PALO ALTO, Calif.--(BUSINESS WIRE)--StemCells, Inc. (NASDAQ: STEM) today reported its financial results for the first quarter of 2007. The Company reported a net loss of $4,620,000, or $0.06 per share, for the first quarter ended March 31, 2007, compared to a net loss of $4,193,000, or $0.06 per share, for the first quarter of 2006. The increase in net loss from 2006 to 2007 was primarily attributable to an increase in operating expenses due to the expansion of the Company’s cell manufacturing, process development and clinical operations. The increase in expenses was partially offset by an increase in other income primarily attributable to a realized gain of $718,000 from the sale of approximately 5.3 million shares of common stock of ReNeuron Group plc (“ReNeuron”) held as marketable securities, $550,000 in other income recognized upon the receipt of additional ReNeuron shares in connection with a license and settlement agreement, and higher interest income attributable to a higher average cash balance and higher yield on investments in 2007. Net cash used in operating activities for the first quarter in 2007 was $5,252,000, compared with $4,263,000 for the same quarter in 2006. Cash and cash equivalents were $50,922,000 at March 31, 2007, compared with $30,876,000 at March 31, 2006.
