Sentigen Holding Corp. (NasdaqSC: SGHL), today reported results for
the quarter and six months ended June 30, 2005. On February 22,
2005, we sold the Specialty Media Division of our wholly-owned
subsidiary, Cell & Molecular Technologies, Inc. ("CMT"), to
Chemicon International, Inc., a wholly-owned subsidiary of
Serologicals Corporation (Nasdaq: SERO). The results of this
division have been accounted for as discontinued operations. Our
consolidated results of continuing operations consist of CMT's
contract research division, Sentigen Biosciences, Inc. and the
expenses of the parent company. Consolidated Results of Continuing
Operations Revenues for the three months ended June 30, 2005 were
$1,700,199, a 44% increase over the revenues of $1,117,973 for the
three months ended June 30, 2004. Our revenues are primarily
attributed to our wholly-owned subsidiary CMT, which accounted for
$1,509,026 of our consolidated revenues for the three months ended
June 30, 2005 and a 28% increase when compared to CMT's revenues
for the three months ended June 30, 2004. The remainder of the
revenue increase on a consolidated basis was due to Sentigen
Biosciences' contract with the Technical Support Working Group
("TSWG") an inter-departmental agency of the federal government
with representatives from the Departments of Defense, State and
Homeland Security, to develop advanced biotechnology for the
detection of explosives and other threats, which initiated in the
third quarter of 2004. This contract accounted for $176,173 of
revenue for the three months ended June 30, 2005. Revenues for the
six months ended June 30, 2005 were $3,461,715, a 38% increase over
the $2,508,190 of revenues for the six months ended June 30, 2004.
CMT accounted for $3,106,730 of our consolidated revenues for the
six months ended June 30, 2005 and a 24% increase when compared to
CMT's revenues for the six months ended June 30, 2004. The
remainder of the increase on a consolidated basis was primarily due
to Sentigen Biosciences' contract with TSWG. This contract
accounted for $339,985 of revenue for the six months ended June 30,
2005. The loss from continuing operations for the three months
ended June 30, 2005 was ($655,428) or ($0.09) per share. This
compares to a loss from continuing operations of ($752,018) or
($0.10) per share for the three months ended June 30, 2004. The
reduction in loss was due to an increase in the income from
continuing operations of CMT as well as a reduction in the loss
from operations from Sentigen Biosciences. The loss from continuing
operations for the six months ended June 30, 2005 was ($1,206,659)
or ($0.16) per share. This compares to a loss from continuing
operations of ($2,058,781) or ($0.28) per share for the six months
ended June 30, 2004. The reduction in loss was primarily due to the
decline in stock based compensation charges for the six months
ended June 30, 2005. Such charges amounted to $697,439 during the
six months ended June 30, 2004, compared to $89,080 for the six
months ended June 30, 2005. The decline is attributable to the
expiration of certain stock option grants to non-employee
scientific consultants. In addition to the decline in stock based
compensation, CMT's increase in income from continuing operations
also contributed to the reduction in loss from continuing
operations. Results of Continuing Operations by Segment The Company
operates through two wholly-owned subsidiaries, CMT and Sentigen
Biosciences. The expenses of the parent company, Sentigen Holding
Corp. are reflected in Corporate. Cell & Molecular
Technologies, Inc. Income from continuing operations attributable
to CMT for the three months ended June 30, 2005 was $233,187
compared to $206,769 for the three months ended June 30, 2004, a
13% increase. Income from continuing operations attributable to CMT
for the six months ended June 30, 2005 was $530,137 compared to
$385,965 for the six months ended June 30, 2004, a 37% increase.
The increase was primarily driven by CMT's increase in revenues,
offset by higher direct costs and selling, general and
administrative expenses. Sentigen Biosciences. Sentigen Biosciences
has been primarily engaged in the development and commercialization
of novel bioassay systems that elucidate the underlying biology of
protein-protein interactions. Sentigen Biosciences has initially
targeted its Tango(TM) Assay System to address the
functionalization of G protein-coupled receptors (GPCRs) for
pharmaceutical drug discovery and development. Sentigen Biosciences
has filed patent applications on its Assay System and it expects to
file additional patent applications on this technology and related
matters in the future. Sentigen Biosciences is devoting a
significant portion of its research effort and resources to the
development of a novel molecular profiling system, which if
successful, the Company through CMT will attempt to commercialize.
While we believe our technology capabilities in the Biosciences
area are substantial, up to this point, Sentigen Biosciences has
not generated any significant revenues and, moreover, has incurred
quite substantial operating losses. Although we have completed
several pilot research collaborations, we have not entered into any
drug discovery or development agreements, nor can any assurance be
given that we will be able to do so on terms that are acceptable to
us. Management intends to continually review the commercial
validity of the Tango Assay System, its applicability to
functionalizing orphan GPCR's and the prospects of our proposed new
novel molecular profiling system in order to make the appropriate
decisions as to the best way to allocate our limited resources.
Loss from continuing operations attributable to Sentigen
Biosciences for the three months ended June 30, 2005 was ($455,601)
, a 9% reduction when compared to the loss from operations of
($500,361) for the three months ended June 30, 2004. Loss from
continuing operations attributable to Sentigen Biosciences for the
six months ended June 30, 2005 was ($836,474), a 37% improvement
when compared to the loss from operations of ($1,320,793) for the
six months ended June 30, 2004. The reduction in loss was primarily
due to the absence of stock-based compensation costs attributable
to scientific consultants as previously discussed, and our contract
with TSWG. Corporate. Loss from continuing operations attributable
to corporate holding company expenses for the three months ended
June 30, 2005 was ($504,489). This compares to a loss attributable
to corporate holding company expenses of ($483,873) for the three
months ended June 30, 2004, an increase of 4%. The increase was
primarily due to compensation and commercial insurance expenses.
