Cellular Dynamics International Reports Third Quarter 2013 Financial Results
Revenues More Than Double
MADISON, Wis., Nov. 12, 2013 (GLOBE NEWSWIRE) -- Cellular Dynamics International, Inc. (CDI) (Nasdaq:ICEL), a developer and manufacturer of fully functioning human cells in industrial quantities to precise specifications, today reported financial results for the third quarter ended September 30, 2013.
"Trailing twelve months revenue as of September 30, 2013, more than doubled when compared to the corresponding period last year as did trailing twelve month average sales to our top 10 customers. Revenue for the third quarter also more than doubled when compared to the same period last year, and this growth was achieved with record gross margin from product sales of 79%," said Bob Palay, Chairman and CEO of CDI. "A growing number of pharmaceutical companies are adopting CDI's products for their research programs. By the end of the third quarter of 2013 CDI had sold to 142 customers for the trailing twelve months compared to 115 customers for the same period last year. Our top 10 customers averaged $704,000 in revenue for the trailing twelve months ended September 30, 2013, up from $313,000 for the same period last year. We believe these results add to the growing evidence that our iCell® and MyCell® products are becoming an industry standard for manufactured human cells."
In addition, as recently announced, the Company received the Notice of Grant Award (NGA) from the California Institute of Regenerative Medicine (CIRM) to create a human induced pluripotent stem cell (iPSC) biobank from 3,000 individuals. Receipt of the NGA signifies the entry into a definitive agreement with CIRM and the initiation of funding for the $16 million project. This contract resulted from the CIRM grant award to CDI announced last March. The Company looks forward to the revenue from this contract contributing to our expected ongoing revenue growth in our base business.
Third Quarter 2013 Selected Financial Results
Revenue. Total revenues for the third quarter of 2013 were $2.5 million compared to $1.2 million for the third quarter of 2012, an increase of 108%. For the trailing twelve months ended September 30, 2013, total revenues were $10.7 million, compared to $4.6 million for the trailing twelve months ended September 30, 2012, an increase of 133%. Growth in total revenue is primarily attributable to growth in unit sales of the Company's iCell products and significant increases in revenue from collaborations under our center of excellence agreements with Eli Lilly and Company and AstraZeneca UK Limited.
Costs and expenses. Total costs and expenses (excluding cost of product sales) were $9.3 million for the third quarter of 2013 compared to $6.4 million for the third quarter of 2012, an increase of 45%. This growth is attributable principally to an increase in supplies expense within our research and development organization, an increase in staffing within our sales and marketing organization and to general and administrative costs attributable to or triggered by our initial public offering. Approximately $669,000 of general and administrative expenses in the third quarter of 2013 reflect compensation and fee arrangements made effective as of the IPO date but attributable to service in the first and second quarter of 2013. Additionally, the Company incurred approximately $240,000 for travel and other expenses incurred in connection with our IPO. Tempering those operating cost increases, cost of product sales as a percentage of product sales revenue declined from 27% in the third quarter of 2012 to 21% in the third quarter of 2013, for a record gross margin from product sales of 79%. This compares favorably to the third quarter of 2012 gross margin from product sales of 73%.
Net loss. For the third quarter of 2013, net loss was $7.5 million, or $0.62 per share, compared with a net loss of $5.5 million, or $3.16 per share, for the third quarter of 2012. Weighted average shares outstanding for the third quarter of 2013 was 12.1 million versus 1.7 million for the third quarter of 2012. The difference in weighted average shares outstanding is principally attributable to both the common shares issued in our IPO and the conversion of our Series A and Series B preferred stock to common shares immediately prior to the consummation of our IPO.
Cash and cash equivalents. At September 30, 2013, cash and cash equivalents totaled $68.6 million.
CDI will host a conference call and webcast at 8:00 a.m. EST, November 13, 2013. The conference call may be accessed by dialing (877) 312-5886 for domestic callers and (206) 453-2872 for international callers. Please specify to the operator that you would like to join the Cellular Dynamics Third Quarter 2013 Financial Results Call, or reference conference ID# 96066198. The conference call also will be webcast live under the investor relations section of CDI's website at www.cellulardynamics.com, and will be archived there following the call for approximately one year.
About Cellular Dynamics International, Inc.
Cellular Dynamics International, Inc. (CDI) is a leading developer of induced pluripotent stem cell technologies for in vitro drug development, stem cell banking and in vivo cellular therapeutic research. CDI harnesses its unique manufacturing technology to produce differentiated tissue cells in industrial quality, quantity and purity from any individual's induced pluripotent stem cell line created from a standard blood draw. CDI was founded in 2004 by Dr. James Thomson, a pioneer in human pluripotent stem cell research at the University of Wisconsin-Madison. CDI's facilities are located in Madison, Wisconsin, with a second facility in Novato, California. See www.cellulardynamics.com.
Forward-looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding Cellular Dynamics International, Inc., including statements regarding our revenue growth and market acceptance of our products, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "believe," "expect," "anticipate," "estimate," "intend," and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements in this release involve substantial risks and uncertainties that could cause our product development efforts, actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Cellular Dynamics undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see Cellular Dynamics' quarterly report on Form 10-Q filed with the Securities and Exchange Commission on August 29, 2013, which risks are incorporated herein by reference, and as may be described from time to time in Cellular Dynamics' subsequent SEC filings.
