Celera Also Announces Immediate Cost-Saving Measures, Which Include a
Restructuring Program to Reduce Headcount by Approximately 13%
Second Quarter 2009 Results and Conference Call Scheduled for August
6, 2009
Celera Corporation (NASDAQ:CRA) today reported preliminary revenue
results for the quarter ended June 27, 2009. The Company announced that
it expects to report revenue for the second quarter of 2009 in the range
of $40 million to $42 million. The Company reported revenue of $42.8
million in the second quarter of 2008.
Second quarter 2009 revenues relative to the prior year quarter are
expected to show a reduction for the Company’s Lab Services business,
conducted by Berkeley HeartLab (BHL), mid-single digit percentage growth
for the Products business, and a decline in licensing revenue in the
Corporate segment.
Lab Services revenues were adversely affected by lower than anticipated
sample volume due to broad economic pressures, lost business as a result
of the Company’s efforts to collect aged receivables, and the denial of
reimbursement on a number of legacy BHL tests by certain payors in some
regions. Overall, reimbursement rates, reflecting the impact of denied
tests and historical collection activities, declined from both the
second quarter of 2008 and the first quarter of 2009. The reduction in
Corporate segment revenue in the second quarter of 2009 compared to the
prior year period was due to the completion of payments by one licensee,
which was anticipated, as well as reduced royalty revenue received from
another licensee.
Celera also announced it is implementing an immediate restructuring
program, which includes the elimination of approximately 80 full-time
positions nationally, or 13% of the workforce. This includes a reduction
and redeployment of resources at BHL, which is expected to provide a
more efficient disease management model focused on web and telephone
support. The Company expects to incur a charge in connection with the
restructuring in the third quarter of 2009.
"We believe these restructuring actions allow us to optimize our
organization to best take advantage of future opportunities for growth
while addressing current business conditions and reducing costs,” said
Kathy Ordoñez, Chief Executive Officer of Celera. “We are increasing
resources dedicated to supporting the adoption of our differentiated,
high value proprietary genetic tests, such as KIF6, that we
believe present large market opportunities. Our pilot market for the
StatinCheck version of KIF6 has helped us identify what we
believe to be promising opportunities to work with other companies to
complement our internal efforts to drive adoption and incorporation of
our genetic testing into routine clinical care. We also expect to
increase our genetic test menu through the launch of LPA testing
at BHL during the fourth quarter.”
Celera expects to record significant charges in the second quarter of
2009 for bad debt expense and impairment of goodwill and intangible
assets. Celera expects to have 2009 revenues significantly below its
present guidance for the year and hereby withdraws its 2009 guidance.
