FREMONT, Calif., May 19 /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 important developments and corporate milestones achieved since the completion of the year ended December 31, 2007, and provided a summary of its reported financial results for the first quarter ended March 31, 2008.
During the first quarter of 2008, the company achieved the following milestones:
"Since the beginning of 2008, WaferGen has completed development of our alpha version SmartChip, signed multiple agreements to broaden distribution of our SmartSlide product, initiated a new manufacturing, research and development alliance in Malaysia, and enhanced our product line through the launch of the SmartSlide 200," said Alnoor Shivji, WaferGen's chairman and chief executive officer. "This is an exciting time for the company and we look forward to building on this momentum throughout 2008."
Q1 2008 FINANCIAL RESULTS
At March 31, 2008, WaferGen had cash, cash equivalents and marketable securities of $3.2 million, compared to $5.2 million at December 31, 2007. This balance does not include the approximately $5.6 million in new financing secured subsequent to the quarter end.
WaferGen reported a net loss of $1.89 million, or ($0.08) per share, for the quarter ended March 31, 2008, compared to a net loss of $1.01 million, or ($0.28) per share, for the quarter ended March 31, 2007.
WaferGen's net revenue was $182,000 for the quarter ended March 31, 2008, compared to $60,500 for the quarter ended March 31, 2007, an increase of 200%. The increase in net revenue was primarily due to the signing of multiple distributorship agreements worldwide for the company's SmartSlide(TM) Micro- Incubation System.
Research and development expense was $952,000 for the quarter ended March 31, 2008, compared to $400,000 for the quarter ended March 31, 2007, an increase of 138%. This increase was primarily due to expenses associated with headcount, salaries and wages, development supplies, parts, labor and procurement of lab equipment.
Sales and marketing expense was $385,000 for the quarter ended March 31, 2008, compared to $152,000 for the quarter ended March 31, 2007, an increase of 153%. This increase was primarily due to expenses associated with headcount, salaries and wages, various marketing programs, and other costs to support the growth of our business.
General and administrative expense was $689,000 for the quarter ended March 31, 2008, compared to $425,000 for the quarter ended March 31, 2007, an increase of 62%. This increase was due to expenses associated with salaries and wages, stock options, and legal and professional fees relating to regulatory filings and other requirements of being a public company.
2008 GOALS
During the balance of 2008, WaferGen will continue to work toward the creation of corporate and shareholder value through the achievement of key milestones. In the near term, one such achievement will be the delivery of the SmartChip(TM) Real-Time PCR System to the University of Pittsburg Medical School for alpha testing during the second quarter of 2008. For the remainder of 2008, additional milestones will include:
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any of securities referenced herein, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The securities being offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933, as amended.
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, Memorial Sloan-Kettering Cancer Center, 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 expected benefits to the company of the opening of the new facility in Malaysia, the expected benefits to the company of the company's distribution agreements, the anticipated closing of the company's two financings, the goals of the company for 2008 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) conditions to the closing of the financings may not be satisfied; (ii) the financings may involve unexpected costs, unexpected liabilities or unexpected delays; (iii) the company may be unsuccessful in commercially developing its products or in achieving market acceptance of new and relatively unproven technologies; (iv) 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; (v) the company's proprietary intellectual property rights may not adequately protect its products and technologies; and (vi) 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 November 13, 2007. 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//
