DGAP-News: SYGNIS AG / Key word(s): Final Results
SYGNIS AG: SYGNIS reports financial results for a successful fiscal
year 2013
31.03.2014 / 20:43
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Press Release
SYGNIS reports financial results for a successful fiscal year 2013
- Successful restructuring and cost containment
- Expenses (pro forma) decreased by 52%; Operating result (pro forma)
improved by 55 %
- Successful financing of new business model completed
- First products launched based on QualiPhi(R) now renamed SensiPhi(R)
in early 2014
Madrid, Spain and Heidelberg, Germany, March 31, 2014 - SYGNIS AG
(Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported
results for the fiscal year ending December 31, 2013.
Due to the merger of SYGNIS with X-Pol Biotech (X-Pol) effective December
4, 2012, the results for fiscal year 2013 are not fully comparable to the
financial results reported for the prior year. Following the reverse
acquisition, the fiscal year 2013 includes the consolidated income and
expenses of the new merged SYGNIS group, whereas the previous year records
the total income and expenses of X-Pol for 2012 and those of the old SYGNIS
only for the month of December 2012.
Adjusted for this effect, i.e. assuming that the income and expenses of
both parts of the business would have been fully taken into account already
in fiscal year 2012, the pro forma comparison of periods shows that cost
savings measures have led to a significant decrease in total expenses by
52% to EUR 4.8 million (pro forma FY 2012: EUR 9.8 million). The operating
result (EBIT) improved by 55% to -EUR 4.3 million (pro forma FY 2012: -EUR
9.4 million).
During 2013 SYGNIS was strongly focused on three main business areas. The
most important part was to secure the financial resources required. This
was followed by the development of the new business strategy, researching
and developing of new tools for DNA amplification and sequencing and
finally the complete integration of the two sites following the merger.
In March 2013, the Company was granted a shareholder loan of EUR 0.7
million followed by a loan from a new international investor group in July
2013 of EUR 0.6 million which are due to expire at the end of 2015 and 2014
respectively. In December 2013, the Company successfully completed a rights
offering and private placement and raised gross proceeds of EUR 3.1
million. With this additional cash the company believes it is fully
financed until reaching break-even in 2015.
In May 2013, SYGNIS signed a second license agreement for the distribution
of a new amplification buffer with QIAGEN. From this agreement SYGNIS has
received proceeds in the form of an upfront payment and expects royalties
going forward. Resulting from a global exclusive license agreement signed
in 2012, QIAGEN has launched the first two products of a series of kits
based on SYGNIS' proprietary amplification technology QualiPhi(R), now
renamed SensiPhi(R) at the beginning of 2014. The Company expects first
sales revenues from to these products in the first half of 2014.
Pilar de la Huerta, CEO / CFO, commented: "The fiscal year 2013 was
initially marked by restructuring activities, ongoing cost containment and
strong and finally successful efforts to finance the new business model of
the company. Despite these limitations, which also are responsible for some
delays and shortcomings in revenues, we finally concluded the year with
significant success. With the launch of two DNA amplification kits by
QIAGEN based on our proprietary technology SensiPhi(R), we achieved a major
milestone and established our polymerase as the potential future gold
standard for isothermal DNA amplification. We expect these two products to
be the first in a series of innovative kits targeting sophisticated
applications in DNA amplification. With our broad portfolio of proprietary
technologies, we are best positioned to sign additional license agreements
with market leading industry partners in the fields of Next Generation
Sequencing, personalized medicine, molecular diagnostics and drug
development."
For the following explanations it must be noted that the 2012 reported
figures only include SYGNIS AG expenses for the month of December.
In the financial year 2013, the reported net loss for the period was EUR
3.2 million (2012: EUR 2.4 million).
Revenues for the fiscal year 2013 amounted to EUR 0.5 million (2012: EUR
0.2 million), mainly derived from the completion of the second license
agreement with QIAGEN, from the marketing of Caco-2 licensing rights in the
U.S. and from services provided but were hit by a delay in major product
launches as well as an expected further licensing deal.
Total operating expenses have increased to EUR 4.8 million compared to the
previous year (2012: EUR 2.6 million). The increase primarily resulted from
higher research and development costs of EUR 2.2 million (2012: EUR 1.0
million) as well as increased administrative costs of EUR 1.8 million
(2012: EUR 0.4 million).
Total assets rose to EUR 11.3 million in 2013 compared to EUR 9.6 million
in 2012, primarily due to the increase in cash and cash equivalents by EUR
1.7 million as well as deferred tax assets by EUR 1.0 million. Equity
decreased slightly to EUR 6.0 million in 2013 compared to EUR 6.3 million
in the previous year.
