EXHIBIT 99.1
For Immediate Release
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| Contact: | | Amy Caterina |
| | | Investor Relations |
| | | SEQUENOM, Inc. |
| | | (858) 202-9033 |
| | | acaterina@sequenom.com |
SEQUENOM REPORTS FIRST QUARTER 2005 FINANCIAL RESULTS
San Diego - May 9, 2005 – SEQUENOM, Inc. (NASDAQ: SQNM), a leading provider of genetic analysis products for molecular medicine and biomedical research, today reported financial results for the first quarter ended March 31, 2005.
SEQUENOM’s total consolidated revenues for the first quarter of 2005 were $4.3 million, compared to $5.1 million for the first quarter of 2004. Revenues were impacted by certain terms and conditions granted to a number of new customers that will result in the recognition of revenue in subsequent periods. The Company expects to recognize $1.3 million in related revenue during the second and third quarters of 2005.
Total costs and expenses for the first quarter of 2005 were $12.2 million, down from $15.5 million for the first quarter of 2004. SEQUENOM’s net loss for the first quarter of 2005 decreased to $7.4 million, or $0.18 per share, compared to $9.9 million, or $0.25 per share for the first quarter of 2004, representing a 28% improvement in earnings per share.
On March 31, 2005, the Company held cash, cash equivalents, short-term investments and restricted cash totaling $31.4 million.
“We believe that our MassARRAY products continue to gain traction in the clinical research market. To date, SEQUENOM’s worldwide installed base of MassARRAY systems totals over 130,” said Steve Zaniboni, SEQUENOM’s acting Chief Executive Officer and Chief Financial Officer. “To expand our presence in the clinical research market, we recently launched theiPLEX™ assay, an improved multiplexing application for SNP genotyping that significantly increases flexibility in assay design, reduces costs and simplifies workflow in the clinical setting.”
“SEQUENOM is gaining momentum to become a leader in diagnostic molecular medicine by utilizing the strengths of our MassARRAY products and building upon our own proprietary genetic content and
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that of our customers,” continued Zaniboni. “Our expanded global network of partnerships serve as validation sites for our system and contribute to content development to improve diagnosis of genetic disorders and disease; ultimately leading to additional products and sales for SEQUENOM.”
Company Highlights
| | • | | Researchers Discovered Gene Believed Responsible for Age-Related Macular Degeneration. Researchers from Boston University School of Medicine, University of Texas Southwestern Medical Center at Dallas, and SEQUENOM reported the discovery of a genetic variation that is the strongest known risk factor associated for age-related macular degeneration (AMD). Published in the March 15, 2005 issue of the journalScience, the study entitled “Complement Factor H Polymorphism and Age-Related Macular Degeneration” details the surprising discovery of a gene that may be associated with approximately fifty percent of the cases of AMD in the population. |
| | • | | Discovered Gene Linked to Bone Mineral Density.SEQUENOM researchers discovered a genetic variation in the gene encoding phosphodiesterase 4D (PDE4D) that is believed to affect osteoporosis risk. Fragility fractures caused by osteoporosis are associated with morbidity and mortality in the aging population. Published in the March 23, 2005 edition ofBMC Medical Genetics, the study entitled “Association between a variation in the phosphodiesterase 4D gene and bone mineral density” reports that individuals with variants in the PDE4D gene may account for some of the genetic contribution to bone mineral density (BMD). BMD is a useful surrogate marker for risk of fracture and is a highly heritable trait. |
| | • | | Expanded Molecular Diagnostics Collaboration With Siemens. Specialty Laboratories, Inc. (NYSE: SP) will participate as a U.S. site for a joint working group on molecular diagnostics initiated by SEQUENOM and Siemens Medical Solutions of Siemens AG (NYSE: SI). A MassARRAY Compact system was installed at Specialty Laboratories’ new clinical laboratory facility to benchmark the MassARRAY system in a molecular diagnostic testing environment. |
| | • | | Launched the iPLEX Assay.Clinical researchers and genetic scientists who attended the Human Genome Organization’s 10th Human Genome Meeting in Kyoto, Japan, were among the first to learn about the benefits of SEQUENOM’siPLEX assay, a new multiplexing application for the MassARRAY System. TheiPLEX assay is designed to significantly reduce costs, increase throughput and simplify workflow in the clinical setting. |
| | • | | Developed a Process that Identifies Epigenetic Markers for Lung Cancer Research. This innovative process performs high-throughput DNA methylation analysis based on the MassARRAY system. Together with researchers from the University of Liverpool, SEQUENOM scientists evaluated the performance of the procedure in a clinical setting by analyzing the cytosine methylation pattern in non-small cell lung cancer. |
2005 Goals
| | • | | Expand SEQUENOM’s business opportunities in the clinical research market through the launch of new product offerings, including theiPLEX assay and advanced software for gene expression, methylation analysis and pathogen identification. |
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| | • | | Achieve Good Manufacturing Practice (GMP) compliance to advance the diagnostic component of SEQUENOM’s strategy. |
| | • | | Launch SEQUENOM’s first Analyte Specific Reagents (ASRs) for publicly available genetic tests such as Deep Vein Thrombosis and Cystic Fibrosis, subsequent to GMP compliance. |
| | • | | Develop a global network of partnerships to discover novel nucleic acid based markers for non-invasive screening of birth defects, including Down’s syndrome. |
| | • | | Initiate clinical validation of SEQUENOM’s proprietary breast cancer panel to demonstrate broad population impact and commercial potential. |
Web Cast of Conference Call
SEQUENOM’s management will hold a conference call today at 11:00 a.m. EDT to discuss the Company’s first quarter 2005 results, scientific achievements as well as milestones and updated guidance for fiscal year 2005. A live web cast is available athttp://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=84955&eventID=1058997 and through a link that is posted on the Company’s web site atwww.sequenom.com. The web cast will be available online through May 20, 2005. A telephone replay of the conference call also will be available for 48 hours at (800) 642-1687 or (706) 645-9291, reservation # 5841209.
