Sentigen Holding Corp. Announces Third Quarter Results.PHILLIPSBURG, N.J. -- Sentigen Holding Corp. (Nasdaq: SGHL), today reported results for the quarter and nine months ended September 30, 2006. Sentigen Holding Corp. conducts business through two wholly-owned operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. : Sentigen Biosciences, Inc. ("Sentigen Biosciences") and Cell & Molecular Technologies, Inc. ("CMT CMT Certified Medical Transcriptionist. CMT abbr. Certified Medical Transcriptionist CMT California mastitis test. "). Consolidated Results of Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the Revenues for the three months ended September 30, 2006 were $916,921, a 50% decrease over the revenues of $1,852,317 for the three months ended September 30, 2005. All our revenues are attributed to CMT, which accounted for $916,921 of our consolidated revenues for the three months ended September 30, 2006 and a 44% decrease when compared to CMT's revenues for the three months ended September 30, 2005. Revenues for the nine months ended September 30, 2006 were $3,214,544, a 40% decrease over revenues of $5,314,032 for the nine months ended September 30, 2005. CMT accounted for $2,576,976 of our consolidated revenues for the nine months ended September 30, 2006 and a 46% decrease when compared to CMT's revenues for the nine months ended September 30, 2005. The remainder of the revenues on a consolidated basis was primarily due to Sentigen Biosciences' contract with TSWG TSWG Technical Support Working Group TSWG Track Safety Working Group (UK) TSWG Tactical Standards Working Group TSWG Towed Systems Working Group TSWG Transportation Safety Working Group which accounted for $453,569 of revenue for the nine months ended September 30, 2006. The loss from continuing operations for the three months ended September 30, 2006 was $1,324,437 or $0.17 per share. This compares to a loss from continuing operations of $391,748 or $0.05 per share for the three months ended September 30, 2005. The increase in loss was primarily due to a decrease in income from continuing operations of CMT and increases in legal and professional fees related to the proposed merger with Invitrogen (see Definitive Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. dated October 18, 2006), offset in part by reductions in executive compensation and research and development expenses. The loss from continuing operations for the nine months ended September 30, 2006 was $2,883,915 or $0.38 per share. This compares to a loss from continuing operations of $1,598,406 or $0.21 per share for the nine months ended September 30, 2005. The increase in loss was primarily due to a decrease in income from continuing operations of CMT and increases in legal and professional fees related to the proposed merger with Invitrogen (see Definitive Proxy Statement dated October 18, 2006), offset in part by reductions in executive compensation and research and development expenses. Results of Continuing Operations by Segment Cell & Molecular Technologies, Inc. Income from continuing operations attributable to CMT for the three months ended September 30, 2006 decreased 148% to a loss of $149,753. This is in comparison to income of $312,025 for the three months ended September 30, 2005. Income from continuing operations attributable to CMT for the nine months ended September 30, 2006 decreased by 170% from $842,161 for the nine months ended September 30, 2005 to a loss of $589,897. The decrease was primarily driven by CMT's decreased revenues. Sentigen Biosciences. Loss from continuing operations attributable to Sentigen Biosciences for the three months ended September 30, 2006 was $349,660, a 19% increase when compared to the loss from operations of $294,395 for the three months ended September 30, 2005. Loss from continuing operations attributable to Sentigen Biosciences for the nine months ended September 30, 2006 was $718,170, a 36% improvement when compared to the loss from operations of $1,130,867 for the nine months ended September 30, 2005. The increase in loss was primarily due to the decrease in research and development costs and the closure of Sentigen Biosciences' 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. facility. Corporate. Loss from continuing operations attributable to corporate holding company expenses for the three months ended September 30, 2006 was $908,153. This compares to a loss attributable to corporate holding company expenses of $476,197 for the three months ended September 30, 2005, an increase of 91%. The increase in loss was primarily due to increased professional legal and public company expenses, offset by decreased executive compensation expenses. Loss from continuing operations attributable to corporate holding company expenses for the nine months ended September 30, 2006 was $1,824,175. This compares to a loss attributable to corporate holding company expenses of $1,521,072 for the nine months ended September 30, 2005, an increase of 20%. The increase was primarily due to an increase in legal and professional fees, offset by declines in commercial insurance and executive compensation. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. Income from discontinued operations was $412,987 for the nine months ended September 30, 2006. This was a result of recognizing an expected refund of taxes paid based on filing our state and federal tax returns in September 2006 and reversing accrued taxes payable related to the February 2005 sale of Specialty Media. Cash and Working Capital At September 30, 2006, we had $234,026 in cash and cash equivalents, $11,172,186 in U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Notes at market value, and $10,182,946 in working capital. This compares to $106,622 in cash and cash equivalents, $13,378,020 in U.S. Treasury Notes, at market value, and $11,846,492 in working capital at December 31, 2005. We believe that our financial resources will be sufficient to fund operations and capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. for at least the next 12 months. To the extent the proposed merger with Invitrogen is not consummated, we will need substantial amounts of additional financing to fully commercialize the research programs undertaken by us, which financing may not be available or if available may not be on reasonable terms. [TABLE OMITTED] [TABLE OMITTED] Forward Looking Statements This news release includes 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. that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurance that such statements will prove to be correct. Such statements are subject to certain factors that may cause results to differ materially from the forward-looking statements. Such factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , a copy of which may be obtained from the Company without charge. The Company undertakes no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results. About Sentigen Holding Corp. Sentigen Holding Corp. conducts business through two wholly-owned operating subsidiaries: Sentigen Biosciences, Inc. ("Sentigen Biosciences") and Cell & Molecular Technologies, Inc. ("CMT"). As previously disclosed in a press release dated September 1, 2006, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with Invitrogen Corporation ("Invitrogen"), a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. , and Arctic Fox Arctic fox Northern fox (Alopex lagopus) found throughout the Arctic, usually on tundra or mountains near the sea. Its short, rounded ears and short muzzle reduce its body area exposed to heat loss, and it has fur-covered soles. It is 20–24 in. Acquisition Corporation, a Delaware corporation and wholly-owned subsidiary of Invitrogen ("Merger Sub") on August 31, 2006. A special meeting of the stockholders of Sentigen is scheduled for November 14, 2006 to consider and vote upon a proposal to adopt the Merger Agreement. CMT provides contract research and development services to companies engaged in the drug discovery process in the following areas: molecular and cell biology Cell biology The study of the activities, functions, properties, and structures of cells. Cells were discovered in the middle of the seventeenth century after the microscope was invented. , gene expression and protein biochemistry, bio-processing, high throughput screening support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , mouse genetics, and cell-based GPCR GPCR Guanine Nucleotide-Binding Protein-Coupled Receptor GPCR GTP-binding Protein-Coupled Receptor selectivity selectivity /se·lec·tiv·i·ty/ (se-lek-tiv´i-te) in pharmacology, the degree to which a dose of a drug produces the desired effect in relation to adverse effects. selectivity 1. profiling. CMT works in cooperation with Sentigen Biosciences to commercialize specific applications of the Tango tango Spirited dance; also a South American ballroom dance. It evolved in the dance halls and, perhaps, the brothels of poorer districts of Buenos Aires, Arg., possibly influenced by the Cuban habanera. It was made popular in the U.S. [TM] Assay System. Sentigen Biosciences has been primarily engaged in the development and commercialization of novel bioassay Bioassay A method for the quantitation of the effects on a biological system by its exposure to a substance, as well as the quantitation of the concentration of a substance by some observable effect on a biological system. systems that elucidate e·lu·ci·date v. e·lu·ci·dat·ed, e·lu·ci·dat·ing, e·lu·ci·dates v.tr. To make clear or plain, especially by explanation; clarify. v.intr. To give an explanation that serves to clarify. the underlying biology of protein-protein interactions. Sentigen Biosciences has initially targeted its Tango[TM] Assay System to address the functionalization of G protein-coupled receptors G protein-coupled receptors (GPCRs), also known as seven transmembrane receptors, 7TM receptors, heptahelical receptors, and G protein linked receptors (GPLR (GPCRs) for pharmaceutical drug discovery and development. Sentigen Biosciences is devoting a significant portion of its research effort and resources to the development of a novel molecular profiling system, which the Company through CMT is commercializing. Management intends to continually review the commercial validity of the Tango[TM] Assay System, its applicability to functionalizing orphan GPCRs and the prospects of our new novel molecular profiling system in order to make the appropriate decisions as to the best way to allocate our limited resources. While we believe our technology capabilities in the bioscience area are substantial, up to this point, Sentigen Biosciences has incurred substantial 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. . Although we have completed several pilot research collaborations, we have not entered into any drug discovery or development agreements, nor can any assurance be given that we will be able to do so on terms that are acceptable to us. For more information on our companies, please visit their respective websites: http://www.cmt-inc.net and http://www.sentigen.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion