Molecular Devices Reports Record Revenues and Earnings for Third
Quarter of 2004 SUNNYVALE, Calif., Oct. 28 /PRNewswire-FirstCall/
-- Molecular Devices Corporation (NASDAQ:MDCC) today announced
record revenues and non-GAAP earnings for the quarter ended
September 30, 2004. Revenues for the quarter were a record $41.5
million, or an increase of 42% compared to the same period last
year. On a GAAP basis, which includes a one-time charge of $5.0
million for acquired in-process research and development related to
the Axon acquisition, operating income for the third quarter of
2004 was $440,000. On a non-GAAP basis, excluding the one-time
charge, operating income was $5.4 million for the quarter, or an
increase of 71% compared to the same period last year. On a GAAP
basis, including the $0.27 per fully diluted share one-time charge
for acquired in-process research and development, the fully diluted
loss per share for the third quarter of 2004 was $0.07. Excluding
this $0.27 charge, fully diluted earnings per share were $0.20 for
the third quarter, or an increase of 33% compared with the same
period last year. A table reconciling operating income and fully
diluted earnings per share on a GAAP and non-GAAP basis is provided
immediately following the Condensed Consolidated Balance Sheets.
"We are pleased to announce that we have successfully completed all
aspects of the integration of Axon and that the results for all of
the Axon product lines, including both life sciences and drug
discovery products, exceeded our expectations for the quarter. We
also continued to see good growth in our core MDC life sciences
products due to the success of the SpectraMax M2 bench-top reader
and Meta series of cellular imaging products," stated Joseph D.
Keegan, Ph.D., Molecular Devices' President and Chief Executive
Officer. "However, a number of our drug discovery product lines,
including Discovery-1, IonWorks and Analyst, did not meet our
expectations for the quarter. As a result of this unanticipated
weakness, we have become more cautious about the state of the
overall market." The Company also established guidance for the
fourth quarter of 2004 and provided guidance for the full year
2005. For the fourth quarter of 2004, the Company anticipates
revenues of $46 to $48 million and fully diluted GAAP earnings per
share of $0.23 to $0.25. For the full year 2004, the Company
anticipates revenues of $147 to $149 million, fully diluted
non-GAAP earnings per share of $0.72 to $0.75 and fully diluted
GAAP earnings per share of $0.41 to $0.43. A table reconciling
estimated 2004 fully diluted earnings per share on a GAAP and
non-GAAP basis is provided immediately following the Condensed
Consolidated Balance Sheets. For the full year 2005, the Company
anticipates revenues of $175 to $190 million and fully diluted GAAP
earnings per share of $0.80 to $0.95. Conference Call Information
An earnings announcement conference call is scheduled for Friday,
October 29, 2004 at 8:00 a.m. PDT (11:00 a.m. EDT). Interested
parties can participate in the call by dialing 800-289-0572
(domestic) or 913-981-5543 (international). A taped replay of this
call will be available through November 5, 2004. Replay dial-in
numbers are 888-203-1112 (domestic) and 719-457-0820
(international), and the access code for the replay is 975396.
Investors can also access a live web-cast of the call through a
link posted on the investor page on Molecular Devices' website
(http://www.moleculardevices.com/). A replay of the web cast will
remain at this location through November 4, 2004. About Molecular
Devices Corporation Molecular Devices Corporation is a leading
supplier of high-performance bioanalytical measurement systems that
accelerate and improve drug discovery and other life sciences
research. The Company's systems and consumables enable
pharmaceutical and biotechnology companies to leverage advances in
genomics, proteomics and combinatorial chemistry by facilitating
the high- throughput and cost-effective identification and
evaluation of drug candidates. The Company's solutions are based on
its advanced core technologies that integrate its expertise in
engineering, molecular and cell biology and chemistry. Molecular
Devices enables its customers to improve research productivity and
effectiveness, which ultimately accelerates the complex process of
discovering and developing new drugs. This press release contains
"forward-looking" statements, including statements related to
future revenues and earnings. Any statements contained in this
press release that are not statements of historical fact may be
deemed to be forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "will," and similar expressions
