Caliper Life Sciences Reports Fourth Quarter and Full Year 2009 Results
Fourth Quarter Results:
"We were pleased with our financial results and strategic progress in 2009. LabChip and IVIS revenues grew over 20% in 2009 and now represent nearly 70% of total revenues. This revenue is largely derived from patent protected products and is among our most profitable revenue, allowing us to increase gross margins and achieve EBITDA positive performance a year ahead of schedule," commented Kevin Hrusovsky, Caliper's president and CEO. "Most importantly, we are excited about our growth momentum going into 2010, our expected entry into the rapidly expanding next generation sequencing market with the LabChip XT for sample preparation and enhancement, our improved balance sheet, and our sharpened strategic focus," added Hrusovsky.
Recent Business Highlights:
Fiscal 2009 Results:
Caliper is currently projecting organic revenue growth of between 3-6% in 2010 over 2009 pro forma revenue of $119.7 million. Assuming current exchange rates, foreign currency is expected to have a positive impact of 1-1.5 percentage points on revenue growth in the first half of 2010, and a slightly unfavorable impact on revenue growth on a full year basis.
Use of Non-GAAP Financial Measures
Caliper supplements its GAAP financial reporting with certain non-GAAP financial measures. Reconciliations of Caliper's GAAP to non-GAAP revenue and earnings per share are provided at the end of this release under "Reconciliation of GAAP to Non-GAAP Financial Measures."
Certain revenue growth percentages in this press release are derived from non-GAAP revenues which exclude the impact of revenue from product lines which were divested in the fourth quarters of 2008 and 2009. The term "organic" revenue growth eliminates the impact of these divestitures and foreign currency movements during the quarter to reflect growth percentages on a constant currency basis. Caliper believes that providing this additional information enhances investors' understanding of the financial performance of Caliper's operations and increases the comparability of its current financial statements to prior periods.
Caliper will discuss its fourth quarter and full year results in a conference call to be held today, March 9 at 9:00 a.m. ET. To participate in the call, please dial 888.679.8040 five to ten minutes prior to the call and use the participant passcode of 59178138. International callers may access the call by dialing 617.213.4851 and entering the same passcode. You may also pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P3JYBQRAK.
A live webcast of the call can be accessed at www.fulldisclosure.com or on the Caliper website at www.caliperLS.com in the Events section of the Investor Relations page. A webcast replay of the call will remain available until Caliper's earnings call for the first quarter of 2010.
Telephone replays of the conference call will be available approximately two hours after the completion of the call. To access a telephone playback of the proceedings from March 9 through March 16, dial 888.286.8010 and use the participant passcode of 42549715. International callers can access the playback by dialing 617.801.6888 and using the same participant passcode.
About Caliper Life Sciences
Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results, enabling the translation of those results into cures for human disease. Caliper's portfolio of offerings includes state-of-the-art microfluidics, lab automation & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions. For more information please visit www.caliperLS.com.
The statements in this press release regarding future events, including statements regarding Caliper's expected organic revenue growth in 2010, Caliper's expectations regarding the impact of currency translation adjustments on reported revenue and Caliper's expected entry into the next generation sequencing market with its new LabChip XT instrument are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements as a result of a number of factors, including that Caliper's expectations regarding demand for its products and services may not materialize if capital spending by Caliper's customers declines, if competitors introduce new competitive products, or if Caliper is unable to convince potential customers regarding the superior performance of its drug discovery and imaging systems and other products, and unanticipated difficulties may be encountered in Caliper's planned introduction of the LabChip XT instrument into the next generation sequencing market. Further information on risks faced by Caliper are detailed under the caption "Risks Related To Our Business" in Caliper's Annual Report on Form 10-K for the year ended December 31, 2008. Our filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Caliper does not undertake any obligation to update forward-looking or other statements in this release or the conference call.
NOTE: Caliper, IVIS, and LabChip are registered trademarks of Caliper Life Sciences, Inc.
We use the term "adjusted earnings per share" or "adjusted EPS" to refer to GAAP earnings per share excluding amortization of intangible assets, impairment charges and restructuring and severance costs. Adjusted earnings per share is calculated by subtracting the total per share effect of these adjustments from GAAP EPS.
The adjustments are as follows:
-- GAAP revenues for the quarter increased to $37.7 million, or 3%, from $36.7 million in the same period in 2008. Fourth quarter revenue growth from the Company's ongoing business operations, which excludes the effects of divested non-core operations (see table entitled "Non-GAAP Revenues"), was 13% compared to the same period in 2008. The double-digit growth in revenue from ongoing operations resulted from continued adoption of Caliper's LabChip and IVIS instrument platforms and a significant one-time microfluidics license fee recognized in the fourth quarter. Foreign currency movements benefited total revenues by approximately 3% compared to the fourth quarter of 2008. -- Total gross margin in the fourth quarter of 2009 was 49.5%, aided by the one-time license fee noted above, compared to 40.6% in the fourth quarter of 2008. The combined gross margin of product and service revenues was 43.9% in the fourth quarter of 2009 compared to 37.6% in the fourth quarter of 2008. The 630 basis point increase in combined product and service gross margin resulted primarily from instrument, consumable and service revenue growth generated by the Company's microfluidic (LabChip) and imaging (IVIS) product lines along with product cost improvements through low-cost sourcing initiatives. -- GAAP net income was $5.9 million for the quarter, or $0.11 per diluted share, compared to net loss of $46.3 million, or $0.95 per diluted share, in the fourth quarter of 2008. The $52.2 million net income improvement over 2008 included approximately $48.8 million of non-recurring benefit compared to 2008 related to goodwill impairment, restructuring charges (credits) and divestiture gains. -- The Company achieved non-GAAP income of $0.05 per diluted share in the fourth quarter of 2009 compared to a non-GAAP net loss per diluted share of $0.02 in the same period in 2008 (see table entitled "Non-GAAP Earnings per Share"). -- The Company generated $1.8 million in positive cash flow from operations during the fourth quarter of 2009 compared to $1.2 million in cash flow used in operations for the fourth quarter of 2008. -- Cash, cash equivalents and marketable securities totaled $38.0 million as of December 31, 2009, compared to $26.7 million as of December 31, 2008. Outstanding credit line borrowings were $14.9 million as of December 31, 2009, which was unchanged from December 31, 2008. -- On December 11, 2009, Caliper entered into a First Loan Modification Agreement which extended the maturity of its $25 million bank credit facility to April 1, 2011. The credit facility serves as a source of capital for ongoing operations and working capital needs.
SOURCE Caliper Life Sciences, Inc.
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