Company reports 10th
consecutive quarter of clinical revenue growth
Third Wave Technologies Inc. (NASDAQ: TWTI) today announced its
financial results for the quarter ended March 31, 2008.
Third Wave reported clinical molecular diagnostic revenue of $7.4
million for the first quarter of 2008, an increase of 24% from the same
period of 2007. The company reported research revenue of $1.0 million
for the quarter ended March 31, 2008. Third Wave’s
total revenue for the first quarter of 2008 was $8.4 million, compared
to $6.7 million for the same period of last year.
Third Wave reported a net loss of $7.6 million, or ($0.17) a share, for
the quarter ended March 31, 2008, compared to net income of $4.8
million, or $0.11 a share, for the same period of 2007. The prior-year
quarter included a one-time, $10.75-million settlement payment from the
former Stratagene Corp. Without the inclusion of the settlement payment,
the company’s pro-forma net loss for the first
quarter of 2007 was $6.0 million, or ($0.14) a share.
Third Wave reported gross margins of 74% for the quarter ended March 31,
2008, compared to gross margins of 70% and 74% for the prior-year
quarter and previous quarter, respectively. Total operating expenses for
the first quarter of 2008 were $15.4 million, compared to $13.0 million
for the same period of 2007. The year-over year increase in operating
expenses was due to expenditures on the company’s
HPV clinical trial.
Third Wave ended the first quarter of 2008 with cash, cash equivalents
and short-term investments of $28.9 million, compared to $35.7 million
at Dec. 31, 2007. The company also has in place a $25-million line of
credit.
“We were very pleased to announce earlier this
week that Third Wave made its two HPV product submissions to the FDA,”
said Kevin T. Conroy, president and chief executive of Third Wave. “Our
submissions were based on the strong data generated by the company’s
HPV clinical trial, which achieved all primary clinical endpoints for
those tests. Third Wave will continue to invest in creating a
sustainable competitive advantage through unique HPV products and our
automated HPV instrument offering.”
The company announced that it plans to present data from its HPV
clinical trial during the annual American Association of Clinical
Chemistry meeting being held July 27-31 in Washington, D.C.
“We also continue to be pleased with the
ongoing growth in our clinical business,” Mr.
Conroy said. “This quarter marked the tenth
consecutive quarter of clinical revenue growth and our clinical customer
base has grown to 223 from 185 a year ago. A key driver of Third Wave’s
growth has been our InPlex™ CF reagents,
which are now the most widely reported method in use. With the FDA’s
clearance of our InPlex™ CF Molecular Test
during the first quarter, we anticipate that our ability to market the
InPlex format’s differentiated performance
and ease of use will continue to drive increased market share and
revenue growth.”
2008 Outlook Update
Third Wave reaffirms its previously announced guidance for 2008 of total
revenues of $36-37.5 million. The company continues to expect clinical
molecular diagnostic revenue to grow to $33-34.5 million during 2008.
Research revenue for 2008 will be at least $3 million.
Conference Call & Webcast with PowerPoint Presentation
Company management will host a conference call and webcast on Thursday,
May 1, 2008, at 10 a.m. EDT to discuss first-quarter 2008 results. The
webcast will include a PowerPoint slide presentation highlighting the
company’s third-quarter accomplishments and
ongoing corporate activities. The webcast will be available at www.twt.com.
Domestic callers should dial (800) 295-4740 and international callers
should dial (617) 614- 3925. The access code for both domestic and
international callers is 65993745. Please dial in five to 10 minutes
prior to the start of conference call. A replay of the conference call
will be available at the company’s website.
The conference call, webcast and replay are open to all interested
parties.
About Third Wave Technologies
Third Wave develops and markets molecular diagnostic reagents for a
variety of DNA and RNA analysis applications to meet the needs of our
customers. The company offers a number of products based on its Invader®
chemistry for clinical testing. Third Wave offers in vitro diagnostic
kits, and analyte specific, general purpose, and research use only
reagents for nucleic acid analysis. For more information about Third
Wave and its products, please visit the company's website at www.twt.com.
