Caliper Life Sciences, Inc. (Nasdaq: CALP) today reported results for its third quarter ended September 30, 2009. GAAP revenues increased by 4% to $32.2 million, from non-GAAP revenues of $31.0 million in the same period of 2008, which represents GAAP revenue of $34.0 million in the third quarter of 2008 reduced by $3.0 million for the impact of divested product lines. The overall increase in revenues was led by strong performance of the Company's IVIS Imaging and LabChip product families. Foreign currency changes did not have a significant impact on total revenue in the quarter. The Company achieved positive operating net cash flows of $2.8 million in the quarter as a result of effective inventory management coupled with year-to-date improved bottom-line performance.
Third Quarter 2009 Results
- Summary revenue performance:
- Research: Revenue from research product families increased by 7% during the quarter (on a non-GAAP basis, adjusted for divestitures), including a 10% increase in microfluidic revenues and 5% increase in automation revenues. The increase in microfluidic revenues was primarily driven by LabChip GX instrument sales, which increased 90%, and microfluidic chip revenues, which increased 29%, compared to the third quarter in 2008. These increases were partially offset by a 37% decline in microfluidic license revenues due to non-recurring milestone payments received in the third quarter in 2008.
- Imaging: Total imaging revenues increased by 15% during the quarter driven by continued strong adoption of IVIS instruments and associated reagents which resulted in product revenue growth of 17% in the quarter. Total organic revenue growth for imaging was 17% during the quarter, after eliminating approximately 2% change due to the impact of unfavorable foreign currency movements.
- CDAS: Total CDAS services group revenues decreased by 26% during the quarter. The decline resulted primarily from lower in vitro government services revenues, including the effect of the delay in receiving the next Environmental Protection Agency (EPA) ToxCast project task order, which was recently awarded to CDAS in the fourth quarter.
- The Company generated positive net cash flow from operations of $2.8 million during the quarter and $0.2 million on a year-to-date basis, resulting in $26.5 million of cash, cash equivalents and marketable securities as of September 30, 2009.
- The Company reported third quarter adjusted net loss per share of $0.01, equal to adjusted net loss per share for the same period in 2008. On a year-to-date basis, the Company reported a 29% decrease in adjusted net loss per share compared to the nine-month period ended September 30, 2008.
See "Use of Non-GAAP Financial Measures" below.
Recent Business Highlights
- Shipped a record 35 LabChip GX instruments in the third quarter driven by biologicals, vaccines, and nucleic acid applications, and surpassed 100 installed GX units since its launch in the third quarter of 2008. Each installed unit is expected to yield approximately 30% of the original equipment price in annual consumable sales and services.
- Presented the benefits of LabChip GX for high throughput characterization of biologicals and vaccines to a panel of reviewers at the United States Food and Drug Administration (FDA) on October 26, 2009, together with participants from Pfizer (PFE), Amgen (AMGN), and Biogen Idec (BIIB).
- Completed third major "Innovation for Experimentation" highlight forum, which was attended by pharma/biotech customers from throughout Europe. The most recent forum, hosted by Novartis Pharmaceutical in Basel, Switzerland on October 22, 2009, focused on accelerating small molecule research programs using Caliper's LabChip EZ Reader® instrument.
- Launched IVIS Lumina XR, which combines fluorescence, bioluminescence and X-ray in one imaging solution for pre-clinical research, at an IVIS industry work session that attracted over 150 participants at the World Molecular Imaging Congress (WMIC) in Montreal, Canada.
- Expanded the suite of reagents supporting the IVIS family of in vivo imaging instruments with the introduction of XenoLight Rediject reagents.
- Received $1.8 million Phase II task order commitment from the EPA on November 3, 2009. This initial Phase II task order will cover the screening of up to 700 compounds against Caliper's ToxCast panel of assays, which was recently expanded to 275 total assays by the addition of 40 new kinase and other enzyme assays performed on the LabChip EZ Reader instrument. The start of work under this latest task order is pending receipt of the next set of compounds for testing from the EPA, and is expected to begin in the first quarter of 2010.
"With solid momentum with IVIS imaging and LabChip sales, we believe our strong performance will continue into the fourth quarter and 2010," commented Kevin Hrusovsky, Caliper's president and CEO. "We have delivered positive operating cash flows year-to-date and are targeting positive cash flows for full year 2009. Meeting this goal would exceed our previously stated expectations by a full year. This has been accomplished despite delays in the next EPA task order. With the initial Phase II task order now in hand, we are anticipating strong double-digit growth for CDAS in 2010. Given the challenging economic environment, we are pleased with our performance this year: strong revenue growth, margin improvements, faster inventory turns and expense reductions have enabled above-expectation cash performance and an improving financial outlook. Most importantly, we have a robust pipeline of high margin new products to fuel future growth. All in all, an exceptionally satisfying year for our company and employees."
The Company projects full year revenue of $127 to $129 million, which represents organic revenue growth of 5 to 7% over 2008 pro forma revenue. In addition, the Company reaffirmed its expectation to achieve positive earnings before interest, taxes, depreciation, amortization and stock-based compensation over the second half of 2009 and for the full year 2010.
Caliper reported that its revenue outlook for the fourth quarter of 2009 is $34.5 to $36.5 million compared to pro forma revenue (net of divestitures) of $34.6 million in the fourth quarter of 2008.
Use of Non-GAAP Financial Measures
Caliper supplements its GAAP financial reporting with certain non-GAAP financial measures. Reconciliations of Caliper's GAAP to non-GAAP revenue and earnings per share are provided at the end of this release under "Reconciliation of GAAP to Non-GAAP Financial Measures."
Revenue growth percentages in this press release are derived from non-GAAP revenues which exclude the impact of revenue from product lines which were divested in the fourth quarter of 2008. The term "organic" revenue growth eliminates the impact of foreign currency movements during the quarter to reflect growth percentages on a constant currency basis. Caliper believes that providing this additional information enhances investors' understanding of the financial performance of Caliper's operations and increases the comparability of its current financial statements to prior periods.
Caliper Life Sciences, Inc.