PALO ALTO, Calif., July 28 /PRNewswire-FirstCall/ -- IntraBiotics Pharmaceuticals, Inc. today reported financial results for the second quarter and first half ended June 30, 2006.
IntraBiotics reported a net loss applicable to common stockholders of $37,000, or $0.00 per basic and diluted share, for the second quarter of 2006, and $247,000, or $0.03 per basic and diluted share, for the first half of 2006. The results for the quarter and half include respective non-cash charges of $125,000 ($0.01 per share) and $257,000 ($0.03 per share) for stock compensation expense to comply with SFAS 123R, accounting for stock compensation for employees and directors. These stock compensation charges reflect a valuation for each option share of approximately $3.75.
The Company’s cash, cash equivalents, and short-term investments on June 30, 2006 were $48.4 million, a decrease of $430,000 from December of 2005. The decrease was the result of timing differences in collecting interest receivable on short term investments because of a shift from discount securities to coupon bearing securities, many of which mature and are payable in July and August of 2006. Adjusting for these timing differences, cash equivalents and short term investments would actually have increased by $100,000 from December of 2005. Recorded liabilities were $0.2 million. Based on current projections, the Company expects cash, cash equivalents and short- term investments on December 31, 2006 to be between $47.8 and $48.8 million. This estimate does not include any costs that may be associated with completing a merger, acquisition, in licensing of a product candidate, liquidation of the Company, or costs associated with pending litigation. There can be no assurance that such a range will be achieved, as actual expenditures and interest income may differ significantly from projected levels.
Approximately 10.9 million common equivalent shares were issued and outstanding on June 30, 2006, including 1.6 million shares underlying outstanding convertible preferred stock. Assuming the net exercise of in-the-money warrants and options at the closing price of the Company’s stock as quoted on the Pink Sheets as of June 30, 2006, approximately 11.5 million common equivalent shares would be outstanding on June 30, 2006.
Certain of the foregoing statements, including statements regarding the Company’s cash position on December 31, 2006 are forward-looking statements. Actual results could differ materially, depending on a variety of factors, including costs associated with pursuing various strategic alternatives, pending litigation and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Moreover, the enumeration of potential strategic alternatives in this release does not mean that the Company will be able to achieve any of them successfully. These forward-looking statements speak only as of the date hereof and the Company disclaims any intent or obligation to update them.
IntraBiotics Pharmaceuticals, Inc. Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2006 2005 2006 2005 Operating expenses: Research and development $-- $59 $7 $248 General and administrative 554 851 1,214 2,045 Restructuring charge -- 675 -- 675 Total operating expenses 554 1,585 1,221 2,968 Operating loss (554) (1,585) (1,221) (2,968) Other income (expense) -- -- (1) -- Interest income 577 339 1,095 648 Net income (loss) 23 (1,246) (127) (2,320) Non-cash dividends on Series A preferred stock (60) (60) (120) (120) Net loss applicable to common stockholders $(37) $(1,306) $(247) $(2,440) Basic and diluted net loss per share applicable to common stockholders $(0.00) $(0.14) $(0.03) $(0.27) Shares used to compute basic and diluted net loss per share applicable to common stockholders 9,315 9,089 9,307 9,040 Condensed Balance Sheet Data (In thousands) (Unaudited) June 30, December 31, 2006 2005 Cash, cash equivalents and short-term investments $48,400 $48,830 Total assets $49,147 $49,171 Total stockholders’ equity $48,971 $48,820
IntraBiotics Pharmaceuticals, Inc.
CONTACT: Denis Hickey of IntraBiotics Pharmaceuticals, Inc.,+1-925-906-5331
Web site: http://www.intrabiotics.com//
