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EXHIBIT 99.1
[GENOMIC SOLUTIONS LETTERHEAD]
GENOMIC SOLUTIONS REPORTS INCREASED REVENUE
--STRENGTHENS DISTRIBUTION RELATIONSHIP WITH PERKINELMER--
ANN ARBOR, MICH. (APRIL 19, 2001) - GENOMIC SOLUTIONS INC. (NASDAQ NM: GNSL), a
leading global supplier of automated solutions for genomic and proteomic
research, today announced financial results for the three months ended March 31,
2001 and a strengthened distribution agreement with its marketing partner,
PerkinElmer, Inc. (NYSE: PKI).
Revenue for the first quarter of 2001 reached $4.4 million, up 10% over $4.0
million in the first quarter of 2000. Net loss for the three months ended March
31, 2001, was $3.0 million, or $0.12 per share, compared with a net loss of $3.9
million, or $1.14 per share, for the quarter ended March 31, 2000. Loss per
share for fiscal 2000 excludes a non-cash common stock warrant charge of $2.3
million, and a non-cash deemed dividend on issuance of preferred stock of $8
million. Including such charges, the net loss attributable to common
stockholders for the first quarter of 2000 was $4.14 per share.
"While our financial results for the quarter were below our expectations, we
remain confident about our growth prospects and the value we are creating
through successful implementation of our business plan," stated Jeffrey S.
Williams, President and CEO of Genomic Solutions. "We were pleased with the
revenue generated by our direct sales efforts in the United States and Japan,
but we were disappointed with sales in Europe and the rest of Asia, which caused
us to miss expectations for the quarter. Revenues generated by Genomic Solutions
direct sales force in the United States remained strong with an increase of 55%
in the first quarter of 2001 as compared to the first quarter of 2000," Mr.
Williams continued.
PerkinElmer has been the exclusive distributor of Genomic Solutions products
outside the United States, Japan and the United Kingdom since December 1999. Mr.
Williams continued, "Although we were disappointed with first quarter sales, we
believe PerkinElmer will be able to build significant sales and support
capability for our products for the long term. We remain convinced that
PerkinElmer is the best distribution partner in these markets and we are
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committed to working with them to maximize the sales potential for our products
outside of the United States and Japan. Therefore, we are pleased that we have
modified our current distribution agreement with PerkinElmer to enhance and
expand the distribution of our products. We believe this enhanced agreement will
enable PerkinElmer to more effectively sell and support Genomic Solutions
products following a relatively short transition period."
As part of the expanded agreement, PerkinElmer will assume sales, marketing and
support responsibility for the United Kingdom, while Genomic Solutions will
maintain its direct distribution, sales and support activities in the United
States and Japan. In addition, PerkinElmer has agreed to stricter minimum sales
requirements as part of the amended distribution agreement, which has now been
extended through December 31, 2002.
In addition, PerkinElmer will sell Genomic Solutions' GeneMAP(TM) preprinted
microarrays worldwide. Shannon Richey, Genomic Solutions' Vice President,
Genomic Business Unit commented, "We are pleased PerkinElmer Life Science will
sell GeneMAP arrays in cooperation with our direct sales representatives in the
United States and Japan. PerkinElmer has a large, global sales force in these
markets dedicated to selling microarrays and associated consumables that we
believe will lead to incremental GeneMAP sales."
According to Patrik O. Dahlen, President of PerkinElmer Life Sciences, "We
believe Genomic Solutions has developed a very broad and competitive range of
DNA microarray and proteomic systems and products. I am pleased with the
enhanced distribution relationship."
As a result of these recent developments, Genomic Solutions expects revenues for
the second quarter of 2001 to grow approximately 20% as compared to the second
quarter of 2000, and revenues for the third and fourth quarter of 2001 to grow
between 40% and 50% as compared to 2000. In addition, the Company projects a net
loss per share for the remainder of the fiscal year as follows; for the second
quarter between $0.10 and $0.12 net loss per share, excluding the accounting
effect of the repurchase of approximately 69% of the total shares of Genomic
Solutions common stock held by PerkinElmer; for the third quarter between $.06
and $.08 net loss per share; and for the fourth quarter 2001 between $.04 and
$.07 net loss per share.
Genomic Solutions Inc. designs, develops, manufactures, markets and sells
instruments, software, consumables and services used to determine the activity
level of genes and to isolate, identify and characterize proteins.
The Company will hold a conference call to discuss these results beginning at
12:00 noon Eastern Time Tuesday, April 24, 2001. Individual investors are
invited to listen to the conference call over the Internet at
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www.genomicsolutions.com. In addition, a replay will be available at the
company's website beginning shortly after the call has ended.
Statements in this press release that are not strictly historical are
"forward-looking" statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
statements involve a high degree of risk and uncertainty that exist in the
Company's operations and business environment. Such statements are predictions
only and actual events or results may differ materially from those projected in
such forward-looking statements. Factors that could affect actual events or
results include risks associated with performance under the Company's agreements
with third parties, research and development progress, competitive products and
the strength of the Company's patent portfolio. These factors and others are
more fully described under "Risk Factors" in Genomic Solutions' Form 10-K for
the year ended December 31, 2000 and in Genomic Solutions other filings with the
Securities and Exchange Commission. The Company expressly disclaims any
obligation or undertaking to release publicly any updates for revisions to any
forward looking statements contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events, conditions,
or circumstances on which any such statements are based.
(tables to follow)
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GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
MARCH 31, DECEMBER 31,
2001 2000
(UNAUDITED) (AUDITED)
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $33,841 $40,159
Accounts receivable, net 6,049 7,788
Inventories 6,707 5,734
Prepaid expenses and other 866 1,114
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Total current assets 47,463 54,795
Property and equipment, net 4,698 4,735
Other long-term assets 5,495 5,694
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Total assets $57,656 $65,224
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 744 $ 754
Accounts payable and accrued liabilities 7,032 9,778
Deferred revenue 256 293
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Total current liabilities 8,032 10,825
LONG-TERM LIABILITIES:
Long-term debt, less current portion 1,020 1,202
Other long-term liabilities 70 1,208
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Total long-term liabilities 1,090 2,410
STOCKHOLDERS' EQUITY:
Total stockholders' equity 48,534 51,989
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Total liabilities and stockholders' equity $57,656 $65,224
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GENOMIC SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
THREE MONTHS ENDED
MARCH 31,
2001 2000
(UNAUDITED) (UNAUDITED)
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Revenue $ 4 ,379 $ 3,995
Costs and expenses:
Cost of revenue 2,425 2,004
Selling, general and administrative 3,361 2,620
Research and development 1,981 1,125
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Total costs and expenses 7,767 5,749
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Loss from operations (3,388) (1,754)
Other income (expense), net 480 (1,090)
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Loss before taxes and extraordinary loss (2,908) (2,844)
Income taxes 79
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Loss before extraordinary loss (2,987) (2,844)
Extraordinary loss on extinguishment of subordinated debt 1,050
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Net loss (2,987) (3,894)
Non-cash common stock warrant charge 2,297
Deemed dividend upon issuance of series P preferred stock 8,000
Net loss attributable to common stockholders $ (2,987) $(14,191)
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Net loss per share:
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Net loss per share $ (0.12) $ (1.14)
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Net loss per share attributable to common stockholders $ (0.12) $ (4.14)
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Weighted average shares outstanding 25,032 3,429
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