STOCKHOLM, Sweden, Oct. 21, 2004 (PRIMEZONE) -- Biotage:
-Sales in the period January -- September 2004 amounted to 260.4 MSEK (68.6 MSEK and 250.0 MSEK pro-forma), corresponding to a pro-forma increase by 4 percent
-Sales in the third quarter were negatively affected by delays in the deliveries of the new purification system and amounted to 84.5 MSEK
-During the period restructurings were made which added 5 MSEK to the operating costs but will yield annual savings of 15 MSEK. Adjusted for these non-recurring expenses, costs amounted to 68.3 MSEK.
-Biotage extended the licensing agreement with 454 Corporation, increasing the minimum royalty by 0.25 USD per year for at least two years
-The operating result for the period January - September improved to -93.3 MSEK (-205.1 and -386.2)
-The result after tax for the nine months amounted to -94.9 MSEK (-189.6 and -369.8)
-Earnings per share amounted to -1.64 SEK (-5.44 and -6.40)
Sales in the third quarter did not develop as expected since the software to the new purification instrument took longer to complete than planned and deliveries were delayed. The systems are now ready and are being delivered to the customers. Biosystems also had a slow quarter, but sales in both business areas are expected to be stronger in the fourth quarter. However, the company's gross margin improved during the period due to new products with higher margins and a more favorable product mix. The order intake in the third quarter was on the same level as the sales, which means that the orderbook remains high.
Biotage carried out a restructuring in the third quarter, reducing the number of positions in Sweden by 14. This added 5 MSEK to third quarter costs, but will lead to future annual costs savings of approx. 15 MSEK. Operating costs , adjusted for the restructuring costs, amounted to 68.3 MSEK, which is in line with what the company has previously
About Biotage
Biotage is a global company active in life science research with strong technologies, a broad range of operations and a long-term view of the market. The company offers solutions, knowledge and experience in the areas of genetic analysis and medicinal chemistry. Customers include the world's top 30 pharmaceutical companies, 20 largest biotech companies and leading academic institutes. The company is headquartered in Uppsala and has offices in the US, Japan and several European countries. Biotage has approx. 235 employees and had pro forma sales of 362 MSEK in 2003. Biotage is listed on the Stockholm stock exchange. Website: www.biotage.com
Certain statements in this press release are forward-looking. These may be identified by the use of forward- looking words or phrases such as "believe," "expect," "intend," and "should," among others. These forward-looking statements are based on Biotage's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Biotage notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the microwave synthesis and flash purification in the drug discovery market, DNA sequencing and genomics market, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for Biotage's products (including seasonal fluctuations), difficulties in successfully adapting the Company's products to integrated solutions and producing such products, and the Company's ability to identify and develop new products and to differentiate its products from competitors.
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The following files are available for download:
Interim report Jan-Sept 2004:
http://www.waymaker.net/bitonline/2004/10/21/20041021BIT21520/wkr0001.pdf