Compugen Reports Third Quarter 2002 Financial Results.Business Editors TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--Oct. 24, 2002 Compugen Compugen refers to at least two different companies:
"We are pleased to report that during the past quarter Compugen continued to progress in each of our three key development areas: computational biology Not to be confused with Biologically-inspired computing. Computational biology is an interdisciplinary field that applies the techniques of computer science, applied mathematics, and statistics to address problems inspired by biology. , computational chemistry Computational chemistry is a branch of chemistry that uses computers to assist in solving chemical problems. It uses the results of theoretical chemistry, incorporated into efficient computer programs, to calculate the structures and properties of molecules and solids. , and computational Having to do with calculations. Something that is "highly computational" requires a large number of calculations. medicine. Each one of these efforts is aimed at significantly increasing the probability probability, in mathematics, assignment of a number as a measure of the "chance" that a given event will occur. There are certain important restrictions on such a probability measure. of success of drug discovery and development," said Mor Amitai, Ph.D., President and Chief Executive Officer of Compugen. Revenues for the quarter were $2.8 million (including $459,000 from research and development grants), compared to $3.1 million for the third quarter of 2001 (including $215,000 from research and development grants). The net loss for the quarter was $3.0 million (including 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 $195,000 for amortization of deferred compensation), or $0.11 per share, compared with a net loss of $3.5 million (including $577,000 of deferred compensation), or $0.14 per share, for the corresponding quarter of 2001. Revenues for the first nine months ended September 30, 2002 were $8.4 million (including $1.4 million from research and development grants), compared to $8.3 million for the same period in 2001 (including $588,000 from research and development grants). Net loss for the first nine months of 2002 was $9.0 million (including a non-cash charge of $678,000 for amortization of deferred compensation), or $0.34 per share, compared with a net loss of $11.0 million (including $1.8 million of deferred compensation), or $0.42 per share, for the same period in 2001. Compugen continues to invest broadly in its unique R&D capabilities and intellectual property base. Research and development expenses for the first nine months ended September 30, 2002, excluding amortization of deferred compensation, were $9.9 million, compared to $10.9 million for the same period in 2001. Research and development expenses for the quarter were $3.5 million, excluding amortization of deferred compensation, the same as in the third quarter of 2001. As of September 30, 2002, Compugen had $70.6 million in cash, cash equivalents, and short and long term cash deposits and corporate bonds, an increase of $0.4 million from $70.2 million as of June June: see month. 30, 2002, and a decrease of $7.9 million from December December: see month. 31, 2001. Quarterly fluctuations in cash depend, in part, on timing of payments under agreements. With respect to the third quarter, this had a positive impact on our cash. Third Quarter Highlights -- Technology Licensing and Collaborations -- Novartis -- Novartis and Compugen expanded their multimillion-dollar collaboration in the area of computational biology, for the accelerated identification of drug targets, to include target validation. Under the expanded agreement, the two companies collaborate on the research and development of a new large-scale RNA interference (RNAi) platform. In addition, Novartis continued its licensing of Compugen's LEADS(TM) platform. -- Products -- Gencarta -- Compugen launched Gencarta(TM) over the Web. Gencarta, introduced in March 2001, is a comprehensive annotated genome, transcriptome and proteome database accessed through an intuitive viewer and a flexible query engine for advanced post-genomic research. The availability of the database over the Web will make it more accessible to life science researchers worldwide. Updated Year 2002 Guidance Compugen is updating its year 2002 guidance, as the Company no longer has covering analysts, in the US, to provide estimates. -- Revenues: Revenue guidance for the year 2002 is expected to be in the range of $10-$12 million. This is a change from our previous guidance of $11-$13 million. -- Research and Development: Guidance for total research and development spending in 2002 is in the range of $13-$14 million. This is a change from our previous guidance of $16-$17 million. -- Net Loss and Cash Balance: Guidance on net loss for 2002 is in the range of $12-$14 million. Guidance for cash and cash equivalents at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002 is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $65 million. These guidance numbers represent changes from our previous guidance of net loss in the range of $17-$19 million and cash and cash equivalents of approximately $60 million Conference Call and Web Cast Information, and Recent Presentation Compugen will hold a conference call to discuss its third quarter results on October October: see month. 