CONCORD, Calif.--(BUSINESS WIRE)--
Cerus Corporation (NASDAQ:CERS) today announced financial results for
the third quarter ended September 30, 2010.
Revenue for the third quarter of 2010 was $5.0 million, up from $4.8
million recognized during the third quarter of 2009. Total revenue for
the first nine months of 2010 was $16.6 million, up from $12.5 million
recognized during the first nine months of 2009. Product revenue for the
INTERCEPT Blood System was $4.5 million during the third quarter of 2010
compared to $4.6 million during the third quarter of 2009. Product
revenue for the first nine months of 2010 was $15.7 million, up from
$11.5 million during the first nine months of 2009. Government grant
revenue recognized during the third quarter of 2010 was $0.5 million,
compared to $0.2 million recognized during the third quarter of 2009.
Government grant revenue for the first nine months of 2010 was $0.9
million, down from $1.0 million in government grant revenue recognized
during the first nine months of 2009.
"We've continued to see growing demand for the INTERCEPT Blood System.
Our reported revenue of $5.0 million understates the true level of
demand, since it does not include approximately $1.6 million in late
September orders that we expect will largely be recorded as Q4 revenue,"
said Claes Glassell, President and Chief Executive Officer of Cerus
Corporation. "As a result of the demand for the INTERCEPT Blood System,
we currently anticipate 2010 total revenue growth of approximately 35%
to 40% over 2009."
Gross margins for the third quarter of 2010 were 53%, compared to 12%
for the third quarter of 2009. Gross margins for the first nine months
of 2010 were 49%, compared to 29% 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 third quarter of 2010 were $6.4
million, down from $6.6 million for the same period in 2009. Operating
expenses for the first nine months of 2010 were $19.4 million, down from
$22.6 million during the same period in 2009.
Net loss for the third quarter of 2010 was $3.8 million, or $0.10 per
share, compared to a net loss of $5.6 million, or $0.16 per share, for
the third quarter of 2009. Net loss for the first nine months of 2010
was $14.3 million, or $0.37 per share, compared to a net loss of $19.2
million, or $0.58 per share, for the same period in 2009. During 2010,
non-cash charges for changes in the valuation of warrants contributed
$0.7 million and $2.3 million to net loss for the third quarter and nine
months ended September 30, 2010, respectively.
At September 30, 2010, the Company had cash, cash equivalents and
short-term investments of $13.2 million, down from $19.9 million at
December 31, 2009 and $15.9 million at June 30, 2010, resulting in net
cash consumption of $2.7 million for the third 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 at any time prior to December 31, 2010, at the
Company's option.
RECENT HIGHLIGHTS:
-- Continued demand growth for INTERCEPT;
-- Improved gross margins to 53% and maintained historically low operating
expense levels;
-- Regained INTERCEPT platelet and plasma rights in Asia from BioOne;
-- Signed distribution agreement with CSL for INTERCEPT platelets in
Australia and New Zealand;
-- Reported positive clinical data from studies of INTERCEPT platelets
performed in France and Switzerland;
-- Presented successful inactivation of XMRV in platelets and red blood
cells at the 1st International Workshop on XMRV;
-- Received U.S. Department of Defense award for $1.4 million to advance
development of INTERCEPT red cells.
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
866-235-9006 (U.S.) or 631-291-4549 (international).
A replay will be available on Cerus' web site, or by dialing
800-642-1687 (U.S.) or 706-645-9291 (international) and entering
conference ID number 16139637. The replay will be available
approximately three hours after the call through November 15, 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.
This press release contains forward-looking statements. Any
statements contained in this press release that are not statements of
historical fact may be deemed to be forward-looking statements,
including, without limitation, statements relating to Cerus'
expectations regarding the 2010 revenue and annual growth rate. These
forward-looking statements are based upon the company's current
expectations. Actual results could differ materially from these
forward-looking statements as a result of certain factors, including,
without limitation, risks associated with market conditions, customer
demand for the product, accounting practices, foreign exchange rates,
risks and uncertainties associated with Cerus' business and finances in
general, as well as other risks detailed in the Cerus' filings with, the
Securities and Exchange Commission (SEC), including in Cerus' quarterly
report on Form 10-Q for the quarter ended June 30, 2010, filed with the
SEC on August 13, 2010. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release. Cerus does not undertake any obligation to update
any forward-looking statements as a result of new information, future
events, changed assumptions or otherwise.
CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION
(In thousands except per share information)
Three Months Ended Nine Months Ended
September 30, September 30,
2010 2009 2010 2009
Revenue
Product revenue $ 4,521 $ 4,567 $ 15,712 $ 11,523
Government grant and 470 247 936 985
cooperative agreements
Total Revenue 4,991 4,814 16,648 12,508
Cost of product revenue 2,324 4,242 8,416 8,856
Gross profit 2,667 572 8,232 3,652
Operating expenses
Research and development 1,282 1,230 3,776 4,867
Selling, general and 5,089 5,340 15,664 16,850
administrative
Restructuring -- 15 -- 856
Total operating expenses 6,371 6,585 19,440 22,573
Loss from operations (3,704 ) (6,013 ) (11,208 ) (18,921 )
Interest and other income (128 ) 376 (3,073 ) (325 )
(expense), net
Net loss $ (3,832 ) $ (5,637 ) $ (14,281 ) $ (19,246 )
Net loss per share - basic $ (0.10 ) $ (0.16 ) $ (0.37 ) $ (0.58 )
and diluted
Weighted average common
shares outstanding used for
basic and diluted loss per
share
Basic 39,310 35,000 39,020 33,420
Diluted 39,310 35,000 39,020 33,420
Cerus Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)
September 30, December 31,
2010 2009
Cash, cash equivalents, and short-term investments $ 13,209 $ 19,931
Accounts receivable and other current assets 4,757 4,721
Inventories 7,334 7,707
Property and equipment, net 2,552 1,217
Other assets 4,308 915
Total Assets $ 32,160 $ 34,491
Accounts payable and accrued liabilities $ 8,138 $ 9,718
Accrued restructuring -- 113
Deferred revenue 233 345
Long-term debt, current 1,264 --
Warrant liability 5,073 2,737
Long-term debt, non-current 3,591 --
Other long-term liabilities 1,553 130
Total liabilities 19,852 13,043
Stockholders' equity 12,308 21,448
Total liabilities and stockholders' equity $ 32,160 $ 34,491
Source: Cerus Corporation