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Array BioPharma Reports Financial Results for the Third Quarter of Fiscal 2002
BOULDER, Colo., May 6, 2002 /PRNewswire-FirstCall via COMTEX/ -- Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the third quarter of fiscal 2002, ended March 31, 2002.

During the third quarter of fiscal 2002, total revenue reached $9.5 million, up 100% from $4.7 million during the same period in fiscal 2001. Net loss was $864,000 or ($0.03) per share, compared to a net loss of $1.7 million or ($0.07) per share for the comparable quarter in fiscal 2001. Array ended the third quarter of fiscal 2002 with $65.0 million in cash and marketable securities.

"We continued to strengthen our financial position this quarter through continued revenue growth and maintaining a positive cash flow from operations, excluding investment in facilities and equipment," said Robert E. Conway, Chief Executive Officer. "We also advanced our business model of building Array's own proprietary drug program primarily through the cash flow generated by our collaborations."

Highlights during the third quarter of fiscal 2002 include:

    -- Increased revenues by 100% compared to the same period in the last fiscal year, primarily as a result of new and expanded collaborations.

    -- Completed a secondary offering raising a net of $32.0 million, increasing our cash position to $65.0 million despite very difficult market conditions.

    -- Initiated a collaboration with the pharmaceutical division of Japan Tobacco Inc. (JT) to utilize the Array Discovery Platform to create small molecule therapeutics against a proprietary JT target.

    -- Entered into a collaboration with Aptus Genomics, Inc. to utilize the Array Discovery Platform to identify small molecule therapeutics against select G-Protein Coupled Receptor (GPCR) targets.

    -- Expanded our access to novel targets for Array's proprietary research through a joint development program with Callisto Pharmaceuticals Inc. The program brings together Callisto's expertise in identifying important targets and the Array Discovery Platform. The parties will jointly own and fund the research and development of products that result from this agreement.

    -- Finished construction of our cGMP manufacturing facility and are progressing with validating the capability in accordance with FDA regulations. We anticipate being able to initiate our first cGMP manufacturing campaign in the second half of calendar 2002. This capability will allow us to produce cGMP material for Phase 1 clinical testing.

    -- Achieved the second consecutive positive quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $692,000 compared to a negative EBITDA of $891,000 for the third quarter of fiscal 2001, realizing a $1.6 million improvement.

Revenue for the nine-month period ended March 31, 2002, was $25.1 million, increasing 121% compared to revenues of $11.3 million for the same period in fiscal 2001. The net loss for the nine months ended March 31, 2002, was $3.6 million, or ($0.15) per share, compared to a net loss of $14.0 million, or ($1.06) per share, reported in the same period in fiscal 2001.

Array will hold a conference call on Tuesday, May 7, 2002, at 9:00 a.m. eastern time to discuss these results. Robert E. Conway, Chief Executive Officer and Michael Carruthers, Chief Financial Officer, will lead the call.

CONFERENCE CALL INFORMATION

    Date: Tuesday, May 7, 2002
    Time: 9:00 a.m. eastern time
    Toll-Free: (800) 289-0518
    Toll: (913) 981-5532
    Web Cast: www.arraybiopharma.com

There will be a replay of the conference call for one week, which can be accessed in the United States by dialing toll-free (888) 203-1112, and outside the United States (719) 457-0820. The access code is 198344. Replay of the call will also be available as a web cast on Array's web site at www.arraybiopharma.com .

About Array BioPharma:

Array BioPharma is a drug discovery company creating small molecule drugs through the integration of chemistry, biology and informatics. Our experienced scientists use an integrated set of drug discovery technologies, which we call the Array Discovery Platform, to invent small molecule drugs in collaboration with leading pharmaceutical and biotechnology companies and to build our own pipeline of proprietary drug candidates. For more information on Array BioPharma, please visit our web site at www.arraybiopharma.com .

About EBITDA:

EBITDA means earnings before interest, taxes, depreciation and amortization. EBITDA should be considered in addition to, but not as a substitute for, loss from operations, net loss and other measures of financial performance prepared in accordance with generally accepted accounting principles that are presented in Array's financial statements. Array's calculation of EBITDA may be different from the calculation used by other companies and therefore, may not be comparable to similarly titled measures reported by other companies.

Array Forward-Looking Statement:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties, including those discussed below and described more fully in reports filed by Array with the Securities and Exchange Commission, including our Final Prospectus filed on February 12, 2002. Because these statements reflect our current expectations concerning future events, our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors. These factors include, but are not limited to, our ability to achieve and maintain profitability, the extent to which the pharmaceutical and biotechnology industries are willing to collaborate with third parties on their drug discovery activities, the ability of our collaborators and of Array to meet drug discovery objectives tied to milestones and royalties, and our ability to attract and retain experienced scientists and management. We are providing this information as of May 6, 2002. We undertake no duty to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements or of anticipated or unanticipated events that alter any assumptions underlying such statements.

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                             Array BioPharma Inc.
                      Condensed Statement of Operations
                   (in thousands, except per share amounts)

                                    Three Months Ended    Nine Months Ended
                                          March 31,            March 31,
                                      2002       2001      2002       2001
                                        (unaudited)          (unaudited)

    Revenue                          $9,504     $4,741    $25,054   $11,335
    Cost of revenue*                  4,984      3,151     13,979     8,364
    Gross profit                      4,520      1,590     11,075     2,971

    Research and development
     for collaborations*              1,911      1,615      5,470     4,428
    Research and development
     for proprietary drug discovery*  1,572        369      3,700     1,071
    Selling, general and
     administrative expenses*         1,589      1,281      4,696     3,381
    Compensation related to
     stock option grants                589        698      1,933     4,035
        Total operating expenses      5,661      3,963     15,799    12,915

    Loss from operations             (1,141)    (2,373)    (4,724)   (9,944)
    Interest expense                     --       (148)        --      (501)
    Interest income                     277        832      1,089     1,439
    Net loss                           (864)    (1,689)    (3,635)   (9,006)
    Deemed dividend related to
     beneficial conversion feature
     of preferred stock                  --         --         --    (5,000)
    Net loss applicable to
     common stockholders              $(864)   $(1,689)   $(3,635) $(14,006)
    Basic and diluted net loss
     per share applicable to
     common stockholders             $(0.03)    $(0.07)   $(0.15)    $(1.06)
    Shares used in computing
     basic and diluted net loss
     per share                       25,438     23,022     24,092    13,198

    Earnings before interest,
     taxes, depreciation and
     amortization:
      Net loss as reported            $(864)   $(1,689)   $(3,635)  $(9,006)
      Minus: net interest income        277        684      1,089       938
      Plus: depreciation              1,244        784      3,237     1,864
      Plus: compensation related
       to option grants                 589        698      1,933     4,035
    EBITDA                             $692      $(891)      $446   $(4,045)

    * Excludes compensation related to option grants


                             Array BioPharma Inc.
                          Summary Balance Sheet Data
                                (in thousands)

                                               March 31,      June 30,
                                                 2002           2001
                                             (unaudited)
    Cash, cash equivalents and
     marketable securities                      $65,000        $47,712
    Property, plant and equipment, net           30,637         17,421
    Working capital                              62,772         44,917
    Total assets                                105,711         70,950
    Stockholders' equity                         93,608         62,468

SOURCE Array BioPharma Inc.

CONTACT: Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193, thaugeto@arraybiopharma.com