- Year end cash position improved through non core divestitures -
- Caliper signs extension of $25 million credit facility through November 2010 -
- Non-cash restructuring and goodwill impairment charge of $45.3 million recognized -
HOPKINTON, Mass., March 12 /PRNewswire-FirstCall/ -- Caliper Life Sciences, Inc. (Nasdaq: CALP), today reported its fourth quarter and full year financial results for 2008. Fourth quarter revenues were $36.7 million, a decline of 8.8%, from $40.3 million in the same period in 2007. This represents an organic decline of 2.0% after excluding the effects of product line divestitures (4.4%) and unfavorable effects of foreign currency translation (2.4%) within the fourth quarter. Caliper's GAAP net loss for the fourth quarter was $46.3 million ($0.95 per share), which includes $45.3 million ($0.93 per share) of non-cash goodwill impairment and other restructuring charges. This compares to a net loss of $5.7 million ($0.12 per share) in the same quarter of 2007. On a non-GAAP basis, which includes the adjustments noted in the attached reconciliation, net loss per share in the fourth quarter of 2008 was $0.02 compared to a net loss per share of $0.05 in the fourth quarter of 2007.
On March 6, 2009, Caliper entered into a $25 million amended credit facility agreement with Silicon Valley Bank, which is effective through November 30, 2010. As of December 31, 2008, Caliper reported cash and investments of $26.7 million and outstanding borrowings under this credit facility of $14.9 million.
"We were pleased to achieve the high end of our revenue guidance for the quarter and establish positive momentum in cash-based earnings. We achieved these results in spite of severe market conditions and earnings loss from the divested businesses," said Kevin Hrusovskyshare excluding share-based compensation, purchase accounting revenue and cost of sales fair value adjustments due to business combination accounting rules, amortization of intangible assets, impairment charges and restructuring and severance costs. Adjusted earnings per share is calculated by subtracting the total per share effect of these adjustments from GAAP EPS.
The adjustments are as follows: 1) We exclude share-based compensation from this measure because share- based compensation plans involve sensitive measures and assumptions in calculating the expense that could vary dramatically between us and our peers, which we believe makes comparisons of long-range trends difficult for management or investors, and could result in overstating or understating the costs of developing, producing, supporting and selling our products and the costs to support our internal operating structure. 2) We exclude purchase accounting revenue fair value adjustments (net of associated costs) from this measure due to business combination accounting rules that would otherwise result in such revenues (and associated costs) to be recognized on a continuing GAAP basis because management expects that the contractual arrangements underlying these revenues will be renewed and that our investors will use this adjustment as a basis for measuring our ongoing performance, although there can be no assurance that such contractual arrangements will be renewed. 3) We exclude amortization of intangible assets from this measure because we believe intangible asset amortization charges do not represent what our management and our investors believe are the costs of developing, producing, supporting and selling our products and the costs to support our internal operating structure. 4) We exclude restructuring and severance costs from this measure because they tend to occur as a result of specific events such as acquisitions, divestitures, repositioning our business or other unusual events that could make comparisons of long-range trends difficult for management or investors and could distort performance measures involving our internal investments and the costs to support our operating structure. 5) We exclude the impairment of goodwill and the gain on divestiture of product lines from this measure because they tend to occur as a result of specific events and also do not represent what our management and our investors believe are the costs of developing, producing, supporting and selling our products and the costs to support our internal operating structure.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued) Non-GAAP Revenues for the Quarter and Year Ended December 31, 2008 Fourth Quarter Ended December 31, GAAP Non-GAAP Adjustments (in thousands) 2008 2007 2008 2007 (1) $(179) (2) $(2,114) (2) (3,964) Research $17,630 $20,471 (2,114) (4,143) Imaging 14,383 14,715 (3) - (3) 20 Services (CDAS) 4,682 5,070 - - Total revenue $36,695 $40,256 $(2,114) $(4,123) Fourth Quarter Ended December 31, Non-GAAP GAAP Non-GAAP 2008 2007 % Chg % Chg Research $15,516 $16,328 (14%) (5%) Imaging 14,383 14,735 (2%) (2%) Services (CDAS) 4,682 5,070 (8%) (8%) Total revenue $34,581 $36,133 (9%) (4%)
Year Ended December 31, GAAP Non-GAAP Adjustments (in thousands) 2008 2007 2008 2007 (1) $(11,217) (2) $(11,308) (2) (15,492) Research $68,519 $80,673 (11,308) (26,709) Imaging 45,765 39,084 (3) 23 (3) 1,037 Services (CDAS) 19,770 20,950 - - Total Revenue $134,054 $140,707 $(11,285) $(25,672)
Year Ended December 31, GAAP Non-GAAP 2008 2007 % Chg % Chg Research $57,211 $53,964 (15%) 6% Imaging 45,788 40,121 17% 14% Services (CDAS) 19,770 20,950 (6%) (6%) Total Revenue $122,769 $115,035 (5%) 7%
For purposes of comparing growth rates for each of the three principal areas of our business, the above non-GAAP table reconciliations exclude the following: (1) Reflects elimination of certain collaboration-related microfluidic license and contract revenue recognized during the quarter and year ended 2007 which were concluded in 2007. (2) Reflects elimination of the revenues related to the PDQ and AutoTrace product lines divested in November 2008. (3) Reflects the add back of the deferred revenue adjustments recorded in purchase accounting that reduce revenues that would otherwise be recognized on a continuing GAAP basis.