are intended to identify forward-looking statements. There are a
number of important factors that could cause the results of
Molecular Devices Corporation to differ materially from those
indicated by these forward-looking statements, including, among
others, risks related to variations in the amount of time that it
takes for the Company to sell its products and collect amounts
receivable and shipped in the same quarter, which gives the Company
limited visibility of future product shipments, competition, the
Company's need to develop new and enhanced products and other risks
detailed from time to time in the Company's SEC reports, including
its Quarterly Report on Form 10-Q for the quarter ended June 30,
2004. Molecular Devices Corporation does not undertake any
obligation to update forward-looking statements. MOLECULAR DEVICES
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except per share amounts) (unaudited) Three Months Ended
Nine Months Ended September 30, September 30, 2004 2003 2004 2003
TOTAL REVENUES $41,502 $29,276 $101,044 $82,330 TOTAL COST OF
REVENUES 15,802 10,763 38,120 30,875 GROSS PROFIT 25,700 18,513
62,924 51,455 OPERATING EXPENSES: Research and development 6,432
4,649 15,158 14,127 Selling, general and administrative 13,828
10,681 36,364 31,136 Acquired in-process research and development
5,000 -- 5,000 -- Total operating expenses 25,260 15,330 56,522
45,263 INCOME FROM OPERATIONS 440 3,183 6,402 6,192 Other income,
net 41 73 126 639 INCOME BEFORE TAXES 481 3,256 6,528 6,831 Income
tax provision (1,749) (977) (3,862) (2,050) NET INCOME (LOSS)
$(1,268) $2,279 $2,666 $4,781 BASIC NET INCOME (LOSS) PER SHARE
$(0.07) $0.15 $0.17 $0.32 DILUTED NET INCOME (LOSS) PER SHARE
$(0.07) $0.15 $0.17 $0.31 SHARES USED IN COMPUTING BASIC NET INCOME
(LOSS) PER SHARE 17,751 14,935 15,557 15,142 SHARES USED IN
COMPUTING DILUTED NET INCOME (LOSS) PER SHARE 17,751 15,103 16,055
15,223 MOLECULAR DEVICES CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (In thousands) (unaudited) September 30, December 31, 2004
2003 ASSETS Current assets: Cash and cash equivalents $19,383
$50,260 Short-term investments -- 8,114 Accounts receivable, net
31,593 26,209 Inventories, net 27,075 17,025 Deferred tax assets
2,898 5,223 Other current assets 2,800 1,849 Total current assets
83,749 108,680 Long-term investments -- 1,736 Equipment and
leasehold improvements, net 11,583 9,706 Other assets 155,683
46,791 $251,015 $166,913 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $4,536 $4,019 Accrued
liabilities 20,859 17,356 Short-term line of credit outstanding
15,000 -- Total current liabilities 40,395 21,375 Long-term
liabilities: Long-term deferred tax liabilities 6,607 -- Total
long-term liabilities 6,607 -- Stockholders' equity 204,013 145,538
$251,015 $166,913 HISTORICAL NON-GAAP RECONCILIATION (unaudited)
Three Months Ended Nine Months Ended September 30, September 30,
2004 2003 2004 2003 OPERATING INCOME - GAAP BASIS $440 $3,183
$6,402 $6,192 Acquired in-process research and development 5,000 --
5,000 -- NON-GAAP OPERATING INCOME $5,440 $3,183 $11,402 $6,192
GAAP FULLY DILUTED EARNINGS (LOSS) PER SHARE $(0.07) $0.15 $0.17
$0.31 Acquired in-process research and development 0.27 -- 0.31 --
NON-GAAP FULLY DILUTED EARNINGS PER SHARE $0.20 $0.15 $0.48 $0.31
FULLY DILUTED SHARES 18,327 15,103 16,055 15,223 ESTIMATED NON-GAAP
2004 FULLY DILUTED EPS RECONCILIATION (unaudited) Twelve Months
Ended December 31, 2004 Low High ESTIMATED GAAP FULLY DILUTED
EARNINGS PER SHARE $0.42 $0.45 Acquired in-process research and
development 0.30 0.30 ESTIMATED NON-GAAP FULLY DILUTED EARNINGS PER
SHARE $0.72 $0.75 ESTIMATED FULLY DILUTED SHARES 16,500 16,500 Each
non-GAAP financial measure presented in this press release is
included because Molecular Devices Corporation's management uses
this information to monitor and evaluate on-going operating results
and trends excluding the unusual item related to the acquisition of
Axon Instruments in July 2004. Molecular Devices' management
believes such non-GAAP financial measures are also useful for
investors because the charge for acquired in process research and
development related to the Axon acquisition is the result of a
transaction that is unusual due to its nature, size and frequency.
Consequently, excluding this charge from Molecular Devices'
operating results provides investors an important insight into
Molecular Devices' operating results and related trends of its core
business. DATASOURCE: Molecular Devices Corporation CONTACT: Tim
Harkness of Molecular Devices Corporation, +1-408-747-3533 Web
site: http://www.moleculardevices.com/
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