Full Press Release Details
Genetics Corporation
GENETICS REPORTS FOURTH QUARTER AND
2006 FINANCIAL RESULTS
Company reports $4.0 million in revenue for Q406, a 106% increase over the
quarter a year ago and resulting in a net profit of $0.08 per share
WA - March 29, 2006 -
Genetics Corporation (NASDAQ: TGEN) today announced its financial results for
the fourth quarter and year ended December 31, 2006. As
previously announced, the Company will hold a conference call with analysts
investors to discuss its financial and business results at 9:00 a.m. ET today.
The call will be broadcast live over the Internet and can be accessed, along
with replay information, at www.targetedgenetics.com.
begun 2007 with a great deal of momentum as we continue to focus on achieving
important clinical, business development and financial management milestones
execute our strategic plan for the year,"
H. Stewart Parker, president and chief executive officer of Targeted
quarter ended December 31, 2006, the Company reported net income of $808,000,
$0.08 per common share, compared to a net loss of $3.6 million, or a loss of
$0.41 per common share, for the fourth quarter of 2005. For the year ended
December 31, 2006, the Company reported a net loss of $34.0 million, or $3.47
per common share, compared to a loss of $19.2 million, or $2.24 per common
share, for the same period in 2005.
for the fourth quarter ended December 31, 2006 was $4.0 million, compared to
$1.9 million for the fourth quarter of 2005. Revenue for the year ended December
31, 2006 was $9.9 million, compared to $6.9 million for the year ended December
in 2006 consists primarily of development revenue earned under the Company's
congestive heart failure collaboration agreement with Celladon Corporation,
HIV/AIDS vaccine collaborations with the International AIDS Vaccine Initiative
(IAVI) and an NIAID-funded subcontract with CCRI and CHOP. Revenue in 2005
primarily consisted of development revenue earned under the IAVI collaboration.
expenses of $5.8 million for the fourth quarter of 2006 were relatively flat
compared to $5.7 million for the fourth quarter of 2005. Operating expenses
the year ended December 31, 2006 increased to $46.6 million, from $26.2 million
in 2005. Results for 2006 include a non-cash goodwill impairment charge of
million recorded in the second quarter.
Genetics Q4 and Year-end 2006 Earnings Release
and development expense for the fourth quarter ended December 31, 2006 decreased
to $4.0 million, from $4.2 million in the fourth quarter of 2005 and was $14.5
million for the year ended December 31, 2006, compared to $18.2 million in
The decrease in R&D expense was primarily due to lower product development
cost related to HIV/AIDS vaccine collaboration with IAVI, and lower indirect
costs as a result of a restructuring in January 2006. General and administrative
expenses increased to $1.6 million in the fourth quarter of 2006, compared
$1.3 million in the fourth quarter of 2005 primarily due to higher patent costs
and the recognition of stock-based compensation. G&A expenses were
consistent year to year at $6.4 million for the year ended December 31, 2006,
compared to $6.3 million for the year ended December 31, 2005.
Company began 2006 with $14.1 million in cash and cash equivalents. In January
2006, the Company restructured operations to reduce expenses and extend its
horizon. As of December 31, 2006, cash and cash equivalents were $6.2 million.
Subsequently, the Company received $8.1 million in net proceeds in a January
2007 private placement of common stock and warrants to purchase common stock.
continues, "We made significant progress in 2006 and achieved numerous important
milestones. We advanced our clinical programs in inflammatory arthritis and
HIV/AIDS, extended and leveraged our patent portfolio, significantly reduced
operating expenses, restructured debt and raised additional
after accomplishing these numerous and positive objectives, we ended 2006 with
slightly less than one year of unencumbered cash, which prompted our auditors,
in the context of their yearly fiscal review, to issue a going concern
qualification in their audit letter. However, we believe that this does not
away from an extremely successful year and, in several ways, particularly from
debt perspective and from an institutional ownership perspective, we are
stronger financially than we were this time last year," said Parker. "We have a
focused strategic plan in place to move our programs ahead clinically, exploit
our intellectual property through new licenses and partnerships, and manage
current resources effectively in order to be able to capitalize financially
new data to be generated in 2007, especially related to our arthritis program."
Genetics Q4 and Year-end 2006 Earnings Release
Genetics' Focus in 2007:
financial statements for the fiscal year ended December 31, 2006, included
the Company's Annual Report on Form 10-K, contain a going concern qualification
from the Company's independent registered public accounting firm, Ernst &
Young LLP. This statement is made in compliance with Nasdaq Marketplace Rule
4350(b)(1)(B), which requires disclosure of receipt of an audit opinion that
contains a going concern qualification.
Call and Webcast Information
Company will host a conference call reviewing financial results and its product
portfolio, including an update on the development of its inflammatory arthritis
and other clinical and business developments, today beginning at 9:00 a.m.
You may access the live webcast via the "Events" section of the Company's
website at www.targetedgenetics.com or via telephone at 800.257.3401
(domestic) or 303.262.2125
replay will be available for approximately 90 days at www.targetedgenetics.com;
telephone replay will be available following today's call at 12:00 p.m. ET
through 11:59 p.m. ET, Sunday,
April 29, 2007, by calling 800-405-2236 (domestic) or 303-590-3000
(international); passcode 11087268#.
Genetics Q4 and Year-end 2006 Earnings Release
Genetics Corporation is a biotechnology company committed to the development
innovative targeted molecular therapies for the prevention and treatment of
acquired and inherited diseases with significant unmet medical need. Targeted
Genetics' proprietary Adeno-Associated Virus (AAV) technology platform allows it
to deliver genes that encode proteins to increase gene function or RNAi to
decrease or silence gene function. Targeted Genetics' product development
efforts target inflammatory arthritis, AIDS prophylaxis, congestive heart
failure and Huntington's disease. To learn more about Targeted Genetics, visit
Targeted Genetics' website at www.targetedgenetics.com.
Harbor Statement under the Private Securities Litigation Reform Act of
release contains forward-looking statements regarding the Company's
achievements, the Company's business strategy and product development, the