Celsion Corporation Reports First Quarter 2006 Results; Celsion Reports 25% Sales Increase.COLUMBIA, Md. -- CELSION CORPORATION (AMEX AMEX See: American Stock Exchange :CLN CLN Clean CLN Community Learning Network CLN Colon CLN Celsion Corporation CLN Class Library for Numbers CLN Credit Linked Note CLN Comitato di Liberazione Nazionale (Committee of National Liberation) CLN Corn Lethal Necrosis ) today announced financial results for its first quarter ended March 31, 2006. The Company reported revenue of $2.4 million for the quarter, compared to $1.9 million for the first quarter of 2005. The Company recorded a net loss for the first quarter of $1.8 million or $0.17 per share, inclusive of inclusive of prep. Taking into consideration or account; including. a gain of $1.1 million arising from the sale of its subsidiary, Celsion (Canada) Limited in January 2006. Excluding this gain, the net loss for the quarter was $2.9 million or $0.27 per share compared to $2.2 million or $0.21 per share for the comparable quarter in 2005. The increased loss was the result of higher interest costs and stock compensation costs associated with the adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R. Dr. Lawrence Olanoff, Celsion's Chief Executive Officer, commented, "As we had previously indicated, first quarter revenues although strong compared to the first quarter of 2005, were lower than the fourth quarter of 2005. The decrease compared to the fourth quarter 2005, which was primarily due to Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, building an inventory of catheter catheter /cath·e·ter/ (kath´e-ter) 1. a tubular, flexible surgical instrument that is inserted into a cavity of the body to withdraw or introduce fluid. 2. urethral c. related disposable supplies in the fourth quarter of 2005, to cover the transition to a new disposable manufacturer, was also effected by start-up Start-up The earliest stage of a new business venture. problems at the new supplier. These problems are being thoroughly investigated and we hope to resume shipments before the end of June. As a result, we expect that sales in the second quarter will also be below expectations but we remain confident that, as Prolieve continues to be well accepted in the market, we will meet our previous guidance that Celsion's 2006 annual sales revenue from Prolieve could approach $15 million." ABOUT CELSION: Celsion Corporation, based in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. , is a biotechnology company dedicated to the development and commercialization of heat activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. treatment systems for cancer. Celsion has research, license or commercialization agreements with leading institutions such as the National Institute of Health, Duke University Medical Center, Massachusetts Institute of Technology Massachusetts Institute of Technology, at Cambridge; coeducational; chartered 1861, opened 1865 in Boston, moved 1916. It has long been recognized as an outstanding technological institute and its Sloan School of Management has notable programs in business, , Harbor UCLA Medical Center UCLA Medical Center is a hospital located on the campus of the University of California, Los Angeles in Los Angeles, California. It is rated as one of the top three hospitals in the United States and is the top hospital on the West Coast according to US News & World Report. , Montefiore Medical Center Montefiore Medical Center, in the Bronx, New York, is the university hospital of the Albert Einstein College of Medicine. The hospital, named after Moses Montefiore, is one of the 50 largest employers in New York State [1]. and Memorial Sloan-Kettering Cancer Center The Memorial Sloan-Kettering Cancer Center (MSKCC) in New York City is a cancer treatment and research institution founded in 1884 as the New York Cancer Hospital. The main campus is located at 1275 York Avenue, between 67th and 68th Streets, with other locations in New in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , Roswell Park Cancer Institute The Roswell Park Cancer Institute is a cancer research and treatment center located in Buffalo, New York. Founded in 1898 by Dr. Roswell Park, it was the first dedicated medical facility for cancer treatment and research in the United States. in Buffalo, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and Duke University. For more information on Celsion, visit our website: www.celsion.com. Celsion wishes to inform readers that 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. in this release are made pursuant to the "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. " provisions of 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. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities ; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. In addition, Celsion's receipt of the royalty payments in connection with the sale of Celsion (Canada) depends upon the ability of Celsion (Canada) to develop the APA (All Points Addressable) Refers to an array (bitmapped screen, matrix, etc.) in which all bits or cells can be individually manipulated. APA - Application Portability Architecture technology and bring products to market. This involves, among other risks of a new enterprise, financing, regulatory and market acceptance risks.
Celsion Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
-----------------------
2005 2006
(Unaudited) (Unaudited)
----------- -----------
Revenues $ 1,870 $ 2,346
Cost of Sales 1,272 1,754
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Gross Margin 598 592
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Operating Expenses
Research & development 2,219 2,482
General and administrative 766 1,128
----------- -----------
Total Operating Expenses 2,985 3,610
----------- -----------
Loss from Operations (2,387) (3,018)
Other Income/(Expense)
License fee amortization 143 143
Interest income (expense), net 62 (46)
Loss from investment in Celsion China Ltd. - (10)
Other (21) 1,147
----------- -----------
Net loss before income taxes (2,203) (1,784)
Income taxes - -
----------- -----------
$ (2,203) $ (1,784)
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Net loss per common share (basic and diluted) (0.21) (0.17)
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Weighted average shares outstanding 10,720 10,732
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Celsion Corporation
Consolidated Condensed Balance Sheets
(in thousands)
December March 31,
31,2005 2006
ASSETS (Unaudited)
----------- -----------
Current assets
Cash and cash equivalents $ 2,313 $ 1,069
Short term investments 6,000 9,250
Accounts and notes receivable 766 584
Inventory 3,325 2,575
Prepaid expenses 437 444
----------- -----------
Total current assets 12,841 13,922
Property and equipment, net 571 642
Investment in Celsion China, Ltd. 12 -
Loan Receivable - 237
Note receivable - 1,001
Escrow account - license fee 2,053 2,073
Other assets 432 434
----------- -----------
Total assets $ 15,909 $ 18,309
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December March 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 31,2005 2006
Current liabilities (Unaudited)
----------- -----------
Accounts payable $ 1,996 $ 1,426
Accrued expenses 1,328 1,166
Deferred income 572 572
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Total current liabilities 3,896 3,164
Loans Payable - Principal 6,000 10,500
Loans Payable - Interest 177 365
Deferred revenue 2,381 2,238
Other liabilities 30 31
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Total liabilities 12,484 16,298
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Stockholders' equity
Common stock 1,609 107
Additional paid-in capital 84,719 86,602
Non-controlling interest - (10)
Treasury stock - (2)
Accumulated deficit (82,903) (84,686)
----------- -----------
Total stockholders' equity 3,425 2,011
----------- -----------
Total liabilities and stockholders' equity $ 15,909 $ 18,309
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