TO BUSINESS AND MEDICAL EDITORS:
Transgenomic, Inc. Reports Fourth Quarter and Fiscal Year 2007 Results
OMAHA, Neb., Feb. 28 /PRNewswire-FirstCall/ -- Transgenomic, Inc. (OTC
Bulletin Board: TBIO) today announced financial results for the fourth quarter
and year ended December 31, 2007. The Company's financial results are presented
in the tables that follow.
Fourth Quarter 2007
The Company reported a net income of $212,000 or $0.00 per share for the
fourth quarter of 2007 as compared to a net loss of $1.0 million or $0.02 per
share for the fourth quarter of 2006. The 2007 net income was comprised of
income from continuing operations of $212,000 or $0.00 per share. The 2006 net
loss was comprised of a loss from continuing operations of $876,000 or $0.02 per
share and a loss from discontinued operations of $165,000 or $0.00 per share.
Net sales from continuing operations were $6.5 million during the fourth
quarter 2007, compared to $5.8 million during the comparable period of 2006.
Gross profit from continuing operations was $3.9 million or 60 percent during
the fourth quarter of 2007 compared to $3.0 million or 52 percent during the
comparable period of 2006. Operating expenses from continuing operations were
$3.7 million during the fourth quarter of 2007 compared to $3.9 million during
the same period of 2006. Cash and cash equivalents totaled $5.7 million at
December 31, 2007 compared to $5.9 million at December 31, 2006.
Year Ended December 31, 2007
The Company reported a net loss of $2.1 million or $0.04 per share for the
year ended December 31, 2007, compared to a net loss of $3.4 million or $0.07
per share for the year ended December 31, 2006. The 2007 net loss was comprised
of a loss from continuing operations of $2.2 million or $0.04 per share and
income from discontinued operations of $67,000 or $0.00 per share. The 2006 net
loss was comprised of a loss from continuing operations of $3.0 million or $0.06
per share and a loss from discontinued operations of $468,000 or $0.01 per
share.
Net sales from continuing operations were $23.2 million for the year ended
December 31, 2007, compared to $23.4 million for the year ended December 31,
2006. Gross profit from continuing operations was $12.7 million or 55 percent
for the year ended December 31, 2007 compared to $11.4 million or 49 percent for
the year ended December 31, 2006. Operating expenses from continuing operations
were $16.0 million for the year ended December 31, 2007 compared to $14.5
million for the year ended December 31, 2006. The Company used cash flows in
operations of $2.9 million for the year ended December 31, 2007 compared to cash
flows used in operations of $1.2 million for the year ended December 31, 2006.
Comment and Outlook
Craig Tuttle, the Company's President and Chief Executive Officer, noted,
"We are very pleased to achieve solid revenue and profitability in the fourth
quarter. These results reflect strong core business sales in our instrument
product line, and significant growth in our Pharmacogenomics Research Services
revenue, while maintaining our Molecular Clinical Reference Laboratory revenue
level during a seasonably slow quarter. Our ability to achieve profitable
performance at this revenue level reflects the significant cost improvements we
made during the year and improving margins based on product mix. In the fourth
quarter, we completed Pharmacogenomics projects for a number of significant
pharmaceutical companies that resulted in increased sales of $364,000 for our
Pharmacogenomics Research Services over the third quarter. We also completed
hiring of several key senior employees that significantly strengthen our
organization and our ability to generate continued growth in 2008.
"During the fiscal year, the Company made tremendous progress on numerous
fronts. We significantly strengthened our Board of Directors, assembled a
world-class Scientific Advisory Board, hired very strong senior team members and
eliminated $1.7 million of annual operating costs through the closure of two
international facilities and reductions in domestic staff as we have discussed
previously in our restructure plan. We are in the process of developing several
key collaborations in the areas of mitochondrial diseases, mitochondrial
assessment and cancer and we will soon be initiating some pivotal studies with
key academic institutions that should contribute strong long-term potential to
our mutation detection and discovery businesses. We are excited with how the
Company is well positioned for future growth in our instrument product line,
particularly our Cytogenetic product line, and in both our Molecular Clinical
Reference Laboratory and Pharmacogenomics Research Service businesses."
Earnings Call
Company management will discuss fourth quarter and full year 2007
financial results via teleconference on Thursday, February 28, at 5:00 p.m.
Eastern Time. To access the call via telephone, dial 800-896-8445 or
785-830-1916. The Company will also host a live broadcast of the call over the
Internet. To listen to the webcast, investors should log on to the Company's
Investor Relations web page at http://www.transgenomic.com/events.asp?id=6 and
follow the instructions provided. An archived recording of the conference call
will be available and can be accessed via the web using the same link listed
above for 14 days after the call. Investors can also listen to a replay via
telephone until 11:59 p.m. Eastern Time on Thursday, March 13, 2008. Simply dial
800-839-1229 or 402-220-0459 from any telephone.
About Transgenomic:
Transgenomic is a global biotechnology company that provides unique
products and services for automated high sensitivity genetic variation and
mutation analysis. Their offerings include systems, products, discovery and
laboratory testing services to the academic and medical research, clinical
laboratory and pharmaceutical markets in the fields of pharmacogenomics and
personalized medicine. Specific offerings include WAVE(R) DHPLC Systems, related
consumables and assay kits, cytogenetics automated systems, Transgenomic
Molecular Clinical Reference Laboratory and Pharmacogenomics Research Services.
