Applied Biosystems Reports Fiscal 2005 Third Quarter Results FOSTER CITY, Calif.--(BUSINESS WIRE)--April 26, 2005--Applied
Biosystems Group (NYSE:ABI)
- Fully diluted EPS of $0.28 ($0.28 on a non-GAAP basis,
excluding specified items)
- Net revenues of $455 million
Applied Biosystems Group (NYSE:ABI), an Applera Corporation
business, today reported revenues of $455 million for the third
quarter of fiscal 2005, a 3% increase over the prior year quarter. Net
revenues include favorable foreign currency effects of approximately
2%, compared to the prior year quarter. Net income was $56 million,
compared to $46 million for the prior year quarter. Earnings per share
(EPS) for the quarter were $0.28, compared to $0.22 for the prior year
quarter. EPS for the quarter on a non-GAAP basis were $0.28, compared
to $0.21 for the prior year quarter, excluding the specified items
described below. The net effect of foreign currency on EPS was a
benefit of approximately $0.02, compared to the prior year quarter.
All per share amounts refer to Applera Corporation-Applied Biosystems
Group Common Stock.
"We were pleased with Applied Biosystems' significant third
quarter EPS growth. This growth primarily was driven by operating
improvements, a higher-than-trend increase in royalty and licensing
revenue, and foreign currency. However, due to the constrained funding
environment, we remain cautious," said Tony L. White, Chief Executive
Officer, Applera Corporation. "To position Applied Biosystems for
future success, Cathy Burzik and her team are focused on new
initiatives to drive long-term revenue growth."
Catherine M. Burzik, President, Applied Biosystems said, "Overall
revenue results for the third quarter were mixed. While we saw in
total only slight revenue growth from the prior year, we had
double-digit revenue growth in the Real-Time PCR/Applied Genomics
product category, driven by increased sales of our biosecurity, human
identification, and TaqMan(R) Gene Expression Assay and Low Density
Array products. We also saw a slight increase in DNA Sequencing
revenue as a result of increased sales of low- to medium-throughput
instruments. However, these results were largely offset by a decline
in Mass Spectrometry revenue driven by lower sales of the 4000 Q
TRAP(R) LC/MS/MS System. In the prior year quarter, we filled a
substantial backlog of orders for this system. Additionally, we remain
concerned about factors that may have a negative influence on future
sequencing revenue."
During the third quarters of both fiscal 2005 and 2004, the Group
recorded items that affected the comparability of results. For fiscal
2005, the total pre-tax amount of these items increased income by
approximately $1 million. These items included a reduction in
severance costs previously recorded and a reduction of a charge
recorded in the fourth quarter of fiscal 2004 related to the decision
to transfer a product line back to HTS Biosystems, Inc. During the
third quarter of fiscal 2004, the Group recorded pre-tax net gains of
$4 million. This net amount included pre-tax gains for a legal
settlement and the sales of investments, and charges for severance and
related costs. The following table summarizes the impact of these
items on EPS calculations:
Reconciliation of GAAP amounts to Adjusted amounts
(Dollar amounts in millions)
Three months ended Three months ended
March 31, 2005 March 31, 2004
GAAP Adjusted GAAP Adjusted
amounts Adj. amounts amounts Adj. amounts
------- ------- ------- ------- ------- -------
Operating income $ 73.7 $ 0.9 $ 72.8 $ 58.0 $ 0.4 $ 57.6
Income before income
taxes 77.9 0.9 77.0 64.4 4.0 60.4
Provision for income
taxes 22.4 0.8 21.6 18.4 1.3 17.1
Net income 55.5 0.1 55.4 46.0 2.7 43.3
Earnings per share
allocations(1) 0.1 0.1
Adjusted net income
for earnings per
share $ 55.6 $ 0.2 $ 55.4 $ 46.0 $ 2.7 $ 43.3
Total diluted earnings
per share $ 0.28 $ - $ 0.28 $ 0.22 $0.01 $ 0.21
(1) Represents allocation of interperiod taxes to adjust net income
for purposes of calculating earnings per share.
Additional Financial Highlights
-- Revenues for the five product categories and their change
relative to the prior year quarter were: $141 million for DNA
Sequencing, a 3% increase; $134 million for Real-Time
PCR/Applied Genomics, a 20% increase; $105 million for Mass
Spectrometry, a 4% decline; $50 million for Core PCR and DNA
Synthesis, a 1% decline; and $25 million for Other Product
Lines, a 17% decline.