CALIPER LIFE SCIENCES, INC. SELECTED FINANCIAL INFORMATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, 2008 2007 (unaudited) * Assets Current assets: Cash, cash equivalents and marketable securities $26,701 $18,955 Accounts receivable, net 27,396 30,248 Inventories 17,579 19,572 Other current assets 2,481 2,353 Total current assets 74,157 71,128 Property and equipment, net 10,735 11,477 Intangible assets, net 34,399 42,862 Goodwill 22,905 80,836 Other assets 882 1,626 Total assets $143,078 $207,929 Liabilities and stockholders' equity Current liabilities $39,367 $45,391 Credit facility 14,900 12,900 Other long-term obligations 12,073 8,452 Stockholders' equity 76,738 141,186 Total liabilities and stockholders' equity 143,078 $207,929
*Note: Derived from audited financial statements for the year ended December 31, 2007., president and CEO of Caliper. "Most importantly, excluding non-recurring license revenues, our continuing businesses grew 7% in full year 2008 on a pro forma basis. We have strong momentum to start 2009, with our new genomic products, LabChip GX and Zephyr Genomics Workstation, and the new IVIS Kinetic imaging system, all launched in the past two quarters. In addition, through streamlining and cost reductions, we reduced our annual ongoing spending needs by approximately $10 million. The impact of all of these actions strengthened our balance sheet, improved top and bottom line growth potential and sharpened focus on fast growing molecular applications with our proprietary microfluidics and imaging product lines," added Hrusovsky
On a full year basis, 2008 revenues were $134.1 million, a decline of 4.7%, compared to $140.7 million in 2007. The 2007 revenue included approximately $11.2 million of non-recurring microfluidics license and contract revenues, which were partially offset in 2008 by strong growth of Caliper's imaging and research products for genomics applications.
Net loss for the full year was $68.3 million ($1.42 per share), which includes $48.0 million ($1.00 per share) of non-cash goodwill impairment and other restructuring charges. This compares to a net loss of $24.1 million ($0.51 per share) in 2007. Non-GAAP net loss per share for 2008 was $0.27 compared to a net loss per share of $0.25 in 2007.
Fourth Quarter Highlights:
Caliper reported that its revenue outlook for the first quarter of 2009 is $25.0 to $28.0 million. The midpoint of this range represents organic growth of approximately 3% over first quarter 2008 pro forma revenue of $26.4 million, which is before anticipated unfavorable currency effects of 3% based on current rates. For the full year, Caliper is currently estimating organic revenue growth of between 4-7% over 2008 pro forma revenue of $122.8 million, which is before anticipated unfavorable currency effects of 2% based on current rates. As previously communicated, growth is expected to be greater in the second half of 2009 than in the first half, and is expected to result primarily from Caliper's proprietary imaging and microfluidic technologies for molecular applications.
Caliper supplements its GAAP financial reporting with certain non-GAAP financial measures. A reconciliation of Caliper's GAAP to non-GAAP Statements of Operations is provided at the end of this release under "Adjusted Consolidated Statements of Operations." Adjusted results of operations exclude stock-based compensation charges, acquisition-related revenue adjustments and non-cash expenses, such as amortization of intangibles and impairment and restructuring charges. Caliper believes that providing this additional information enhances investors' understanding of the financial performance of Caliper's operations and increases the comparability of its current financial statements to prior periods.
Caliper will discuss its fourth quarter and full year results in a conference call to be held today, March 12 at 9:00 a.m. EDT. To participate in the call, please dial 888.680.0865 five to ten minutes prior to the call and use the participant passcode of 91009165. International callers may access the call by dialing 617-213-4853 and entering the same passcode. You may also pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PYRGTJX9P.
A live webcast of the call can be accessed at www.fulldisclosure.com or on the Caliper website at www.caliperLS.com in the Events section of the Investor Relations page. A webcast replay of the call will remain available until Caliper's earnings call for the first quarter of 2009.
