- Revenue in Line with Company Estimates Highlighted by 11% Discovery
Products and Services Growth -
HOPKINTON, Mass., Aug. 6 /PRNewswire-FirstCall/ -- Caliper Life Sciences, Inc. (Nasdaq: CALP) today reported second quarter financial results for 2008. Revenues were $34.0 million for the quarter, a decrease of 4% from the prior year quarter of $35.3 million. Revenues were impacted by a $3.5 million decline from 2007 in collaboration-related licensing and contract revenue, and contract delays in Caliper's Discovery Alliances and Services (CDAS) business which were partially offset by growth in discovery (automation and microfluidics) products and services, and overall imaging product line growth. Net loss for the quarter was $6.7 million ($0.14 per share), compared to a net loss of $6.3 million ($0.13 per share) in the same quarter of 2007.
-- Discovery products and services grew 11%, and low double-digit growth for these products and services is expected in the second half of the year.
-- Imaging product line revenue grew 5%, slowed in the quarter by a product mix shift resulting in a lower average selling price of IVIS instruments sold. Caliper anticipates particularly strong double-digit growth in this product line during the third quarter.
-- CDAS revenues declined 2% due to contract delays, however as project efforts accelerate beginning in the third quarter, results are expected to be strong for the second half of the year.
-- Cost reduction actions reduced operating expenses (R&D and SG&A) by $2.2 million, or 11%, from the prior year quarter, and by $1.7 million, or 9%, on a sequential quarter basis.
-- The new LabChip GX instrument series, the next generation of Caliper's widely-adopted LabChip 90, was launched after quarter end. The LabChip GX instruments are targeted at the expanding genomic and proteomic research applications market.
"Overall, we met our revenue expectations for the quarter and remain confident in the second half growth drivers. We believe our discovery product lines will continue their strong performance, and with a healthy pipeline in imaging, expect to see full year growth in our imaging business of over 15%. In addition, CDAS revenues should strengthen considerably in the second half as we are optimistic regarding the next phase of the EPA ToxCast project," said Kevin Hrusovsky, president and CEO of Caliper. "Our strategic transformation toward higher-growth, higher-profit product lines is progressing and should enable sustained top-line performance. Additionally, we plan to further focus our resources in the second half to improve gross margins and operating efficiencies."
Adjusted net loss per share on a non-GAAP basis, as explained below under the heading "Use of Non-GAAP Financial Measures," was ($0.07) compared to ($0.03) for second quarter of 2007.
2008 GAAP Guidance
Caliper reported that its revenue outlook for the third quarter of 2008 is $33 to $36 million, and its revenue outlook for the full year remains $142 to $148 million.
Use of Non-GAAP Financial Measures
Caliper supplements its GAAP financial reporting with certain non-GAAP financial measures. We use certain non-GAAP financial measures, including adjusted EPS, which exclude restructuring charges, including severance charges; amortization of acquired intangibles; asset impairment charges; and amortization of stock compensation. We believe the presentation of non-GAAP financial measures provides useful information to management and investors regarding various financial and business trends relating to our financial position and results of operations, and that when these non-GAAP measures are viewed in conjunction with GAAP financial measures, investors are provided with a more meaningful understanding of our ongoing operating performance. In addition, we use these non-GAAP measures to evaluate our performance, allocate resources, set incentive compensation targets, and for planning and forecasting future periods. Non-GAAP measures are not intended to substitute for GAAP financial measures. To the extent that this release contains non- GAAP financial measures, we have provided a reconciliation of such measure to the corresponding GAAP financial measure, and we have provided the corresponding GAAP financial measures for comparative purposes.
Caliper will discuss its second quarter results in a conference call to be held today, August 6 at 9:00 a.m. EDT. To participate in the call, please dial 888.713.4215 five to ten minutes prior to the call and use the participant passcode 30981927. International callers can access the call by dialing 617.213.4867 and entering the same passcode. You may also pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PALUYGE6Q.