Transgenomic's two laboratory services divisions utilize these technologies and
expertise to provide a menu of mutation scanning tests for over 700
cancer-associated genes and more than 60 validated diagnostic tests to meet the
needs of pharmaceutical and biotech companies, research and clinical
laboratories, physicians and patients. For more information about the innovative
systems, products and services offered by Transgenomic, please visit:
http://www.transgenomic.com.
Transgenomic Cautionary Statements
Certain statements in this press release constitute "forward-looking
statements" of Transgenomic within the meaning of the Private Securities
Litigation Reform Act of 1995, which involve known and unknown risks,
uncertainties and other factors that may cause our actual results to be
materially different from any future results, performance or achievements
expressed or implied by such statements. Forward-looking statements include, but
are not limited to, those with respect to management's current views and
estimates of future economic circumstances, industry conditions, company
performance and financial results, including the ability of the Company to grow
its involvement in the diagnostic products and services markets. The known
risks, uncertainties and other factors affecting these forward-looking
statements are described from time to time in Transgenomic's reports to the
Securities and Exchange Commission. Any change in such factors, risks and
uncertainties may cause the actual results, events and performance to differ
materially from those referred to in such statements. Accordingly, the company
claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995 with respect
to all statements contained in this press release. All information in this press
release is as of the date of the release and Transgenomic does not undertake any
duty to update this information, including any forward-looking statements,
unless required by law.
Transgenomic, Inc.
Summary Financial Results
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
---------------------------- ----------------------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
NET SALES $ 6,531 $ 5,810 $ 23,176 $ 23,415
COST OF GOODS SOLD 2,610 2,784 10,483 12,046
------------ ------------ ------------ ------------
Gross profit 3,921 3,026 12,693 11,369
OPERATING EXPENSES:
Selling, general and
administrative 2,748 3,304 11,466 12,138
Research and development 763 641 3,033 2,362
Restructuring charges 211 -- 1,516 --
------------ ------------ ------------ ------------
3,722 3,945 16,015 14,500
------------ ------------ ------------ ------------
INCOME (LOSS) FROM OPERATIONS 199 (919) (3,322) (3,131)
OTHER INCOME (EXPENSE):
Interest income (expense) 54 (4) 270 205
Other, net 177 53 1,121 (7)
------------ ------------ ------------ ------------
231 49 1,391 198
INCOME (LOSS) BEFORE
INCOME TAXES 430 (870) (1,931) (2,933)
INCOME TAX EXPENSE 218 6 243 30
------------ ------------ ------------ ------------
INCOME (LOSS) FROM
CONTINUING OPERATIONS 212 (876) (2,174) (2,963)
INCOME (LOSS) FROM
DISCONTINUED OPERATIONS,
NET OF TAX -- (165) 67 (468)
------------ ------------ ------------ ------------
NET INCOME (LOSS) $ 212 $ (1,041) $ (2,107) $ (3,431)
============ ============ ============ ============
BASIC AND DILUTED LOSS
PER SHARE:
From continuing
operations $ 0.00 $ (0.02) $ (0.04) $ (0.06)
From discontinued
operations -- -- -- (0.01)
------------ ------------ ------------ ------------
$ 0.00 $ (0.02) $ (0.04) $ (0.07)
============ ============ ============ ============
BASIC AND DILUTED
WEIGHTED AVERAGE
SHARES OUTSTANDING 49,189,672 49,189,672 49,189,672 49,188,451
Transgenomic, Inc.
Summary Financial Results
Unaudited Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
Year Ended
December 31,
------------------
2007 2006
------- -------
NET CASH FLOWS USED IN OPERATING ACTIVITIES (2,939) (1,212)
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES 3,083 (195)
NET CASH FLOWS FROM FINANCING ACTIVITIES -- 5
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES
ON CASH (289) 534
------- -------
NET CHANGE IN CASH AND CASH EQUIVALENTS (145) (868)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,868 6,736
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,723 $ 5,868
======= =======
Transgenomic, Inc.
Summary Financial Results
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands)
December 31, December 31,
2007 2006
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 5,723 $ 5,868
Accounts receivable (net of allowances
for bad debts of $703 and $444,
respectively) 5,095 6,525
Inventories 4,586 2,672
Prepaid expenses and other current assets 759 540
Current assets of discontinued operations -- --
------------- ------------
Total current assets 16,163 15,605
PROPERTY AND EQUIPMENT, NET 1,579 1,498
OTHER ASSETS:
Goodwill 638 638
Other assets 710 853
Non-current assets of discontinued operations -- 2,773
------------- ------------
$ 19,090 $ 21,367
============= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,245 $ 1,558
Other accrued expenses 3,026 2,898
Accrued compensation 576 689
Current liabilities of discontinued operations -- 184
------------- ------------
Total current liabilities 4,847 5,329
Other long term liabilities 141 --
Total liabilities 4,988 5,329
STOCKHOLDERS' EQUITY 14,102 16,038
------------- ------------
$ 19,090 $ 21,367
============= ===========
SOURCE Transgenomic, Inc.
-0- 02/28/2008
/CONTACT: Debra Schneider,
Chief Financial Officer of Transgenomic, Inc.,
+1-402-452-5400, or fax, +1-402-452-5461,
investorrelations@transgenomic.com/
/First Call Analyst: /
/FCMN Contact: mmurphy@transgenomic.com /
/Web site: http://www.transgenomic.com /
(TBIO TBIO.OB)