Exhibit 99.1
MOLECULAR DEVICES REPORTS RECORD REVENUES AND EARNINGS FOR THIRD QUARTER OF
2005
SUNNYVALE, Calif., Oct. 27 /PRNewswire-FirstCall/ -- Molecular Devices
Corporation (Nasdaq: MDCC) today announced record revenues and earnings for
the quarter ended September 30, 2005.
Revenues for the quarter were a record $45.2 million, or an increase of 9%
compared to the same period last year.
On a GAAP basis, operating income for the third quarter of 2005 was $6.4
million, or an increase of $6.0 million compared to the same period last year.
On a non-GAAP basis, excluding the one-time charge of $5.0 million for acquired
in-process research and development related to the Axon acquisition in the third
quarter of 2004, operating income increased 18% to $6.4 million in the third
quarter of 2005 from $5.4 million in the third quarter of 2004.
On a GAAP basis, fully diluted earnings per share for the third quarter of
2005 were $0.28, an increase of $0.35 per share compared with the same period
last year. On a non-GAAP basis, excluding the fully diluted per share impact of
the one-time charge in the third quarter of 2004, fully diluted earnings per
share increased 40% to $0.28 in the third quarter of 2005 from $0.20 per share
in the same period last year. 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 encouraged by our third quarter results, as we saw good growth in
both our life sciences and drug discovery product families," stated Joseph D.
Keegan, Ph.D., Molecular Devices' President and Chief Executive Officer. "In
life sciences, we continued to see strong demand for our SpectraMax(R) M5
bench-top reader. In drug discovery, we saw excellent growth in both our
high-throughput electrophysiology and FLIPR(R) product lines. Finally, we
continue to feel confident that our life sciences and drug discovery markets
will remain stable in the near-term."
The Company also established guidance for the fourth quarter of 2005,
updated guidance for the full year 2005 and provided initial guidance for the
full year 2006. For the fourth quarter of 2005, the Company anticipates revenues
of $52 to $54 million and fully diluted earnings per share of $0.34 to $0.36.
For the full year 2005, the Company anticipates revenues of $181 to $183 million
and fully diluted earnings per share of $0.96 to $0.99. For the full year 2006,
the Company anticipates revenues of $192 to $202 million and non-GAAP fully
diluted earnings per share of $1.10 to $1.20. The 2006 guidance does not include
the impact of expensing stock options under FAS 123R, "Share-Based Payment."
Information with respect to the exclusion of the impact of FAS 123R is provided
immediately following the Condensed Consolidated Balance Sheets.
Conference Call Information
An earnings announcement conference call is scheduled for Friday, October
28, 2005 at 8:00 a.m. PDT (11:00 a.m. EDT). Interested parties can participate
in the call by dialing 800-811-8830 (domestic) or 913-981-4904 (international).
Replay dial-in numbers are 888-203-1112 (domestic) and 719-457-0820
(international), and the access code for the replay is 2041565.
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 from October 28, 2005
to such time as the company reports its financial results for the fourth 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 accounts receivable, the timing of customer
orders and the Company's 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 June 30, 2005. Molecular Devices Corporation does not
undertake any obligation to update forward-looking statements.
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
(unaudited) (unaudited)
REVENUES $ 45,156 $ 41,502 $ 128,758 $ 101,044
COST OF REVENUES 17,393 15,802 50,040 38,120
GROSS PROFIT 27,763 25,700 78,718 62,924
OPERATING EXPENSES:
Research and development 6,421 6,432 18,956 15,158
Selling, general and
administrative 14,947 13,828 43,854 36,364
Acquired in-process research and
development -- 5,000 -- 5,000
Total operating expenses 21,368 25,260 62,810 56,522
INCOME FROM OPERATIONS 6,395 440 15,908 6,402
Interest and other income, net 46 41 19 126
INCOME BEFORE TAXES 6,441 481 15,927 6,528
Income tax provision (1,793) (1,749) (5,398) (3,862)
NET INCOME (LOSS) $ 4,648 $ (1,268) $ 10,529 $ 2,666
BASIC NET INCOME (LOSS) PER SHARE $ 0.28 $ (0.07) $ 0.63 $ 0.17
DILUTED NET INCOME (LOSS) PER SHARE $ 0.28 $ (0.07) $ 0.61 $ 0.17
SHARES USED IN COMPUTING BASIC NET
INCOME (LOSS) PER SHARE 16,567 17,751 16,841 15,557
SHARES USED IN COMPUTING DILUTED NET
INCOME (LOSS) PER SHARE 16,890 17,751 17,158 16,055
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2005 2004
------------- -------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 12,191 $ 30,175
Accounts receivable, net 37,336 36,995
Inventories, net 24,021 25,785
Deferred tax assets 8,239 9,654
Prepaids and other current assets 2,562 2,780
Total current assets 84,349 105,389
Equipment and leasehold improvements, net 10,149 11,762
Other assets 147,037 138,078
$ 241,535 $ 255,229
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,866 $ 7,085
Accrued liabilities 23,738 30,748
Total current liabilities 31,604 37,833
Long-term liabilities:
Other long-term liabilities 1,060 1,452
Deferred tax liabilities 5,296 5,324
Total long-term liabilities 6,356 6,776
Stockholders' equity 203,575 210,620
$ 241,535 $ 255,229
HISTORICAL NON-GAAP RECONCILIATION (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
OPERATING INCOME - GAAP BASIS $ 6,395 $ 440 $ 15,908 $ 6,402
Acquired in-process research and
development -- 5,000 -- 5,000
NON-GAAP OPERATING INCOME $ 6,395 $ 5,440 $ 15,908 $ 11,402
GAAP FULLY DILUTED EARNINGS (LOSS)
PER SHARE $ 0.28 $ (0.07) $ 0.61 $ 0.17
Acquired in-process research and
development -- 0.27 -- 0.31
NON-GAAP FULLY DILUTED EARNINGS PER
SHARE $ 0.28 $ 0.20 $ 0.61 $ 0.48
FULLY DILUTED SHARES 16,890 18,327 17,158 16,055
NON-GAAP FINANCIAL GUIDANCE
Molecular Devices Corporation's guidance for the full year 2006 with respect
to fully diluted earnings per share excludes the impact of the adoption of FAS
123R, "Share-Based Payment." Molecular Devices will adopt FAS 123R in the first
quarter of 2006 and although expected to be material, Molecular Devices cannot
predict the impact of the adoption of FAS 123R at this time because it will
depend on the valuation methodology adopted, assumptions used and the levels of
share-based payments granted in the future. Accordingly, Molecular Devices
cannot estimate GAAP fully diluted earnings per share for the full year 2006 at
this time with any degree of certainty.
NON-GAAP MEASURES
Each non-GAAP financial measure presented in this press release is included
because Molecular Devices Corporation's management uses this information for
internal planning and forecasting purposes as well as to monitor and evaluate
on-going operating results and trends excluding the impact of the adoption of
FAS 123R and the unusual item related to the acquisition of Axon Instruments in
July 2004. Molecular Devices' management believes that with respect to such
historical non-GAAP financial measures, such measures are also useful for
investors because the charge for acquired in-process research and development
related to the Axon acquisition is the result of a transaction that is unusual
due to its nature, size and frequency. Consequently, excluding this charge from
Molecular Devices' operating results provides investors an important insight
into Molecular Devices' operating results and related trends of its core
business. In addition, excluding the impact of FAS 123R from Molecular Devices'
financial guidance provides meaningful supplementary information to both
management and investors that is indicative of Molecular Devices' core
anticipated operating results and enhances an overall understanding of Molecular
Devices' prospects for the future.