MDCC Molecular Devices (MM)

Molecular Devices Reports Record Revenues and Earnings for Second Quarter of 2004 SUNNYVALE, Calif., July 22 /PRNewswire-FirstCall/ -- Molecular Devices Corporation (NASDAQ:MDCC) today announced record revenues and earnings for the quarter ended June 30, 2004. Revenues for the quarter were a record $32.2 million, or an increase of 13% compared to the same period last year. Operating income for the second quarter of 2004 was $3.8 million, or an increase of 67% compared to the same period last year. Fully diluted earnings per share for the second quarter of 2004 were a record $0.17, or an increase of 42% compared with the same period last year. "We saw strength in both our life sciences and drug discovery product families, and we continue to feel positively about the state of our markets," stated Joseph D. Keegan, Ph.D., Molecular Devices' President and Chief Executive Officer. "Strong demand for FLIPR Tetra(TM), Discovery-1 and IonWorks resulted in the best quarter in history for our drug discovery family of products. At the same time, our life sciences segment posted solid growth due to the continued success of our SpectraMax M2 bench-top reader and Meta series of cellular imaging products. Finally, we are excited about closing the Axon acquisition at the beginning of the third quarter, as we believe it broadens our drug discovery and life sciences product portfolios and strengthens our technology base." The Company also established guidance for the third quarter of 2004 and updated its guidance for the full year 2004 to reflect the July 1, 2004 closing of the Axon acquisition. For the third quarter of 2004, the Company anticipates revenues of $41 to $43 million. The Company expects to incur in the third quarter a one-time charge of approximately $5.3 million, or $0.29 per fully diluted share, for restructuring and acquired in-process research and development in connection with the Axon acquisition. For the third quarter of 2004, the Company anticipates a fully diluted GAAP loss per share of ($0.10) to ($0.12) and non-GAAP fully diluted earnings per share of $0.17 to $0.19 without the effect of the $0.29 per share charge. For the full year 2004, the Company anticipates revenues of $148 to $152 million, fully diluted GAAP earnings per share of $0.41 to $0.46 and fully diluted non-GAAP earnings per share of $0.70 to $0.75 without the effect of the third quarter $0.29 per share charge. Conference Call Information An earnings announcement conference call is scheduled for Friday, July 23, 2004 at 8:00 a.m. PDT (11:00 a.m. EDT). Interested parties can participate in the call by dialing 888-202-2422 (domestic) or 913-981-5592 (international). A taped replay of this call will be available through July 30, 2004. Replay dial-in numbers are 888-203-1112 (domestic) and 719-457-0820 (international), and the access code for the replay is 172500. 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 remain at this location through July 30, 2004. 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 combinatorial chemistry by facilitating 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 the recent acquisition of Axon and other risks detailed from time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2003, as amended, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, and its Registration Statement on Form S-4 (Registration No. 333-114934), as amended. Molecular Devices Corporation does not undertake any obligation to update forward-looking statements. MOLECULAR DEVICES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited) Three Months Six Months Ended Ended June 30, June 30, 2004 2003 2004 2003 TOTAL REVENUES $32,205 $28,505 $59,542 $53,054 TOTAL COST OF REVENUES 12,075 10,584 22,318 20,112 GROSS PROFIT 20,130 17,921 37,224 32,942 OPERATING EXPENSES: Research and development 4,709 4,819 8,726 9,478 Selling, general and administrative 11,616 10,817 22,536 20,455 Total operating expenses 16,325 15,636 31,262 29,933 INCOME FROM OPERATIONS 3,805 2,285 5,962 3,009 Other income, net 49 260 85 566 INCOME BEFORE TAXES 3,854 2,545 6,047 3,575 Income tax provision (1,349) (764) (2,113) (1,073) NET INCOME $2,505 $1,781 $3,934 $2,502 BASIC NET INCOME PER SHARE $0.18 $0.12 $0.27 $0.16 DILUTED NET INCOME PER SHARE $0.17 $0.12 $0.27 $0.16 SHARES USED IN COMPUTING BASIC NET INCOME PER SHARE 14,246 15,153 14,414 15,247 SHARES USED IN COMPUTING DILUTED NET INCOME PER SHARE 14,394 15,218 14,588 15,314 MOLECULAR DEVICES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) June 30, December 31, 2004 2003 ASSETS Current assets: Cash and cash equivalents $54,166 $50,260 Short-term investments -- 8,114 Accounts receivable, net 22,085 26,209 Inventories, net 15,623 17,025 Deferred tax assets 5,214 5,223 Other current assets 1,825 1,849 Total current assets 98,913 108,680 Long-term investments -- 1,736 Equipment and leasehold improvements, net 9,609 9,706 Other assets 49,356 46,791 $157,878 $166,913 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $4,297 $4,019 Accrued liabilities 15,468 17,356 Total current liabilities 19,765 21,375 Stockholders' equity 138,113 145,538 $157,878 $166,913 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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