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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
FILING NO. 1 FOR THE MONTH OF MARCH, 2001
VISIBLE GENETICS INC.
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(Exact name of Registrant)
700 BAY STREET, SUITE 1000, TORONTO ON, CANADA M5G 1Z6
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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VISIBLE GENETICS INC.
On March 8, 2001, we reported our financial results for the fourth quarter
and year ended December 31, 2000. We reported sales of $3.0 million for the
fourth quarter of 2000 and $13.1 million for the year ended December 31, 2000,
compared to $5.0 million and $13.6 million for the respective periods in 1999.
The net loss attributable to common shareholders for the fourth quarter of 2000
was $10.4 million or $0.65 per share, compared to a net loss attributable to
common shareholders of $7.8 million or $0.76 per share for the same period in
1999. For the year ended December 31, 2000, we reported a net loss attributable
to common shareholders of $35.4 million or $ 2.42 per share, compared to $27.1
million or $2.73 per share for 1999. (All amounts are in United States dollars.)
The decline in sales during the fourth quarter and full year 2000 reflects
the decision made during 2000, in anticipation of receiving FDA approval of our
TRUGENE(TM) HIV-1 Genotyping Kit, to de-emphasize marketing and sales of
sequencing systems to the research market. As a result, fourth quarter and full
year 2000 sales of sequencing systems were $0.6 million and $4.5 million,
respectively, compared to $2.8 million and $7.7 million for the comparable
periods of 1999. During 2000, we emphasized generating recurring revenue from
the sale of GeneKits and consumables in countries where regulatory guidelines
permitted. Sales of GeneKits and consumables increased to $2.4 million and $8.1
million for the fourth quarter and full year of 2000, respectively, up from $1.9
million and $4.7 million for the comparable periods of 1999. Gross margins for
the fourth quarter and full year of 2000 were negatively impacted by discarded
materials and other costs attributable to the manufacturing scale up associated
with the anticipated United States launch of the TRUGENE HIV-1 Genotyping Kit,
if FDA approval is received. Cash and short-term investments at December 31,
2000 amounted to $80.4 million, compared to $42.7 million at December 31, 1999.
This Form 6-K contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks, uncertainties and
other factors which may cause our results to differ materially from
expectations. These include risks relating to the ability to obtain regulatory
approval, market acceptance of genotyping and our products, and other risks
detailed from time to time in our SEC filings, including our most recent Annual
Report on Form 20-F. These forward-looking statements speak only as of the date
hereof. We disclaim any intent or obligation to update these forward-looking
statements.
We hereby incorporate by reference this Form 6-K into our Registration
Statements on Form F-3, and into the prospectuses contained therein, (File Nos.
333-67607, 333-68939, 333-91155, 333-94649 and 333-40616) and our outstanding
Registration Statements on Form S-8 and into the reoffer prospectuses contained
therein.
Exhibit 1. Fourth Quarter and 2000 Year End Financial Results
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
VISIBLE GENETICS INC.
Date: March 8, 2001 By: /s/ THOMAS CLARKE
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Name: Thomas Clarke
Title: Chief Financial Officer
VISIBLE GENETICS INC.
