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|Array BioPharma Reports Financial Results For The Fourth Quarter and Full Year of Fiscal 2002|
|BOULDER, Colo., Aug 5, 2002 /PRNewswire-FirstCall via COMTEX/ --|
- Strong Revenue Growth Supports Rapidly Expanding Proprietary Research Programs -Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the fourth quarter and full year of fiscal 2002, ended June 30, 2002.
During the fourth quarter of fiscal 2002, total revenue reached $10.0 million, up 77% from $5.7 million during the same period in fiscal 2001. Net loss was $845,000, or ($0.03) per share for the fourth quarter, compared to a net loss of $1.6 million, or ($0.07) per share for the comparable quarter in fiscal 2001. Array ended the fourth quarter of fiscal 2002 with $59.6 million in cash and marketable securities.
"Fiscal 2002 was another exciting year for Array BioPharma. We demonstrated dramatic growth in revenues, collaborations, investment in proprietary research, scientific staff and laboratory facilities," said Robert E. Conway, Chief Executive Officer. "Array continues to execute a unique business strategy of funding our proprietary research primarily out of the earnings from our collaborations. Array is building a sustainable drug discovery company that is not dependent on continually accessing the capital markets for additional funding."
Highlights during the fourth quarter of fiscal 2002 include:
-- Initiated a drug discovery collaboration with Syrxx, Inc. to create small molecule therapeutics against a Syrxx target using the Array Discovery Platform. Array will receive research funding and be entitled to milestones and royalties based on development and commercial success.
-- Hired James D. Winkler, Ph.D., as Director of Discovery Biology. Dr. Winkler is responsible for leading Array's rapidly expanding Discovery Biology Department which includes molecular biology, protein chemistry, structural biology, assay development, high throughput screening and cell biology. Prior to joining Array, Dr. Winkler spent 15 years with GlaxoSmithKline, most recently serving as Associate Director in the department of Oncology Research.
-- Increased investment in Array's proprietary research to $1.8 million for the quarter and $5.5 million for the full year, compared to $519,000 and $1.6 million for the same periods last fiscal year. We currently have three programs in the lead optimization phase for inflammation and oncology indications.
-- Continued validation of our cGMP manufacturing facility 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 I clinical testing.
-- Achieved the third consecutive positive quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $552,000, compared to a negative EBITDA of $640,000 for the fourth quarter of fiscal 2001, realizing a $1.2 million improvement. Fiscal 2002 EBITDA was $997,000, compared to a negative EBITDA of $4.7 million in fiscal 2001, realizing a $5.7 million improvement.
Revenue for the fiscal year ended June 30, 2002, was $35.1 million, increasing 106% compared to revenue of $17.0 million for fiscal year 2001. The net loss for the fiscal year ended June 30, 2002, was $4.5 million, or ($0.18) per share, compared to a net loss of $15.6 million, or ($0.99) per share, reported in fiscal 2001. Cash flow from operations improved to a positive $1.4 million for the fiscal 2002, compared to $2.4 million net cash used in operations for fiscal 2001, a $3.8 million improvement.
Array will hold a conference call on Tuesday, August 6, 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) 289-0493
Toll: (913) 981-5510
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 496690. 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 new 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 .
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, our ability to continue to fund internal research efforts, and our ability to attract and retain experienced scientists and management. We are providing this information as of August 5, 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.
Array BioPharma Inc. Condensed Statement of Operations (in thousands, except per share amounts) Three Months Ended Twelve Months Ended June 30, June 30, 2002 2001 2002 2001 (unaudited) Revenue $10,035 $5,671 $35,089 $17,006 Cost of revenue* 5,432 3,604 19,411 11,967 Gross profit 4,603 2,067 15,678 5,039 Research and development for collaborations* 2,029 1,604 7,499 6,031 Research and development for proprietary drug discovery* 1,808 519 5,509 1,590 Selling, general and administrative expenses* 1,517 1,274 6,213 4,656 Compensation related to stock option grants 488 618 2,421 4,654 Total operating expenses 5,842 4,015 21,642 16,931 Loss from operations (1,239) (1,948) (5,964) (11,892) Interest expense -- (86) -- (587) Interest income 394 653 1,483 2,092 Net loss (845) (1,381) (4,481) (10,387) Deemed dividend related to beneficial conversion feature of preferred stock -- -- -- (5,000) Extraordinary item-interest from early extinguishment of debt -- (225) -- (225) Net loss applicable to common stockholders $(845) $(1,606) $(4,481) $(15,612) Basic and diluted net loss per share applicable to common stockholders $(0.03) $(0.07) $(0.18) $(0.99) Shares used in computing basic and diluted net loss per share 27,414 23,176 24,920 15,693 Earnings before interest, taxes, depreciation and amortization: Net loss as reported $(845) $(1,381) $(4,481) $(10,387) Minus: net interest income 394 567 1,483 1,505 Plus: depreciation 1,303 690 4,540 2,554 Plus: compensation related to option grants 488 618 2,421 4,654 EBITDA $552 $(640) $997 $(4,684) * Excludes compensation related to option grants Array BioPharma Inc. Summary Balance Sheet Data (in thousands) June 30, June 30, 2002 2001 Cash, cash equivalents and marketable securities $59,598 $47,712 Property, plant and equipment, net 35,788 17,421 Working capital 57,350 44,917 Total assets 107,915 70,950 Stockholders' equity 93,901 62,468SOURCE Array BioPharma Inc.
CONTACT: Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193, firstname.lastname@example.org