MDCC Molecular Devices (MM)

Molecular Devices Reports Record Revenues and Earnings for Fourth Quarter of 2004 SUNNYVALE, Calif., Feb. 10 /PRNewswire-FirstCall/ -- Molecular Devices Corporation (NASDAQ:MDCC) today announced record revenues and earnings for the quarter ended December 31, 2004. Revenues for the quarter were a record $47.5 million, or an increase of 43% compared to the same period last year. Revenues for the full year 2004 were a record $148.5 million, or an increase of 29% compared to 2003. On a GAAP basis, which includes a one-time restructuring charge of $1.2 million related to the acquisition of Axon Instruments, Inc., operating income for the fourth quarter of 2004 was $5.2 million. On a non-GAAP basis, excluding the restructuring charge, operating income was $6.3 million for the quarter, or an increase of 59% compared to the same period last year. On a non-GAAP basis, excluding the restructuring charge in the fourth quarter and the $5.0 million acquired in-process research and development charge taken in the third quarter, operating income for 2004 was $17.7 million, or an increase of 74% compared to 2003. During the fourth quarter, the Company also recorded a non-operating pre-tax gain of $18.3 million arising out of the sale of a company in which Molecular Devices had an equity investment. On a GAAP basis, fully diluted earnings per share for the fourth quarter of 2004 were $0.81, or an increase of 305% compared to the same period last year. Excluding the restructuring charge and the gain on the sale of the equity investment, non-GAAP fully diluted earnings per share for the fourth quarter were $0.24, or an increase of 20% compared with the same period last year. On a non-GAAP basis, fully diluted earnings per share for 2004 were $0.73, or an increase of 43% compared to 2003. A table reconciling operating income and fully diluted earnings per share on a GAAP and non-GAAP basis is provided immediately following the Condensed Consolidated Balance Sheets. "We are pleased with the fourth quarter results of both our life sciences and drug discovery product families," stated Joseph D. Keegan, Ph.D., Molecular Devices' President and Chief Executive Officer. "The successful launch of our SpectraMax M5 reader, as well as the continued success of the SpectraMax M2, helped drive our best life sciences quarter ever. In drug discovery, we saw excellent growth in both high-content cellular imaging and high-throughput electrophysiology and we expect both of these areas to continue to be our most important growth drivers in drug discovery in the future. Finally, we have become more optimistic about our markets, and we believe that both our life sciences and drug discovery markets will remain stable in the near-term." The Company also established guidance for the first quarter and updated its guidance for the full year 2005. For the first quarter of 2005, the Company anticipates revenues of $38 to $40 million and fully diluted GAAP earnings per share of $0.12 to $0.14. For the full year 2005, the Company anticipates revenues of $180 to $190 million, and fully diluted earnings per share of $0.85 to $0.95. Conference Call Information An earnings announcement conference call is scheduled for Friday, February 11, 2005 at 8:00 a.m. PST (11:00 a.m. EST). Interested parties can participate in the call by dialing 800-289-0572 (domestic) or 913-981-5543 (international). Replay dial-in numbers are 888-203-1112 (domestic) and 719-457-0820 (international), and the access code for the replay is 1470068. Investors can also access a live web-cast of the call through a link posted on the investor page on Molecular Devices' website (http://www.moleculardevices.com/). A replay of the web-cast will be available at this location after the conclusion of the conference call from February 11, 2005 to such time as the company reports its financial results for the first quarter of 2005. About Molecular Devices Corporation Molecular Devices Corporation is a leading supplier of high-performance bioanalytical measurement systems that accelerate and improve drug discovery and other life sciences research. The Company's systems and consumables enable pharmaceutical and biotechnology companies to leverage advances in genomics, proteomics and parallel chemistry to facilitate the high-throughput and cost-effective identification and evaluation of drug candidates. The Company's solutions are based on its advanced core technologies that integrate its expertise in engineering, molecular and cell biology and chemistry. Molecular Devices enables its customers to improve research productivity and effectiveness, which ultimately accelerates the complex process of discovering and developing new drugs. This press release contains "forward-looking" statements, including statements related to future revenues and earnings. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will," and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Molecular Devices Corporation to differ materially from those indicated by these forward-looking statements, including, among others, risks related to variations in the amount of time that it takes for the Company to sell its products and collect amounts receivable, the timing of customer orders and our dependence on orders that are shipped in the same quarter, which gives the Company limited visibility of future product shipments, risks related to increased competition, risks associated with the Company's need to develop new and enhanced products and other risks detailed from time to time in the Company's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004. Molecular Devices Corporation does not undertake any obligation to update forward-looking statements. MOLECULAR DEVICES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (unaudited) Three Months Ended Year Ended December 31, December 31, 2004 2003 2004 2003 TOTAL REVENUES $47,485 $33,250 $148,529 $115,581 TOTAL COST OF REVENUES 18,154 12,380 56,274 43,256 GROSS PROFIT 29,331 20,870 92,255 72,325 OPERATING EXPENSES: Research and development 6,880 4,552 22,038 18,679 Selling, general and administrative 16,105 12,321 52,469 43,457 Acquired in-process research and development -- -- 5,000 -- Restructuring charge 1,157 -- 1,157 -- Total operating expenses 24,142 16,873 80,664 62,136 INCOME FROM OPERATIONS 5,189 3,997 11,591 10,189 Gain on sale of equity securities 18,288 -- 18,288 -- Other income, net 6 233 132 872 INCOME BEFORE TAXES 23,483 4,230 30,011 11,061 Income tax provision (8,916) (1,269) (12,778) (3,319) NET INCOME $14,567 $2,961 $17,233 $7,742 BASIC NET INCOME PER SHARE $0.84 $0.20 $1.08 $0.51 DILUTED NET INCOME PER SHARE $0.81 $0.20 $1.04 $0.51 SHARES USED IN COMPUTING BASIC NET INCOME PER SHARE 17,363 14,836 16,028 15,067 SHARES USED IN COMPUTING DILUTED NET INCOME PER SHARE 17,889 15,035 16,532 15,179 MOLECULAR DEVICES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) December 31, December 31, 2004 2003 ASSETS Current assets: Cash and cash equivalents $30,175 $50,260 Short-term investments -- 8,114 Accounts receivable, net 36,995 26,209 Inventories, net 25,785 17,025 Deferred tax assets 9,654 5,223 Other current assets 2,780 1,849 Total current assets 105,389 108,680 Long-term investments -- 1,736 Equipment and leasehold improvements, net 11,597 9,706 Other assets 137,969 46,791 $254,955 $166,913 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $7,085 $4,019 Accrued liabilities 30,583 17,356 Total current liabilities 37,668 21,375 Long-term liabilities: Long-term lease obligations 1,452 -- Deferred tax liabilities 5,324 -- Total long-term liabilities 6,776 -- Stockholders' equity 210,511 145,538 $254,955 $166,913 HISTORICAL NON-GAAP RECONCILIATION (unaudited, in thousands, except Three Months per share amounts) Ended Year Ended December 31, December 31, 2004 2003 2004 2003 OPERATING INCOME - GAAP BASIS $5,189 $3,997 $11,591 $10,189 Acquired in-process research and development -- -- 5,000 -- Restructuring charge 1,157 -- 1,157 -- NON-GAAP OPERATING INCOME $6,346 $3,997 $17,748 $10,189 GAAP FULLY DILUTED EARNINGS PER SHARE $0.81 $0.20 $1.04 $0.51 Acquired in-process research and development -- -- 0.30 -- Restructuring charge 0.06 -- 0.07 -- Gain on sale of equity securities (1.02) -- (1.11) -- Income tax impact of non-recurring items 0.39 -- 0.43 -- NON-GAAP FULLY DILUTED EARNINGS PER SHARE $0.24 $0.20 $0.73 $0.51 FULLY DILUTED SHARES 17,889 15,035 16,532 15,179 Each non-GAAP financial measure presented in this press release is included because Molecular Devices Corporation's management uses this information to monitor and evaluate on-going operating results and trends excluding the acquired in-process research and development and restructuring charge related to the acquisition of Axon Instruments, Inc. in July 2004 and the gain arising out of the sale of a company in which Molecular Devices had an equity investment in the fourth quarter of 2004. Molecular Devices' management believes such non-GAAP financial measures are also useful for investors because the charges for acquired in-process research and development and restructuring related to the Axon acquisition and the gain on the sale of the equity investment are the result of transactions that are unusual due to their nature, size and frequency. Consequently, excluding these charges and the gain arising out of the sale of the equity investment from Molecular Devices' operating results provides investors an important insight into Molecular Devices' operating results and related trends of its core business. DATASOURCE: Molecular Devices Corporation CONTACT: Tim Harkness of Molecular Devices Corporation, +1-408-747-3533 Web site: http://www.moleculardevices.com/

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