Cash outflow from operating activities in 2013 was EUR 3.6 million (2012:
EUR 1.3 million). This was especially due to the increased operating
expenses for the period. Cash outflow from investing activities was EUR 0.1
million (2012: cash inflow of EUR 0.5 million). Cash flow from financing
activities was EUR 5.5 million (2012: EUR 0.5 million), resulting from the
inflow from the capital increase of EUR 2.8 million (EUR 3.1 million less
charges related to the capital increase of EUR 0.3 million) and loans of
EUR 2.7 million.
The liquidity level of the Company as of 31 December 2013 has significantly
improved and amounted to EUR 2.2 million compared to EUR 0.6 million
(including securities) in previous year.
Outlook
Together with its licensee QIAGEN, SYGNIS will work on the development of
additional innovative products for isothermal DNA amplification based on
its proprietary polymerase SensiPhi(R) expected to be launched during 2014
to further expand the existing product portfolio commercialized by QIAGEN.
Besides SensiPhi(R), SYGNIS owns an impressive portfolio of proprietary
technologies in the field of Next Generation Sequencing including
QualiPhi(R) mutants and PrimPol as well as DoubleSwitch, an innovative
screening platform to be used in drug development. QualiPhi(R) mutants and
PrimPol are technologies in late-stage development while DoubleSwitch is
ready to commercialize. The Company aims to conclude up to three license
agreements with industry partners for these products and technologies in
2014.
Depending on the market launch of additional products based on SensiPhi(R)
and on the success of commercialization activities around out-licensing of
QualiPhi(R) mutants, PrimPol and Double Switch, SYGNIS forecasts revenues
in 2014 within a range of EUR 2.0 to EUR 2.5 million.
Expenditure for 2014 in the areas of Research & Development and
Administration will remain on the level of 2013. The Company expects net
loss to be significantly reduced in fiscal year 2014.
Based on the financial resources that are currently available, SYGNIS
expects the operating expenses to be covered until break even situation
which is estimated to be achieved in 2015.
<pre>
[Numbers in EUR million] 2013 2012 2012
pro forma
Revenues
0.5 0.5 0.2
Total Expenses
4.8 9.8 2.6
EBIT
-4.3 -9.4 -2.4
Net results for the period
-3.2 -1.4 -2.4
Liquidity at year-end
2.2 0.6 0.6
Equity
(equity ratio in %) 6.0 6.3 6.3
(52.6) (65.6) (65.6)
Long-term financial liabilities 2.8 1.1 1.1
Operating Cash Flow -3.6 -6.9 -1.3
</pre>
For further information please contact:
<pre>
SYGNIS AG
Pilar de la Huerta
CEO/CFO
Tel: +34 91 192 36 50
Email: pdelahuerta@sygnis.es
</pre>
About SYGNIS AG: www.sygnis.com
After the merger in 2012 between X-Pol Biotech, specializing in DNA
amplification and sequencing, and SYGNIS AG, listed in the German Stock
Exchange (Prime Standard segment, Tick: LIO1; ISIN: DE000A1RFM03), SYGNIS'
new mission is to develop and distribute technologies and products from
X-Pol, which has a commercial product in the DNA amplification segment,
SensiPhi(R) and is currently developing other products in the field of Next
Generation Sequencing.
### Disclaimer
This publication is intended for information only and constitutes neither
an offer to sell nor an invitation to buy securities. Some statements
included in this press release, relating neither to proven financial
results nor other historical data, should be viewed as forward-looking,
i.e. not definite. Such statements are mainly predictions of future
results, trends, plans or goals. These statements should not be considered
to be total guarantees since given their very nature they are subject to
known and unknown risks and imponderability and can be affected by other
factors as a consequence of which the actual results, plans and goals of
SYGNIS AG may deviate greatly from the established conclusions or implied
predictions contained in such statements. SYGNIS does not undertake to
publicly update or revise these statements in the light of new information
or future results or for any other reason.###
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Language: English
Company: SYGNIS AG
Im Neuenheimer Feld 515
69120 Heidelberg
Germany
Phone: 06221 454-6
Fax: 06221 454-700
E-mail: contact@sygnis.de
Internet: www.sygnis.de
ISIN: DE000A1RFM03
WKN: A1RFM0
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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260812 31.03.2014
DGAP-News: SYGNIS AG: SYGNIS reports financial results for a successful fiscal year 2013
| Source: EQS Group AG