 230.3
---------- ------- ----------- ------------ ------------
Gross margin 218.9 19.2 5.6 (1.0) 242.7
Selling, general
and
administrative 101.5 7.0 2.9 111.4
Research,
development
and engineering 59.2 32.9 12.6 (1.4) 103.3
Amortization of
intangible assets 1.7 1.7
Other special
charges 24.3 24.3
---------- ------- ----------- ------------ ------------
Operating
income (loss) 33.9 (22.4) (9.9) 0.4 2.0
Loss on
investments (0.3) (0.3)
Interest income,
net 3.0 4.7 7.7
Other income
(expense), net 2.5 0.6 (0.1) 3.0
Loss from joint
venture (9.9) 9.9
---------- ------- ----------- ------------ ------------
Income (loss)
before income
taxes 39.4 (27.3) (9.9) 10.2 12.4
Provision
(benefit) for
income taxes 10.2 (11.2) a (1.0)
---------- ------- ----------- ------------ ------------
Net income
(loss) $29.2 $(16.1) $(9.9) $10.2 $13.4
========== ======= =========== ============ ============
Net income (loss)
per share
Basic and
diluted $0.14 $(0.23)
a - The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
APPLERA CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended December 31, 2001
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera
Group Group Diagnostics Eliminations Consolidated
--------- ------- ----------- ------------ ------------
Net revenues $411.1 $35.0 $1.9 $(10.8) $437.2
Cost of sales 196.7 18.0 1.1 (9.5) 206.3
--------- ------- ----------- ------------ ------------
Gross margin 214.4 17.0 0.8 (1.3) 230.9
Selling,
general and
administrative 93.6 13.9 1.8 109.3
Research,
development
and engineering 52.7 30.6 7.5 (2.3) 88.5
Amortization of
intangible assets 1.6 1.6
Acquired research
and development 2.2 99.0 101.2
--------- ------- ----------- ------------ ------------
Operating
income (loss) 65.9 (128.1) (8.5) 1.0 (69.7)
Interest
income, net 3.0 8.5 0.1 11.6
Other income
(expense), net 1.0 (1.0)
Loss from joint
venture (8.5) 8.5
--------- ------- ----------- ------------ ------------
Income (loss)
before income
taxes 69.9 (129.1) (8.5) 9.6 (58.1)
Provision
(benefit) for
income taxes 20.9 (11.2) a (6.3) 3.4
--------- ------- ----------- ------------ ------------
Net income (loss) $49.0 $(117.9) $(8.5) $15.9 $(61.5)
========= ======= =========== ============ ============
Net income (loss)
per share
Basic and
diluted $0.23 $(1.82)
a - The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
APPLERA CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 2002
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera
Group Group Diagnostics Eliminations Consolidated
--------- ------- ----------- ------------ ------------
Net revenues $840.6 $46.5 $10.8 $(7.6) $890.3
Cost of sales 419.1 7.1 4.6 (5.6) 425.2
--------- ------- ----------- ------------ ------------
Gross margin 421.5 39.4 6.2 (2.0) 465.1
Selling,
general and
administrative 199.8 14.0 5.7 219.5
Research,
development and
engineering 120.2 65.5 23.7 (2.8) 206.6
Amortization of
intangible assets 4.4 4.4
Other special
charges 24.3 24.3
--------- ------- ----------- ------------ ------------
Operating
income (loss) 77.2 (44.5) (23.2) 0.8 10.3
Loss on
investments (0.3) (0.3)
Interest
income, net 6.2 9.9 16.1
Other income
(expense), net 3.5 (2.6) 0.9
Loss from joint
venture (23.2) 23.2
--------- ------- ----------- ------------ ------------
Income (loss)
before income
taxes 86.9 (60.7) (23.2) 24.0 27.0
Provision
(benefit) for
income taxes 23.5 (24.9) a 2.9 1.5
--------- ------- ----------- ------------ ------------
Income (loss)
from continuing
operations 63.4 (35.8) (23.2) 21.1 25.5
Loss from
discontinued
operations,
net of income
taxes (16.4) (16.4)
--------- ------- ----------- ------------ ------------
Net income (loss) $47.0 $(35.8) $(23.2) $21.1 $9.1
========= ======= =========== ============ ============
Income (loss)
from continuing
operations per
share
Basic and
diluted $0.30 $(0.50)
Loss from
discontinued
operations
per share
Basic and
diluted $(0.08) $-
Net income (loss)
per share
Basic and
diluted $0.22 $(0.50)
a - The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
APPLERA CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 2001
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera
Group Group Diagnostics Eliminations Consolidated
--------- ------- ----------- ------------ ------------
Net revenues $777.7 $62.3 $3.7 $(18.7) $825.0
Cost of sales 376.1 29.9 2.6 (15.8) 392.8
--------- ------- ----------- ------------ ------------
Gross margin 401.6 32.4 1.1 (2.9) 432.2
Selling,
general and
administrative 185.4 26.5 4.5 216.4
Research,
development and
engineering 105.0 58.4 14.5 (4.9) 173.0
Amortization of
intangible assets 2.1 2.1
Acquired
research and
development 2.2 99.0 101.2
--------- ------- ----------- ------------ ------------
Operating
income (loss) 109.0 (153.6) (17.9) 2.0 (60.5)
Interest
income, net 6.3 19.4 25.7
Other income
(expense), net (1.7) (1.7)
Loss from joint
venture (17.9) 17.9
--------- ------- ----------- ------------ ------------
Income (loss)
before income
taxes 115.3 (153.8) (17.9) 19.9 (36.5)
Provision
(benefit) for
income taxes 34.1 (20.3) a (5.8) 8.0
--------- ------- ----------- ------------ ------------
Net income (loss) $81.2 $(133.5) $(17.9) $25.7 $(44.5)
========= ======= =========== ============ ============
Net income (loss)
per share
Basic and
diluted $0.38 $(2.11)
a - The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
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