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Product Revenue Jumps 47% From Q2 2009
CONCORD, Calif.--(BUSINESS WIRE)--
Cerus Corporation (NASDAQ:CERS) today announced financial results for
the second quarter ended June 30, 2010.
Revenue for the second quarter of 2010 was $5.9 million, up from $4.2
million recognized during the second quarter of 2009. Total revenue for
the first six months of 2010 was $11.7 million, up from $7.7 million
recognized during the first six months of 2009. The increase in revenue
for the second quarter and first six months of 2010 was due to growth
from product sales of the INTERCEPT Blood System. Product revenue for
the INTERCEPT Blood System was $5.7 million during the second quarter of
2010, representing an increase of $1.8 million, or 47%, from the second
quarter of 2009. Despite average foreign exchange rate erosion of 8%
between the U.S. dollar and the Euro, product revenue grew by 4% from
the first quarter of 2010. Product revenue for the first six months of
2010 was $11.2 million, up from $7.0 million during the first six months
of 2009. Government grant revenue recognized during the second quarter
of 2010 was $0.2 million, compared to $0.3 million recognized during the
second quarter of 2009. Government grant revenue for the first six
months of 2010 was $0.5 million, down from $0.7 million in government
grant revenue recognized during the first six months of 2009.
Gross margins for the second quarter of 2010 were 51% compared to gross
margins of 40% for the second quarter of 2009. Gross margins for the
first six months of 2010 were 48% compared to 40% for the same period in
2009. The improvement in 2010 gross margins is attributable to lower
per-unit costs of INTERCEPT Blood System product sold in 2010 compared
to 2009.
Total operating expenses for the second quarter of 2010 were $6.5
million, down from $7.2 million for the same period in 2009. The
decrease in operating expenses reflects the full effect of the Company's
2009 restructuring plans announced in March 2009. Operating expenses for
the first six months of 2010 were $13.1 million, down from $16.0 million
during the same period in 2009.
Net loss for the second quarter of 2010 was $5.4 million, or $0.14 per
share, compared to a net loss of $6.2 million, or $0.19 per share, for
the second quarter of 2009. Net loss for the first six months of 2010
was $10.4 million, or $0.27 per share, compared to a net loss of $13.6
million, or $0.42 per share, for the same period in 2009.
At June 30, 2010, the Company had cash, cash equivalents and short-term
investments of $15.9 million, down from $19.9 million at December 31,
2009 and $19.0 million at March 31, 2010, resulting in net cash
consumption of $3.1 million for the second quarter. During the first
quarter of 2010, the Company entered into a $10 million growth capital
facility and drew the first $5 million from that facility. The second $5
million may be drawn down between September 30 and December 31, 2010, at
the Company's option.
"A fifth straight quarter of record product revenues reflects the
increasing familiarity of the INTERCEPT product in both routine use and
clinical experience. Our technology is now available to more and more
patients," said Claes Glassell, president and chief executive officer of
Cerus Corporation. "Despite the difficult global economic environment
and weakening of the Euro, we continue to add new customers and see
strong demand for improved blood safety."
RECENT HIGHLIGHTS:
-- Five straight quarters of revenue growth - Achieved 47% year over year
growth in sales of INTERCEPT;
-- Improved gross margins to 51% and maintained historically low operating
expense levels;
-- Announced INTERCEPT efficacy against XMRV, a retrovirus gaining
widespread attention; and
-- Announced results of 22 abstracts presenting experiences with the
INTERCEPT Blood System during the XXXIst International Congress of the
International Society for Blood Transfusion in Berlin, Germany.
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 300291. The replay will be available
approximately two hours after the call through August 6, 2010.
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.
CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION
(In thousands except per share information)
Three Months Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
Revenue
Product revenue $ 5,690 $ 3,871 $ 11,190 $ 6,956
Government grant and 245 335 467 738
cooperative agreements
Total Revenue 5,935 4,206 11,657 7,694
Cost of product revenue 2,934 2,520 6,092 4,614
Gross profit 3,001 1,686 5,565 3,080
Operating expenses
Research and development 1,244 1,625 2,494 3,637
Selling, general and 5,304 5,409 10,575 11,510
administrative
Restructuring -- 129 -- 841
Total operating expenses 6,548 7,163 13,069 15,988
Loss from operations (3,547 ) (5,477 ) (7,504 ) (12,908 )
Other expense, net (1,880 ) (735 ) (2,945 ) (701 )
Net loss $ (5,427 ) $ (6,212 ) $ (10,449 ) $ (13,609 )
Net loss per share - basic and $ (0.14 ) $ (0.19 ) $ (0.27 ) $ (0.42 )
diluted
Weighted average common shares
outstanding used for basic and
diluted loss per share
Basic 38,940 32,650 38,880 32,620
Diluted 38,940 32,650 38,880 32,620
Cerus Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)
June 30, December 31,
2010 2009
Cash, cash equivalents, and short-term investments $ 15,864 $ 19,931
Accounts receivable and other current assets 4,770 4,721
Inventories 6,267 7,707
Property and equipment, net 1,691 1,217
Other assets 1,300 915
Total Assets $ 29,892 $ 34,491
Accounts payable and accrued liabilities $ 7,669 $ 9,718
Accrued restructuring -- 113
Deferred revenue 212 345
Long-term debt, current 797 --
Warrant liability 4,352 2,737
Long-term debt, non-current 4,036 --
Other long-term liabilities 748 130
Total liabilities 17,814 13,043
Stockholders' equity 12,078 21,448
Total liabilities and stockholders' equity $ 29,892 $ 34,491
Source: Cerus Corporation