-- Revenues by source and their change relative to the prior year
quarter were: $199 million for Instruments, a 2% decline; $176
million for Consumables, a 6% increase; and $80 million for
Other Sources, including service and support, royalties,
licenses, and consulting, a 14% increase.
-- Revenues for the major geographic regions and their change
relative to the prior year quarter were: $197 million in the
United States, a 3% increase; $147 million in Europe, a 1%
increase, including favorable foreign currency effects of
approximately 4%; and $91 million in Asia Pacific, a 7%
increase, including favorable foreign currency effects of
approximately 2%. Revenues in Japan, which are included in
total revenues for Asia Pacific, increased 3% from the prior
year quarter, including favorable foreign currency effects of
approximately 3%.
-- Gross Margin increased to 54.3% from 52.4% in the prior year
quarter, primarily reflecting an increase in royalty and
licensing revenue, which included a $2.5 million non-recurring
licensing fee for certain mass spectrometry technology, the
effects of foreign currency, and a decrease in both software
amortization and warranty costs.
-- Selling, general, and administrative (SG&A) expenditures were
$123 million for the quarter, an increase of $3 million, or
2%, over the prior year quarter. This increase included
increased personnel and outside consultant costs and
unfavorable foreign currency effects of approximately $2
million, partially offset by decreased litigation and pension
and insurance costs. These fiscal 2005 and 2004 results
reflect a reclassification of certain costs supporting the
Group's patent related activities from R&D to SG&A.
-- Research, development and engineering (R&D) expenses were $51
million for the quarter, a decrease of $1 million, or 2%,
below the prior year quarter. These fiscal 2005 and 2004
results reflect the reclassification referred to above.
-- Cash flow from operations was $87 million for the quarter and
capital expenditures were $49 million. During the quarter, the
Group spent $42 million to purchase several buildings at its
Foster City location. As of the end of the quarter, cash and
short-term investments were $676 million, up from $655 million
as of December 31, 2004, accounts receivable were $377
million, representing 63 days sales outstanding, and inventory
was $133 million, representing 3.1 months of inventory on
hand.
Business Highlights
-- During the third quarter, the Group began shipments of the API
5000(TM) LC/MS/MS system. In April, the Group announced two
additional new mass spectrometers, the 3200 Q TRAP(R) and the
API 3200(TM) LC/MS/MS Systems. The 3200 line of systems is
designed for food and beverage, environmental, forensic,
clinical research, and pharmaceutical analysis markets. Sales
of these systems are expected to begin in the current quarter.
-- In March, the U.S. District Court in New Haven, CT, based on a
jury's April 2004 finding that MJ Research, a division of
Bio-Rad Laboratories, Inc. (AMEX: BIO), had willfully
infringed patents relating to polymerase chain reaction (PCR)
owned by Applera and Roche Molecular Systems (Roche),
increased damages awarded to Applera and Roche to
approximately $35 million, in addition to awarding reasonable
attorneys' fees. The Court also dismissed all of MJ Research's
antitrust counterclaims against Applera and Roche. Applera
filed for an injunction against further infringement by MJ
Research.
-- In March, the Japanese Patent Office held invalid Applera's
Japanese Patent No. 3136129 covering real-time PCR thermal
cycler technology. Applera intends to appeal the decision.
-- In March, the Group began a collaborative research study with
the National Center for Toxicological Research of the U.S.
Food and Drug Administration (FDA/NCTR) whereby Applied
Biosystems will use its Expression Array System and Rat Genome
Survey Microarray to investigate the toxicity of a common
class of diabetes drugs using samples provided by the
FDA/NCTR.
Applied Biosystems Outlook
Applied Biosystems has the following expectations regarding its
financial performance for fiscal 2005:
-- The Group expects low-single-digit revenue growth compared to
fiscal 2004.
-- Product Category Revenue Growth: Real-Time PCR/Applied
Genomics and Mass Spectrometry revenues are expected to
increase compared to fiscal 2004. Revenues from DNA
Sequencing, Core PCR and DNA Synthesis, and Other Product
Lines are expected to decline.
