-- Conference Call Today at 10 a.m. EST -- FREMONT, Calif., Nov. 7
/PRNewswire-FirstCall/ -- Ciphergen Biosystems, Inc. (NASDAQ:CIPH)
today announced financial results for its third quarter and nine
months ended September 30, 2006. Third Quarter and Nine-Month 2006
Financial Results The Company reported net revenue of $4.7 million
in the third quarter of 2006, compared to $7.1 million in the third
quarter of 2005. Total operating expenses for the third quarter of
2006 were $8.7 million compared to $10.7 million in the same period
last year. Net loss declined to $7.0 million in the third quarter
of 2006, compared to $7.5 million in the third quarter of 2005.
Revenue for the first nine months of 2006 was $17.0 million
compared to $20.6 million in the first nine months of 2005. For the
nine months ended September 30, 2006, the net loss was $20.2
million, compared to $26.2 million in the same period in 2005. At
September 30, 2006, the Company's cash and investments were $15.0
million, compared to $20.6 million at June 30, 2006. Ciphergen
believes that its third quarter financials will reflect the last
full quarter of revenue from the life science research business
which included sales of the ProteinChip(R) arrays and SELDI
instruments as well as biomarker development services. Going
forward the Company does not anticipate having significant revenue
until its diagnostic tests are commercialized. Operating expenses
are expected to be substantially reduced in the fourth quarter of
2006 given the reduction of employees to approximately 50 persons.
After the sale of the assets comprising its life science research
business to Bio-Rad Laboratories, Inc. is completed, Ciphergen
estimates that cash used for operations will be approximately $4
million to $5 million per quarter, and believes that there are
sufficient cash resources to fund operations. "We are intent on
building a molecular diagnostics business that can change how
physicians determine the best treatment for their patients. We
believe that this business model will provide long-term growth and
sustained value to our shareholders," said Gail S. Page, President
and CEO of Ciphergen. Upcoming Milestones and Recent
Accomplishments "Over the next twelve months we look forward to
accomplishing several milestones that will establish Ciphergen as a
leader in personalized medicine. Our diagnostic program in ovarian
cancer continues to make excellent progress, and we anticipate our
first test will be used as an adjunct to other diagnostic methods
to help physicians in the differential diagnosis of a persistent
pelvic mass. Our strategy includes multiple pathways to
commercialization. We are optimistic that the medical community
will have access to a version of our diagnostic as a laboratory
developed test from Quest Diagnostics. Concurrently, we anticipate
submitting the results of our prospective clinical trial to the
U.S. Food and Drug Administration (FDA) by the second half of 2007.
In addition, we plan to commercialize this test internationally,"
continued Ms. Page. -- Corporate Transformation -- Received
stockholder approval to sell the life science research business to
Bio-Rad Laboratories for up to $20 million. Bio-Rad also will make
a $3 million equity investment in Ciphergen. -- Entered agreements
to exchange $27.5 million of outstanding 4.50% Convertible Senior
Notes for new Convertible Senior Notes and $11.0 million cash.
These transactions are contingent on the completion of the sale of
the life science research business to Bio-Rad Laboratories, Inc. --
Ovarian Cancer Diagnostic Progress -- Presented data at the
International Gynecologic Cancer Society (IGCS) Biennial Meeting in
October, supporting the use of our protein biomarker panel to
discriminate women with ovarian cancer from women with benign
pelvic disease. Data were also presented describing the use of
protein biomarkers to help predict survival in patients with
ovarian cancer. -- Published a study in the September issue of
Cancer, Epidemiology, Biomarkers & Prevention validating the
use of Ciphergen's protein biomarkers to discriminate women with
ovarian cancer from women with benign ovarian tumors and other
non-gynecologic diseases. -- Management Appointment -- Debra A.
Young was appointed Vice President and Chief Financial Officer of
the Company. -- New Collaboration -- Signed collaboration agreement
with Ohio State University for an enzymatic assay to diagnose
thrombotic thrombocytopenic purpura (TTP), a hematologic disorder
which causes abnormal clotting and a decrease in platelets.
Conference Call A conference call and webcast will be held on today
at 10:00 a.m. EST to discuss the third quarter results and provide
an update on business developments. To listen to the live webcast
of the conference call, please visit the "Investors" section of the
http://www.ciphergen.com/ web site. A telephonic replay of the
conference call will be available two hours after the call and will
be available until Tuesday, November 21, 2006. The replay number
for domestic callers is 1-800-633-8284 and for international
callers +1-402-977-9140. The reservation number for both domestic
and international callers is 21308074. In addition, an archived
webcast of the conference call will be available under the
"Investors" section of the company's website at
http://www.ciphergen.com/ . About Ciphergen Ciphergen Biosystems,
Inc. is dedicated to the discovery, development and
commercialization of novel high-value diagnostic tests that help
physicians diagnose, treat and improve outcomes for patients.
