Exhibit 99.1
Transgenomic Inc. Reports First Quarter 2004 Results
Sequential Revenue Growth Coupled with 35% Year-over-Year Increase in
Consumables Revenue
OMAHA, Neb., May 11 /PRNewswire-FirstCall/ -- Transgenomic Inc.
(Nasdaq: TBIO) today announced financial results for the quarter ended
March 31, 2004. The Company's financial results are presented in the tables
attached.
First Quarter 2004
First quarter revenues increased on a sequential basis to $8.6 million
from $8.3 million in the fourth quarter of 2003. The net loss for the quarter
was $3.9 million, or $0.13 per share, and included a noncash finance charge of
$503,000. This compares to a net loss of $8.5 million, or $0.32 per share, in
the fourth quarter of 2003, which included a goodwill impairment charge of
$4.8 million. Year over year, first quarter 2004 revenues of $8.6 million
decreased 9 percent from $9.5 million in the comparable quarter of 2003. The
$3.9 million, or $0.13 per share, net loss for the current quarter compares
with a loss of $3.6 million, or $0.15 per share, for the comparable quarter of
2003.
A gross profit margin of 33% in the first quarter of 2004 represented
improvement on a sequential basis, compared to 30% in the prior quarter, but
is not as favorable as the 39% in the first quarter of 2003. Gross margin
continues to be negatively impacted by manufacturing expenses at our Boulder,
Colo., facility. During the quarter this operation generated $679,000 in
revenues and incurred $1.5 million of manufacturing expenses.
Comment and Outlook
CEO Collin D'Silva commented, "Our BioSystems business segment continues
to demonstrate increasing strength due to continued growth in bioconsumables
sales. Going forward we expect our WAVE(R) Systems revenue to remain
consistent with current levels. We are expanding our installed base of WAVE
Systems and gaining improved visibility into our sales pipeline. In addition,
first quarter bioconsumables revenues increased 35 percent year over year.
This marks the eighth consecutive quarter of sequential growth. This growth
is driven by both new product additions, as well as the use of our products in
a broadening set of applications." D'Silva also stated, "We are gaining
greater near-term clarity regarding revenue expectations for our Glasgow,
Scotland, nucleic acid building block manufacturing facility, based on orders
already booked for the next two quarters. In addition, the sales pipeline for
our Boulder, Colo., specialty oligonucleotide manufacturing facility continues
to develop."
Mitch Murphy, Transgenomic's Interim CFO, commented on the Company's
revenue expectations for the second quarter of 2004, "Given our increasing
visibility into sales pipelines, coupled with various indicators of demand for
our products, we expect to begin to approach our historical revenue levels in
the second quarter of 2004, with revenues in the range of $9.0 to
$9.5 million." Murphy continued, "In addition, we continue to monitor our
expenses and will look for opportunities to continue to achieve incremental
reductions."
Earnings Call
The Company will host a live broadcast of its first quarter 2004 financial
results via conference call over the Internet today, Tuesday, May 11, at
5 p.m. Eastern time. To listen to the webcast, investors should log on to
http://www.firstcallevents.com/service/ajwz406558266gf12.html and follow the
instructions listed. A link to this site will also be located on the
Company's Investor Relations web page at
http://www.transgenomic.com/default.asp?pgid=31&cyid=1. To access the call
via telephone, call 800-362-0571. An archived recording of the conference
call will be available and can be accessed via the Web using the same links
listed above for 14 days after the call. Investors can also listen to a
replay via telephone from 8 p.m. ET on May 11 through Tuesday, May 25, 2004,
midnight ET. Simply dial 402-220-1117 or 800-388-9074 from any telephone.
About Transgenomic
Transgenomic's BioSystems segment offers its WAVE Systems and associated
consumables. These systems are specifically designed for use in genetic
variation detection and single- and double-strand DNA/RNA analysis and
purification. These systems have broad applicability to genetic research and
molecular diagnostics. To date there have been over one thousand systems
installed in over 30 countries around the world.
Through its Nucleic Acids business segment, Transgenomic provides
specialty chemicals, including advanced nucleic acid building blocks and
associated reagents, used in applications such as genetic diagnostics and
therapeutics. Manufacturing operations include a cGMP facility for the
synthesis of oligonucleotides.
For more information about the innovative genomics research tools
developed and marketed by Transgenomic, please visit the Company's Web site at
www.transgenomic.com.
Cautionary Statement
This press release may contain forward-looking statements that reflect
management's current views and estimates of future economic circumstances,
industry conditions, company performance and financial results, including
revenue and expense projections. Such statements are subject to certain
factors, risks and uncertainties described from time to time in Transgenomic,
Inc.'s reports to the Securities and Exchange Commission. Any change in such
factors, risks and uncertainties may cause the actual results, events and
performance to differ materially from those referred to in such statements.
Accordingly, the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995 with respect to all statements contained in this press
release.
TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands, except per share amounts)
STATEMENTS OF OPERATIONS
Three Months Ended March 31,
2004 2003
Net Sales $8,629 $9,505
Cost of Sales 5,768 5,814
Gross Margin 2,861 3,691
Operating Expenses:
Selling, General and Administrative 4,245 4,608
Research and Development 1,929 2,325
Restructuring Charge -- 264
Stock-based Compensation -- 35
Operating Loss (3,313) (3,541)
Other Income/(Expenses) (643) (41)
Loss Before Income Taxes (3,956) (3,582)
Income Tax Expense 97 14
Net Loss $(3,859) $(3,596)
Shares Used in Computing Net Loss Per Share
Basic and Diluted 28,728 23,519
Basic and Diluted Net Loss Per Share $(0.13) $(0.15)
TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands)
BALANCE SHEETS
March 31, December 31,
2004 2003
Cash, Cash Equivalents and Short-term
Investments $2,545 $1,241
Other Current Assets 23,817 23,137
Current Assets 26,362 24,378
Net Property and Equipment 18,383 18,704
Other Assets 14,108 14,224
Total Assets $58,853 $57,306
Current Liabilities 12,191 12,248
Long-term Debt 2,074 --
Stockholders Equity 44,588 45,058
Total Liabilities and Stockholders Equity $58,853 $57,306
SOURCE Transgenomic Inc.
-0- 05/11/2004
/CONTACT: Mitchell L. Murphy, +1-402-452-5418, mmurphy@transgenomic.com,
or Robert J. Pogulis, Ph.D., +1-845-782-9617, rpogulis@transgenomic.com, both
of Transgenomic Inc./
/Web site: http://www.transgenomic.com/
(TBIO)
CO: Transgenomic Inc.
ST: Nebraska
IN: HEA MTC BIO
SU: ERN CCA