-- Margins and Expenses: The gross margin is expected to equal or
exceed the fiscal 2004 gross margin. SG&A expense as a percent
of total revenues should exceed, and R&D expense as a percent
of total revenues should decline from, the fiscal 2004 levels.
The operating margin should increase from the fiscal 2004
level. These expectations exclude certain types of items which
are included in EPS under GAAP, as set forth below under "Use
of Non-GAAP Financial Information."
-- The effective tax rate is expected to be 28 percent.
-- The Group expects EPS growth for the fourth quarter of fiscal
2005 compared to the fourth quarter of fiscal 2004 at a rate
exceeding that of the annual revenue growth rate. For fiscal
2005, the Group expects double-digit EPS growth compared to
fiscal 2004. This expectation excludes certain types of items
which are included in EPS under GAAP, as set forth below under
"Use of Non-GAAP Financial Information."
-- Capital spending should be in the range of $80 to 85 million.
This amount includes the purchase of the buildings referred to
above.
The Company is currently in the process of evaluating the impact
of the repatriation provision of the American Jobs Creation Act of
2004. It is expected that a repatriation plan will be presented to the
Company's Board of Directors before the end of fiscal 2005. If
approved, the Company will record a one-time tax charge associated
with the repatriation. In addition, the Company anticipates that
various tax matters in multiple jurisdictions may be resolved in the
Company's favor before the end of fiscal 2005 or in fiscal 2006.
The Group believes this outlook and its fiscal year 2005 financial
performance will continue to be affected by, among other things, the
availability of funding in the U.S. for DNA sequencing, competitive
pricing pressure on certain PCR-related consumables products, and the
level of pharmaceutical company R&D spending. Other risks and
uncertainties that may affect Applied Biosystems' financial
performance are detailed in the "Forward-Looking Statements" section
of this release.
The comments in the Outlook sections of this press release,
including the Celera Diagnostics Joint Venture Outlook below, reflect
management's current outlook. Applera does not have any current
intention to update this outlook and plans to revisit the outlook for
its businesses only once each quarter when financial results are
announced.
Celera Diagnostics Joint Venture
Celera Diagnostics is a 50/50 joint venture between Applied
Biosystems and Celera Genomics. For the third quarter of fiscal 2005,
end-user sales for all products sold through its alliance with Abbott
Laboratories increased 24 percent to $15.7 million from $12.7 million
in the same quarter last year.
During the recently completed quarter, the pre-tax loss decreased
to $7.8 million, compared to $11.9 million in the same quarter last
year. The smaller pre-tax loss was due primarily to increased revenues
and lower R&D expenses. Reported revenues differ from end-user sales
and consist primarily of equalization payments from Abbott resulting
from the profit-sharing arrangement between Abbott and Celera
Diagnostics and technology-related revenues. Reported revenues
increased to $9.0 million, compared to $7.5 million in the same
quarter last year, primarily as a result of increased equalization
revenues and increased license and collaborative revenues. Fluctuation
in equalization payments can lead to variability in reported revenues,
gross margins, and cash use from period to period due to differences
in end-user sales of alliance products and operating expenses between
the alliance partners. Net cash used during the quarter was $3.0
million, compared to $9.2 million in the third quarter of fiscal 2004.
Cash use was approximately $5.0 million lower than it otherwise would
have been due to the timing of receipt of an equalization payment.
"Increased sales of our Hepatitis C Virus analyte specific
reagents sold through our alliance with Abbott were a major
contributor to the revenue growth we experienced during this last
quarter," said Kathy Ordonez, President, Celera Diagnostics. "We are
pleased with the progress we've made in our discovery programs
regarding Fragile X and the developments we've had around a prototype
assay for human papillomavirus (HPV). We are also working closely with
our collaborators and clinical partners toward the completion and
publication of our medical utility studies in breast cancer
metastasis, cardiovascular disease, rheumatoid arthritis, and liver
disease."
Celera Diagnostics Highlights
-- Celera Diagnostics recently presented the results of a study
of its prototype HPV assay for detection of high risk HPV
strains that are associated with cervical cancer. These
results were presented at the 15th European Congress of
Clinical Microbiology and Infectious Diseases in April. The
study demonstrated the potential of the Celera Diagnostics
prototype assay to detect high risk HPV in samples that were
inconclusive when typed by a commercially available HPV
diagnostic test.
