FREMONT, Calif., Aug. 16 /PRNewswire-FirstCall/ -- WaferGen Biosystems, Inc. (OTC Bulletin Board: WGBS), a leading developer of state-of-the-art genomic analysis systems, today reported financial results for the three and six months ended June 30, 2010.
RevenueRevenue for the second quarter ended June 30, 2010 grew to $432,000 compared to $69,000 for the second quarter ended June 30, 2009. Revenue for the six months ended June 30, 2010 grew to $822,000 compared to $111,000 for the six months ended June 30, 2009. The majority of the revenue was from the SmartChip Early-Access Program under which WaferGen sold a combination of one or more of its SmartChip Systems, SmartChips, and/or SmartChip Gene Expression Profiling Services to certain early-access customers. The company's SmartChip revenue growth for the quarter increased approximately 70 percent over the prior quarter. The company aims to reach approximately $1.5 million to $2.0 million of total revenue by year end with respect to its SmartChip sales.
Net Income/LossWaferGen reported a net income of $646,000, or $0.02 per share (basic and diluted), for the second quarter of 2010 compared to a net loss of $2.9 million or $(0.11) per share (basic and diluted), for the same period in 2009. The company reported a net loss of $3.9 million, or $(0.12) per share (basic and diluted), for the first six months ended June 30, 2010 compared to a net loss of $4.7 million, or $(0.19) per share (basic and diluted), from the same period in 2009.
The net income for the three months ended June 30, 2010 and the net loss for the first six months of 2010 include operating losses of $2.8 million for the three months ended June 30, 2010 compared to the same amount of $2.8 million in the same period of 2009; and $5.4 million for the first six months of 2010 compared to $4.6 million for the first six months of 2009.
Net income/loss for the three and six months ended June 30, 2010, was significantly impacted by warrant derivative revaluations. Net gains from warrant derivative revaluations for the three months ended June 30, 2010 were $3.6 million, compared to $34 thousand for the three months ended June 30, 2009; and $1.7 million for the six months ended June 30, 2010 compared to $48 thousand for the six months ended June 30, 2009. These non-cash gains are attributed to revaluations of warrants and result primarily from a decrease in the company's stock price in the period.
Operating Expenses For the three months ended June 30, 2010, research and development expenses increased $282,000 as compared to the three months ended June 30, 2009. For the six months ended June 30, 2010, research and development expenses increased $864,000, as compared to the six months ended June 30, 2009. The increase resulted primarily from increases in salaries, wages and facilities costs, which arose due to an increase in the head count of employees and an expansion in space occupied in conjunction with the development of SmartChip products and services. The increase was partially offset by a reduction in depreciation expense.
For the three months ended June 30, 2010, sales and marketing expenses increased by $295,000, as compared to the three months ended June 30, 2009. For the six months ended June 30, 2010, sales and marketing expenses increased by $409,000, as compared to the six months ended June 30, 2009. The increase resulted primarily from increases in salaries and wages, including commissions, non-cash stock compensation expense, consulting fees, trade shows and travel, which arose due to an increase in the head count of sales and marketing employees and consultants, and increases in promotional activities in conjunction with the commercialization and early-access sales of SmartChip products and services.
For the three months ended June 30, 2010, general and administrative expenses decreased $214,000, as compared to the three months ended June 30, 2009. The decrease resulted primarily from the absence of certain severance costs incurred in 2009 related to the departure of two executive officers in 2009. For the six months ended June 30, 2010, general and administrative expenses increased $98,000 as compared to the six months ended June 30, 2009. The increase is primarily due to higher personnel costs, mainly for senior management and consultants.
AssetsThe company ended the second quarter with approximately $3.6 million in total assets, including $1.5 million in cash and cash equivalents. This does not include the funds that the company raised from the sale of common stock and warrants in July 2010 of $7.2 million ($6.8 million after closing costs). The company ended the first quarter 2010 with $4.9 million in total assets, including cash of $3.6 million, and working capital of $2.1 million.
About WaferGen and the SmartChip Real-Time PCR SystemWaferGen Biosystems, Inc. is a leader in the development, manufacture and sale of state-of-the-art systems for genomic analysis for the life science and pharmaceutical industries. The company currently offers the breakthrough SmartChip Real-Time PCR System, the next-generation Real-Time PCR system for discovery and validation of biomarkers, or gene expression patterns, on a single platform. The SmartChip System is designed to provide accurate, highly sensitive and high-throughput gene expression profiling capabilities to researchers, clinicians and pharmaceutical companies. In addition, the company offers an innovative fee-based service for gene-expression profiling using the SmartChip System. For additional information, please see http://www.wafergen.com.