A live webcast of the call can be accessed at http://www.fulldisclosure.com or on the Caliper website at http://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 third quarter of 2008.
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 August 6 through August 13, dial 888-286-8010 and use the participant passcode of 48521551. 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 & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions. For more information please visit http://www.caliperLS.com.
The statements in this press release regarding future events, including
statements regarding Caliper's expected revenue outlook for the third
quarter ending September 30, 2008 and for fiscal year 2008, Caliper's
expectations regarding the future growth rate performance of its discovery
(automation and microfluidic) and IVIS imaging product lines, Caliper's
belief that our CDAS business should strengthen in the second half of 2008,
Caliper's belief we will be able to make up for certain contract delays
over the remainder of 2008, and Caliper's plan to focus resources during
the second half of 2008 to improve gross margins and operating
efficiencies., 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 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
NOTE: LabChip, IVIS and Caliper are registered trademarks of Caliper Life Sciences, Inc.
CALIPER LIFE SCIENCES, INC.
SELECTED FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Product revenue $22,024 $21,022 $39,689 $36,283
Service revenue 9,289 8,942 18,298 17,872
License fees and
contract revenue 2,717 5,326 5,331 9,575
Total revenue 34,031 35,290 63,318 63,730
Costs and expenses:
Cost of product
revenue 13,232 12,555 24,337 22,522
Cost of service
revenue 6,447 5,437 12,544 11,089
Cost of license
revenue 282 825 566 1,268
development 5,041 6,648 10,573 13,422
and administrative 12,757 13,306 26,690 25,913
intangible assets 2,490 2,533 4,979 5,070
net (27) (18) (20) 7
Total costs and
expenses 40,222 41,286 79,669 79,291
Operating loss (6,191) (5,996) (16,351) (15,561)
income, net (203) (123) (358) (116)
Other income (expense),
net (87) (93) 319 (81)
Provision for income
taxes (201) (108) (228) (159)
Net loss $(6,682) $(6,320) $(16,618) $(15,917)
Net loss per share,
basic and diluted $(0.14) $(0.13) $(0.35) $(0.34)
Shares used in
computing net loss
per common share,
basic and diluted 47,897 47,228 47,790 47,104
Reconciliation of GAAP to Non-GAAP Financial Measure
Adjusted Earnings per Share (see explanation of adjustments below)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
GAAP EPS $(0.14) $(0.13) $(0.35) $(0.34)
expense (1) 987 1,381 1,997 2,734
adjustments to revenue,
net of costs (2) - 281 - 852
amortization (3) 2,490 2,533 4,979 5,070
severance costs (4) 95 664 705 679
Total Adjustments $3,572 $4,859 $7,681 $9,335
Per share effect of
adjustments 0.07 0.10 0.16 0.20
Adjusted earnings per share $(0.07) $(0.03) $(0.19) $(0.14)
We use the term "adjusted earnings per share" or "adjusted EPS" to refer to GAAP earnings per share excluding share-based compensation, purchase accounting revenue and cost of sales fair value adjustments due to business combination accounting rules, amortization of intangible assets, 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 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.
CALIPER LIFE SCIENCES, INC.
SELECTED FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
Cash, cash equivalents and
marketable securities $10,600 $18,955
Accounts receivable, net 26,865 30,248
Inventories 21,660 19,572
Other current assets 2,733 2,353
Total current assets 61,858 71,128
Property and equipment, net 11,042 11,477
Intangible assets, net 37,808 42,862
Goodwill 80,590 80,836
Other assets 1,054 1,626
Total assets $192,352 $207,929
Liabilities and stockholders' equity
Current liabilities $56,026 $45,391
Loans payable and other long-term obligations 8,782 21,352
Stockholders' equity 127,544 141,186
Total liabilities and stockholders' equity $192,352 $207,929
*Note: Derived from audited financial statements for the year ended December 31, 2007.
|SOURCE Caliper Life Sciences, Inc.|
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