Telephone replays of the conference call will be available approximately two hours after the completion of the call. To access a telephone playback of the proceedings from March 12 through March 19, dial 888.286.8010 and use the participant passcode of 18657006. International callers can access the playback by dialing 617.801.6888 and using the same participant passcode.
About Caliper Life Sciences
Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results and then translating those results into cures for human disease. Caliper's portfolio of offerings includes state-of-the-art microfluidics, lab automation and liquid handling, optical imaging technologies, and discovery and development outsourcing solutions. For more information please visit www.caliperLS.com.
The statements in this press release regarding future events, including statements regarding Caliper's expected revenue outlook for the first quarter ending March 31, 2009 and the full year ending December 31, 2009, and Caliper's expectations regarding positive momentum in cash-based earnings in the future, strong (revenue) momentum from the LabChip GX, Zephyr Genomics Workstation and IVIS Kinetic imaging system, and the expectation that the value of task orders Caliper will receive under the EPA ToxCast project will be higher in 2009 are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements as a result of a number of factors, including that Caliper's expectations regarding demand for its products and services may not materialize if capital spending by Caliper's customers declines, if competitors introduce new competitive products, or if Caliper is unable to convince potential customers regarding the superior performance of its drug discovery and imaging systems and other products, and unanticipated difficulties may be encountered in Caliper's planned implementation of certain changes designed to reduce operating expenses, enhance gross margins and improve efficiencies within Caliper. Further information on risks faced by Caliper are detailed under the caption "Risks Related To Our Business" in Caliper's Annual Report on Form 10-K for the year ended December 31, 2007. Our filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Caliper does not undertake any obligation to update forward-looking or other statements in this release or the conference call.
NOTE: Caliper, IVIS, LabChip, and Zephyr are registered trademarks of Caliper Life Sciences, Inc.
CALIPER LIFE SCIENCES, INC. SELECTED FINANCIAL INFORMATION (unaudited) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2008 2007 2008 2007 Revenue: Product revenue $25,495 $28,175 $85,149 $82,961 Service revenue 8,873 9,513 37,734 37,557 License fees and contract revenue 2,327 2,568 11,171 20,189 Total revenue 36,695 40,256 134,054 140,707 Costs and expenses: Cost of product revenue 15,857 15,961 52,178 49,760 Cost of service revenue 5,604 5,756 24,739 22,357 Cost of license revenue 323 277 1,477 2,515 Research and Development 4,395 5,702 19,921 24,791 Selling, general and administrative 12,043 15,642 48,987 54,954 Impairment of goodwill 43,365 - 43,365 - Amortization of intangible assets 1,592 2,514 8,313 10,106 Restructuring charges, net 1,939 22 4,605 52 Total costs and Expenses 85,118 45,874 203,585 164,535 Operating loss (48,423) (5,618) (69,531) (23,828) Interest expense, net (210) (226) (794) (547) Gain on divestiture of product lines 2,119 - 2,119 - Other income, net 613 213 521 579 Provision for income taxes (378) (103) (607) (284) Net loss $(46,279) $(5,734) $(68,292) $(24,080) Net loss per share, basic and diluted $(0.95) $(0.12) $(1.42) $(0.51) Shares used in computing net loss per common share, basic and diluted 48,490 47,561 48,114 47,301
Reconciliation of GAAP to Non-GAAP Financial Measures Adjusted Basic Earnings per Share (see explanation of adjustments below) Three Months Ended Year Ended December 31, December 31, 2008 2007 2008 2007 GAAP EPS - Basic $(0.95) $(0.12) $(1.42) $(0.51) Adjustments: Share-based compensation expense (1) 592 1,191 3,580 5,161 Purchase accounting adjustments to revenue, net of costs (2) - 20 23 1,038 Acquisition related intangible amortization (3) 1,592 2,514 8,313 10,106 Restructuring and severance costs (4) 2,222 654 5,889 1,343 Impairment of goodwill (5) 43,365 - 43,365 - Gain on divestiture of product lines (5) (2,119) - (2,119) - Total Adjustments $45,652 $4,379 $59,051 $17,648 Per share effect of total adjustments 0.94 0.09 1.23 0.37 Adjusted earnings per share - Basic $(0.01) $(0.03) $(0.19) $(0.14) Per share effect of share-based compensation expense above $(0.01) $(0.02) $(0.08) $(0.11) Adjusted earnings per share - Basic (share-based compensation expense not excluded) $(0.02) $(0.05) $(0.27) $(0.25)
We use the term "adjusted earnings per share" or "adjusted EPS" to refer to GAAP earnings per
|SOURCE Caliper Life Sciences, Inc.|
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