SOMATIX REPORTS YEAR-END RESULTS
SOMATIX REPORTS YEAR-END RESULTS ALAMEDA, Calif., Aug. 18 /PRNewswire/ -- Somatix Therapy Corp.
(NASDAQ: SOMA) today reported a net loss of $43,223,000 for the fiscal year 1992 which ended June 30, 1992, reflecting a one-time $33,038,000 write-off for the acquisition of GeneSys Therapeutics Corp. In fiscal 1991, the company posted a $25,951,000 net loss, which included a write-off of $19,381,000 for the merger of Hana Biologics and Somatix Corp. Somatix reported an improvement in its balance sheet in fiscal 1992, ending with $34,003,000 in cash, cash equivalents and marketable securities, compared to $8,592,000 in 1991. The company completed a public equity offering in March 1992 with net proceeds of $36,984,000.
Fiscal 1992 revenues decreased to $69,000 from $2,564,000 in 1991, as a result of the scheduled expiration of a contract manufacturing agreement with Irvine Scientific Sales Co. in March 1991. Subsequently, in November 1991 Somatix decided to discontinue its contract manufacturing operation. Absent external research funding, the company does not anticipate having significant revenues in the foreseeable future. Costs and expenses in 1992 rose to $11,047,000 from $9,978,000 in 1991, primarily due to the cost of licensing proprietary technology from research institutions and funding collaborative research agreements related to the company's programs. The net loss per share in 1992 was $4.43 based on 9,751,973 shares, compared to $7.92 in 1991 based on 3,276,790 shares. The increase in number of shares outstanding was due to the issuance of additional stock in conjunction with the merger, the acquisition and the public equity offering. According to David Carter, chief executive officer, "The large loss reported in 1992 is predominantly due to the non-cash write-off related to the stock swap in which we acquired GeneSys. The successful completion of our equity offering in March has provided the company with a solid financial foundation as we continue to move our research programs closer to commercialization." Somatix Therapy Corp. is a leader in the field of gene therapy. The company is focused on the genetic modification of selected human cells to enable the production and delivery of therapeutic substances within the patient's body. Somatix believes that gene therapy, which requires gene transfer technology, will provide a safe and effective means of delivering many therapeutic substances. Somatix has gene therapy programs in cancer, neural diseases and blood disorders. SOMATIX THERAPY Consolidated Statement of Operations Fiscal Year Ended June 30 1992 1991 Contract Manufacturing Revenues $ 69,000 $ 2,564,000 Costs and Expenses 11,047,000 9,978,000 Write-Off of Acquired In-Process Technology 33,038,000 19,381,000 Operating Loss (44,016,000) (26,795,000) Other Income, Net 793,000 844,000 Net Loss (43,223,000) (25,951,000) Net Loss Per Share(A) $(4.43) $(7.92) Shares Used in Calculation of Net Loss Per Share(A) 9,751,973 3,276,790 (A) Per share information is based on the weighted average number of common shares outstanding during each of the years. At June 30, 1992, there were 13,137,317 shares of common stock outstanding. SOMATIX THERAPY CORP. Consolidated Balance Sheet Fiscal Year Ended June 30 1992 1991 ASSETS Current Assets: Cash, Cash Equivalents and Marketable Securities $22,096,000 $8,592,000 Other Current Assets 441,000 495,000 Total Current Assets 22,537,000 9,087,000 Marketable Securities, Long-Term 11,907,000 -- Restricted Cash 1,266,000 640,000 Net Equipment and Improvements 3,045,000 3,804,000 $38,755,000 $13,531,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities $ 1,915,000 $1,968,000 Long-Term Capital Lease Obligations 330,000 384,000 Stockholders' Equity 36,510,000 11,179,000 $38,755,000 $13,531,000 -0- 8/18/92 /CONTACT: Julie Wood of Somatix Therapy Corp., 510-748-3082/ (SOMA) CO: Somatix Therapy Corp. ST: California IN: MTC SU: ERN
RM -- SF002 -- 0972 08/18/92 12:56 EDT
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|Date:||Aug 18, 1992|
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