EXHIBIT 99.1
Contact:
James L. Knighton
Chief Operating and
Chief Financial Officer
650 623 0787
CALIPER TECHNOLOGIES ANNOUNCES SECOND QUARTER 2003
FINANCIAL RESULTS
Net Loss of $9.5 Million or $0.39 a Share Including Restructuring Charges
Hopkinton, MA -- July 31, 2003-- Caliper Technologies Corp. (Nasdaq: CALP)
announced today its second quarter 2003 financial results. For the quarter ended
June 30, 2003, the company reported a net loss of $9.5 million, or $0.39 per
share, as compared to a net loss of $11.4 million or $0.47 per share in the
comparable period last year. Caliper incurred a restructuring charge of $322,000
in the second quarter of 2003 for a reduction in force completed in the period,
which added to the net loss for the period. Financial results do not include the
financial results of Zymark Corporation, which Caliper acquired on July 14,
2003.
TOTAL REVENUE for the second quarter of 2003 was $5.9 million, down 19% from
$7.2 million in the same period last year. The decline in total revenue from
2002 was due primarily to the previously reported anticipated decrease in sales
to Amphora Discovery Corporation, a related party. On a sequential basis,
total revenue was up 5% from $5.6 million for the first quarter of this year.
PRODUCT REVENUE was $3.4 million in the second quarter of 2003 as compared to
$4.5 million in the second quarter of last year and $3.5 million in the first
quarter of 2003. Again, the year over year change was due primarily to a
decrease in product sales to Amphora offset by increases in Caliper's drug
discovery products sales to unrelated customers and product sales under
Caliper's collaboration with Agilent Technologies. The 2003 quarter to quarter
decline was due to a slight softening in sales from Caliper's collaboration with
Agilent and, to a lesser extent, modest declines in drug discovery product sales
to both Amphora and unrelated customers. This was offset in part by increases in
product sales in most other areas, including Caliper's AMS-90 and diagnostic
products.
LICENSING AND CONTRACT REVENUE in the second quarter of 2003 was $2.4 million,
an 11% decrease from $2.8 million in the second quarter of 2002 and a 15%
increase from $2.1 million in the first quarter of 2003. The year over year
decrease is principally from a 25% reduction in research and development
services rendered to Agilent as well as reduced assay and application
development services performed for Amphora, as most contract services for
Amphora were completed last year. The sequential 2003 quarter to quarter
increase came primarily from increased services provided to Caliper's corporate
development partnerships and modest increases in research and development
services to Agilent.
1.
OPERATING EXPENSES for the second quarter of 2003 were $14.0 million, as
compared to $16.7 million in the second quarter of 2003, a decrease of 16%. As
compared to the first quarter of 2003, total operating expenses decreased 1%.
Research and development expenses decreased 23% to $8.8 million in the second
quarter of 2003 from $11.5 million in the second quarter of 2002. As compared to
the first quarter of 2003, research and development expenses decreased 6%. Both
of these research and development decreases were due primarily to lower wage and
benefit costs resulting from a reduction in research personnel in September 2002
and May 2003. As compared to the same period in 2002, selling, general and
administrative expenses decreased 2% to $4.7 million from $4.8 million. Selling,
general and administrative expenses increased modestly from the first quarter of
2003 principally from additional legal costs related to a patent infringement
action and costs associated with our annual stockholder meeting, offset by lower
employee and marketing costs.
In early May 2003, Caliper conducted a reduction in force that resulted in the
further downsizing of its employee workforce by 26 people, or approximately 10%,
predominately in research and development. This was part of Caliper's ongoing
assessment of its cost structure and research programs independent of the Zymark
acquisition. Caliper incurred an expense of $322,000 for severance payments and
related benefits with all costs associated with this workforce reduction paid
out by the end of June 2003.
INTEREST INCOME, NET for the second quarter totaled $1.1 million, a decrease
from $1.8 million in the second quarter of 2002 but an increase from $921,000 in
the previous quarter due primarily to $334,000 in realized gains generated by
the sale of marketable securities in Caliper's investment portfolio. In June
2003, in anticipation of Caliper's purchase of Zymark, Caliper began to convert
a portion of its short-term marketable securities portfolio to cash and cash
equivalents that generated this non-recurring gain.
"Overall, this was a very productive quarter for Caliper. In June, we announced
a definitive agreement to acquire Zymark Corporation, a leading provider of
laboratory automation, liquid handling and robotics solutions to the life
sciences, biotechnology and pharmaceutical industries. This strategic
acquisition, which was successfully completed on July 14th, creates a broad
commercial outlet for Caliper's microfluidic technologies and provides a product
discovery engine for Zymark's commercial platform. With this powerful
combination, we expect to achieve $50 to $55 million in revenues for the full
year including the addition of Zymark's revenues starting July 14, 2003," said
Jim Knighton, Chief Operating and Chief Financial Officer of Caliper
Technologies. "In addition, during the second quarter, we met our internal
financial forecasts through a combination of slightly increased product revenues
and reduced spending from the previous quarter."
In addition to the completion of the acquisition of Zymark, second quarter
highlights include:
- The establishment of two new Caliper 250 customers (Serono and
Aventis), and
2.
- The closing of a multi-year development and collaboration agreement
with Bio-Rad Laboratories to develop a novel microfluidics
instrument.
