Genomica Changes Strategic Direction; Move to Technology Bundling Approach Requires Restructuring.Business Editors & Health/Medical Writers BIOWIRE2K BOULDER Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo.--(BW HealthWire)--Oct. 4, 2001 Genomica Corporation (Nasdaq: GNOM This article is about the Norwegian band. For the rocket, see Air-augmented rocket. gnom is the band that Janove Ottesen and Geir Zahl had before they started Kaizers Orchestra. Gnom is Norwegian for small people. ), a 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 software developer, today announced that it is adopting a new product and corporate strategy that requires restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its operations, including a workforce reduction. "We are making a change in strategy to reflect observable ob·serv·a·ble adj. 1. Possible to observe: observable phenomena; an observable change in demeanor. See Synonyms at noticeable. 2. developments in the market environment for life science informatics Same as information technology and information systems. The term is more widely used in Europe. products," said Genomica CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Teresa Ayers. "Our initial target market for third-party enterprise software is not developing fast enough to build stockholder value within a reasonable timeframe. We are going to shift toward combining our genetic analysis software with hardware, content and data generation solutions. We're exploring a broad range of options to leverage new markets and distribution channels, while continuing to support all of our customers and meet our contract and partnership obligations." The Company today reduced its 150-person workforce by 100 employees, 90 of whom were in the Company's headquarters in Boulder. All charges related to the restructuring will be included in the fourth quarter's financial results. As a result of the restructuring, the Company expects to be able to operate near cash flow breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations through 2002. "With market adoption rates slower than expected, we are acting to protect our position in genetic analysis software and our very favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. cash position," said Ayers. "This move strengthens our financial situation, enhances Genomica's potential for strategic partnerships, and ensures our ability to continue supporting our customers while we evaluate further the many strategic alternatives currently available to us." Conference Call and Web Cast Scheduled for October 5, 2001, at 10:00 a.m. Eastern Stockholders, media and the public are invited to participate in a conference call with management on Friday, October 5, 2001, at 10:00 a.m. Eastern. Teresa Ayers, Chief Executive Officer, and Dan Hudspeth, Chief Financial Officer, will lead the call. Date: October 5, 2001 Time: 10:00 a.m. Eastern Conference call numbers: Toll-free: 800.289.0730 Toll/International: 913.981.5509 Web cast: www.genomica.com A replay of the conference call can be accessed by dialing toll-free 888.203.1112 and outside the U.S., 719.457.0820. The access code is 423836. The replay and web cast will be available through October 12, 2001. About Genomica Corporation Genomica Corporation develops and markets innovative software products and services that enable pharmaceutical and biotechnology researchers to accelerate the drug discovery and development process. Genomica's customers include leading genomics-based research organizations such as AstraZeneca, GlaxoSmithKline, Aventis, and the National Cancer Institute. Genomica also has strategic alliances with 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. For additional information on Genomica, please visit its Website at www.genomica.com. Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "expect," "intend," "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 Genomica 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, Genomica 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. Such factors include, but are not limited to, quarterly fluctuations in Genomica's revenues or other operating results, failure by Genomica to meet financial expectations of analysts and investors, failure by Genomica to manage the restructuring to achieve our financial goals, Genomica's ability to develop and implement a successful change in strategic direction, reliance by Genomica on a limited number of customers for a majority of its revenue, Genomica's reliance on key personnel, risks as related to market acceptance of Genomica's product, rapid technological change in Genomica's market, potential defects associated with Genomica's product, Genomica's need to maintain and enhance strategic relationships with larger companies, Genomica's use in its product of third-party components, Genomica's ability to develop products for new markets and distribution channels, activities by Genomica and others regarding protection of intellectual property, release of competitive products and other actions by competitors, and economic downturns in either domestic or foreign markets. Further details on these risks and other risks are set forth in Genomica's filings with the Securities and Exchange Commission. These filings are available on a website maintained by the Securities and Exchange Commission on the world wide web at www.sec.gov. Genomica does not undertake an obligation to update forward-looking statements. |
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