FREMONT, Calif., Nov. 8, 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 third
quarter ended September 30, 2016.
Key Recent Highlights
- The special shareholder meeting to vote on the proposed merger
with Takara Bio USA Holdings Inc.
was adjourned and rescheduled to November
15, 2016. Proxies received to date have been strongly
in favor of the merger proposal but approval of a majority of all
outstanding shares is necessary for this proposal to be
approved.
- Product sales through our new Japanese distribution partner,
Takara, since they were engaged in June
2016, have exceeded sales through our prior distributor
during 2015.
- Quarterly product revenue increased 27% over the same quarter
last year.
- Placed four ICELL8™ Single-Cell Systems in the third quarter of
2016.
- Closed on September 30, 2016,
with $5.1 million in cash, which
WaferGen believes is sufficient to fund operations into 2017.
"We are pleased with the continued growth of WaferGen revenues
which is being spurred by new applications for our ICELL8,
SmartChip and Apollo systems. We are on track to achieve
consolidated 2016 revenues exceeding $9
million and provide stockholders more clarity of the benefit
they will receive from the merger with Takara Bio USA Holdings, Inc.," said Rollie Carlson, Ph.D., President and Chief
Executive Officer of WaferGen. "We have placed twelve ICELL8
Single-Cell Systems since our initial launch in October of 2015,
and are pleased with our sales outlook in the fourth quarter.
We are maintaining our full-year 2016 revenue guidance of
$10 million to $12 million."
Third Quarter Ended September 30,
2016
Total revenue for the three months ended September 30, 2016, was approximately
$2.4 million, compared to
approximately $2.0 million for the
prior year period, which included $125,000 of license and royalty revenue related
to an agreement which was terminated in early 2016. The
increase of $509,000 in product
revenue was primarily attributable to increases for the three
months ended September 30, 2016, in
sales of WaferGen's SmartChip Systems, with revenue up 62% 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 14% and 9%, respectively, from the
comparable 2015 period.
Gross profit and gross profit margin related to product sales in
the third quarter of 2016 were approximately $1.3 million and 53%, respectively, compared to
gross profit and gross profit margin related to product sales of
approximately $1.0 million and 55%,
respectively, in the third 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 September 30, 2016, increased by $243,000 to $4.8
million, compared to $4.6
million for the same period of 2015. Sales and
marketing expenses increased $312,000
to approximately $1.7 million,
compared to approximately $1.4
million in the three months ended September 30, 2015. Research and
development expenses decreased $168,000 to approximately $2.2 million, compared to approximately
$2.4 million for the same quarter in
2015. General and administrative expenses increased
$99,000 to $880,000, compared to $781,000 in the third quarter of 2015.
Net loss for the three months ended September 30, 2016, was approximately
$3.7 million, or $0.19 per share, compared to a net loss of
approximately $3.5 million, or
$0.61 per share, in the same period
of 2015.
Nine Months Ended September 30,
2016
Total revenue for the nine months ended September 30, 2016, comprising product, license
and royalty revenue, was approximately $6.8
million, compared to approximately $4.8 million for the prior year period.
This includes license and royalty revenue of $42,000 in the 2016 period, compared to
$375,000 in the prior year period,
under an agreement that terminated at the end of January
2016. Product revenue for the nine months ended September 30, 2016, was approximately
$6.8 million, compared to
approximately $4.4 million for the
prior year period. The increase of approximately $2.4 million in product revenue was primarily
attributable to increases for the nine months ended September 30, 2016, in sales of WaferGen's
SmartChip Systems, with revenue up 175% 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 16% and 27%, respectively, from the comparable 2015
period.
Gross profit and gross profit margin related to product sales in
the first nine months of 2016 were approximately $3.4 million and 50%, respectively, compared to
gross profit and gross profit margin related to product sales of
$2.5 million and 56%, respectively,
in the first nine months of 2015.
Operating expenses in the nine months ended September 30, 2016, increased by approximately
$1.4 million to $16.1 million, compared to $14.7 million for the same period of 2015.
Sales and marketing expenses increased approximately $1.5 million to approximately $5.3 million, compared to approximately
$3.9 million in the nine months ended
September 30, 2015. Research
and development expenses decreased $256,000 to approximately $6.9 million, compared to approximately
$7.1 million for the same period in
2015. General and administrative expenses increased
$238,000 to approximately
$3.9 million, compared to
approximately $3.6 million in the
first nine months of 2015, the increase being due to substantial
legal and professional costs incurred related to our pending merger
with Takara.
Net loss for the nine months ended September 30, 2016, was approximately
$13.0 million, or $0.69 per share, compared to a net loss of
approximately $12.1 million, or
$2.13 per share, in the same period
of 2015.
At September 30, 2016, WaferGen
had cash and cash equivalents of approximately $5.1 million.
2016 Guidance
WaferGen continues to expect its full-year 2016 revenue will be
between $10.0 million and $12.0
million.
Conference Call
& Webcast
|
|
Tuesday,
November 8th @ 5pm Eastern:
|
Domestic:
|
877-407-3982
|
International:
|
201-493-6780
|
Conference
ID:
|
13649371
|
Webcast:
|
http://public.viavid.com/index.php?id=121844
|
|
|
Replays, available
through November 22:
|
Toll-Free:
|
844-512-2921
|
International:
|
412-317-6671
|
Conference
ID:
|
13649371
|
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 closing of the merger agreement
with Takara Bio Inc., 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 has filed with the Securities and Exchange Commission (the
"SEC") a proxy statement (the "Proxy Statement"), as well as other
relevant documents concerning the proposed merger with Takara Bio
USA Holdings, Inc. ("Takara Bio"). The Proxy Statement was
first sent or given to the stockholders of WaferGen on or about
September 23, 2016 and contains
important information about the merger agreement, its related
transactions and other related matters. This communication
may be deemed to be solicitation material in respect of the
proposed merger with Takara
Bio. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND
SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING
ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY BECAUSE IT
CONTAINS IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
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 may 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 the
Proxy Statement as is other information regarding the participants
in the proxy solicitation and a description of their direct and
indirect interests, by security holdings or otherwise
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
2,394
|
|
|
$
|
1,885
|
|
|
$
|
6,799
|
|
|
$
|
4,391
|
|
License
and royalty
|
|
—
|
|
|
125
|
|
|
42
|
|
|
375
|
|
Total revenue
|
|
2,394
|
|
|
2,010
|
|
|
6,841
|
|
|
4,766
|
|
Cost of product
revenue
|
|
1,124
|
|
|
848
|
|
|
3,377
|
|
|
1,938
|
|
Gross profit
|
|
1,270
|
|
|
1,162
|
|
|
3,464
|
|
|
2,828
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
1,737
|
|
|
1,425
|
|
|
5,342
|
|
|
3,890
|
|
Research and
development
|
|
2,219
|
|
|
2,387
|
|
|
6,881
|
|
|
7,137
|
|
General and
administrative
|
|
880
|
|
|
781
|
|
|
3,873
|
|
|
3,635
|
|
Total operating
expenses
|
|
4,836
|
|
|
4,593
|
|
|
16,096
|
|
|
14,662
|
|
Operating
loss
|
|
(3,566)
|
|
|
(3,431)
|
|
|
(12,632)
|
|
|
(11,834)
|
|
Other income and
(expenses):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(117)
|
|
|
(113)
|
|
|
(337)
|
|
|
(326)
|
|
Gain on revaluation of
warrant derivative liabilities, net
|
|
1
|
|
|
68
|
|
|
4
|
|
|
108
|
|
Miscellaneous income
(expense)
|
|
7
|
|
|
—
|
|
|
10
|
|
|
(49)
|
|
Total other income and
(expenses)
|
|
(109)
|
|
|
(45)
|
|
|
(323)
|
|
|
(267)
|
|
Net loss before
provision for income taxes
|
|
(3,675)
|
|
|
(3,476)
|
|
|
(12,955)
|
|
|
(12,101)
|
|
Provision for income
taxes
|
|
(5)
|
|
|
—
|
|
|
10
|
|
|
2
|
|
Net loss
|
|
$
|
(3,670)
|
|
|
$
|
(3,476)
|
|
|
$
|
(12,965)
|
|
|
$
|
(12,103)
|
|
Net loss per share -
basic and diluted
|
|
$
|
(0.19)
|
|
|
$
|
(0.61)
|
|
|
$
|
(0.69)
|
|
|
$
|
(2.13)
|
|
Shares used to
compute net loss per share - basic and diluted
|
|
18,928
|
|
|
5,707
|
|
|
18,826
|
|
|
5,681
|
|
WAFERGEN
BIO-SYSTEMS, INC. AND SUBSIDIARIES
|
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
Assets
|
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,147
|
|
|
$
|
15,236
|
|
Accounts receivable,
net of allowance
|
|
1,620
|
|
|
2,201
|
|
Inventories
|
|
1,391
|
|
|
1,998
|
|
Prepaid expenses and
other current assets
|
|
517
|
|
|
404
|
|
Total current
assets
|
|
8,675
|
|
|
19,839
|
|
Property and
equipment, net
|
|
992
|
|
|
1,052
|
|
Goodwill
|
|
990
|
|
|
990
|
|
Intangible assets,
net
|
|
596
|
|
|
912
|
|
Other
assets
|
|
138
|
|
|
80
|
|
Total
assets
|
|
$
|
11,391
|
|
|
$
|
22,873
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
2,020
|
|
|
$
|
2,029
|
|
Accrued payroll and
related costs
|
|
1,587
|
|
|
1,200
|
|
Current portion of
long-term debt
|
|
186
|
|
|
180
|
|
Other current
liabilities
|
|
981
|
|
|
917
|
|
Total current
liabilities
|
|
4,774
|
|
|
4,326
|
|
Long-term debt, net
of discount and current portion
|
|
2,751
|
|
|
2,570
|
|
Deferred income
taxes
|
|
128
|
|
|
128
|
|
Other
liabilities
|
|
69
|
|
|
152
|
|
Total
liabilities
|
|
7,722
|
|
|
7,176
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred
Stock
|
|
2,214
|
|
|
2,214
|
|
Common
Stock
|
|
121,266
|
|
|
120,329
|
|
Accumulated
deficit
|
|
(119,811)
|
|
|
(106,846)
|
|
Total stockholders'
equity
|
|
3,669
|
|
|
15,697
|
|
Total liabilities and
stockholders' equity
|
|
$
|
11,391
|
|
|
$
|
22,873
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wafergen-bio-systems-reports-results-for-third-quarter-2016-300359364.html
SOURCE WaferGen Biosystems, Inc.