Loss from continuing operations attributable to corporate holding
company expenses for the six months ended June 30, 2005 was
($1,044,876). This compares to a loss attributable to corporate
holding company expenses of ($1,157,007) for the six months ended
June 30, 2004, a reduction of 10%. The reduction is primarily due
to a decline in professional fees for legal services. Cash and
Working Capital At June 30, 2005, the Company had $176,673 in cash
and cash equivalents, $14,072,844 in U.S. Treasury Notes, at market
value, and $13,338,728 in working capital. This compares to
$347,560 in cash and cash equivalents, $9,738,938 in U.S. Treasury
Notes, at market value, and $9,569,381 in working capital at
December 31, 2004. It should be noted that we will need substantial
amounts of additional financing to commercialize the research
programs undertaken by us which financing may not be available or
if available may not be on reasonable terms. -0- *T SENTIGEN
HOLDING CORP. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS Income
statement highlights: ---------------------------- (Unaudited)
(Unaudited) For the Three Months For the Six Months Ended Ended
June 30, June 30, -------- -------- 2005 2004 2005 2004 ----------
---------- ---------- ---------- Revenue CMT $1,509,026 $1,177,973
$3,106,730 $2,508,190 Sentigen Biosciences 191,173 - 354,985 -
---------- ---------- ---------- ---------- 1,700,199 1,177,973
3,461,715 2,508,190 Income after direct costs CMT 928,728 781,903
1,925,829 1,585,988 Sentigen Biosciences 79,639 - 143,689 -
---------- ---------- ---------- ---------- 1,008,367 781,903
2,069,518 1,585,988 Operating income/(loss) CMT 233,187 206,769
530,137 385,965 Sentigen Biosciences (455,601) (500,361) (836,474)
(1,320,793) Corporate (504,489) (483,873) (1,044,876) (1,157,007)
---------- ---------- ---------- ---------- Operating (loss)
(726,903) (777,465) (1,351,213) (2,091,835) ---------- ----------
---------- ---------- Loss from continuing operations (655,428)
(752,018) (1,206,659) (2,058,781) (Loss)/income from discontinued
operations, net of tax (including gain on disposal of $4,773,810,
net of tax for the six months ended June 30, 2005) (88,200) 242,892
4,835,122 562,332 ---------- ---------- ---------- ---------- Net
(loss)/income $ (743,628) $(509,126) $3,628,463 $(1,496,449)
========== ========== ========== ========== *T -0- *T Net income
(loss) per share information: --------------------- Basic and
diluted loss per share from continuing operations $ (0.09) $ (0.10)
$ (0.16) $ (0.28) ========== ========== ========== ========== Basic
and diluted net (loss) income per share from discontinued
operations $ (0.01) $ 0.03 $ 0.65 $ 0.08 ========== ==========
========== ========== Basic and diluted net (loss) income per share
$ (0.10) $ (0.07) $ 0.49 $ (0.20) ========== ========== ==========
========== Weighted average shares outstanding: Basic and Diluted
7,473,117 7,462,099 7,472,309 7,459,647 ========== ==========
========== ========== *T -0- *T Balance Sheet Highlights:
------------------------- June 30, December 31, 2005 2004
----------- ----------- Cash and cash equivalents $ 176,673 $
347,560 U.S. treasury notes 14,072,844 9,738,938 Total current
assets 15,714,129 12,110,677 Total assets 16,784,050 13,388,743
Current maturities of long term debt $ 209,809 $ 180,698 Current
liabilities 2,375,401 2,541,296 Long-term debt 635,046 784,495
Total liabilities 3,010,447 3,325,791 Stockholder's Equity
$13,773,603 $10,062,952 *T This news release includes
forward-looking statements that involve risks and uncertainties.
Although the Company believes such statements are reasonable, it
can make no assurance that such statements will prove to be
correct. Such statements are subject to certain factors that may
cause results to differ materially from the forward-looking
statements. Such factors include the risk factors discussed in the
Company's filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K, a copy of
which may be obtained from the Company without charge. The Company
undertakes no obligation to publicly release results of any of
these forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unexpected
results. About Sentigen Holding Corp: Sentigen Holding Corp.
(NasdaqSC: SGHL) conducts business through two wholly owned
operating subsidiaries, Cell & Molecular Technologies, Inc.
("CMT"), and Sentigen Biosciences, Inc. Sentigen Biosciences has
been primarily engaged in the development and commercialization of
novel bioassay systems that elucidate the underlying biology of
protein-protein interactions. Sentigen Biosciences has initially
targeted its Tango(TM) Assay System to address the
functionalization of G protein-coupled receptors (GPCRs) for
pharmaceutical drug discovery and development. Sentigen Biosciences
has filed patent applications on its Assay System and it expects to
file additional patent applications on this technology and related
matters in the future. Sentigen Biosciences is devoting a
significant portion of its research effort and resources to the
development of a novel molecular profiling system, which if
successful, the Company through CMT will attempt to commercialize.
CMT provides contract research and development services to
companies engaged in the drug discovery process. For more
information on our companies, please visit their respective
websites: http://www.cmt-inc.net and http://www.sentigen.com.
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