Forward-Looking Statements This press release contains certain "forward-looking statements". Such statements include statements relating to the expected benefits and advantages of the SmartChip service for gene-expression research, the expected benefits and advantages of the SmartChip technology to other applications, the expected throughput levels of the SmartChip Real-Time PCR System, and other statements relating to future events or to the company's future financial performance and are not historical facts, including statements which may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words.
Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the control of the company. Actual results may differ materially from the expectations contained in the forward-looking statements. Factors that may cause such differences include the risks that: (i) the company may be unsuccessful in commercially developing its products or in achieving market acceptance of new and relatively unproven technologies; (ii) the company will need to raise additional capital to meet its business requirements in the future and the company may not be able to do so on reasonable terms or at all; (iii) the company's proprietary intellectual property rights may not adequately protect its products and technologies; and (iv) the company expects intense competition in its target markets, including from companies that have much greater resources than the company, and there can be no assurance that the company will be able to compete effectively. More detailed information about the company and the risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2009 and the most recent Form 10-Q. Investors and security holders are urged to read this document free of charge on the SEC's web site at www.sec.gov. The company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.Contact:Mona Chadhamona.email@example.comOrJoyce Strandjoyce.firstname.lastname@example.orgTables FollowFinancial Statements (Unaudited)WAFERGEN BIOSYSTEMS, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets (Unaudited)June 30, 2010December 31, 2009AssetsCurrent assets:Cash and cash equivalents$
5,953,639Accounts receivable475,038258,855Inventories, net457,70139,970Prepaid expenses and other current assets264,496138,712Total current assets2,713,7636,391,176Property and equipment, net795,807441,996Other assets47,62657,982Total assets$
6,891,154Liabilities and Stockholders' Equity (Deficit)Current liabilities:Accounts payable$
1,240,397Accrued rent31,16610,493Accrued payroll224,302241,586Accrued severance pay105,324371,596Accrued vacation149,853117,619Warranty reserve16,650--Accrued other expenses389,168157,699Current portion of capital lease obligations 13,96821,663Total current liabilities2,238,9252,161,053Capital lease obligations, net of current portion2,2578,852Warrant derivative liabilities1,115,6302,778,191Redeemable convertible preference shares in subsidiary4,171,3783,290,994Commitments and contingencies----Stockholders' equity (deficit):Preferred Stock, $0.001 par value, 10,000,000 shares authorized,no shares issued and outstanding----Common Stock, $0.001 par value, 300,000,000 shares authorized, 33,968,846and 33,387,857 shares issued and outstanding at June 30, 2010,and December 31, 2009, respectively33,96933,388Additional paid-in capital30,241,28229,017,578Accumulated deficit(34,411,365)(30,462,283)Accumulated other comprehensive income165,12063,381Total stockholders' equity (deficit)(3,970,994)(1,347,936)Total liabilities and stockholders' equity (deficit)$
6,891,154Condensed Consolidated Statements of Operations (Unaudited) Period FromOctober 22, 2002Three Months Ended June 30,Six Months Ended June 30,(Inception) to2010200920102009June 30, 2010(Restated) (Restated)Revenue$
2,117,186Cost of Revenue135,894123,932271,749139,764876,689Gross margin296,000(55,014)549,930(29,008)1,240,497Operating expenses:Sales and marketing475,143180,338724,949316,1863,507,208Research and development1,496,4431,214,7013,038,7112,174,58918,877,184General and administrative1,160,0491,374,2162,203,9542,106,38213,977,190Total operating expenses3,131,6352,769,2555,967,6144,597,15736,361,582Operating loss(2,835,635)(2,824,269)(5,417,684)(4,626,165)(35,121,085)Other income and (expenses):Interest income1,9491,3847,1074,456266,965Interest expense(1,067)(1,928)(1,674)(4,760)(323,128)Unrealized gain on fair value of warrants, net3,567,16834,3251,680,47648,0681,116,354Miscellaneous income (expense)(7,919)(46,171)(72,994)(22,315)(202,709)Total other income and (expenses)3,560,131(12,390)1,612,91525,449857,482Net income (loss) before provision for income taxes724,496(2,836,659)(3,804,769)(4,600,716)(34,263,603)Provision for income taxes----------Net income (loss)724,496(2,836,659)(3,804,769)(4,600,716)(34,263,603)Cumulative effect of reclassification of warrants--------368,627Accretion on Redeemable Convertible Preference Shares in Subsidiary(78,790)(36,416)(144,313)(71,416)(360,391)Accretion on Series B Preferred Stock--------(155,998)Net income (loss) attributable to common stockholders$
(34,411,365)Net income (loss) per share - basic$
(0.19)Net income (loss) per share - diluted$
(0.19)Shares used to compute net income (loss) per share - basic 33,846,30925,396,75233,675,76025,115,405Shares used to compute net income (loss) per share - diluted35,045,01625,396,75233,675,76025,115,405
|SOURCE WaferGen Biosystems, Inc.|
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