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GenVec Reports Fourth Quarter and 2011 Year-End Financial Results
Date:3/15/2012

with our hearing loss and balance disorders and foot and mouth disease programs is decreased revenue of $2.2 million associated with our HIV program as compared to the prior year periods due to reduced work scope.

Operating expenses for 2011 decreased 13% to $25.2 million from $29.1 million in 2010.  Research and development expenses decreased 17% to $17.4 million in 2011 from $20.9 million in 2010. In 2011 we experienced lower research and development costs than in the comparable prior year period due primarily to closure of the PACT trial. Decreased manufacturing costs in the hearing program and reduced license costs also contributed to reduced expenses.  These decreases were partially offset by increased manufacturing costs for our FMD program and supply costs for our hearing, government funded, and research programs as compared to the comparable period in 2010.

General and administrative expenses decreased 4% to $7.8 million in 2011 from $8.2 million in 2010. General and administrative expenses were lower in 2011 primarily due to lower professional service, license, and personnel costs.

Fourth Quarter 2011 ResultsFor the fourth quarter ended December 31, 2011, GenVec reported a net loss of $2.5 million, or $0.19 per share, compared with a net loss of $1.0 million, or $0.08 per share, for the comparable prior year period.  The Company reported revenues of $3.4 million in the fourth quarter of 2011 compared to $5.2 million for the same period in 2010.  This decrease was primarily due to reduced revenue related to both our hearing loss and balance disorders program, $1.2 million, and HIV program, $0.8 million. Reduced revenue in each case is due to a reduced work scope in the 2011 period as compared to the same period in 2010. Research and development expenses decreased 21% in 2011 from $4.9 million in the fourth quarter of 2010 to $3.9 million in the fourth quarter of 2011 due mainly to reduced material and supply cos
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