About SEQUENOM
SEQUENOM is committed to providing the best genetic analysis products that translate genomic science into superior solutions for molecular medicine and biomedical research. The Company’s proprietary MassARRAY system is a high-performance DNA analysis platform that efficiently and precisely measures the amount of genetic target material and variations therein. The system is able to deliver reliable and specific data from complex biological samples and from genetic target material that is only available in trace amounts. For more information, please visit our website atwww.sequenom.com.
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SEQUENOM® and MassARRAY® are registered trademarks of SEQUENOM, Inc. iPLEX™ is a trademark of SEQUENOM, Inc.
Except for the historical information contained herein, the matters set forth in this press release, including statements regarding SEQUENOM’s expectations for the MassARRAY platform, SEQUENOM’s expectations with respect to revenue and additional products sales, SEQUENOM’s 2005 goals including the launch of new product offerings, achieving GMP compliance, the launch of ASRs, clinical validation of SEQUENOM’s breast cancer panel, are forward-looking statements within the meaning of the
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“safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties, and other risks detailed from time to time in SEQUENOM’s SEC filings, including SEQUENOM’s most recently filed Annual Report on Form 10-K for the year ended December 31, 2004. These forward-looking statements are based on current information that is likely to change and speak only as of the date hereof.
SEQUENOM, Inc.
Condensed Consolidated Financial Statements
(in thousands, except per share data)
Consolidated Summary of Operations
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| | | Three Months Ended
March 31,
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| | | 2005
| | | 2004
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| | | (Unaudited) | |
Revenues: | | | | | | | | |
Consumables | | $ | 2,781 | | | $ | 3,380 | |
Other product related | | | 1,309 | | | | 1,441 | |
Services | | | — | | | | 121 | |
Research | | | 191 | | | | 192 | |
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Total revenues | | | 4,281 | | | | 5,134 | |
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Costs and expenses: | | | | | | | | |
Cost of product & service revenue | | | 2,616 | | | | 2,965 | |
Research and development expenses | | | 3,246 | | | | 5,500 | |
Selling and marketing expenses | | | 2,546 | | | | 2,809 | |
General and administrative expenses | | | 3,355 | | | | 3,330 | |
Restructuring charge | | | (212 | ) | | | — | |
Amortization of acquired intangibles | | | 503 | | | | 857 | |
Amortization of deferred stock-based compensation | | | 140 | | | | — | |
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Total costs and expenses | | | 12,194 | | | | 15,461 | |
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Operating loss | | | (7,913 | ) | | | (10,327 | ) |
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Net interest income | | | 95 | | | | 104 | |
Other income, net | | | 203 | | | | 48 | |
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Loss before income taxes | | | (7,615 | ) | | | (10,175 | ) |
Deferred income tax benefit | | | 233 | | | | 290 | |
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Net loss | | $ | (7,382 | ) | | $ | (9,885 | ) |
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Net loss per share, basic and diluted: | | $ | (0.18 | ) | | $ | (0.25 | ) |
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Weighted average of shares outstanding, basic and diluted | | | 40,432 | | | | 39,615 | |
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Consolidated Balance Sheet Information | | | | | | | | |
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| | | March 31,
2005
(Unaudited)
| | | December 31,
2004
(Audited)
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Assets: | | | | | | | | |
Cash, cash equivalents, short-term investments and restricted cash | | $ | 31,363 | | | $ | 37,943 | |
Property, equipment and leasehold improvements, net | | | 6,815 | | | | 6,722 | |
Other assets, including intangibles | | | 13,621 | | | | 13,821 | |
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Total assets | | $ | 51,799 | | | $ | 58,486 | |
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Liabilities and Stockholders’ Equity: | | | | | | | | |
Deferred revenue | | | 1,733 | | | | 1,424 | |
Other liabilities | | | 19,365 | | | | 18,990 | |
Stockholders’ equity | | | 30,701 | | | | 38,072 | |
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Total liabilities and stockholders’ equity | | $ | 51,799 | | | $ | 58,486 | |
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