Exhibit 99.1
MOLECULAR DEVICES REPORTS RECORD REVENUES AND EARNINGS FOR
FOURTH QUARTER OF 2004
SUNNYVALE, Calif., Feb. 10 /PRNewswire-FirstCall/ -- Molecular Devices
Corporation (Nasdaq: MDCC) today announced record revenues and earnings for
the quarter ended December 31, 2004.
Revenues for the quarter were a record $47.5 million, or an increase of 43%
compared to the same period last year. Revenues for the full year 2004 were a
record $148.5 million, or an increase of 29% compared to 2003.
On a GAAP basis, which includes a one-time restructuring charge of $1.2
million related to the acquisition of Axon Instruments, Inc., operating income
for the fourth quarter of 2004 was $5.2 million. On a non-GAAP basis, excluding
the restructuring charge, operating income was $6.3 million for the quarter, or
an increase of 59% compared to the same period last year. On a non-GAAP basis,
excluding the restructuring charge in the fourth quarter and the $5.0 million
acquired in-process research and development charge taken in the third quarter,
operating income for 2004 was $17.7 million, or an increase of 74% compared to
2003. During the fourth quarter, the Company also recorded a non-operating
pre-tax gain of $18.3 million arising out of the sale of a company in which
Molecular Devices had an equity investment.
On a GAAP basis, fully diluted earnings per share for the fourth quarter of
2004 were $0.81, or an increase of 305% compared to the same period last year.
Excluding the restructuring charge and the gain on the sale of the equity
investment, non-GAAP fully diluted earnings per share for the fourth quarter
were $0.24, or an increase of 20% compared with the same period last year. On a
non-GAAP basis, fully diluted earnings per share for 2004 were $0.73, or an
increase of 43% compared to 2003. A table reconciling operating income and fully
diluted earnings per share on a GAAP and non-GAAP basis is provided immediately
following the Condensed Consolidated Balance Sheets.
"We are pleased with the fourth quarter results of both our life sciences
and drug discovery product families," stated Joseph D. Keegan, Ph.D., Molecular
Devices' President and Chief Executive Officer. "The successful launch of our
SpectraMax M5 reader, as well as the continued success of the SpectraMax M2,
helped drive our best life sciences quarter ever. In drug discovery, we saw
excellent growth in both high-content cellular imaging and high-throughput
electrophysiology and we expect both of these areas to continue to be our most
important growth drivers in drug discovery in the future. Finally, we have
become more optimistic about our markets, and we believe that both our life
sciences and drug discovery markets will remain stable in the near-term."
The Company also established guidance for the first quarter and updated its
guidance for the full year 2005. For the first quarter of 2005, the Company
anticipates revenues of $38 to $40 million and fully diluted GAAP earnings per
share of $0.12 to $0.14. For the full year 2005, the Company anticipates
revenues of $180 to $190 million, and fully diluted earnings per share of $0.85
to $0.95.
Conference Call Information
An earnings announcement conference call is scheduled for Friday, February
11, 2005 at 8:00 a.m. PST (11:00 a.m. EST). Interested parties can participate
in the call by dialing 800-289-0572 (domestic) or 913-981-5543 (international).
Replay dial-in numbers are 888-203-1112 (domestic) and 719-457-0820
(international), and the access code for the replay is 1470068.
Investors can also access a live web-cast of the call through a link posted
on the investor page on Molecular Devices' website (www.moleculardevices.com). A
replay of the web-cast will be available at this location after the conclusion
of the conference call from February 11, 2005 to such time as the company
reports its financial results for the first quarter of 2005.
About Molecular Devices Corporation
Molecular Devices Corporation is a leading supplier of high-performance
bioanalytical measurement systems that accelerate and improve drug discovery and
other life sciences research. The Company's systems and consumables enable
pharmaceutical and biotechnology companies to leverage advances in genomics,
proteomics and parallel chemistry to facilitate the high-throughput and
cost-effective identification and evaluation of drug candidates. The Company's
solutions are based on its advanced core technologies that integrate its
expertise in engineering, molecular and cell biology and chemistry. Molecular
Devices enables its customers to improve research productivity and
effectiveness, which ultimately accelerates the complex process of discovering
and developing new drugs.
This press release contains "forward-looking" statements, including
statements related to future revenues and earnings. Any statements contained in
this press release that are not statements of historical fact may be deemed to
be forward-looking statements. Words such as "believes," "anticipates," "plans,"
"expects," "will," and similar expressions are intended to identify
forward-looking statements. There are a number of important factors that could
cause the results of Molecular Devices Corporation to differ materially from
those indicated by these forward-looking statements, including, among others,
risks related to variations in the amount of time that it takes for the Company
to sell its products and collect amounts receivable, the timing of customer
orders and our dependence on orders that are shipped in the same quarter, which
gives the Company limited visibility of future product shipments, risks related
to increased competition, risks associated with the Company's need to develop
new and enhanced products and other risks detailed from time to time in the
Company's SEC reports, including its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2004. Molecular Devices Corporation does not
undertake any obligation to update forward-looking statements.
