March 9: Adeza Posts 10th Consecutive Profitable Quarter
March 9, 2005
SUNNYVALE, Calif.--March 9, 2005--Adeza (NASDAQ: ADZA) today
announced financial results for the three months and year ended
December 31, 2004.
For the three months ended December 31, 2004, Adeza posted its
10th consecutive profitable quarter. The company reported that net
income for the fourth quarter of 2004 was $1.6 million, an increase of
$436,000 or 38% from net income of $1.2 million for the fourth quarter
of 2003. Diluted net income per share for the fourth quarter of 2004
was $0.11 based on 14.5 million shares outstanding, compared with
diluted net income per share of $0.09 based on 12.8 million shares
outstanding for the fourth quarter of 2003. The change in share count
is primarily attributed to the completion in December 2004 of the
company's initial public offering of 4.3 million common shares.
Adeza reported record quarterly product sales for the fourth
quarter of 2004 of $9.2 million, an increase of $1.9 million or 26%,
compared with product sales of $7.3 million for the fourth quarter of
2003. The increase in the 2004 fourth quarter is primarily attributed
to higher unit sales of the Fetal Fibronectin Test.
For the three months ended December 31, 2004, selling and
marketing expenses were $4.3 million, compared with $3.2 million for
the comparable period in 2003, due mainly to additional field sales
representatives, costs associated with increased headcount and
expansion of marketing programs. General and administrative expenses
for the fourth quarter of 2004 were $1.4 million, compared with
$940,000 in the prior-year fourth quarter, due primarily to headcount
related costs. Research and development expenses increased to $697,000
for the fourth quarter of 2004, compared with $481,000 for the fourth
quarter of 2003, due mainly to costs related to clinical studies.
For the year ended December 31, 2004, Adeza reported net income of
$8.9 million, or $0.65 per diluted share based on 13.6 million shares
outstanding, compared with net income of $3.2 million, or $0.26 per
diluted share based on 12.5 million shares outstanding, for the year
ended December 31, 2003. Cost of product sales for 2004 included a
one-time benefit of $2.7 million.
For the year ended December 31, 2004, the company reported product
sales of $33.6 million, an increase of $7.1 million from $26.5 million
for the year ended December 31, 2003.
As of December 31, 2004, Adeza had cash and cash equivalents of
$80.1 million, stockholders' equity of $81.7 million and working
capital of $81.3 million. The company's cash position as of December
31, 2004 reflects net proceeds of $61.9 million from the company's
initial public offering.
"We are extremely pleased to report record quarterly product sales
up 26% from the prior year driven by increased sales of our patented,
disposable Fetal Fibronectin Test to assess the risk of preterm
birth," said Emory V. Anderson, president and chief executive officer
of Adeza. "Our plan for the current year is to leverage our sales and
marketing infrastructure to further increase sales of the Fetal
Fibronectin Test in the markets for women in the 'signs and symptoms'
and 'high risk' categories for preterm birth."
Also today Adeza introduced 2005 financial guidance. The company
expects 2005 product sales to be in the range of $42 to $44 million.
Adeza designs, manufactures and markets innovative products for
women's health. Adeza's initial focus is on reproductive healthcare,
using its proprietary technologies to predict preterm birth and assess
infertility. Adeza's principal product is a patented diagnostic test,
the Fetal Fibronectin Test, which utilizes a single-use, disposable
cassette and is analyzed on Adeza's patented TLiIQ® System. This
product is approved by the U.S. Food and Drug Administration (FDA) for
broad use in assessing the risk of preterm birth. Adeza also markets
and sells the E-tegrity® Test, an infertility-related test to assess
receptivity of the uterus to embryo implantation in women with
unexplained infertility.
Adeza cautions you that statements included in this press release
that are not a description of historical facts may be forward-looking
statements. The inclusion of forward-looking statements should not be
regarded as a representation by Adeza that any of its plans will be
achieved. Actual results may differ materially from those set forth in
this release due to the risks and uncertainties inherent in Adeza's
business including, without limitation, statements about the expansion
of products, markets and offerings, additional product indications and
its expected financial results. All forward-looking statements are
qualified in their entirety by this cautionary statement and Adeza
undertakes no obligation to revise or update this news release to
reflect events or circumstances after the date hereof.
Adeza
Statements of Operations
(in thousands, except share and per share information)
Three Months Ended Years Ended
December 31, December 31,
----------------------- -----------------------
(unaudited) (unaudited) (unaudited)
2004 2003 2004 2003
---------------------- ----------- ----------- -----------------------
Product sales $9,191 $7,314 $33,596 $26,499
Cost of product sales 1,299 1,466 2,195 6,087
----------- ----------- ----------- -----------
Gross profit 7,892 5,848 31,401 20,412
Operating costs and
expenses:
Selling and marketing 4,269 3,236 15,907 12,259
General and
administrative 1,366 940 3,997 2,730
Research and
development 697 481 2,451 2,001
----------- ----------- ----------- -----------
Total operating costs
and expenses 6,332 4,657 22,355 16,990
----------- ----------- ----------- -----------
Income from operations 1,560 1,191 9,046 3,422
Interest income 135 26 239 112
Interest expense -- (22) -- (131)
Other expenses, net (6) -- (6) (33)
----------- ----------- ----------- -----------
Income before income
taxes 1,689 1,195 9,279 3,370
Provision for income
taxes 103 45 410 135
----------- ----------- ----------- -----------
Net income $1,586 $1,150 $8,869 $3,235
=========== =========== =========== ===========
Basic net income per
share $0.41 $6.31 $8.05 $17.78
=========== =========== =========== ===========
Diluted net income per
share $0.11 $0.09 $0.65 $0.26
=========== =========== =========== ===========
Shares used to compute
basic net income per
share 3,831,647 182,160 1,102,078 181,965
=========== =========== =========== ===========
Shares used to compute
diluted net income
per share 14,465,376 12,771,273 13,648,954 12,515,063
=========== =========== =========== ===========
Adeza
Balance Sheets
(in thousands, except share and per share information)
December 31,
---------------------
2004 2003
------------------------------------------------------------ --------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $80,118 $12,092
Accounts receivable, net of allowance of $303
and $264 at December 31, 2004 and 2003,
respectively 6,628 5,294
Inventories 667 590
Prepaid and other current assets 271 188
----------- --------
Total current assets 87,684 18,164
Property and equipment, net 268 252
Note receivable-related party -- 76
Intangible assets, net 176 224
----------- --------
Total assets $88,128 $18,716
=========== ========
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable $2,750 $2,428
Accrued compensation 1,863 1,675
Accrued royalties 1,007 3,449
Other accrued liabilities 752 545
Deferred revenue 45 414
----------- --------
Total current liabilities 6,417 8,511
Convertible preferred stock, $0.001 par value;
issuable in series; 5,000,000 shares authorized
at December 31, 2004; 16,516,335 shares
authorized at December 31, 2003; no shares
issued and outstanding at December 31, 2004;
15,409,062 shares issued and outstanding at
December 31, 2003 -- 61,484
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $0.001 par value; 100,000,000
shares authorized at December 31, 2004;
25,000,000 shares authorized at December 31,
2003; 16,461,390 and 182,160 shares issued and
outstanding, actual at December 31, 2004 and
2003, respectively 16 --
Additional paid-in capital 129,695 2,358
Deferred compensation (3,232) --
Accumulated deficit (44,768) (53,637)
----------- --------
Total stockholders' equity (deficit) 81,711 (51,279)
=========== ========
Total liabilities and stockholders' equity
(deficit) $88,128 $18,716