MADISON, Wis., May 3 /PRNewswire-FirstCall/ -- Third Wave Technologies Inc. today announced its financial results for the quarter ended March 31, 2007.
Third Wave reported clinical molecular diagnostic revenue of $6.0 million for the first quarter of 2007, an increase of 27% from the same period of 2006. It was the sixth consecutive quarter of sequential growth in the company’s clinical revenue. Third Wave reported research revenue of $569,000 for the quarter ended March 31, 2007, generated primarily by its Agbio business. The first quarter of 2006 was the last in which the company received substantial Japanese research revenue. The company’s total revenue for the quarter ended March 31, 2007, was $6.7 million.
Third Wave reported net income of $4.8 million, or $0.11 per diluted share, for the first quarter of 2007. On a pro-forma basis, the company reported a net loss of $6.0 million, or ($0.14) a share, for the quarter. The company had a net loss of $4.4 million, or ($0.11) a share, for the same period of 2006. Third Wave’s pro-forma net loss for the first quarter of 2007 excludes a one-time, $10.75-million payment from Stratagene Corp. as part of the previously announced settlement of litigation by the two companies.
Third Wave reported gross margins of 70% for the quarter ended March 31, 2007, compared to gross margins of 73% and 69% for the prior-year quarter and previous quarter, respectively. The company anticipates that gross margins will grow to 74% or more during the second half of 2007. Total operating expenses for the first quarter of 2007 were $13.0 million, compared to $12.6 million for the same period of 2006.
Third Wave ended the first quarter of 2007 with cash, cash equivalents and short-term investments of $47.1 million, compared to $44.2 million at Dec. 31, 2006.
“Third Wave remains focused on its key priorities for 2007 and we demonstrated our continuing ability to execute on those objectives during the first quarter,” said Kevin T. Conroy, president and chief executive of Third Wave. “Clinical molecular diagnostic revenue continues to grow nicely, with an ongoing increase in our customer base. We continue to make a significant investment in the clinical trials for our HPV products, which can be seen in our research and development expenses for the quarter. The clinical trials continue to progress very well and we anticipate that the investment we are making in bringing these products to market will generate significant value for our shareholders.”
2007 Outlook Update
Third Wave reaffirms its previously announced guidance for 2007 of $26-28 million in clinical molecular diagnostic revenue and $31-33 million in total revenue.
Conference Call & Webcast with PowerPoint Presentation
Company management will host a conference call and webcast on Thursday, May 3, 2007, at 10 a.m. EDT to discuss first-quarter 2007 results. The webcast will include a PowerPoint slide presentation highlighting the company’s
first-quarter accomplishments and ongoing corporate activities. The webcast will be available at http://www.twt.com. Domestic callers should dial (800) 322-5044 and international callers should dial (617) 614-4927. The access code for both domestic and international callers is 93152815. Please dial in five to 10 minutes prior to the start of conference call. A replay of the conference call will be available at the company’s website. 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 technological approaches of Third Wave and its competitors, product development, manufacturing, market acceptance, cost and pricing of Third Wave products, dependence on collaborative partners and commercial 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 Statements of Operations (In thousands, except for per share amounts) (Unaudited) Three Months Ended March 31, 2007 2006 Revenues: Clinical Product $5,973 $4,710 Research Product 569 2,996 License & royalty 171 27 Grant 0 142 6,713 7,875 Operating expenses: Cost of goods sold Product cost of goods sold 1,312 1,470 Intangible and long-term asset amortization 705 693 Total cost of goods sold 2,017 2,163 Research and development 5,109 2,302 Selling and marketing 2,603 3,029 General and administrative 2,886 4,061 Litigation 406 1,002 11,004 10,394 Total operating expenses 13,021 12,557 Loss from operations (6,308) (4,682) Other income (expense): Interest income 531 373 Interest expense (301) (55) Other 10,748 (19) 10,978 299 Net income (loss) before taxes and minority interest $4,670 ($4,383) Minority interest in subsidiary 96 -- Net income (loss) $4,766 ($4,383) Net income (loss) per share, basic $0.11 ($0.11) Net income (loss) per share, diluted $0.11 ($0.11) Weighted average shares outstanding, basic 42,025 41,311 Weighted average shares outstanding, diluted 43,884 41,311 Third Wave Technologies, Inc Balance Sheets (In thousands) (Unaudited) March 31, December 31, 2007 2006 Assets: Cash, cash equivalents, and short-term investments $47,111 $44,199 Other current assets 9,675 8,734 Equipment and leasehold improvements, net 3,989 4,222 Intangible assets, net of amortization 1,735 2,136 Goodwill and indefinite lived intangible assets 490 490 Other assets 4,625 4,453 Total assets $67,625 $64,234 Liabilities and shareholders’ equity Accounts payable, accrued expenses and other liabilities $14,367 $17,177 Deferred revenue 0 145 Debt 15,865 15,774 Minority interest in subsidiary 373 465 Shareholders’ equity 37,020 30,673 Total liabilities and shareholders’ equity $67,625 $64,234 Third Wave Technologies, Inc Statements of Operations (In thousands, except for per share amounts) (Unaudited) Three Months Ended March 31, 2007 Adjust- 2007 Pro 2006 ments(1) forma(2) Revenues: Clinical Product $5,973 $0 $5,973 $4,710 Research Product 569 0 569 2,996 License & royalty 171 0 171 27 Grant 0 0 0 142 6,713 0 6,713 7,875 Operating expenses: Cost of goods sold Product cost of goods sold 1,312 0 1,312 1,470 Intangible and long-term asset amortization 705 0 705 693 Total cost of goods sold 2,017 0 2,017 2,163 Research and development 5,109 0 5,109 2,302 Selling and marketing 2,603 0 2,603 3,029 General and administrative 2,886 0 2,886 4,061 Litigation 406 0 406 1,002 11,004 0 11,004 10,394 Total operating expenses 13,021 0 13,021 12,557 Loss from operations (6,308) 0 (6,308) (4,682) Other income (expense): Interest income 531 0 531 373 Interest expense (301) 0 (301) (55) Other 10,748 (10,750) (2) (19) 10,978 (10,750) 228 299 Net income (loss) before taxes and minority interest $4,670 ($10,750) ($6,080) ($4,383) Minority interest in subsidiary 96 -- 96 -- Net income (loss) $4,766 ($10,750) ($5,984) ($4,383) Net income (loss) per share, basic $0.11 ($0.26) ($0.14) ($0.11) Net income (loss) per share, diluted $0.11 ($0.24) ($0.14) ($0.11) Weighted average shares outstanding, basic 42,025 42,025 42,025 41,311 Weighted average shares outstanding, diluted 43,884 43,884 42,025 41,311 (1) Represents amount received from Stratagene Corporation as part of the settlement of patent litigation (2) 2007 Pro-forma figures reflect the net loss that would have been recognized if the proceeds from the settlement of patent litigation had not been received. The Company presents these non-GAAP financial measures to provide comparability to 2006. Contact: Rod Hise The Luminis Group Ltd. for Third Wave Technologies Inc. 608 807-4607
Third Wave Technologies Inc.
CONTACT: Rod Hise of the Luminis Group Ltd., +1-608-807-4607, for ThirdWave Technologies Inc
Web site: http://www.twt.com/
