MADISON, Wis., April 25 /PRNewswire-FirstCall/ -- Third Wave Technologies Inc. today reported financial results for the first quarter ended March 31, 2006.
Third Wave reported total revenues of $7.9 million and a net loss of $4.4 million, or ($0.11) a diluted share, for the quarter ended March 31, 2006. This compares to total revenues of $7.1 million and a net loss of $4.4 million, or ($0.11) a diluted share, for the same period of 2005. However, had stock compensation costs for the first quarter of 2005 been determined as if the provisions of FAS No. 123(R) were adopted, the company’s pro forma net loss for that quarter would have been $5.9 million, or ($0.14) a diluted share.
The company reported clinical molecular diagnostic revenue of $4.7 million for the first quarter of 2006, compared to $4.3 million and $3.1 million for the previous quarter and prior-year quarter, respectively. The company’s first-quarter clinical molecular diagnostic revenue included $4.4 million in U.S. revenue. The company also reported $3.0 million in research revenue, which includes a growing contribution from its Agbio business.
Third Wave reported gross margins of 73% for the quarter ended March 31, 2006, compared to 72% for the same period of 2005. Total operating expenses were $12.6 million for the first quarter, compared to $11.6 million for the same period of 2005. The company’s pro forma total operating expenses for the first quarter of 2005, which includes stock compensation costs determined as if the provisions of FAS No. 123(R) had been adopted, were $13.1 million. The company resolved all but one of its outstanding patent lawsuits during the first quarter of 2006 and its first-quarter operating expenses included $1.0 million in litigation expense, as a result.
The company ended the first quarter of 2006 with cash, cash equivalents and short-term investments of $35.6 million, compared to $38.7 million at Dec. 31, 2005.
“We are very pleased with the progress Third Wave made during the first quarter and the growth of our clinical molecular diagnostic revenue, in particular,” said Kevin T. Conroy, president and chief executive officer of Third Wave. “We are working hard to meet or exceed our 2006 goals. We are continuing to drive revenue growth from our current product menu, while investing in the development of high-value products that will drive the future growth of the company and value creation for our shareholders.”
Conference Call & Webcast
Company management will host a conference call on Tuesday, April 25, 2006, at 10 a.m. EDT to discuss first-quarter results and ongoing corporate activities. Domestic callers should dial (800) 599-9795 and international callers should dial (617) 786-2905. The access code for both domestic and international callers is 35772390. Please dial in five to 10 minutes prior to the start of conference call. A live webcast and a replay of the conference call will be available at http://www.twt.com. The conference call, webcast and replay are open to all interested parties.
About Third Wave Technologies
Third Wave develops and markets molecular diagnostic reagents for a variety of DNA and RNA analysis applications to meet the needs of our customers. The company offers a number of products based on its Invader(R) chemistry for clinical testing. Third Wave offers in vitro diagnostic kits, and analyte specific, general purpose, and research use only reagents for nucleic acid analysis. For more information about Third Wave and its products, please visit the company’s website at http://www.twt.com.
All statements in this news release that are not historical are forward- looking statements within the meaning of the Securities Exchange Act of 1934 as amended. Such forward-looking statements are subject to factors that could cause actual results to differ materially for Third Wave from those projected. Those factors include risks and uncertainties relating to the company’s ability to bring new products to market as anticipated, the current regulatory environment in which the company sells its products, the market acceptance of those products, dependence on partners and customers, successful performance under collaborative and commercial agreements, competition, the strength of the Third Wave intellectual property, the intellectual property of others and other risk factors identified in the documents Third Wave has filed, or will file, with the Securities and Exchange Commission. Copies of the Third Wave filings with the SEC may be obtained from the SEC Internet site at http://www.sec.gov. Third Wave expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward- looking statements contained herein to reflect any change in Third Wave’s expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based. Third Wave Technologies, Invader and the Third Wave logo are trademarks of Third Wave Technologies, Inc.
Third Wave Technologies, Inc Statement of Operations (In thousands, except for per share amounts) (Unaudited) Three Months Ended March 31, 2006 2005 2005 Pro-forma Revenues: Clinical Product $4,710 $3,102 $3,102 Research Product 2,996 3,812 3,812 License & royalty 27 93 93 Grant 142 119 119 7,875 7,126 7,126 Operating expenses: Cost of goods sold Product cost of goods sold 1,470 1,539 1,578 Intangible and long-term asset amortization 693 461 461 Total cost of goods sold 2,163 2,000 2,039 Research and development 2,302 2,465 2,857 Selling and marketing 3,029 3,365 3,696 General and administrative 4,061 3,013 3,729 Litigation 1,002 766 766 10,394 9,609 11,048 Total operating expenses 12,557 11,609 13,087 Loss from operations (4,682) (4,483) (5,961) Other income (expense): Interest income 373 347 347 Interest expense (55) (89) (89) Other (19) (196) (196) 299 62 62 Net loss ($4,383) ($4,421) ($5,899) Net loss per diluted share ($0.11) ($0.11) ($0.14) Weighted average diluted shares outstanding 41,311 41,124 41,124 Third Wave Technologies, Inc Balance Sheets (Unaudited) March 31, December 31, 2006 2005 Assets: Cash, cash equivalents, and short-term investments $35,601 $38,717 Other current assets 7,746 6,249 Equipment and leasehold improvements, net 4,503 4,717 Intangible assets, net of amortization 2,266 2,642 Goodwill and indefinite lived intangible assets 1,497 1,497 Other assets 4,505 4,583 Total assets $56,118 $58,405 Liabilities and shareholders’ equity Accounts payable, accrued expenses and other liabilities $17,756 $16,739 Deferred revenue 243 267 Debt 1,221 1,325 Shareholders’ equity 36,898 40,074 Total liabilities and shareholders’ equity $56,118 $58,405
Third Wave Technologies Inc.
CONTACT: Rod Hise of Third Wave Technologies, +1-608-663-4010
Web site: http://www.twt.com/
