Exhibit 99.1
Molecular Devices Reports Record Revenues and Earnings for Third Quarter of
2004
SUNNYVALE, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Molecular Devices
Corporation (Nasdaq: MDCC) today announced record revenues and non-GAAP
earnings for the quarter ended September 30, 2004.
Revenues for the quarter were a record $41.5 million, or an increase of
42% compared to the same period last year. On a GAAP basis, which includes a
one-time charge of $5.0 million for acquired in-process research and
development related to the Axon acquisition, operating income for the third
quarter of 2004 was $440,000. On a non-GAAP basis, excluding the one-time
charge, operating income was $5.4 million for the quarter, or an increase of
71% compared to the same period last year.
On a GAAP basis, including the $0.27 per fully diluted share one-time
charge for acquired in-process research and development, the fully diluted
loss per share for the third quarter of 2004 was $0.07. Excluding this $0.27
charge, fully diluted earnings per share were $0.20 for the third quarter, or
an increase of 33% compared with the same period last year. A table
reconciling operating income and fully diluted earnings per share on a GAAP
and non-GAAP basis is provided immediately following the Condensed
Consolidated Balance Sheets.
"We are pleased to announce that we have successfully completed all
aspects of the integration of Axon and that the results for all of the Axon
product lines, including both life sciences and drug discovery products,
exceeded our expectations for the quarter. We also continued to see good
growth in our core MDC life sciences products due to the success of the
SpectraMax M2 bench-top reader and Meta series of cellular imaging products,"
stated Joseph D. Keegan, Ph.D., Molecular Devices' President and Chief
Executive Officer. "However, a number of our drug discovery product lines,
including Discovery-1, IonWorks and Analyst, did not meet our expectations for
the quarter. As a result of this unanticipated weakness, we have become more
cautious about the state of the overall market."
The Company also established guidance for the fourth quarter of 2004 and
provided guidance for the full year 2005. For the fourth quarter of 2004, the
Company anticipates revenues of $46 to $48 million and fully diluted GAAP
earnings per share of $0.23 to $0.25. For the full year 2004, the Company
anticipates revenues of $147 to $149 million, fully diluted non-GAAP earnings
per share of $0.72 to $0.75 and fully diluted GAAP earnings per share of $0.41
to $0.43. A table reconciling estimated 2004 fully diluted earnings per share
on a GAAP and non-GAAP basis is provided immediately following the Condensed
Consolidated Balance Sheets. For the full year 2005, the Company anticipates
revenues of $175 to $190 million and fully diluted GAAP earnings per share of
$0.80 to $0.95.
Conference Call Information
An earnings announcement conference call is scheduled for Friday, October
29, 2004 at 8:00 a.m. PDT (11:00 a.m. EDT). Interested parties can
participate in the call by dialing 800-289-0572 (domestic) or 913-981-5543
(international). A taped replay of this call will be available through
November 5, 2004. Replay dial-in numbers are 888-203-1112 (domestic) and
719-457-0820 (international), and the access code for the replay is 975396.
Investors can also access a live web-cast of the call through a link
posted on the investor page on Molecular Devices' website
(www.moleculardevices.com). A replay of the web cast will remain at this
location through November 4, 2004.
About Molecular Devices Corporation
Molecular Devices Corporation is a leading supplier of high-performance
bioanalytical measurement systems that accelerate and improve drug discovery
and other life sciences research. The Company's systems and consumables
enable pharmaceutical and biotechnology companies to leverage advances in
genomics, proteomics and combinatorial chemistry by facilitating the high-
throughput and cost-effective identification and evaluation of drug
candidates. The Company's solutions are based on its advanced core
technologies that integrate its expertise in engineering, molecular and cell
biology and chemistry. Molecular Devices enables its customers to improve
research productivity and effectiveness, which ultimately accelerates the
complex process of discovering and developing new drugs.
This press release contains "forward-looking" statements, including
statements related to future revenues and earnings. Any statements contained
in this press release that are not statements of historical fact may be deemed
to be forward-looking statements. Words such as "believes," "anticipates,"
"plans," "expects," "will," and similar expressions are intended to identify
forward-looking statements. There are a number of important factors that could
cause the results of Molecular Devices Corporation to differ materially from
those indicated by these forward-looking statements, including, among others,
risks related to variations in the amount of time that it takes for the
Company to sell its products and collect amounts receivable and shipped in the
same quarter, which gives the Company limited visibility of future product
shipments, competition, the Company's need to develop new and enhanced
products and other risks detailed from time to time in the Company's SEC
reports, including its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2004. Molecular Devices Corporation does not undertake any
obligation to update forward-looking statements.
