FREMONT, Calif., Aug. 9, 2016 /PRNewswire/ -- WaferGen
Bio-systems, Inc. (NASDAQ: WGBS), a life sciences company focused
on developing and commercializing technology platforms for genomic
solutions, announced today its financial results for the second
quarter ended June 30, 2016.
Key Recent Highlights
- Announced in May 2016 the
proposed merger with Takara Bio USA Holdings Inc. and certain of its
affiliates, pursuant to which Takara would acquire the Company for
a multiple of the Company's 2016 revenue, subject to certain
adjustments set forth in the merger agreement
- Entered into a distribution agreement under which Takara has
begun to distribute WaferGen's products in Japan
- Exceeded $2.5 million in
quarterly revenue for the first time since WaferGen's operations
began
- Placed four ICELL8™ Single-Cell Systems in the second quarter
of 2016
- Received a Notice of Allowance for a U.S. Patent Application
for both method and system claims to process genetic material
including single cell NGS libraries from multi-well arrays;
consequently, WaferGen now owns five total issued patents and two
allowed applications
- Closed on June 30, 2016, with
$7.4 million in cash, which WaferGen
believes is sufficient to fund operations into 2017
"The second quarter set another new record for WaferGen," said
Rollie Carlson, Ph.D., President and
Chief Executive Officer of WaferGen. "Our revenue of
$2.5 million surpassing the
$2.4 million we achieved in the
fourth quarter of 2015. We have placed eight ICELL8
Single-Cell Systems since our initial launch in October of 2015,
and are pleased with our sales outlook. Based on the
feedback we are receiving from potential customers, leading
biopharmaceutical companies and academic institutions, the demand
for our ICELL8 Single-Cell System remains strong, although the
sales cycle is longer than we originally envisaged. Based on
all of this, as well as the continued strong performance from our
base business, we are revising our full-year 2016 revenues from
$12 million to $13 million to now be
in the range of $10 million to $12
million."
Second Quarter Ended June 30,
2016
Total revenue for the three months ended June 30, 2016, comprising product revenue only,
was approximately $2.5 million,
compared to approximately $1.6
million for the prior year period, which included
$125,000 of license and royalty
revenue. The increase of approximately $1.0 million in product revenue was primarily
attributable to increases for the three months ended June 30, 2016, in sales of WaferGen's SmartChip
Systems, with revenue up 305% from the comparable 2015 period,
mainly due to ICELL8 sales. Sales of SmartChip consumables and of
the Apollo business products also increased, with revenue up 28%
and 10%, respectively, from the comparable 2015 period.
Gross profit and gross profit margin related to product sales in
the second quarter of 2016 were approximately $1.1 million and 44%, respectively, compared to
gross profit and gross profit margin related to product sales of
$809,000 and 54%, respectively, in
the second quarter of 2015. The decline in gross margin is
mainly due to an increase in the percentage of revenue derived from
the sale of systems, which afford lower margins than
consumables.
Operating expenses in the three months ended June 30, 2016, increased by approximately
$1.1 million to $5.9 million, compared to $4.8 million for the same period of 2015.
Sales and marketing expenses increased $599,000 to approximately $1.8 million, compared to approximately
$1.2 million in the three months
ended June 30, 2015. Research
and development expenses increased $111,000 to approximately $2.4 million, compared to approximately
$2.3 million for the same quarter in
2015. General and administrative expenses increased
$401,000 to approximately
$1.7 million, compared to
approximately $1.3 million in the
second quarter of 2015, the increase being due to substantial legal
and professional costs incurred related to our pending merger with
Takara.
Net loss for the three months ended June
30, 2016, was approximately $4.9
million, or $0.26 per share,
compared to a net loss of approximately $3.8
million, or $0.67 per share,
in the same period of 2015.
Six Months Ended June 30,
2016
Total revenue for the six months ended June 30, 2016, comprising product, license and
royalty revenue, was approximately $4.4
million, compared to approximately $2.8 million for the prior year period.
This includes license and royalty revenue of $42,000 in the 2016 period, compared to
$250,000 in the prior year period,
under an agreement that terminated at the end of January
2016. Product revenue for the six months ended June 30, 2016, was approximately $4.4 million, compared to approximately
$2.5 million for the prior year
period. The increase of approximately $1.9 million in product revenue was primarily
attributable to increases for the six months ended June 30, 2016, in sales of WaferGen's SmartChip
Systems, with revenue up 349% from the comparable 2015 period,
mainly due to ICELL8 sales. Sales of SmartChip consumables and of
the Apollo business products also increased, with revenue up 18%
and 36%, respectively, from the comparable 2015 period.
Gross profit and gross profit margin related to product sales in
the first six months of 2016 were approximately $2.2 million and 49%, respectively, compared to
gross profit and gross profit margin related to product sales of
$1.4 million and 57%, respectively,
in the first six months of 2015.
