CONCORD, Calif.--(BUSINESS WIRE)--
Cerus Corporation (NASDAQ:CERS) today announced financial results for
the third quarter ended September 30, 2009.
Total revenue for the third quarter of 2009 was $4.8 million, up from
$3.9 million in revenue recognized during the third quarter of 2008.
Total revenue for the first nine months of 2009 was $12.5 million, down
from $12.9 million recognized during the first nine months of 2008, when
$1.5 million of previously deferred product revenue was recognized.
Product revenue for the INTERCEPT Blood System was $4.6 million during
the third quarter of 2009, representing an increase of $0.7 million, or
18%, from the second quarter of 2009. Third quarter 2009 product revenue
was up $1.5 million from $3.1 million recognized during the third
quarter of 2008. Product revenue for the first nine months of 2009 was
$11.5 million, down from $12.0 million during the first nine months of
2008, when the $1.5 million of previously deferred product revenue was
recognized.
Gross profit from product revenue for the third quarter of 2009 was $0.3
million, down from $1.2 million for the same period in 2008. Cost of
product revenue during the third quarter of 2009 included period costs
of $1.0 million, representing idle manufacturing facility costs
attributable to the Company's decision to reduce inventory levels.
Total operating expenses for the third quarter of 2009 were $6.6
million, down from $9.6 million for the same period in 2008. The
decrease in operating expenses was due to a reduction in research and
development expenses and selling, general and administrative expenses
associated with the Company's restructuring plans, which were previously
announced in March 2009. Operating expenses for the first nine months of
2009 were $22.6 million, down from $29.5 million during the same period
in 2008. The reduction in operating expenses was directly attributable
to the savings realized from the Company's restructuring plan, which
allowed the Company to focus its resources on commercializing the
INTERCEPT platelet and plasma systems in Europe, reduce operating
expenses, and tightly manage working capital.
Net loss for the third quarter of 2009 was $5.6 million, or $0.16 per
share, compared to a net loss of $7.8 million, or $0.24 per share, for
the third quarter of 2008. Net loss for the first nine months of 2009
was $19.2 million, or $0.58 per share, compared to a net loss of $22.7
million, or $0.70 per share for the same period in 2008.
At September 30, 2009, the Company had cash, cash equivalents and
short-term investments of $22.7 million, up from $22.6 million at
December 31, 2008. Cash, cash equivalents and short-term investments at
September 30, 2009 reflects the $12.2 million in net proceeds generated
from the Company's August 2009 registered direct public offering. Net
cash used for the Company's operations during the third quarter of 2009
was $2.4 million, which was in line with the net cash used during the
second quarter of 2009 and down by $4.8 million from the first quarter
of 2009. Close control of working capital, including management of
inventory levels and cash collections, contributed to the relatively low
net cash used in operating activities.
"We are pleased with the results of our concerted focus on growing sales
and minimizing cash consumption. Third quarter product revenue grew by
18% over the prior quarter and was driven largely by recurring sales of
INTERCEPT disposable kits," said Claes Glassell, President and Chief
Executive Officer of Cerus Corporation. "The proceeds from the recently
completed registered direct offering, combined with our focused approach
and financial discipline, have the Company well positioned to achieve
profitability with current capital resources."
RECENT HIGHLIGHTS:
-- Raised $12.2 million of net proceeds in a registered direct public
offering, providing the Company with a pathway towards profitability
with current capital resources;
-- Achieved 18% sequential growth in product revenue during the third
quarter of 2009;
-- Maintained low net cash consumption, down by more than 65% from the
first quarter of 2009;
-- Converted the Belgian Red Cross, Service Francophone du Sang to routine
use of the INTERCEPT Blood System for platelets;
-- Implemented INTERCEPT in two additional centers in France.
QUARTERLY CONFERENCE CALL
The Company will host a conference call and webcast at 4:15 p.m. Eastern
time today to discuss its financial results and provide a general
business overview. To access the live webcast, please visit the Investor
Relations page of the Cerus web site at http://cerus2013.q4web.com.
Alternatively, you may access the live conference call by dialing
877-407-0782 (U.S.) or 201-689-8567 (international).
A replay will be available on the Cerus web site, or by dialing
877-660-6853 (U.S.) or 201-612-7415 (international) and entering account
number 286 and conference ID number 300292. The replay will be available
approximately two hours after the call through November 6, 2009.
ABOUT CERUS
Cerus Corporation is a biomedical products company focused on
commercializing the INTERCEPT Blood System to enhance blood safety. The
INTERCEPT Blood System is designed to inactivate blood-borne pathogens
in donated blood components intended for transfusion. Cerus currently
markets the INTERCEPT Blood System for both platelets and plasma in
Europe, Russia, the Middle East and selected countries in other regions
around the world. The INTERCEPT red blood cell system is currently in
clinical development. See http://www.cerus.com
for more information.
INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus
Corporation.
Forward-Looking Statements
Except for the historical statements contained herein, this press
release contains forward-looking statements concerning the Company's
prospects and results, including the sufficiency of the Company's cash
resources, potential profitability, the Company's expectations with
respect to its continuing sales and marketing efforts and market
acceptance of its INTERCEPT Blood System products. Because the Company's
forward-looking statements are subject to risks and uncertainties, there
are important factors that could cause actual results to differ
materially from those in the forward-looking statements. These factors
include, without limitation, risks and uncertainties involving market
acceptance of the INTERCEPT Blood System and the Company's need for
additional capital, as well as the other risks and uncertainties
disclosed from time to time in reports filed by the Company with the
SEC, including the Company's quarterly report on Form 10-Q for the
fiscal quarter ended June 30, 2009, filed with the SEC on August 10,
2009. The Company disclaims any obligation or undertaking to update or
revise any forward-looking statements contained in this press release.
CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION
(In thousands except per share information)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenue
Product revenue $ 4,567 $ 3,095 $ 11,523 $ 11,977
Government grant and 247 787 985 904
cooperative agreements
Total Revenue 4,814 3,882 12,508 12,881
Cost of product revenue 4,242 1,913 8,856 6,704
Gross profit 572 1,969 3,652 6,177
Operating expenses
Research and development 1,230 2,483 4,867 7,937
Selling, general and 5,340 7,067 16,850 21,607
administrative
Restructuring 15 -- 856 --
Total operating expenses 6,585 9,550 22,573 29,544
Loss from operations (6,013 ) (7,581 ) (18,921 ) (23,367 )
Interest and other income 376 (199 ) (325 ) 700
(expense), net
Net loss $ (5,637 ) $ (7,780 ) $ (19,246 ) $ (22,667 )
Net loss per share - basic and $ (0.16 ) $ (0.24 ) $ (0.58 ) $ (0.70 )
diluted
Weighted average common shares
outstanding used for basic and
diluted loss per share
Basic 35,000 32,530 33,420 32,400
Diluted 35,000 32,530 33,420 32,400
Cerus Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)
September 30, December 31,
2009 2008
Cash, cash equivalents, and short-term investments $ 22,660 $ 22,578
Accounts receivable and other current assets 7,301 8,356
Inventories 8,354 11,109
Property and equipment, net 1,352 1,844
Other assets 3,360 3,452
Total Assets $ 43,027 $ 47,339
Accounts payable and accrued liabilities $ 13,745 $ 12,453
Accrued restructuring 209 --
Warrant liability 2,800 --
Deferred revenue 303 445
Other long-term liabilities 148 163
Total liabilities 17,205 13,061
Stockholders' equity 25,822 34,278
Total liabilities and stockholders' equity $ 43,027 $ 47,339
Source: Cerus Corporation