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
TOTAL REVENUES $ 47,485 $ 33,250 $ 148,529 $ 115,581
TOTAL COST OF REVENUES 18,154 12,380 56,274 43,256
GROSS PROFIT 29,331 20,870 92,255 72,325
OPERATING EXPENSES:
Research and development 6,880 4,552 22,038 18,679
Selling, general and
administrative 16,105 12,321 52,469 43,457
Acquired in-process research and
development -- -- 5,000 --
Restructuring charge 1,157 -- 1,157 --
Total operating expenses 24,142 16,873 80,664 62,136
INCOME FROM OPERATIONS 5,189 3,997 11,591 10,189
Gain on sale of equity securities 18,288 -- 18,288 --
Other income, net 6 233 132 872
INCOME BEFORE TAXES 23,483 4,230 30,011 11,061
Income tax provision (8,916) (1,269) (12,778) (3,319)
NET INCOME $ 14,567 $ 2,961 $ 17,233 $ 7,742
BASIC NET INCOME PER SHARE $ 0.84 $ 0.20 $ 1.08 $ 0.51
DILUTED NET INCOME PER SHARE $ 0.81 $ 0.20 $ 1.04 $ 0.51
SHARES USED IN COMPUTING BASIC NET
INCOME PER SHARE 17,363 14,836 16,028 15,067
SHARES USED IN COMPUTING DILUTED NET
INCOME PER SHARE 17,889 15,035 16,532 15,179
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
December 31, December 31,
2004 2003
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 30,175 $ 50,260
Short-term investments -- 8,114
Accounts receivable, net 36,995 26,209
Inventories, net 25,785 17,025
Deferred tax assets 9,654 5,223
Other current assets 2,780 1,849
Total current assets 105,389 108,680
Long-term investments -- 1,736
Equipment and leasehold improvements, net 11,597 9,706
Other assets 137,969 46,791
$ 254,955 $ 166,913
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,085 $ 4,019
Accrued liabilities 30,583 17,356
Total current liabilities 37,668 21,375
Long-term liabilities:
Long-term lease obligations 1,452 --
Deferred tax liabilities 5,324 --
Total long-term liabilities 6,776 --
Stockholders' equity 210,511 145,538
$ 254,955 $ 166,913
HISTORICAL NON-GAAP RECONCILIATION
(unaudited, in thousands, except
per share amounts)
Three Months
Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
OPERATING INCOME - GAAP BASIS $ 5,189 $ 3,997 $ 11,591 $ 10,189
Acquired in-process research and
development -- -- 5,000 --
Restructuring charge 1,157 -- 1,157 --
NON-GAAP OPERATING INCOME $ 6,346 $ 3,997 $ 17,748 $ 10,189
GAAP FULLY DILUTED EARNINGS PER SHARE $ 0.81 $ 0.20 $ 1.04 $ 0.51
Acquired in-process research and
development -- -- 0.30 --
Restructuring charge 0.06 -- 0.07 --
Gain on sale of equity securities (1.02) -- (1.11) --
Income tax impact of non-recurring
items 0.39 -- 0.43 --
NON-GAAP FULLY DILUTED EARNINGS PER
SHARE $ 0.24 $ 0.20 $ 0.73 $ 0.51
FULLY DILUTED SHARES 17,889 15,035 16,532 15,179
Each non-GAAP financial measure presented in this press release is included
because Molecular Devices Corporation's management uses this information to
monitor and evaluate on-going operating results and trends excluding the
acquired in-process research and development and restructuring charge
related to the acquisition of Axon Instruments, Inc. in July 2004 and the
gain arising out of the sale of a company in which Molecular Devices had an
equity investment in the fourth quarter of 2004. Molecular Devices'
management believes such non-GAAP financial measures are also useful for
investors because the charges for acquired in-process research and
development and restructuring related to the Axon acquisition and the gain
on the sale of the equity investment are the result of transactions that
are unusual due to their nature, size and frequency. Consequently,
excluding these charges and the gain arising out of the sale of the equity
investment from Molecular Devices' operating results provides investors an
important insight into Molecular Devices' operating results and related
trends of its core business.
SOURCE Molecular Devices Corporation
-0- 02/10/2005
/CONTACT: Tim Harkness of Molecular Devices Corporation, +1-408-747-3533/
/Web site: http://www.moleculardevices.com /
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