Operating expenses in the six months ended June 30, 2016, increased by approximately
$1.2 million to $11.3 million, compared to $10.1 million for the same period of 2015.
Sales and marketing expenses increased approximately $1.1 million to approximately $3.6 million, compared to approximately
$2.5 million in the six months ended
June 30, 2015. Research and
development expenses decreased $88,000 to approximately $4.7 million, compared to approximately
$4.8 million for the same period in
2015. General and administrative expenses increased
$139,000 to approximately
$3.0 million, compared to
approximately $2.9 million in the
first half of 2015.
Net loss for the six months ended June
30, 2016, was approximately $9.3
million, or $0.50 per share,
compared to a net loss of approximately $8.6
million, or $1.52 per share,
in the same period of 2015.
At June 30, 2016, WaferGen had
cash and cash equivalents of approximately $7.4 million.
2016 Guidance
WaferGen is updating its full-year 2016
revenue guidance from $12 million to $13
million to now be in the range of $10.0 million to $12.0 million.
Conference Call
& Webcast
|
Tuesday, August
9th @ 5pm Eastern:
|
Domestic:
|
877-407-3982
|
International:
|
201-493-6780
|
Conference
ID:
|
13642758
|
Webcast:
|
http://public.viavid.com/index.php?id=120672
|
|
|
Replays, available
through August 23:
|
Toll-Free:
|
877-870-5176
|
International:
|
858-384-5517
|
Conference
ID:
|
13642758
|
About WaferGen
WaferGen Bio-systems, Inc. is a
biotechnology company that offers innovative genomic technology
solutions for single-cell analysis and clinical research. The
ICELL8™ Single-Cell System is a cutting edge platform which can
isolate thousands of single cells and processes specific cells for
analysis, including Next Generation Sequencing ("NGS"). The system
has demonstrated unbiased isolation of up to 1,800 single cells
ranging from 5-100 µm in size on a single chip, including single
cells from solid tumors, brain cells, pulmonary airway cells, and
multiple cell lines. The SmartChip™ platform can be used for
profiling and validating molecular biomarkers, and can perform
massively parallel singleplex PCR for one-step target enrichment
and library preparation for clinical NGS. The Apollo 324™
system can be used to process DNA and RNA from clinical samples to
NGS-ready libraries. These technologies offer a powerful set
of tools for biological analysis at the molecular and single cell
level in the life sciences, pharmaceutical, and clinical laboratory
industries.
For additional information, please see
http://www.wafergen.com
Forward Looking Statements
This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended that are
intended to be covered by the "safe harbor" created by those
sections. Forward-looking statements, which are based on
certain assumptions and describe our future plans, strategies and
expectations, can generally be identified by the use of
forward-looking terms such as "believe," "expect," "may," "will,"
"should," "could," "seek," "intend," "plan," "estimate,"
"anticipate" or other comparable terms. Forward-looking
statements in this press release may address the following subjects
among others: statements regarding the completion of the
transactions contemplated by our merger agreement with Takara Bio
USA Holdings Inc. and certain
other parties thereto, the sufficiency of our capital resources,
expected operating losses, expected revenues, expected expenses,
expected cash usage, our expectations regarding our development of
future products including single cell analysis technologies and our
expectations concerning our competitive position and business
strategy. Forward-looking statements involve inherent risks
and uncertainties which could cause actual results to differ
materially from those in the forward-looking statements, as a
result of various factors including those risks and uncertainties
described in the Risk Factors and in Management's Discussion and
Analysis of Financial Condition and Results of Operations sections
of our most recently filed Annual Report on Form 10-K and any
subsequently filed Quarterly Reports on Form 10-Q. We urge
you to consider those risks and uncertainties in evaluating our
forward-looking statements. We caution readers not to place
undue reliance upon any such forward-looking statements, which
speak only as of the date made. Except as otherwise required
by the federal securities laws, we disclaim any obligation or
undertaking to publicly release any updates or revisions to any
forward-looking statement contained herein (or elsewhere) to
reflect any change in our expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.
Additional Information and Where to Find It
WaferGen intends to file with the Securities and Exchange
Commission (the "SEC") a proxy statement, as well as other relevant
documents concerning the proposed merger with Takara Bio USA.
The definitive proxy statement will be sent or given to the
stockholders of WaferGen and will contain important information
about the merger agreement, its related transactions and other
related matters. This communication does not constitute an
offer to sell or the solicitation of an offer to buy any securities
or a solicitation of any vote or approval. INVESTORS AND
SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING
ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Copies of documents filed by WaferGen with the SEC may be obtained
free of charge at the SEC's website at www.sec.gov. In
addition, investors and security holders will be able to obtain
free copies of the proxy statement from WaferGen by going to
WaferGen's Investors page on its corporate website at
www.wafergen.com.
