PALO ALTO, Calif.--(BUSINESS WIRE)--Aug. 1, 2006--StemCells, Inc. (NASDAQ: STEM) today reported its financial results for the second quarter ended June 30, 2006. The Company reported a net loss of $3,989,000, or $0.05 per share, for the second quarter ended June 30, 2006, compared to a net loss of $3,868,000, or $0.06 per share, for the second quarter ended June 30, 2005. The increase in net loss from 2005 to 2006 was due to an increase in operating expenses primarily attributable to the expansion of the Company’s operations in cell processing and clinical development. The increase in operating expenses was partially offset by an increase in interest income attributable to a higher average cash balance and higher yield on investments in 2006.