CONSOLIDATED BALANCE SHEETS
( UNITED STATES DOLLARS)
DECEMBER 31, DECEMBER 31,
2000 1999
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 18,476,303 $ 2,792,985
Short-term investments 61,922,687 39,894,978
Trade receivables, net of allowance for doubtful accounts 3,214,934 5,657,822
Other receivables 884,995 668,748
Prepaid and deposits 452,124 436,903
Inventory 2,268,877 2,600,007
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TOTAL CURRENT ASSETS 87,219,920 52,051,443
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FIXED ASSETS 10,292,282 4,173,335
PATENTS AND LICENSES 12,182,112 2,122,367
OTHER LONG TERM ASSETS 661,591 292,404
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$110,355,905 $58,639,549
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LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 3,847,364 $ 3,110,442
Accrued liabilities 5,265,864 3,622,110
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TOTAL CURRENT LIABILITIES 9,113,228 6,732,552
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MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED STOCK 24,397,398 27,555,652
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SHAREHOLDERS' EQUITY
Share capital 169,717,379 75,422,070
Other equity (646,363) 8,987,328
Cumulative translation adjustment (1,013,459) (619,911)
Deficit (91,212,278) (59,438,142)
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76,845,279 24,351,345
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$110,355,905 $58,639,549
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNITED STATES DOLLARS)
THREE MONTHS ENDED DECEMBER 31 TWELVE MONTHS ENDED DECEMBER 31
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(UNAUDITED)
2000 1999 2000 1999
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SALES
Products $ 2,984,628 $ 4,635,426 $ 12,659,783 $ 12,455,775
Services 27,926 319,031 412,780 1,171,145
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3,012,554 4,954,457 13,072,563 13,626,920
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COST OF SALES
Products 2,551,490 2,799,004 9,815,741 8,593,774
Services 18,042 155,230 317,748 679,112
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2,569,532 2,954,234 10,133,489 9,272,886
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GROSS MARGIN 443,022 2,000,223 2,939,074 4,354,034
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EXPENSES
Sales, general and administrative 8,429,225 6,204,167 28,570,747 19,073,546
Research and development 2,747,080 1,948,908 10,606,516 7,935,327
Exit and termination costs - 789,849 - 1,329,083
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11,176,305 8,942,924 39,177,263 28,337,956
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LOSS FROM OPERATIONS BEFORE INTEREST (10,733,283) (6,942,701) (36,238,189) (23,983,922)
Interest income 1,176,319 343,296 4,480,589 694,549
Interest and financing expense (7,412) (214,040) (16,536) (1,997,512)
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NET LOSS FOR THE PERIOD (9,564,376) (6,813,445) (31,774,136) (25,286,885)
Cumulative preferred dividends and accretion
of discount attributable to preferred stock (850,221) (938,484) (3,656,355) (1,770,069)
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NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (10,414,597) $ (7,751,929) $ (35,430,491) $ (27,056,954)
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Weighted average number of common
shares outstanding 16,229,554 10,144,712 14,612,172 9,916,954
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BASIC AND FULLY DILUTED LOSS PER SHARE $ (0.65) $ (0.76) $ (2.42) $ (2.73)
=============== =============== =============== ===============
VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNITED STATES DOLLARS)
TWELVE MONTHS ENDED DECEMBER 31
2000 1999
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CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net loss for the period $ (31,774,136) $ (25,286,885)
Add: Items not involving cash -
Depreciation 3,078,551 1,722,886
Amortization 2,211,253 393,979
Patents and licences written off 142,165 451,085
Non cash financing expense
related to warrants granted - 1,466,691
Amortization of discount on
accounts receivable - (48,158)
Foreign exchange (163,252) 26,789
Increase ( decrease ) from changes in -
Trade receivables 2,436,001 (1,804,006)
Other receivables (267,177) 719,519
Prepaid and deposits (19,863) (209,338)
Inventory 219,221 1,290,997
Other long term assets (369,187) (292,404)
Accounts payable 789,233 (734,230)
Accured liabilities 1,783,467 1,956,660
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(21,933,724) (20,346,415)
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Investing activities
Purchase of fixed assets (9,269,045) (1,919,092)
Licenses and patents acquired (12,413,163) (698,261)
Purchase of short-term investments (356,812,514) (50,503,643)
Redemption of short-term investments 334,784,805 15,716,919
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(43,709,917) (37,404,077)
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Financing activities
Common shares issued, net of expenses 81,109,816 29,009,385
Convertible preferred stock issued,
net of expenses 22,719,748
Warrants issued in connection with
preferred stock - 6,397,448
Repayment of notes payable (4,100,000)
Repayment of loan from an officer - 323,405
Other equity - 29,851
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81,109,816 54,379,837
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Effect of exchange rate fluctuations on
cash balances 217,143 (2,284)
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Increase (decrease) in cash during the year 15,683,318 (3,372,939)
Cash, Beginning of period 2,792,985 6,165,924
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CASH, END OF PERIOD $ 18,476,303 $ 2,792,985
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VISIBLE GENETICS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNITED STATES DOLLARS)
TWELVE MONTHS ENDED DECEMBER 31
2000 1999
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Net loss for the period $ (31,774,136) $ (25,286,885)
Other comprehensive income:
Foreign currency translation adjustments (393,548) (704,733)
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Comprehensive loss for the period $ (32,167,684) $ (25,991,618)
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VISIBLE GENETICS INC.
Consolidated Statements of Deficit
(UNITED STATES DOLLARS)
TWELVE MONTHS ENDED DECEMBER 31
2000 1999
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Deficit, beginning of year $ (59,438,142) $ (34,151,257)
Net loss for the period (31,774,136) (25,286,885)
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Deficit, end of the period $ (91,212,278) $ (59,438,142)
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