Participants in the Solicitation
WaferGen and its directors and executive officers and other
persons may be deemed to be participants in the solicitation of
proxies in respect of the proposed transaction. Information
regarding WaferGen's directors and executive officers is available
in WaferGen's Proxy Statement filed with the SEC on April 12, 2016. Other information regarding
the participants in the proxy solicitation and a description of
their direct and indirect interests, by security holdings or
otherwise, will be contained in the proxy statement and other
relevant materials to be filed with the SEC when they become
available.
INVESTOR CONTACT:
WaferGen Bio-systems, Inc.
Rollie Carlson
510-277-3417
Rollie.Carlson@wafergen.com
WAFERGEN
BIO-SYSTEMS, INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of Operations (Unaudited)
(In thousands,
except per share amounts)
|
|
|
|
Three Months
Ended June 30,
|
|
Six Months
Ended June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
2,517
|
|
$
|
1,485
|
|
$
|
4,405
|
|
$
|
2,506
|
License and
royalty
|
|
—
|
|
125
|
|
42
|
|
250
|
Total
revenue
|
|
2,517
|
|
1,610
|
|
4,447
|
|
2,756
|
Cost of product
revenue
|
|
1,399
|
|
676
|
|
2,253
|
|
1,090
|
Gross
profit
|
|
1,118
|
|
934
|
|
2,194
|
|
1,666
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
1,831
|
|
1,232
|
|
3,605
|
|
2,465
|
Research and
development
|
|
2,390
|
|
2,279
|
|
4,662
|
|
4,750
|
General and
administrative
|
|
1,653
|
|
1,252
|
|
2,993
|
|
2,854
|
Total operating
expenses
|
|
5,874
|
|
4,763
|
|
11,260
|
|
10,069
|
Operating
loss
|
|
(4,756)
|
|
(3,829)
|
|
(9,066)
|
|
(8,403)
|
Other income and
(expenses):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(113)
|
|
(107)
|
|
(220)
|
|
(213)
|
Gain on revaluation of
warrant derivative liabilities, net
|
|
1
|
|
104
|
|
3
|
|
40
|
Miscellaneous income
(expense)
|
|
(18)
|
|
11
|
|
3
|
|
(49)
|
Total other income
and (expenses)
|
|
(130)
|
|
8
|
|
(214)
|
|
(222)
|
Net loss before
provision for income taxes
|
|
(4,886)
|
|
(3,821)
|
|
(9,280)
|
|
(8,625)
|
Provision for income
taxes
|
|
1
|
|
—
|
|
15
|
|
2
|
Net loss
|
|
$
|
(4,887)
|
|
$
|
(3,821)
|
|
$
|
(9,295)
|
|
$
|
(8,627)
|
Net loss per share -
basic and diluted
|
|
$
|
(0.26)
|
|
$
|
(0.67)
|
|
$
|
(0.50)
|
|
$
|
(1.52)
|
Shares used to compute
net loss per share - basic and diluted
|
|
18,817
|
|
5,677
|
|
18,775
|
|
5,668
|
WAFERGEN
BIO-SYSTEMS, INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(In
thousands)
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
Assets
|
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,351
|
|
$
|
15,236
|
Accounts receivable,
net of allowance
|
|
2,770
|
|
2,201
|
Inventories
|
|
1,437
|
|
1,998
|
Prepaid expenses and
other current assets
|
|
539
|
|
404
|
Total current
assets
|
|
12,097
|
|
19,839
|
Property and
equipment, net
|
|
1,112
|
|
1,052
|
Goodwill
|
|
990
|
|
990
|
Intangible assets,
net
|
|
702
|
|
912
|
Other
assets
|
|
138
|
|
80
|
Total
assets
|
|
$
|
15,039
|
|
$
|
22,873
|
Liabilities and Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
|
$
|
2,610
|
|
$
|
2,029
|
Accrued payroll and
related costs
|
|
1,295
|
|
1,200
|
Current portion of
long-term debt
|
|
184
|
|
180
|
Other current
liabilities
|
|
986
|
|
917
|
Total current
liabilities
|
|
5,075
|
|
4,326
|
Long-term debt, net
of discount and current portion
|
|
2,687
|
|
2,570
|
Deferred income
taxes
|
|
128
|
|
128
|
Other
liabilities
|
|
35
|
|
152
|
Total
liabilities
|
|
7,925
|
|
7,176
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred
Stock
|
|
2,214
|
|
2,214
|
Common
Stock
|
|
121,041
|
|
120,329
|
Accumulated
deficit
|
|
(116,141)
|
|
(106,846)
|
Total stockholders'
equity
|
|
7,114
|
|
15,697
|
Total liabilities and
stockholders' equity
|
|
$
|
15,039
|
|
$
|
22,873
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wafergen-bio-systems-reports-results-for-second-quarter-2016-300311341.html
SOURCE WaferGen Bio-systems, Inc.