-- Findings based on research conducted at Celera Diagnostics to
develop procedures for testing for Fragile X were presented at
the annual meeting of the American College of Medical Genetics
meeting in February. Celera Diagnostics is collaborating with
several major clinical reference laboratories to develop
procedures to test for this leading cause of inherited mental
retardation.
-- At the American College of Cardiology meeting in March, Celera
Diagnostics and its collaborators reported findings related to
studies of cardiovascular disease. In a discovery and
replicated study in functional SNPs that are associated with
myocardial infarction (MI), a variant in a gene that is a
member of a family of targets for drug therapies was
identified that conferred approximately twice the risk for MI.
These results broaden our understanding of the genetic risk
for MI, and may have implications for therapeutic development
around this family of targets.
-- At the European Association for the Study of the Liver in
April, Celera Diagnostics and its collaborators reported
findings related to genetic markers, which predict patients
predisposed to develop liver fibrosis. This study involved a
functional SNP genome scan in 1,625 patients, and found that
the variants in a key enzyme involved in fatty acid metabolism
were associated with advanced fibrosis in multiple sample
sets. These results may have implications for other liver
diseases and for using certain existing drugs for new disease
indications.
-- Celera Diagnostics has begun to transfer technology to
Laboratory Corporation of America, as part of an ongoing
collaboration between the two businesses to develop methods to
predict risk for breast cancer metastasis. Celera Diagnostics
believes that multiple test procedures could result from this
work.
Celera Diagnostics Joint Venture Outlook
Celera Diagnostics anticipates increased sales of existing and new
products sold through its alliance with Abbott, including a new in
vitro molecular diagnostic system now in evaluation in European
customer sites. Celera Diagnostics also intends to continue advancing
its disease association and medical utility studies through the
remainder of fiscal 2005. For fiscal 2005, Celera Diagnostics
anticipates pre-tax losses to be in a range of $30 to $33 million, and
fiscal 2005 net cash use to be in a range of $35 to $40 million. Total
end-user sales for the alliance between Celera Diagnostics and Abbott
are anticipated to be in range of $60 to $65 million for fiscal 2005.
Risks and uncertainties that may affect Celera Diagnostics'
financial performance are detailed in the Forward-Looking Statements
section of this release.
Use of Non-GAAP Financial Information
This press release contains non-GAAP information, including
earnings per share adjusted to exclude certain costs, expenses, gains
and losses and other specified items. These measures are not in
accordance with, or an alternative for, generally accepted accounting
principles and may be different from non-GAAP measures used by other
companies. Among the items included in GAAP earnings but excluded for
purposes of determining adjusted earnings are: gains or losses from
sales of operating assets and investments; restructuring charges,
including severance charges; charges and recoveries relating to
significant legal proceedings and asset impairment charges. In
addition, for non-GAAP EPS purposes, we have also excluded the
allocation of interperiod taxes and intercompany sales from our
calculation of non-GAAP EPS. We believe the presentation of non-GAAP
information provides useful information to management and investors
regarding various financial and business trends relating to our
financial condition and results of operations, and that when GAAP
information is viewed in conjunction with non-GAAP information,
investors are provided with a more meaningful understanding of our
ongoing operating performance. In addition, this information is among
the primary indicators we use as a basis for evaluating performance,
allocating resources, setting incentive compensation targets, and
planning and forecasting future periods. This information is not
intended to be considered in isolation or as a substitute for GAAP
financial information.
Conference Call & Webcast
A conference call to discuss financial results will be held today
at 11:00 a.m. (ET). During the call, management will focus on each of
the Applera businesses separately at the approximate times below:
-- Applied Biosystems Group 11:00 a.m. (ET)
-- Celera Diagnostics 11:45 a.m. (ET)
-- Celera Genomics Group 12:00 p.m. (ET)
The conference call number is 706.634.4992 (code "Applera"). The
conference call will also be webcast and can be accessed on the
"Investors & Media" section of either www.applera.com or
www.celera.com, or the "Investors" section of
www.appliedbiosystems.com. A recording of the conference call will be
available approximately two hours after the completion of the call on
April 26 until May 7, 2005. Interested parties should call
706.645.9291 and enter conference ID 5579986.