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
TOTAL REVENUES $41,502 $29,276 $101,044 $82,330
TOTAL COST OF REVENUES 15,802 10,763 38,120 30,875
GROSS PROFIT 25,700 18,513 62,924 51,455
OPERATING EXPENSES:
Research and development 6,432 4,649 15,158 14,127
Selling, general and administrative 13,828 10,681 36,364 31,136
Acquired in-process research and
development 5,000 -- 5,000 --
Total operating expenses 25,260 15,330 56,522 45,263
INCOME FROM OPERATIONS 440 3,183 6,402 6,192
Other income, net 41 73 126 639
INCOME BEFORE TAXES 481 3,256 6,528 6,831
Income tax provision (1,749) (977) (3,862) (2,050)
NET INCOME (LOSS) $(1,268) $2,279 $2,666 $4,781
BASIC NET INCOME (LOSS) PER SHARE $(0.07) $0.15 $0.17 $0.32
DILUTED NET INCOME (LOSS) PER SHARE $(0.07) $0.15 $0.17 $0.31
SHARES USED IN COMPUTING BASIC NET
INCOME (LOSS) PER SHARE 17,751 14,935 15,557 15,142
SHARES USED IN COMPUTING DILUTED
NET INCOME (LOSS) PER SHARE 17,751 15,103 16,055 15,223
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
September 30, December 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $19,383 $50,260
Short-term investments -- 8,114
Accounts receivable, net 31,593 26,209
Inventories, net 27,075 17,025
Deferred tax assets 2,898 5,223
Other current assets 2,800 1,849
Total current assets 83,749 108,680
Long-term investments -- 1,736
Equipment and leasehold improvements, net 11,583 9,706
Other assets 155,683 46,791
$251,015 $166,913
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,536 $4,019
Accrued liabilities 20,859 17,356
Short-term line of credit outstanding 15,000 --
Total current liabilities 40,395 21,375
Long-term liabilities:
Long-term deferred tax liabilities 6,607 --
Total long-term liabilities 6,607 --
Stockholders' equity 204,013 145,538
$251,015 $166,913
HISTORICAL NON-GAAP RECONCILIATION (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
OPERATING INCOME - GAAP BASIS $440 $3,183 $6,402 $6,192
Acquired in-process research and
development 5,000 -- 5,000 --
NON-GAAP OPERATING INCOME $5,440 $3,183 $11,402 $6,192
GAAP FULLY DILUTED EARNINGS (LOSS)
PER SHARE $(0.07) $0.15 $0.17 $0.31
Acquired in-process research and
development 0.27 -- 0.31 --
NON-GAAP FULLY DILUTED EARNINGS PER
SHARE $0.20 $0.15 $0.48 $0.31
FULLY DILUTED SHARES 18,327 15,103 16,055 15,223
ESTIMATED NON-GAAP 2004 FULLY DILUTED EPS RECONCILIATION (unaudited)
Twelve Months Ended
December 31, 2004
Low High
ESTIMATED GAAP FULLY DILUTED EARNINGS PER SHARE $0.42 $0.45
Acquired in-process research and development 0.30 0.30
ESTIMATED NON-GAAP FULLY DILUTED EARNINGS PER SHARE $0.72 $0.75
ESTIMATED FULLY DILUTED SHARES 16,500 16,500
Each non-GAAP financial measure presented in this press release is
included because Molecular Devices Corporation's management uses this
information to monitor and evaluate on-going operating results and trends
excluding the unusual item related to the acquisition of Axon Instruments in
July 2004. Molecular Devices' management believes such non-GAAP financial
measures are also useful for investors because the charge for acquired in
process research and development related to the Axon acquisition is the result
of a transaction that is unusual due to its nature, size and frequency.
Consequently, excluding this charge from Molecular Devices' operating results
provides investors an important insight into Molecular Devices' operating
results and related trends of its core business.
SOURCE Molecular Devices Corporation
-0- 10/28/2004
/CONTACT: Tim Harkness of Molecular Devices Corporation, +1-408-747-3533/
/Web site: http://www.moleculardevices.com /
(MDCC)
CO: Molecular Devices Corporation
ST: California
IN: HEA MTC BIO
SU: ERN ERP CCA