Cerus second-quarter product revenue for INTERCEPT Blood System increases 47% to $5.7 million

Cerus Corporation (NASDAQ:CERS) today announced financial results for the second quarter ended June 30, 2010.

“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”

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.

Source Cerus Corporation