Apr 27 2006, 7:00 AM EST
News source: Business Wire
Celera Genomics Group (NYSE:CRA), an Applera Corporation business, today reported a net loss of $23.3 million, or $0.31 per share, for the third quarter of fiscal 2006 ended March 31, 2006, compared to a net loss of $21.0 million, or $0.29 per share, for the third quarter of fiscal 2005. The third quarter fiscal 2006 results included a $20.9 million pre-tax charge for restructuring costs associated with the previously announced decision to partner or sell the small molecule drug discovery and development programs and the integration of Celera Diagnostics into Celera Genomics. The third quarter fiscal 2006 results also included a $3.1 million pre-tax gain from the sale of an investment. All per share amounts refer to Applera Corporation-Celera Genomics Group Common Stock."With the structural changes we made this quarter, Celera is now focused on its molecular diagnostics and proteomics endeavors," said Tony L. White, Chairman, President and Chief Executive Officer of Applera Corporation. "These efforts provide opportunities for both near- and longer-term value with a lower risk profile to shareholders."
"This was a strong quarter for us in terms of end-user sales growth and progress in new product introductions," said Kathy Ordonez, President of Celera Genomics. "End-user sales of products in our alliance with Abbott increased 27 percent from the prior-year quarter and 31 percent year-to-date. Losses from the alliance were down considerably both for the quarter and so far for the fiscal year. We were pleased with adoption in Europe of the HIV, HCV, and recently-launched Chlamydia and Gonorrhea tests that run on the m2000(R). We're also happy to have launched analyte specific reagents (ASRs) for thrombosis risk and fragile X.
"Outside our alliance with Abbott, we also made substantial progress toward demonstrating the medical utility of a Cirrhosis Risk Score(TM) for patients with chronic hepatitis C," added Ms. Ordonez. "These findings support the value of our genetic discoveries and their utility in the practice of Targeted Medicine."
Financial Highlights
Effective January 1, 2006, Celera Genomics acquired the 50 percent interest in the Celera Diagnostics joint venture previously owned by the Applied Biosystems group of Applera such that it now owns 100 percent of Celera Diagnostics. Prior to that date, Celera Genomics accounted for its interest in the Celera Diagnostics joint venture under the equity method of accounting and included 100 percent of the losses of Celera Diagnostics in its statement of operations as 'Loss from joint venture'. Additionally, Celera Genomics recorded 100 percent of net losses at Celera Diagnostics. Celera Genomics' historical results have been restated for comparative purposes to reflect the transaction. However, the acquisition did not affect Celera Genomics' net loss for the periods presented.
-- Reported revenues for the third quarter of fiscal 2006 were $8.9 million, compared to $17.2 million for the third quarter of fiscal 2005. Third quarter fiscal 2006 reported revenues of $8.9 million are comprised of diagnostic-related revenues and are essentially consistent with Celera Diagnostics' revenues in the prior year period. The third quarter fiscal 2005 reported revenues also included revenues from the discontinued Online/Information business and Paracel.
Reported revenues for the Group are comprised of product sales, equalization payments, and license and collaborative revenue. Product sales currently consist primarily of shipments to our partner, Abbott, at a cost recovery price. In the future, product sales that are outside the alliance with Abbott also will be reported in this category. Equalization payments result from an equal sharing of alliance profits and losses between the alliance partners and vary each period depending on the relative income and e
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