About Applera Corporation and Applied Biosystems
Applera Corporation consists of two operating groups. The Applied
Biosystems Group serves the life science industry and research
community by developing and marketing instrument-based systems,
consumables, software, and services. Customers use these tools to
analyze nucleic acids (DNA and RNA), small molecules, and proteins to
make scientific discoveries, develop new pharmaceuticals, and conduct
standardized testing. Applied Biosystems is headquartered in Foster
City, CA, and reported sales of $1.7 billion during fiscal 2004. The
Celera Genomics Group (NYSE:CRA) is engaged principally in the
discovery and development of targeted therapeutics for cancer,
autoimmune and inflammatory diseases. Celera Genomics is leveraging
its proteomic, bioinformatic, and genomic capabilities to identify and
validate drug targets, and to discover and develop small molecule
therapeutics. It is also seeking to advance therapeutic antibody and
selected small molecule drug programs in collaboration with global
technology and market leaders. Celera Diagnostics, a 50/50 joint
venture between Applied Biosystems and Celera Genomics, is focused on
discovery, development, and commercialization of diagnostic products.
Information about Applera Corporation, including reports and other
information filed by the company with the Securities and Exchange
Commission, is available at http://www.applera.com, or by telephoning
800.762.6923. Information about Applied Biosystems is available at
http://www.appliedbiosystems.com/.
Forward-Looking Statements
Certain statements in this press release, including the Outlook
sections, are forward-looking. These may be identified by the use of
forward-looking words or phrases such as "believe," "expect,"
"should," "anticipate," and "planned," among others. These
forward-looking statements are based on Applera Corporation's current
expectations. The Private Securities Litigation Reform Act of 1995
provides a "safe harbor" for such forward-looking statements. In order
to comply with the terms of the safe harbor, Applera Corporation notes
that a variety of factors could cause actual results and experience to
differ materially from the anticipated results or other expectations
expressed in such forward-looking statements. The risks and
uncertainties that may affect the operations, performance,
development, and results of Applied Biosystems include but are not
limited to: (1) rapidly changing technology could adversely affect
demand for Applied Biosystems' products, and its business is dependent
on development and customer acceptance of new products; (2) Applied
Biosystems' sales are dependent on customers' capital spending
policies and government-sponsored research; (3) Applied Biosystems'
significant overseas operations, with attendant exposure to
fluctuations in the value of foreign currencies; (4) risks associated
with Applied Biosystems' growth strategy, including difficulties in
integrating acquired operations or technologies; (5) the risk of
earthquakes, which could interrupt Applied Biosystems' or Celera
Diagnostics' operations; (6) risks associated with lawsuits,
arbitrations, investigations, and other legal actions with private
parties and governmental entities, particularly involving claims for
infringement of patents and other intellectual property rights; (7)
Applied Biosystems' dependence on the operation of computer hardware,
software, and Internet applications and related technology for its
businesses, particularly those focused on the development and
marketing of information-based products and services; (8) Celera
Diagnostics' reliance on existing and future collaborations, including
its strategic alliance with Abbott Laboratories, which may not be
successful; (9) Celera Diagnostics' unproven ability to discover,
develop, or commercialize proprietary diagnostic products; (10) the
risk that clinical trials of products that Celera Diagnostics does
discover and develop will not proceed as anticipated or may not be
successful, or that such products will not receive required regulatory
clearances or approvals; (11) the uncertainty that Celera Diagnostics'
products will be accepted and adopted by the market, including the
risks that these products will not be competitive with products
offered by other companies, or that users will not be entitled to
receive adequate reimbursement for these products from fourth party
payors such as private insurance companies and government insurance
plans; (12) Celera Diagnostics' reliance on access to biological
materials and related clinical and other information, which may be in
limited supply or access to which may be limited; (13) legal, ethical,
and social issues which could affect demand for Celera Diagnostics'
products; (14) Celera Diagnostics' limited commercial manufacturing
experience and capabilities and its reliance on a single principal
manufacturing facility; (15) Applied Biosystems' and Celera
Diagnostics' reliance on a single supplier or a limited number of
suppliers for key components of some of their products; (16) potential
product liability or other claims against Celera Diagnostics as a
result of the testing or use of its products; (17) intense competition
in the industry in which Celera Diagnostics operates; and (18) other
factors that might be described from time to time in Applera
Corporation's filings with the Securities and Exchange Commission. All
information in this press release is as of the date of the release,
and Applera does not undertake any duty to update this information,
including any forward-looking statements, unless required by law.
