Cubist Pharmaceuticals Reports GAAP Basic Net Income of $0.10 Per Share in Fourth Quarter 2006 and GAAP Net Loss of ($0.01) Per Share for Full Year 2006; 2006 Non-GAAP Diluted Income of $0.28 Per Share.Earnings Conference Call & Webcast Today (With Slides) at 5:00 p.m. ET LEXINGTON, Mass. -- Cubist Pharmaceuticals, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CBST CBST Center for Biophotonics Science and Technology CBST Congregation Beth Simcha Torah (NYC) CBST Complete Binary Search Tree ) today reported results for the fourth quarter and year ended December 31, 2006. Total net revenues for the fourth quarter of 2006 increased 53% year over year from $36.9 million in the fourth quarter of 2005 to $56.5 million in the fourth quarter of 2006. This increase was attributable primarily to net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of CUBICIN[R] (daptomycin for injection) which increased 54% year over year from $36.6 million in the fourth quarter of 2005 to $56.4 million in the fourth quarter of 2006. For the year ended December 31, 2006, total net revenues increased 61% year over year from $120.6 million for the year ended December 31, 2005 to $194.7 million for the year ended December 31, 2006. This increase in revenues was primarily attributable to net sales of CUBICIN, which increased 68% year over year from $113.5 million for the year ended December 31, 2005 to $190.3 million for the year ended December 31, 2006. Net income for the fourth quarter ended December 31, 2006 on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis was $5.4 million, or $0.10 and $0.09 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, respectively, as compared to a net loss of $6.7 million, or $0.12 per basic and diluted share for the fourth quarter ended December 31, 2005. Fourth quarter 2006 GAAP net income includes $2.6 million, or $0.05 per basic and diluted share, of stock-based compensation expenses as a result of our adoption on January 1, 2006 of Financial Accounting Standards No. 123R ("FAS 123R"). Net loss for the year ended December 31, 2006 was $0.4 million, or $0.01 per basic and diluted share as compared to $31.9 million, or $0.60 per basic and diluted share for the year ended December 31, 2005. GAAP net loss includes $10.6 million, or $0.19 per basic and diluted share, of stock-based compensation expenses as a result of our adoption of FAS 123R and $5.7 million, or $0.10 per basic and diluted share, of costs related to the early repayment of the Company's $165.0 million 5 u % Convertible Subordinated Notes in June of 2006. Non-GAAP net income for the fourth quarter ended December 31, 2006, excluding the charges mentioned above was $8.0 million, or $0.15 and $0.14 per basic and diluted share, respectively. Non-GAAP net income for the year ended December 31, 2006 was $15.9 million, or $0.29 and $0.28 per basic and diluted share, respectively. As of December 31, 2006, Cubist had $309.2 million in cash, cash equivalents and investments. The total number of common shares outstanding as of December 31, 2006 was 55,001,058. Use of Non-GAAP Financial Measures Cubist adopted FAS 123R on January 1, 2006 using the modified prospective method, which resulted in the recognition of stock compensation expenses in the statement of operations See Income statement. during 2006 without adjusting the prior year. Cubist uses non-GAAP net income (loss) and non-GAAP net income (loss) per share data to improve its analysis of operational results and trends. Cubist's management also uses these non-GAAP figures to make financial and operational decisions as these numbers exclude non-operational activities. These measures should not be considered an alternative to measurements required by GAAP, such as net income (loss) and net income (loss) per share, and should not be considered measures of our liquidity. A reconciliation between non-GAAP financial measures and GAAP financial measures are included in the tables accompanying this press release after the unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . CONFERENCE CALL & WEBCAST INFORMATION Cubist will host a conference call and live audio webcast to discuss its fourth quarter and full year financial results, business activities and financial outlook. WHEN: Today, Wednesday, January 24, 2007 at 5:00 p.m. ET LIVE DOMESTIC & CANADA CALL-IN: 877-407-0778 LIVE INTERNATIONAL CALL-IN: 201-689-8565 24-HOUR REPLAY DOMESTIC & CANADA: 877-660-6853 24-HOUR REPLAY INTERNATIONAL: 201-612-7415 REPLAY PASSCODES (BOTH REQUIRED FOR PLAYBACK): ACCOUNT #: 286 CONFERENCE ID #: 225163 CALL WILL ALSO BE BROADCAST LIVE, LISTEN ONLY, VIA THE WEB AT: www.cubist.com Replay will be available for 30 days at www.cubist.com About Cubist Cubist Pharmaceuticals, Inc. is a biopharmaceutical company focused on the research, development and commercialization of pharmaceutical products that address unmet un·met adj. Not satisfied or fulfilled: unmet demands. medical needs in the acute care environment. In the U.S., Cubist markets CUBICIN[R] (daptomycin for injection), the first antibiotic antibiotic, any of a variety of substances, usually obtained from microorganisms, that inhibit the growth of or destroy certain other microorganisms. Types of Antibiotics in a new class of antiinfectives called lipopeptides. The Cubist product pipeline includes our lipopeptide program and our natural products screening program. Cubist is headquartered in Lexington, MA. Additional information can be found at Cubist's web site at www.cubist.com. Cubist 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. Statement Statements contained herein that are not historical fact may be 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 Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and such statements are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements made by Cubist. These factors include, but are not limited to: (i) whether we will receive, and the potential timing and scope of, regulatory approvals or clearances to market CUBICIN in other countries pursuant to our currently planned filings and any filings we determine to make in the future, which filings are subject to approval by the applicable regulatory agency regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. or agencies, regardless of our confidence in the results of the clinical trials supporting such filings; (ii)the level of acceptance of CUBICIN by physicians, patients, third party payors and the medical community; (iii)any changes in the current or anticipated market demand or medical need for CUBICIN; (iv)competition in the markets in which we and our partners market CUBICIN; (v)whether the U.S. Food and Drug Administration, or FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. , accepts proposed clinical trial protocols A Clinical Trial Protocol is a document that describes the objective(s), design, methodology, statistical considerations, and organization of a clinical trial. The protocol usually also gives the background and reason the trial is being conducted, but these could be provided in that may be achieved in a timely manner for additional studies of CUBICIN or any other drug candidate that we seek to enter into clinical trials; (vi) our ability to conduct successful clinical trials in a timely manner; (vii) the ability of our third party manufacturers, including our single source provider of API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. , to manufacture sufficient quantities of CUBICIN in accordance with current Good Manufacturing Practices Good Manufacturing Practice or GMP (also referred to as 'cGMP' or 'current Good Manufacturing Practice') is a term that is recognized worldwide for the control and management of manufacturing and quality control testing of foods and pharmaceutical products. and other requirements of the regulatory approvals for CUBICIN and at an acceptable cost; (viii) our dependence upon collaborations with our partners; (ix) our ability to finance our operations; (x) the effectiveness of our sales force; (xi) potential costs resulting from product liability or other third party claims; (xii) our ability to protect our proprietary technologies; (xiii) our ability to integrate successfully the operations of any business we may acquire and the potential impact of any future acquisition on our financial results; (xiv) our ability to discover, acquire or in-license drug candidates and develop and achieve commercial success for drug candidates; and (xv) a variety of risks common to our industry, including ongoing regulatory review, 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc intellectual property, and legislative or regulatory changes. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in Cubist's recent filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings. Cubist and CUBICIN are registered trademarks of Cubist Pharmaceuticals, Inc. Tables to Follow [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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