Contacts:
Thomas V. Geimer, Chairman and CEO Philip Bourdillon / Gene Heller
Accelr8 Technology Corporation Silverman Heller Associates
303-863-1218 310-208-2550
ACCELR8 TECHNOLOGY CORPORATION
REPORTS THIRD-QUARTER 2004 RESULTS
DENVER - June 14, 2004 - Accelr8 Technology Corporation (Amex: AXK) today
reported a loss of $335,000, or $0.03 per share, on net revenues of $132,000 for
the quarter ended April 30, 2004. In the comparable quarter of fiscal 2003,
Accelr8, whose fiscal year ends July 31, reported a net loss of $214,000, or
$0.02 per share, on net revenues of $276,000.
Thomas Geimer, Accelr8's chairman and chief executive officer, noted that
third-quarter results do not include $60,000 in deferred revenue for work
delivered in April, but not reimbursed until May, pursuant to a
proof-of-principle testing agreement regarding a customized surface coating for
a major life sciences company. Included in third-quarter net revenues were
$106,000 from the Company's software business, consisting of tools for
legacy-code modernization and the resale of third-party software. "As announced
last month, we have signed a letter of intent to sell the software business in a
transaction valued at approximately $700,000, including approximately $200,000
in deferred maintenance revenues which the Company will recognize as current
revenue at the time of closing," said Geimer. The consummation of the sale of
the software business is contingent upon the execution of a definitive asset
sale agreement upon conclusion of the buyer's due diligence.
According to David Howson, Accelr8's president, the anticipated sale will allow
the Company to devote its full attention to advancing the biosciences side of
Accelr8's business. In particular, the company is now focusing development
efforts on the BACcelr8r(TM), a rapid-response microbial diagnostic platform
intended initially for use in the identification of bacterial infections in
critically ill patients. It is anticipated that the BACcelr8r will provide
within eight hours or less data that with conventional bacterial analyses is
typically delayed for 48-72 hours.
"In many situations -- ventilator-associated pneumonia, for example -- the
quality of the patient's outcome depends on a timely, specific diagnosis and
quick initiation of an appropriate antibiotic," said Howson. "We believe that
the BACcelr8r will rapidly identify infectious organisms and test them for
antibiotic resistance. Therefore, the BACcelr8r has the potential, we believe,
to significantly improve medical outcomes, reducing both mortality and the
expenses associated with an extended stay in the intensive care unit."
As announced on May 20, 2004, the Company has filed a provisional patent
application for the technology that supports the BACcelr8r platform, including
disposable analytical chips coated with OptiChem(TM) surface chemistry and an
automated instrument that will incorporate Accelr8's high-sensitivity detection
and high-speed processing technology.
About Accelr8 Technology:
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Accelr8 Technology Corporation (WWW.ACCELR8.COM) is a developer of innovative
materials and instrumentation for advanced bio-analytical applications in basic
research, drug discovery, molecular diagnostics, and pathogen detection for
bio-defense and food safety. The company sells OptArray(TM) microarraying slides
and OptiPlate(TM) multiplexed arrayable microtiter plates. It is also developing
advanced detection instrumentation based on its QuanDx(TM) and YoDx(TM) array
processing and detection technologies.
Safe-harbor Statement:
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Certain statements in this news release, including but not limited to statements
regarding the anticipated sale of the Company's software business, may be
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Statements regarding future prospects and developments are based
upon current expectations and involve certain risks and uncertainties that could
cause actual results and developments to differ materially from the
forward-looking statement, including those detailed in the company's filings
with the Securities and Exchange Commission. Accelr8 Technology Corporation
disclaims any intent or obligation to update these forward-looking statements.
(financial tables follow)
Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
-------------------------- --------------------------
April 30, April 30, April 30, April 30,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Revenues:
Consulting fees $ -- $ 5,000 $ -- $ 25,000
Product license and customer support fees 23,062 3,536 67,039 137,870
Resale of software and support purchased 85,354 252,417 263,724 475,940
OptiChem(TM)revenue 26,262 17,945 85,514 36,547
Provision for sales returns and allowances (2,375) (2,450) (5,265) (6,405)
----------- ----------- ----------- -----------
Net revenues 132,303 276,448 411,012 668,952
----------- ----------- ----------- -----------
Costs & expenses:
Cost of services 7,443 13,169 21,407 34,840
Cost of purchased software and
customer support for resale 14,724 44,137 50,535 82,901
Cost of sales-OptiChem 14,520 6,242 38,777 12,878
General and administrative 198,276 225,515 728,193 607,440
Marketing and sales 24,570 79,939 149,628 223,907
Research and development 127,829 121,941 408,194 344,225
Amortization 58,128 60,075 174,384 179,955
Depreciation 14,886 7,695 34,968 19,995
----------- ----------- ----------- -----------
Total Costs and Expenses 460,376 558,713 1,606,086 1,506,141
----------- ----------- ----------- -----------
Loss from operations (328,073) (282,265) (1,195,074) (837,189)
----------- ----------- ----------- -----------
Other income (expense):
Interest income 15,808 22,070 48,084 83,537
Realized gain (loss) on investment -- -- 1,975 (2,593)
Unrealized gain (loss) on investment (22,270) 45,997 15,359 18,457
----------- ----------- ----------- -----------
Total other income (expense) (6,462) 68,067 65,418 99,401
----------- ----------- ----------- -----------
Loss before income taxes (334,535) (214,198) (1,129,656) (737,788)
Income tax benefit -- -- -- 19,431
----------- ----------- ----------- -----------
Net Loss $ (334,535) $ (214,198) $(1,129,656) $ (718,357)
=========== =========== =========== ===========
Net loss per share - basic and diluted $ (0.03) $ (0.02) $ (0.11) $ (0.08)
=========== =========== =========== ===========
Weighted average shares outstanding -
basic and diluted 9,961,210 9,421,322 9,961,210 9,414,507
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