Copyright 2005. Applera Corporation. All Rights Reserved. Applied
Biosystems and Celera are registered trademarks, and AB (Design),
Applera, Celera Diagnostics, and Celera Genomics are trademarks of
Applera Corporation or its subsidiaries in the U. S. and/or certain
other countries. Q TRAP is a registered trademark, and API 3200 and
API 5000 are trademarks of Applied Biosystems/MDS SCIEX, which is a
joint venture between Applera Corporation and MDS Inc. TaqMan is a
registered trademark of Roche Molecular Systems, Inc.
APPLERA CORPORATION
APPLIED BIOSYSTEMS GROUP
CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
2005 2004 (1) 2005 (1) 2004 (1)
-------- -------- -------- --------
Net revenues $ 454.8 $ 439.6 $1,308.5 $1,280.6
Cost of sales 207.7 209.1 610.7 614.1
-------- -------- -------- --------
Gross margin 247.1 230.5 697.8 666.5
Selling, general
and administrative 123.4 120.9 360.9 341.3
Research,
development and
engineering 50.9 52.0 144.0 162.8
Employee-related
charges, asset
impairments and
other (0.9) 6.3 11.6 5.7
Asset dispositions
and legal
settlements (6.7) (38.2) (6.7)
-------- -------- -------- --------
Operating income 73.7 58.0 219.5 163.4
Gain on
investments, net 3.6 11.2
Interest income,
net 3.5 3.0 9.4 9.1
Other income
(expense), net 0.7 (0.2) 2.8 (0.1)
-------- -------- -------- --------
Income before
income taxes 77.9 64.4 231.7 183.6
Provision for
income taxes 22.4 18.4 66.4 51.8
-------- -------- -------- --------
Net income $ 55.5 $ 46.0 $ 165.3 $ 131.8
======== ======== ======== ========
Earnings per
share analysis
----------------
Net income $ 55.5 $ 46.0 $ 165.3 $ 131.8
Allocated
interperiod
taxes(2) 0.1 1.1
-------- -------- -------- --------
Total net income
allocated 55.6 46.0 166.4 131.8
Less dividends
declared on
common stock 8.4 8.6 25.0 26.2
-------- -------- -------- --------
Undistributed
earnings $ 47.2 $ 37.4 $ 141.4 $ 105.6
======== ======== ======== ========
Allocation of
basic earnings
per share
Basic distributed
earnings per share $ 0.04 $ 0.04 $ 0.13 $ 0.13
Basic undistributed
earnings per share 0.24 $ 0.19 0.72 0.51
-------- -------- -------- --------
Total basic
earnings per share $ 0.28 $ 0.23 $ 0.85 $ 0.64
======== ======== ======== ========
Allocation of
diluted earnings
per share
Diluted
distributed
earnings per share $ 0.04 $ 0.04 $ 0.13 $ 0.13
Diluted
undistributed
earnings per share 0.24 0.18 0.71 0.50
-------- -------- -------- --------
Total diluted
earnings per share $ 0.28 $ 0.22 $ 0.84 $ 0.63
======== ======== ======== ========
Weighted average
number of common
shares
Basic 196,415,000 203,973,000 195,949,000 206,425,000
Diluted 199,092,000 208,380,000 198,579,000 210,506,000
(1) Certain prior period amounts have been reclassified for
comparative purposes.
(2) Represents allocation of interperiod taxes to adjust net income
for purposes of calculating earnings per share.