Ciphergen, along with its prestigious scientific collaborators, has
ongoing diagnostic programs in oncology/hematology, cardiology and
women's health with an initial focus in ovarian cancer. Based in
Fremont, California, more information about Ciphergen can be found
on the Web at http://www.ciphergen.com/ . Safe Harbor Statement
Note Regarding Forward-Looking Statements: This press release
contains forward-looking statements. For purposes of the Private
Securities Litigation Reform Act of 1995 (the "Act"), Ciphergen
disclaims any intent or obligation to update these forward-looking
statements, and claims the protection of the Safe Harbor for
forward-looking statements contained in the Act. Examples of such
forward-looking statements include statements regarding Ciphergen's
plans to build a molecular diagnostics company that will provide
long-term growth and shareholder value, the Company's expectations
regarding its ovarian cancer diagnostics test, including the
expected timing of FDA submissions and its international
commercialization plans, the closing of the Bio-Rad transaction and
the expected revenues, expenses and cash usage of the Company
following the closing of the Bio-Rad transaction. Actual results
may differ materially from those projected in such forward-looking
statements due to various factors, including the risk that
Ciphergen is unable to successfully utilize resources and execute
plans for its molecular diagnostics business. Investors should
consult Ciphergen's filings with the Securities and Exchange
Commission, including its Form 10-Q filed August 16, 2006 and proxy
statement filed September 28, 2006, for further information
regarding these and other risks related to the Company's business.
NOTE: Ciphergen is a registered trademark of Ciphergen Biosystems,
Inc. Ciphergen Biosystems, Inc. Unaudited Condensed Consolidated
Statements of Operations (in thousands, except per share data)
Three Months Ended Nine Months Ended September 30, September 30,
2006 2005 2006 2005 Revenue $4,662 $7,056 $16,999 $20,645 Cost of
revenue 2,480 3,349 8,832 10,067 Gross profit 2,182 3,707 8,167
10,578 Operating expenses: Research and development 2,914 3,098
8,780 10,231 Sales and marketing 3,203 4,136 10,651 14,201 General
and administrative 2,542 3,482 7,550 10,728 Total operating
expenses 8,659 10,716 26,981 35,160 Loss from continuing operations
(6,477) (7,009) (18,814) (24,582) Interest and other income
(expense), net (519) (503) (1,211) (1,451) Loss from continuing
operations before income taxes (6,996) (7,512) (20,025) (26,033)
Income tax provision (benefit) from continuing operations 20 (36)
190 103 Net loss from continuing operations (7,016) (7,476)
(20,215) (26,136) Loss from sale of discontinued operations, net of
tax -- (67) Net loss $(7,016) $(7,476) $(20,215) $(26,203) Basic
and diluted net loss per share $(0.19) $(0.23) $(0.56) $(0.84)
Shares used in computing basic and diluted net loss per share
36,075 32,282 36,042 31,328 Ciphergen Biosystems, Inc. Unaudited
Condensed Consolidated Balance Sheets (in thousands, except per
share data) September 30, December 31, 2006 2005 (1) ASSETS
Currents assets: Cash and cash equivalents $15,024 $25,738 Short
term investment -- 2,240 Accounts receivable 3,985 5,828 Inventory
4,255 5,594 Prepaids and other current assets 2,526 1,746 Total
current assets 25,790 41,146 Property, plant and equipment, net
5,435 7,320 Goodwill and other intabgible assets, net 1,932 2,493
Other long term assets 1,486 1,852 Total assets $34,643 $52,811
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $2,223 $3,188 Accrued liabilities 4,934 6,298 Current
portion of deferred revenue 3,569 4,132 Current portion of capital
lease obligations 12 21 Current portion of long term debt -- 377
Total current liabilities 10,738 14,016 Deferred revenue, net of
current portion 320 508 Capital lease obligations, net of current
portion 3 28 Long term debt owed to related party 6,250 2,500
Convertible senior notes, net of discount 28,986 28,586 Other long
term liabilities 470 650 Total liabilities 46,767 46,288
Stockholders equity: Common stock 36 36 Additional paid in capital
203,925 202,485 Accumulated other comprehensive loss (76) (204)
Accumulated deficit (216,009) (195,794) Total stockholders' equity
(12,124) 6,523 Total liabilities and stockholders' equity $34,643
$52,811 (1)The condensed consolidated balance sheet at December 31,
2005 has been derived from the audited consolidated financial
statements at that date included in the Company's Form 10-K for the
fiscal year ended December 31, 2005. DATASOURCE: Ciphergen
Biosystems, Inc. CONTACT: investors, Sue Carruthers, Investor
Relations of Ciphergen Biosystems, Inc., +1-510-505 2233; or media,
Lori Murray, of WeissComm Partners, +1-415-946-1070, for Ciphergen
Biosystems, Inc. Web site: http://www.ciphergen.com/
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