24, 2002 at 10:00 am EST EST electroshock therapy. EST abbr. electroshock therapy . To access the conference call, please dial 1-866-500-4964 or 1-866-500-4965 from the US or +972-3-925-5910 internationally. A replay of the conference call will also be available approximately two hours after the completion of the live conference call. To access the replay, please dial +972-3-925-5933. The replay will be available until 12:00 noon EST on October 26, 2002. The call will also be available via live Web cast through Compugen's Website, located at www.cgen.com. In addition, a presentation by Martin Gerstel, Chairman of Compugen, that was given on October 17, 2002 is available at http://www.twst.com/econf/mm/uds2/cgen.html. About Compugen Compugen (Nasdaq:CGEN) is a pioneer in the merging of computational technologies with biology biology, the science that deals with living things. It is broadly divided into zoology, the study of animal life, and botany, the study of plant life. Subdivisions of each of these sciences include cytology (the study of cells), histology (the study of tissues), , chemistry and medicine to enhance drug discovery and development. This unique capability is a proven basis for providing high value products and services to leading biotechnology biotechnology, the use of biological processes, as through the exploitation and manipulation of living organisms or biological systems, in the development or manufacture of a product or in the technological solution to a problem. and pharmaceutical companies and for in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. discovery. For additional information, please visit Compugen's Corporate Website at www.cgen.com and the Company's Internet research This article is about using the Internet for research; for the field of research about the Internet, see Internet studies. Internet research is the practice of using the Internet, especially the World Wide Web, for research. engine for molecular biologists This is a list of notable biologists. It includes zoologists, botanists, ornithologists, malacologists, naturalists and other specialities. See also:
This press release and the referenced corporate presentations contain "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. " within the meaning 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. These statements include words like "may," "expects," "believes," and "intends," and describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Compugen to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Some of these risks are: changes in relationships with collaborators; the impact of competitive products and technological changes; risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development of new products; the ability to implement technological improvements; the ability of Compugen to obtain and retain customers. These and other factors are identified and more fully explained under the heading "Risk Factors" in Compugen's Registration Statement on Form F-1 and annual reports filed with the Securities and Exchange Commission. (Tables to follow)
COMPUGEN LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except for share and per-share amounts)
Nine Months Ended Three Months Ended
September 30, September 30,
--------------------------------------------
2002 2001 2002 2001
--------------------------------------------
Revenues (unaudited) (unaudited)
Products and services 7,040 7,682 2,352 2,902
Research and development
grants 1,394 588 459 215
Total revenues 8,434 8,270 2,811 3,117
Cost and Expenses
Cost of products and
services 2,167 2,519 832 1,251
Research and development
expenses 9,926 10,854 3,472 3,530
Sales and marketing
expenses 3,920 4,558 1,264 1,271
General and administrative
expenses 2,695 2,776 803 900
Amortization of deferred
compensation 678 1,842 195 577
Total operating expenses 19,386 22,549 6,566 7,529
Operating loss (10,952) (14,279) (3,755) (4,412)
Financing income, net 1,913 3,259 738 897
Minority interest 51 -- -- --
Net loss (8,988) (11,020) (3,017) (3,515)
Basic and diluted net loss
per ordinary share (0.34) (0.42) (0.11) (0.14)
Weighted average number of
ordinary shares
outstanding 26,089,850 25,997,275 26,121,209 26,001,569
COMPUGEN LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS DATA
(U.S. dollars, in thousands)
September December
30, 2002 31, 2001
--------------------------
(Unaudited) (Audited)
ASSETS
Current assets
Cash, cash equivalents and
short-term investments $58,932 $32,347
Receivables and prepaid expenses 4,615 3,159
Inventories 140 134
Total current assets 63,687 35,640
Long-term investments
Long-term cash deposits and corporate bonds 11,650 46,148
Property and equipment, net 3,824 4,272
Other assets 1,299 1,229
Total assets $80,460 $87,289
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $4,726 $4,887
Deferred revenues 2,157 960
Total current liabilities 6,883 5,847
Accrued severance pay 1,701 1,380
Total shareholders' equity 71,876 80,062
Total liabilities and shareholders' equity $80,460 $87,289
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion