Sequenom Corp fka SQNM

[$tockfather]

They hit investors with a double wammy PR yesterday after close. Read below.........




SEQUENOM Announces Delay in Launch of SEQureDx Trisomy 21 Test

Last update: 4:30 p.m. EDT April 29, 2009
SAN DIEGO, Apr 29, 2009 (BUSINESS WIRE) -- SEQUENOM, Inc. (SQNM:
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SQNM, , ) announced today that the expected launch of its SEQureDx(TM) Down syndrome test is delayed, due to the discovery by company officials of employee mishandling of R&D test data and results. Accordingly the company is no longer relying on the previously announced R&D test data and results. SEQUENOM has not changed its plans to develop in parallel its RNA- and DNA-based methods for the Down syndrome test and will endeavor to have a validated test in the fourth quarter of 2009. Under the circumstances, and as supported by key clinical opinion leaders, the company now intends to launch the Down syndrome test upon publication in a peer-reviewed journal of the results from the on-going large, independent clinical studies, which are designed to be practice-changing for Down syndrome testing.
The company's board of directors has formed a special committee of independent directors to oversee an independent investigation of the employees' activity related to the test data and results. The committee has engaged independent counsel to assist the committee in the conduct of the investigation.
Although the company is not aware of any potentially inappropriate activity related to the reported results of its other tests under development, the company is currently reviewing the data for all tests. As a result of this ongoing review the Rhesus D, Cystic Fibrosis and Fetalxy tests are now anticipated to begin launching in the third quarter of this year.
The company believes that its Down syndrome program has suffered a temporary setback but that the SEQureDx technology is scientifically and technically sound. The company intends to take every possible action to make up lost ground. SEQUENOM believes that it has the financial resources to commercialize its test for Down syndrome and other prenatal disorders.
Today's announcement regarding the company's SEQureDx Down syndrome R&D test data and results supersedes all previous announcements about such data and test, including its press releases dated June 4, 2008, September 23, 2008, December 1, 2008, January 28, 2009 and February 3, 2009.
SEQUENOM has scheduled a conference call for 2:00 p.m. Pacific time today at which Harry Stylli, PhD, SEQUENOM President and Chief Executive Officer, will discuss this announcement and along with other company officials will present information on the company's operating results for the first quarter of fiscal 2009. A separate press release setting forth information on the company's first quarter operating results will be issued prior to the call. Individuals interested in participating in the conference call may do so by dialing [phone] for domestic callers or [phone] for international callers. Those interested in listening to the conference call live via the Internet may do so by visiting the investor relations section of the company's website at www.sequenom.com.
A webcast replay will be available on the SEQUENOM Web site for 14 days. A telephone replay will be available for 48 hours following the conclusion of the call by dialing [phone] for domestic callers, or [phone] for international callers, and entering reservation code 93862699.
Because the company has accelerated the announcement of its first quarter operating results to coincide with today's call, the company has cancelled the conference call originally scheduled for Thursday, April 30, 2009.
About SEQUENOM
SEQUENOM is committed to providing the best genetic analysis products that translate the results of genomic science into solutions for noninvasive prenatal diagnostics, biomedical research, translational research and molecular medicine applications. The company's proprietary MassARRAY(R) system is a high-performance (in speed, accuracy and cost efficiency) nucleic acid analysis platform that quantitatively and precisely measures genetic target material and variations. The company has exclusively licensed intellectual property rights for the development and commercialization of noninvasive prenatal genetic tests for use with the MassARRAY system and other platforms. SEQUENOM maintains a Web site at www.sequenom.com to which SEQUENOM regularly posts copies of its press releases as well as additional information about SEQUENOM. Interested persons can subscribe on the SEQUENOM Web site to email alerts or RSS feeds that are sent automatically when SEQUENOM issues press releases, files its reports with the Securities and Exchange Commission or posts certain other information to the Web site.
SEQUENOM(R), MassARRAY(R) and SEQureDx(TM) are trademarks of SEQUENOM, Inc.
Forward-Looking Statements
Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the Company's current plans to develop and launch a Down syndrome test and other diagnostic tests and the sufficiency of its financial resources to do so and the Company's ability to develop and commercialize diagnostic tests on multiple platforms, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties associated with the Company's ability to develop and commercialize new technologies and products, particularly new technologies such as noninvasive prenatal diagnostics and laboratory developed tests, reliance upon the collaborative efforts of other parties, the Company's ability to manage its existing cash resources or raise additional cash resources, competition, intellectual property protection and intellectual property rights of others, government regulation particularly with respect to diagnostic products and laboratory developed tests, obtaining or maintaining regulatory approvals, the independent investigation and other risks detailed from time to time in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and other documents subsequently filed with or furnished to the Securities and Exchange Commission. These forward-looking statements are based on current information that may change and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.
SOURCE: SEQUENOM, Inc.







PRESS RELEASE
SEQUENOM Reports First Quarter 2009 Financial Results

Last update: 4:40 p.m. EDT April 29, 2009
SAN DIEGO, Apr 29, 2009 (BUSINESS WIRE) -- SEQUENOM, Inc. (SQNM:
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SQNM, , ) today reported its financial results for the quarter ended March 31, 2009.
SEQUENOM reported first quarter 2009 revenues of $8.7 million, compared with revenues of $10.6 million reported for the first quarter of 2008. The decrease in revenues for the first quarter was primarily due to a decrease in system sales and services in the company's genetic analysis business. Net loss for the first quarter of 2009 was $17.5 million, or $0.29 per share, compared with $8.6 million, or $0.19 per share, for the first quarter of 2008. The increase in net loss during the first quarter of 2009, compared with the first quarter of 2008, reflects increased general and administrative expenses and expenses associated with the planned launch of various noninvasive prenatal tests.
System revenues were $2.4 million, as compared to $3.7 million in the prior period while consumable sales rose modestly (1.3%) to $4.7 million. Gross margin was 61% for the first quarter of 2009, compared with 56% for the first quarter of 2008. The increased gross margin was attributable to higher relative sales in consumables (which have higher gross margins), as compared to lower relative system and contract research revenues (which traditionally have lower gross margins).
Research and development expenses were $8.8 million for the first quarter of 2009, compared with $4.9 million for the same period of 2008. The increase in research and development expenses for the first quarter of 2009 reflected additional expenses associated with the company's investment in its molecular diagnostic technology and product development, increased clinical study costs and increased headcount-related expenses (including higher stock-based compensation expense), primarily associated with the building of the company's infrastructure for its molecular diagnostics business. Selling, general and administrative expenses for the first quarter of 2009 were $14.3 million compared with $9.2 million for the first quarter 2008. The increase in selling, general and administrative expenses in 2009 resulted from increased headcount-related expenses related to the building of the company's diagnostics sales force, as well as legal fees associated with on-going litigation and acquisition activities. Total operating expenses for the first quarter of 2009 were $23 million, compared with $14.1 million for the first quarter of 2008.
As of March 31, 2009 SEQUENOM had total cash and short- and long-term marketable securities of $87 million and $7.8 million in accounts receivable.
Updated 2009 Financial Guidance
SEQUENOM is updating its 2009 financial guidance as follows:
Genetic Analysis:
-- The company anticipates 2009 revenues to range between $32 million and $35 million
-- Gross margin is expected to be approximately 57% in 2009
-- After corporate allocations Genetic Analysis is expected to report a loss of between $10 million to $12 million, which includes approximately $5 million in non-cash FAS 123R expense, while incurring a cash burn after corporate allocations of breakeven to $2.0 million.
Molecular Diagnostics
-- The company is not providing revenue guidance for the molecular diagnostic business. However, Molecular Diagnostics is expected to incur a net loss after corporate allocations of between $52 million to $55 million, which includes approximately $7 million in non-cash FAS 123R expense, while incurring a cash burn after corporate allocations of approximately $45 million to $50 million.
Consolidated
-- On a consolidated basis the company is expected to report a 2009 loss of between $62 million to $67 million, which includes approximately $12 million in non-cash FAS 123R expenses.
-- On a consolidated basis, the company is expected to have a cash burn of between $45 million to $52 million.
Conference Call
Due to the news announced earlier today SEQUENOM's management is rescheduling the earnings call previously scheduled for Thursday, April 30 to today at 2:00 p.m. Pacific time. Individuals interested in participating in the conference call may do so by dialing [phone] for domestic callers or [phone] for international callers. Those interested in listening to the conference call live via the Internet may do so by visiting the investor relations section of the company's website at www.sequenom.com.
A webcast replay will be available on the SEQUENOM Web site for 14 days. A telephone replay will be available for 48 hours following the conclusion of the call by dialing [phone] for domestic callers, or [phone] for international callers, and entering reservation code 93862699.
About SEQUENOM
SEQUENOM is committed to providing the best genetic analysis products that translate the results of genomic science into solutions for noninvasive prenatal diagnostics, biomedical research, translational research and molecular medicine applications. The company's proprietary MassARRAY(R) system is a high-performance (in speed, accuracy and cost efficiency) nucleic acid analysis platform that quantitatively and precisely measures genetic target material and variations. The company has exclusively licensed intellectual property rights for the development and commercialization of noninvasive prenatal genetic tests for use with the MassARRAY system and other platforms. SEQUENOM maintains a Web site at www.sequenom.com to which SEQUENOM regularly posts copies of its press releases as well as additional information about SEQUENOM. Interested persons can subscribe on the SEQUENOM Web site to email alerts or RSS feeds that are sent automatically when SEQUENOM issues press releases, files its reports with the Securities and Exchange Commission or posts certain other information to the Web site.
SEQUENOM(R) and MassARRAY(R) are trademarks of SEQUENOM, Inc.
Forward-Looking Statements
Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the Company's planned launch of various non-invasive prenatal tests, all of the statements under Updated 2009 Financial Guidance, and the Company's ability to develop and commercialize diagnostic tests for use with the MassARRAY platform and other platforms, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties associated with the Company's operating performance, demand for and market acceptance of the Company's products, services, and technologies, research and development progress, new technology and product development and commercialization particularly for new technologies such as molecular diagnostics and laboratory developed tests, and particularly noninvasive prenatal diagnostics and laboratory developed tests, reliance upon the collaborative efforts of other parties, competition, intellectual property protection and intellectual property rights of others, government regulation particularly with respect to diagnostic products and laboratory developed tests, obtaining or maintaining regulatory approvals, and other risks detailed from time to time in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and other documents subsequently filed with or furnished to the Securities and Exchange Commission. These forward-looking statements are based on current information that may change and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.

SEQUENOM, Inc.
Condensed Consolidated Financial Statements
(in thousands, except per share data)
Consolidated Summary of Operations
Three months ended
March 31,
2009 2008
(unaudited) (unaudited)
Revenues:
Consumables $ 4,722 $ 4,660
System related 3,126 4,500
Services 837 1,357
Research and other 3 57
Total revenues 8,688 10,574
Costs and expenses:
Cost of product and service revenue 3,424 4,671
Research and development expenses 8,780 4,885
Sales and marketing expenses 7,319 5,813
General and administrative expenses 6,942 3,370
Total costs and expenses 26,465 18,739
Operating loss (17,777 ) (8,165 )
Loss on marketable securities - (829 )
Interest income and other, net 308 382
Loss before incomes taxes (17,469 ) (8,612 )
Deferred tax expense (20 ) (14 )
Net loss $ (17,489 ) $ (8,626 )
Weighted average shares outstanding, basic and diluted 61,014 45,330
Net loss per share, basic and diluted: $ (0.29 ) $ (0.19 )


SEQUENOM, Inc.
Consolidated Balance Sheet Information
March 31, December 31,
2009 2008
Assets: (unaudited) (audited)
Cash, cash equivalents and short-term marketable securities $ 81,229 $ 98,329
Restricted cash 1,369 1,371
Accounts receivable, net 7,807 10,642
Inventories, net 10,565 10,631
Other current assets 1,971 1,311
Total current assets 102,941 122,284
Property, equipment and leasehold improvements, net 10,207 9,195
Long-term marketable securities 5,748 5,748
Goodwill 10,105 2,398
Other long-term assets 984 859
Total assets $ 129,985 $ 140,484
Liabilities and Stockholders' Equity:
Accounts payable $ 8,119 $ 8,321
Accrued expenses 6,527 8,389
Deferred revenue 1,830 1,444
Other current liabilities 616 237
Short-term debt 1,792 884
Total current liabilities 18,884 19,275
Long-term liabilities 6,996 5,233
Stockholders' equity 104,105 116,213
Total liabilities and stockholders' equity $ 129,985 $ 140,721


SOURCE: SEQUENOM, Inc.