APPLERA CORPORATION
APPLIED BIOSYSTEMS GROUP
Revenues By Product Categories
(Dollar amounts in millions)
(Unaudited)
Three months ended
March 31,
2005 2004 (1) Change
---------- ---------- --------
DNA Sequencing $ 141.1 $ 137.5 3%
% of total revenues 31% 31%
Real-Time PCR/Applied Genomics(1) 133.5 111.6 20%
% of total revenues 29% 25%
Mass Spectrometry 104.9 109.4 -4%
% of total revenues 23% 25%
Core PCR & DNA Synthesis(2) 49.8 50.2 -1%
% of total revenues 11% 12%
Other Product Lines 25.5 30.9 -17%
% of total revenues 6% 7%
---------- ----------
Total $ 454.8 $ 439.6 3%
========== ==========
Nine months ended
March 31,
2005 2004 (1) Change
---------- ---------- --------
DNA Sequencing $ 398.4 $ 432.7 -8%
% of total revenues 30% 34%
Real-Time PCR/Applied Genomics(1) 380.0 310.1 23%
% of total revenues 29% 24%
Mass Spectrometry 307.9 295.3 4%
% of total revenues 24% 23%
Core PCR & DNA Synthesis(2) 144.4 152.5 -5%
% of total revenues 11% 12%
Other Product Lines 77.8 90.0 -14%
% of total revenues 6% 7%
---------- ----------
Total $ 1,308.5 $ 1,280.6 2%
========== ==========
(1) The product category Real-Time PCR/Applied Genomics was
previously called SDS/Other Applied Genomics.
(2) The product category Core PCR & DNA Synthesis was previously
called Core DNA Synthesis & PCR.
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2005
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera Elimin- Consoli-
Group Group Diagnostics ations dated
---------- -------- ----------- ------- --------
Net revenues $ 454.8 $ 8.2 $ 9.0 $ (2.6) $ 469.4
Cost of sales 207.7 1.1 3.8 (1.7) 210.9
--------- -------- ----------- ------- -------
Gross margin 247.1 7.1 5.2 (0.9) 258.5
Selling, general
and administrative 123.4 7.1 3.8 0.1 134.4
Research,
development and
engineering 50.9 27.7 9.2 (1.0) 86.8
Amortization of
intangible assets 0.7 0.7
Employee-related
charges, asset
impairments and
other (0.9) (0.9)
--------- -------- ----------- ------- -------
Operating income
(loss) 73.7 (28.4) (7.8) - 37.5
Interest income,
net 3.5 4.0 7.5
Other income
(expense), net 0.7 (0.1) 0.1 0.7
Loss from joint
venture (7.8) 7.8
--------- -------- ----------- ------- -------
Income (loss)
before income
taxes 77.9 (32.3) (7.8) 7.9 45.7
Provision (benefit)
for income taxes 22.4 (11.3) (1) (0.1) 11.0
--------- -------- ----------- ------- -------
Net income (loss) $ 55.5 $ (21.0) $ (7.8) $ 8.0 $ 34.7
========= ======= ========== ======= =======
Net income (loss)
per share
Basic $ 0.28 $ (0.29)
Diluted $ 0.28 $ (0.29)
(1) The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2004
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera Elimin- Consoli-
Group Group Diagnostics ations dated
---------- -------- ----------- ------- --------
Net revenues $ 439.6 $ 11.2 $ 7.5 $ (3.1) $ 455.2
Cost of sales 209.1 2.0 5.5 (2.0) 214.6
--------- -------- ----------- ------- -------
Gross margin 230.5 9.2 2.0 (1.1) 240.6
Selling, general
and administrative 120.9 7.7 3.2 131.8
Research,
development and
engineering 52.0 27.7 10.7 (1.1) 89.3
Amortization of
intangible assets 0.7 0.7
Employee-related
charges, asset
impairments and
other 6.3 6.3
Asset dispositions
and litigation
settlements (6.7) (6.7)
--------- -------- ----------- ------- -------
Operating income
(loss) 58.0 (26.9) (11.9) - 19.2
Gain on
investments, net 3.6 3.6
Interest income,
net 3.0 2.5 5.5
Other income
(expense), net (0.2) 0.5 0.3
Loss from joint
venture (11.9) 11.9
--------- -------- ----------- ------- -------
Income (loss)
before income
taxes 64.4 (35.8) (11.9) 11.9 28.6
Provision (benefit)
for income taxes 18.4 (13.9) (1) 2.0 6.5
--------- -------- ----------- ------- -------
Net income (loss) $ 46.0 $ (21.9) $ (11.9) $ 9.9 $ 22.1
========= ======= ========== ======= =======
Net income (loss)
per share
Basic $ 0.23 $ (0.30)
Diluted $ 0.22 $ (0.30)
(1) The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
Certain fiscal 2004 amounts have been reclassified for comparative
purposes.
