FREMONT, Calif., Aug. 13 /PRNewswire-FirstCall/ -- WaferGen Biosystems, Inc. , a leading developer of state-of-the-art gene expression, genotyping, cell biology and stem cell research systems, today highlighted the company's recent developments and milestones and announced financial results for the quarter and six months ended June 30, 2008.
"During the second quarter of this year, we made significant progress in the development of our SmartChip Real-Time PCR System as evidenced by the initiation of alpha testing by Dr. Steven Shapiro and his team at the University of Pittsburgh Medical School," stated Alnoor Shivji, WaferGen's chairman and chief executive officer. "We look forward to working closely with Dr. Shapiro through the alpha testing process, and expect to announce results in the second half of this year."
Second Quarter and Six Month 2008 Financial Results
At June 30, 2008, WaferGen had cash, cash equivalents and marketable securities of $4.3 million, compared to $5.2 million at December 31, 2007. This balance includes the approximately $3.6 million in new financing secured during the quarter.
WaferGen's net revenues were $177,000 for the quarter ended June 30, 2008, compared to $300 for the quarter ended June 30, 2007. For the six months ended June 30, 2008, net revenues were $358,000, compared to $61,000 for the six months ended June 30, 2007. For the quarter and six-month periods, the increases resulted primarily from WaferGen's signing of multiple international SmartSlide distributorships and the expansion of its internal sales team.
Research and development expenses totaled $1.3 million for the quarter ended June 30, 2008, compared to $362,000 for the quarter ended June 30, 2007. Research and development expenses totaled $2.3 million for the six months ended June 30, 2008, compared to $762,000 for the same period of 2007. For the quarter and six-month periods, the increases resulted primarily from an increase in headcount, an increase in research and development materials and supplies used for product development and testing, the company's move to a new facility and associated expenses, and an increase in stock-based compensation associated with the issuance of stock options.
Sales and marketing expenses totaled $296,000 for the quarter ended June 30, 2008, compared to $138,000 for the quarter ended June 30, 2007. Sales and marketing expenses totaled $681,000 for the six months ended June 30, 2008 compared to $290,000 for the six months ended June 30, 2007. For the quarter and the six-month periods, the increases resulted primarily from an increase in stock-based compensation associated with the issuance of stock options, and additional expenses incurred as a result of an increased headcount.
General and administrative expenses totaled $634,000 for the quarter ended June 30, 2008, compared to $384,000 for the quarter ended June 30, 2007. For the six months ended June 30, 2008, general and administrative expenses totaled $1.3 million, compared to $809,000 for the six month period ended June 30, 2007. For the quarter and six-month periods, the increases resulted primarily from an increase in stock-based compensation associated with the issuance of restricted common stock and stock options, additional expenses incurred as a result of an increased headcount, and legal and professional fees.
WaferGen reported a net loss applicable to common stockholders of $2.1 million, or ($0.09) per share, for the quarter ended June 30, 2008, compared to a net loss applicable to common stockholders of $1.0 million, or ($0.10) per share, for the quarter ended June 30, 2007. For the six months ended June 30, 2008, WaferGen reported a net loss applicable to common stockholders of $4.0 million, or ($0.17) per share, compared to a net loss applicable to common stockholders of $2.0 million, or ($0.30) per share in the same period of 2007.
Goals for 2008
During the balance of 2008, WaferGen will continue to work toward the creation of corporate and shareholder value through the achievement of key milestones, including:
About WaferGen
WaferGen Biosystems Inc. is a leader in the development, manufacture and sale of state-of-the-art systems for gene expression, genotyping, cell biology and stem cell research for the life science and pharmaceutical industries. The company is actively developing its SmartChip(TM) product for the gene expression and genotyping markets. SmartChip(TM) is being developed as the first whole genome, high throughput gene expression real-time polymerase chain reaction (PCR) platform and promises to deliver significant speed and cost advantages to researchers in the gene expression and genotyping markets. WaferGen currently markets its SmartSlide(TM) family of products to companies and organizations involved in stem cell and cell biology research. SmartSlide(TM), which was launched in 2006, represents the first fluidics integrated micro-incubators enabling cell biology and stem cell research. Representative SmartSlide(TM) customers include Harvard University, Mayo Clinic, California Institute of Technology (CalTech), Abbott Labs, and the National Institutes of Health (NIH).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements include statements relating to the company's goals in 2008, the intended use of any proceeds received in the company's financings, the expected timing of any announcement of the results of the alpha testing with Dr. Shapiro and the University of Pittsburg Medical School, and other statements that are not historical facts, including statements which may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. For such statements, the company claims the protection of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the control of the company. Actual results may differ materially from the expectations contained in the forward-looking statements. Factors that may cause such differences include the risks that: (i) the company may be unsuccessful in commercially developing its products or in achieving market acceptance of new and relatively unproven technologies; (ii) the company will need to raise additional capital to meet its business requirements in the future and the company may not be able to do so on reasonable terms or at all; (iii) the company's proprietary intellectual property rights may not adequately protect its products and technologies; and (iv) the company expects intense competition in its target markets, including from companies that have much greater resources than the company, and there can be no assurance that the company will be able to compete effectively. More detailed information about the company and the risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission, including the company's Quarterly Report on Form 10-Q filed with the SEC on May 15,2008. Investors and security holders are urged to read this document free of charge on the SEC's web site at http://www.sec.gov. The company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
CONTACT: investors, Stephanie Diaz, +1-415-675-7400,
sdiaz@vidacommunication.com, or media, Tim Brons, +1-415-675-7402,
tbrons@vidacommunication.com, both of Vida Communication, for WaferGen
Biosystems, Inc.
Web site: http://www.wafergen.com/