All statements in this news release that are not historical are forward-
looking statements within the meaning of the Securities Exchange Act of
1934 as amended. Such forward-looking statements are subject to factors
that could cause actual results to differ materially for Third Wave from
those projected. Those factors include risks and uncertainties relating
to technological approaches of Third Wave and its competitors, product
development, manufacturing, market acceptance, cost and pricing of Third
Wave products, dependence on collaborative partners and commercial
customers, successful performance under collaborative and commercial
agreements, competition, the strength of the Third Wave intellectual
property, the intellectual property of others and other risk factors
identified in the documents Third Wave has filed, or will file, with the
Securities and Exchange Commission. Copies of the Third Wave filings
with the SEC may be obtained from the SEC Internet site at http://www.sec.gov
. Third Wave expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Third Wave's
expectations with regard thereto or any change in events, conditions, or
circumstances on which any such statements are based. Third Wave
Technologies, Invader and the Third Wave logo are trademarks of Third
Wave Technologies, Inc.
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Third Wave Technologies, Inc
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Statements of Operations
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(In thousands, except for per share amounts)
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(Unaudited)
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Three Months Ended
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March 31,
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2008
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2007
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Adjustments (1)
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2007 Pro forma (2)
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Revenues:
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Clinical Product
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$7,387
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$5,973
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$0
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$5,973
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Research Product
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955
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569
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0
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569
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License & royalty
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57
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171
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0
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171
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8,399
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6,713
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0
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6,713
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Operating expenses:
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Cost of goods sold
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2,203
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2,017
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0
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2,017
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Research and development
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6,205
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5,109
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0
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5,109
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Selling and marketing
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3,461
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2,603
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0
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2,603
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General and administrative
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3,737
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2,886
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0
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2,886
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Litigation
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330
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406
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0
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406
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Restructuring
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(487
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)
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0
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0
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0
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Total operating expenses
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15,449
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13,021
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0
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13,021
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Loss from operations
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(7,050
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)
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(6,308
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)
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0
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(6,308
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)
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Other income (expense):
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Interest income
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251
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531
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0
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531
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Interest expense
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(976
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)
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(301
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)
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0
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(301
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)
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Other
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(26
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)
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10,748
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(10,750
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)
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(2
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)
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(751
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)
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10,978
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(10,750
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)
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228
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Net income (loss) before minority interest
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($7,801
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)
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$4,670
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($10,750
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)
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($6,080
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)
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Minority interest in subsidiary
|
196
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|
96
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|
-
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96
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Net income (loss)
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($7,605
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)
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$4,766
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($10,750
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)
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($5,984
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)
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Net income (loss) per share, basic
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($0.17
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)
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$0.11
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($0.26
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)
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($0.14
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)
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Net income (loss) per share, diluted
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($0.17
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)
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$0.11
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($0.24
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)
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($0.14
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)
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Weighted average shares outstanding, basic
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43,780
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42,025
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42,025
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42,025
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Weighted average shares outstanding, diluted
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43,780
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43,884
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43,884
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42,025
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(1) Represents amount received from the former Stratagene Corp. as
part of the settlement of patent litigation
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(2) 2007 Pro-forma figures reflect the net loss that would have
been recognized if the proceeds from the settlement of patent
litigation had not been received. The Company presents these
non-GAAP financial measures to provide comparability to 2008.
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Third Wave Technologies, Inc
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Balance Sheets
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(In thousands)
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March 31,
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December 31,
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2008
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2007
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Assets:
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Cash, cash equivalents, and short-term investments
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$28,933
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$ 35,739
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Other current assets
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11,779
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11,877
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Equipment and leasehold improvements, net
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4,675
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4,913
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Intangible assets, net of amortization
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873
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898
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Goodwill and indefinite lived intangible assets
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490
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490
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Other assets
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16,887
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15,084
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Total assets
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$63,637
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$69,001
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Liabilities and shareholders' equity
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Accounts payable, accrued expenses and other liabilities
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$23,337
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$ 23,284
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Deferred revenue
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42
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-
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Debt
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16,168
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15,913
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Minority interest in subsidiary
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211
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|
226
|
|
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Shareholders' equity
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23,879
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29,578
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|
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Total liabilities and shareholders' equity
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$63,637
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$69,001
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FD for Third Wave Technologies Inc.
John Capodanno
+1 212
850-5705
