SYSTEMIX ANNOUNCES THIRD QUARTER RESULTS
SYSTEMIX ANNOUNCES THIRD QUARTER RESULTS PALO ALTO, Calif.., Nov. 14 /PRNewswire/ -- SyStemix, Inc.
(NASDAQ: STMX) today announced financial results for its third quarter ended Sept. 30, 1991. The company said that its revenues and a net loss were consistent with its expectations, reflecting both greater revenues from contract testing using its proprietary SCID-hu mouse and increased research and development expenditures to support expanded activities in the area of human stem cells, megakaryocyte progenitors and stem cell growth factors.
For the third quarter of 1991, the company had total revenues of $659,000, compared to $164,000 in the same period a year ago. The net loss for the period was $1,775,000, compared to $2,257,000, for the same period in 1990. For the first nine months of 1991 total revenues were $1,628,000, compared to $463,000 in the first three quarters of 1990. The net loss for the first nine months of 1991 was $5,603,000, compared to a net loss of $5,396,000 in the same period for 1990. "With the successful completion of our initial public offering, the company now has in excess of $37 million in cash to support our research and development program and business agenda," said Dr. Linda Sonntag, president and chief executive officer of SyStemix. "A significant milestone was recently achieved with the award to SyStemix of a U.S. patent for human stem cells. We consider this to be a fundamental patent enabling us to establish a strong proprietary position in the cellular therapy field. "SyStemix' first pilot study to test the efficacy and safety of human hematopoietic stem cells (in autologous transplants) has officially commenced at Stanford University. We will be seeking in this study to confirm data developed from SCID-hu mice that reinfusion with purified human stem cells will enable a patient to regenerate all components of the human blood cell system in a timely fashion. "Another recent milestone is the confirmation provided by scanning electron microscopy that megakaryocyte progenitors and megakaryocytes, when cultured in SyStemix' proprietary conditions, give rise to human platelets. This is an important technical step in our program to commercialize the megakaryocyte process as a potential replacement therapy for third-party-derived platelet transfusions for patients suffering from platelet loss as a consequence of side effects of cancer chemotherapy, radiation and other medical treatments. "The preclinical drug testing services business has experienced difficulties in consistently obtaining results measuring HIV in samples derived from HIV-infected SCID-hu mice using the polymerase chain reaction assay. We have elected to suspend the use of the assay temporarily in order to devote all of our contract testing resources to the improvement and/or further development of the assay. This suspension will delay reporting of preclinical results to testing service clients and will reduce temporarily revenues from this business. This will not affect and ongoing research at the company." SyStemix, Inc. is primarily engaged in the development of cellular processes and cellular products based on human hematopoietic stem cells, human megakaryocytes and megakaryocyte progenitors. SYSTEMIX, INC. Statement of Operations (In thousands, except per share data -- Unaudited) Periods ended Three months Nine months Sept. 30; 1991 1990 1991 1990 Revenues Contract testing 639 147 1,453 370 Research grants 20 17 175 93 Total revenues 659 164 1,628 463 Expenses Research & development: Contract Testing 493 404 1,280 1,117 Research grants 20 17 211 93 Other 1,440 954 3,927 2,627 Total R&D 1,953 1,375 5,418 3,837 General & administrative 580 1,021 1,684 1,924 Total operating expenses 2,533 2,396 7,102 5,761 Loss from operations (1,874) (2,232) (5,474) (5,298) Interest income 261 5 269 24 Interest expense (162) (30) (398) (122) Net loss (1,775) (2,257) (5,603) (5,396) Net loss per share (0.27) (0.45) (0.98) (1.16) Shares used in computing net loss per share 6,632 5,045 5,705 4,654 -0- 11/14/91 /CONTACT: Dr. Linda Sonntag, president & chief executive officer of SyStemix, 415-856-4901; or Fred Spar of Kekst and Company, 212-593-2655, for SyStemix/ (STMX) CO: SyStemix, Inc. ST: California IN: MTC SU: ERN JT-SM -- NY098 -- 1250 11/14/91 17:27 EST
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|Date:||Nov 14, 1991|
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