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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:
-- 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
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.
v 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 |
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