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Array BioPharma Reports Financial Results For The Second Quarter of Fiscal 2003
BOULDER, Colo., Feb 3, 2003 /PRNewswire-FirstCall via COMTEX/ -- Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the second quarter of fiscal 2003, ended December 31, 2002.

During the second quarter of fiscal 2003, Array reported total revenue of $9.5 million, up 14% from $8.4 million during the same period in fiscal 2002. Net loss was $2.9 million, or ($0.10) per share for the second quarter, compared to a net loss of $1.3 million, or ($0.05) per share for the comparable quarter in fiscal 2002. Array ended the second quarter of fiscal 2003 with $46.6 million in cash and marketable securities.

"These results are in line with our adjusted expectations for the quarter. During the quarter, we continued to expand and enhance the Array Discovery Platform. This integrated set of drug discovery technologies is on the critical path for pharmaceutical and biotech companies to fill their product pipelines," said Robert E. Conway, Chief Executive Officer. "We are rapidly progressing our internal drug discovery programs for both oncology and inflammation, with two programs in preclinical testing."

    Highlights during the second quarter of fiscal 2003 include:

  • Increased revenue by 14% compared to the same period in the last fiscal year, primarily as a result of new and expanded collaborations.
  • Increased investment in Array's proprietary research to $2.4 million for the current quarter compared to $1.3 million for the same period in the last fiscal year. Array currently has two programs in preclinical testing for inflammation and oncology indications and is scaling up the synthesis of one drug candidate to provide bulk material for preclinical safety assessment and Phase I clinical testing.
  • Initiated Array's first in-house current Good Manufacturing Practices (cGMP) campaign for its proprietary MEK program. Array believes that having this cGMP capability in-house will accelerate the timeline for this program and be more cost effective than previous outsourcing arrangements.
  • Occupied 29,000 square feet of additional laboratory space connected to Array's existing Longmont, Colorado facilities, which will house 45 additional scientists. In addition, 9,000 square feet of newly renovated laboratory space was occupied for discovery biology in Array's Boulder, Colorado facilities, bringing the total biology space to 17,500 square feet. These additions are expected to provide the necessary space for Array's growth over the next year.
  • Appointed Gil J. Van Lunsen, a former Managing Partner with KPMG LLP, to Array's Board of Directors. Mr. Van Lunsen was also appointed to the Board's Audit Committee, serving as Chair.

Array also reported revenue for the six-month period ended December 31, 2002, of $20.0 million, an increase of 29% compared to revenues of $15.6 million for the same period in fiscal 2002. Net loss for the six months ended December 31, 2002, was $4.1 million, or ($0.15) per share, compared to a net loss of $2.8 million, or ($0.12) per share, reported in the same period in fiscal 2002.

Array will hold a conference call on Tuesday, February 4, 2003, at 9:00 a.m. eastern time to discuss these results and Array's earnings guidance for the remainder of fiscal 2003. Robert E. Conway, Chief Executive Officer, and Michael Carruthers, Chief Financial Officer, will lead the call.

    CONFERENCE CALL INFORMATION
    Date: Tuesday, February 4, 2003
    Time: 9:00 a.m. eastern time
    Toll-Free: (888) 482-0024
    Toll: (617) 801-9702
    Pass Code: 549624
    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) 286-8010, and outside the United States (617) 801-6888. The access code is 73440. 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 .

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 in our annual report filed on Form 10-K for the fiscal year ended June 30, 2002, and in other reports filed by Array with the Securities and Exchange Commission. 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 February 3, 2003. 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.



                        Condensed Statement of Operations
                     (in thousands, except per share amounts)

                                 Three Months Ended      Six Months Ended
                                     December 31,           December 31,
                                  2002        2001        2002       2001
                                     (unaudited)             (unaudited)

    Revenue                      $9,502      $8,358     $20,006     $15,550
    Cost of revenue*              5,405       4,733      11,140       8,995
    Gross profit                  4,097       3,625       8,866       6,555

    Research and development
     for collaborations*          2,167       1,822       3,828       3,565
    Research and development
     for proprietary
     drug discovery*              2,411       1,260       4,461       2,122
    Selling, general and
     administrative expenses*     2,067       1,527       4,019       3,107
    Compensation related to
     stock option grants            576         644       1,152       1,344
       Total operating
        expenses                  7,221       5,253      13,460      10,138

       Loss from operations      (3,124)     (1,628)     (4,594)     (3,583)
    Interest income                 230         351         486         812
    Net loss                    $(2,894)    $(1,277)    $(4,108)    $(2,771)

    Basic and diluted
     net loss per share          $(0.10)     $(0.05)     $(0.15)     $(0.12)
    Number of shares used
     to compute per share data   27,720      23,516      27,639      23,434

    Earnings before interest,
     taxes, depreciation
     and amortization:
       Net loss as reported     $(2,894)    $(1,277)    $(4,108)    $(2,771)
       Minus: interest income       230         351         486         812
       Plus: depreciation         1,648       1,093       3,169       1,993
       Plus: compensation
        related to option
        grants                      576         644       1,152       1,344
    EBITDA                        $(900)       $109       $(273)      $(246)

    * Excludes compensation related to option grants

                            Summary Balance Sheet Data
                                  (in thousands)

                                                      December 31,  June 30,
                                                          2002        2002
                                                      (unaudited)

    Cash, cash equivalents and marketable securities    $46,584     $59,598
    Property, plant and equipment, net                   40,151      35,788
    Working capital                                      51,087      57,350
    Total assets                                        101,880     107,915
    Stockholders' equity                                 92,039      93,901

SOURCE Array BioPharma Inc.

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

URL:
http://www.arraybiopharma.com
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