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Nine Months Ended March 31, 2005
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera Elimin- Consoli-
Group Group Diagnostics ations dated
---------- -------- ----------- ------- ---------
Net revenues $ 1,308.5 $ 26.0 $ 26.1 $ (6.5) $1,354.1
Cost of sales 610.7 5.0 11.2 (4.4) 622.5
--------- ------- ---------- ------ --------
Gross margin 697.8 21.0 14.9 (2.1) 731.6
Selling, general
and
administrative 360.9 19.3 10.0 390.2
Research,
development and
engineering 144.0 76.2 30.2 (2.2) 248.2
Amortization of
intangible assets 2.2 2.2
Employee-related
charges, asset
impairments and
other 11.6 2.8 14.4
Asset dispositions
and litigation
settlements (38.2) (38.2)
--------- -------- ----------- ------- --------
Operating income
(loss) 219.5 (79.5) (25.3) 0.1 114.8
Interest income,
net 9.4 10.2 19.6
Other income
(expense), net 2.8 1.1 3.9
Loss from joint
venture (25.3) 25.3
---------- ------- ----------- ------ ---------
Income (loss)
before income
taxes 231.7 (93.5) (25.3) 25.4 138.3
Provision
(benefit) for
income taxes 66.4 (32.7) (1) (1.1) 32.6
--------- ------- ----------- ------ --------
Net income (loss) $ 165.3 $ (60.8) $ (25.3) $ 26.5 $ 105.7
========= ======= ========== ====== ========
Net income (loss)
per share
Basic $ 0.85 $ (0.83)
Diluted $ 0.84 $ (0.83)
(1) The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
Certain prior period amounts have been reclassified for
comparative purposes.
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Nine Months Ended March 31, 2004
(Dollar amounts in millions except per share amounts)
(Unaudited)
Applied Celera
Biosystems Genomics Celera Elimin- Consoli-
Group Group Diagnostics ations dated
---------- -------- ----------- ------- ---------
Net revenues $ 1,280.6 $ 47.7 $ 27.0 $ (9.8) $1,345.5
Cost of sales 614.1 8.3 15.4 (5.7) 632.1
--------- -------- ----------- ------- --------
Gross margin 666.5 39.4 11.6 (4.1) 713.4
Selling, general
and
administrative 341.3 25.1 11.2 377.6
Research,
development and
engineering 162.8 72.7 33.7 (4.1) 265.1
Amortization of
intangible assets 2.2 2.2
Employee-related
charges, asset
impairments and
other 5.7 5.7
Asset dispositions
and litigation
settlements (6.7) (6.7)
--------- -------- ----------- ------- --------
Operating income
(loss) 163.4 (60.6) (33.3) - 69.5
Gain (loss) on
investments, net 11.2 (0.5) 10.7
Interest income,
net 9.1 8.3 17.4
Other income
(expense), net (0.1) 1.4 1.3
Loss from joint
venture (33.3) 33.3
--------- -------- ----------- ------- --------
Income (loss)
before income
taxes 183.6 (84.7) (33.3) 33.3 98.9
Provision
(benefit) for
income taxes 51.8 (33.0) (1) (0.6) 18.2
--------- -------- ----------- ------- --------
Net income (loss) $ 131.8 $ (51.7) $ (33.3) $ 33.9 $ 80.7
========= ======= ========== ======= ========
Net income (loss)
per share
Basic $ 0.64 $ (0.71)
Diluted $ 0.63 $ (0.71)
(1) The tax benefit associated with the operating loss generated by
Celera Diagnostics is recorded by the Celera Genomics group since
the Celera Genomics group has recorded 100% of Celera Diagnostics'
losses.
Certain fiscal 2004 amounts have been reclassified for comparative
purposes.
CONTACT:
Applied Biosystems Group
Media Contact:
Ana Kapor, 650-638-6227
ana.kapor@appliedbiosystems.com
or
Investor Contact:
Peter Dworkin, 650-554-2479
dworkipg@appliedbiosystems.com
or
European Media and Investors:
David Speechly, Ph.D., (+) 44.162.273.9150
speechdp@eur.appliedbiosystems.com
SOURCE: Applied Biosystems Group
|
Applied Biosystems Inc.