Caliper will webcast its second quarter 2003 conference call discussing
financial results and preliminary integration planning of the company since the
Zymark acquisition in mid July. The live webcast of this conference will begin
at 5:00 p.m. ET (2:00 p.m. PT) today. Participants should visit the following
address (www.companyboardroom.com) several minutes prior to the call and follow
the instructions provided.
Webcast and telephone replays of the conference call will be available
approximately two hours after the completion of the call. To access a recording
of the proceedings from July 31 through August 7, visit
http://www.companyboardroom.com or the events page in the investor relations
section of the Caliper website at http://www.calipertech.com.
ABOUT CALIPER TECHNOLOGIES
Caliper Technologies is a leading provider of microfluidic technology and
laboratory automation solutions serving a broad range of markets in the
worldwide life science, biotechnology and pharmaceutical industries. With the
recent acquisition of Zymark Corporation, Caliper now offers a state-of-the-art
comprehensive portfolio of microfluidic, liquid handling and laboratory
automation products designed to accelerate drug discovery and development.
Caliper is focused on leveraging its global commercial infrastructure, broad and
established customer base, and innovative R&D platform to drive its current and
future growth.
Caliper headquarters are located in Hopkinton, Massachusetts, with R&D,
operations and manufacturing facilities for LabChip(R) devices in Mountain View,
California, and direct sales, service and applications support in numerous
locations around the world. Caliper customers and partners include many of the
largest pharmaceutical and biotechnology companies in the world. For more
information, please visit Caliper's web site at www.calipertech.com.
The statements in this news release regarding the expected revenues for 2003 are
"forward-looking statements" that are subject to risks and uncertainties. Actual
results could differ materially from those contemplated by the forward-looking
statements as a result of a number of factors, including the risk that Caliper's
expectations regarding demand for its products and services may not materialize
if capital spending by Caliper's customers further declines or if Caliper is
unable to timely bring to market novel assay applications for its drug discovery
systems. Further information on potential factors that could affect Caliper's
financial results are included in risks detailed under the caption "Factors
Affecting Operating Results" in Caliper's Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on May 15, 2003. This filing is
available on a web site maintained by the Securities and Exchange Commission at
http://www.sec.gov. Caliper does not undertake an obligation to update
forward-looking or other statements in this release or the conference call.
LabChip is a registered trade mark of Caliper Technologies Corp.
3.
CALIPER TECHNOLOGIES CORP.
SELECTED FINANCIAL INFORMATION
CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended
(unaudited, in thousands except per share data) June 30, June 30,
----------------------- -----------------------
2003 2002 2003 2002
-------- -------- -------- --------
REVENUES:
Product revenue $ 2,893 $ 2,430 $ 5,803 $ 5,626
Product revenue - related party 548 2,056 1,126 3,412
-------- -------- -------- --------
Total product revenue 3,441 4,486 6,929 9,038
License fees and contract revenue 2,434 2,379 4,550 4,504
Contract revenue - related party 3 371 11 735
-------- -------- -------- --------
Total license fees and contract revenue 2,437 2,750 4,561 5,239
TOTAL REVENUES 5,878 7,236 11,490 14,277
COST OF GOODS SOLD:
Cost of product revenue 2,402 1,923 4,622 4,016
Cost of product revenue - related party 60 1,403 138 1,847
-------- -------- -------- --------
TOTAL COST OF GOODS SOLD 2,462 3,326 4,760 5,863
GROSS MARGIN 3,416 3,910 6,730 8,414
OPERATING EXPENSES:
Research and development 8,822 11,463 18,233 22,515
Selling, general and administrative 4,740 4,817 9,309 9,474
Amortization of deferred stock compensation 152 386 340 832
Restructuring charges 322 -- 322 --
-------- -------- -------- --------
TOTAL OPERATING EXPENSES 14,036 16,666 28,204 32,821
-------- -------- -------- --------
LOSS FROM OPERATIONS (10,620) (12,756) (21,474) (24,407)
INTEREST INCOME, NET 1,077 1,846 1,998 4,277
OTHER EXPENSE/LOSS, NET 1 (458) (34) (924)
-------- -------- -------- --------
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (9,542) $(11,368) $(19,510) $(21,054)
======== ======== ======== ========
NET LOSS PER SHARE - BASIC AND DILUTED $ (0.39) $ (0.47) $ (0.79) $ (0.87)
======== ======== ======== ========
Shares used in computing net loss per share - basic and diluted 24,840 24,333 24,777 24,285
4.
CALIPER TECHNOLOGIES CORP.
SELECTED FINANCIAL INFORMATION
June 30, December 31,
---------- ------------
CONSOLIDATED BALANCE SHEETS 2003 2002
---------- ------------
(in thousands) (unaudited) (Note 1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 55,639 $ 16,184
Short-term marketable securities 79,839 138,139
Accounts receivable, net 2,987 1,754
Royalties receivable from Aclara 1,250 --
Due from related party, net 224 115
Inventories 4,416 5,964
Other current assets 2,187 1,508
---------- ---------
TOTAL CURRENT ASSETS 146,542 163,664
PROPERTY AND EQUIPMENT, NET 9,787 12,545
OTHER ASSETS 3,397 3,669
---------- ---------
TOTAL ASSETS $ 159,726 $ 179,878
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $ 7,660 $ 8,081
LONG-TERM OBLIGATIONS 3,218 4,239
STOCKHOLDERS' EQUITY 148,848 167,558
---------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 159,726 $ 179,878
========== =========
Note 1. Derived from audited financial statements.
5.