 |
Welcome to |
|
BEAVERTON, Ore., May 15 /PRNewswire/ -- Epitope, Inc. (Nasdaq: EPTO) today reported its second quarter operating results for fiscal 1997. Revenues for the quarter ended March 31, 1997 and first six months of fiscal 1997 were $2.6 million and $5.2 million, respectively, as compared to revenues of $1.5 million and $2.8 million, respectively, for the comparable periods in 1996. The Company reported a net loss of $10.2 million for the second quarter, or $0.74 a share, compared with a net loss of $1.8 million, or $0.14 a share, in the second quarter of fiscal 1996. For the six months ended March 31, 1997, Epitope reported a net loss of $14.6 million (including a loss of $8.4 million from discontinued operations), or $1.08 per share, as compared to a loss of $3.5 million, or $0.28 per share for the first six months of fiscal 1996. The net loss from continuing operations for the current quarter amounted to $1.8 million, or $0.13 per share, as compared to $1.8 million, or $0.14 per share for the second quarter of fiscal 1996. For the six months ended March 31, 1997, the Company reported a net loss from continuing operations of $6.3 million (including first quarter non-recurring charges of $3.1 million), or $0.47 per share, as compared to a loss of $3.5 million, or $0.28 per share in the first six months of the preceding fiscal year. Epitope Medical Products Epitope Medical Products (EMP) recorded a net loss of $1.0 million on revenues of $2.3 million in the second quarter of fiscal 1997, as compared to a loss of $1.4 million on revenues of $1.2 million in the quarter ended March 31, 1996. As compared to the second quarter of fiscal 1996, EMP product sales doubled in the second quarter of 1997 to a level of $2.2 million. Sales of Western blot HIV-1 confirmatory tests increased 18% over second quarter 1996 sales to $0.5 million, reflecting higher sales volumes. Sales of EMP's oral specimen collection device were $1.7 million, representing an increase of $1.0 million over the levels achieved in the prior year second quarter. The increase is attributable to increased use of the device for insurance testing purposes. The increased sales volume of oral specimen collection devices also had a favorable impact on gross margins which improved in 1997 to 61% of sales, from 35 % in the second quarter of fiscal 1996. EMP currently has firm orders totaling $1.7 million for oral specimen collection devices and $0.4 million for HIV-1 confirmatory tests to be delivered in the third quarter of 1997. Agritope Agritope incurred a loss from continuing operations of $0.8 million in the current quarter as compared to a loss of $0.4 million in the second quarter of fiscal 1996. For the six months ended March 31, 1997, Agritope reported a loss from continuing operations of $4.9 million as compared to a loss from continuing operations of $1.0 million in the first six months of fiscal 1996. The six month results for 1997 include non-cash first quarter charges of $3.1 million arising from conversion of certain notes to common stock and a permanent impairment in the value of investments in affiliated companies. Six month results include expenses of $0.4 million related to Vinifera, Inc. which was not a part of the Agritope group in 1996 and $0.3 million related to development of a proposal, currently undergoing further study, to create a second class of common stock targeted to operations of the Agritope group and re-designating the current common stock to track the result of operations of the Epitope Medical Products group. Discontinued Operations Prior period operating results have been restated to reflect the operating results of Andrew & Williamson Sales, Co. (A&W) in discontinued operations as a result of the Company's previously reported agreement to rescind its December 1996 business combination with A&W. The second quarter results include losses of $8.3 million attributable to A&W. The non-cash portion of the estimated loss on disposal is $7.8 million. Under terms of the agreement to rescind the A&W transaction, the former shareholders of A&W agreed to return 520,000 shares of Epitope common stock in exchange for the A&W common stock Epitope received in the December transaction. Epitope will also receive two series of A&W nonvoting preferred stock with a $5.7 million liquidation preference over A&W common stock, various redemption features and a share of dividends equal to those paid on common stock. As a result of the rescission, the merger, originally accounted for as a pooling-of-interests, is now required to be accounted for as a purchase transaction. Discontinued operations for the current quarter include a charge of $8.4 million for the estimated loss on disposal of A&W including the reduction in the market price of Epitope common stock to be returned by the A&W former shareholders, discounting the present value of A&W preferred stock to be issued to Epitope and accrual of certain estimated costs of disposition. A tabulation of operating highlights and balance sheet data follows (in thousands, except per share data): Three Months Ended Six Months Ended 3/31/97 3/31/96 3/31/97 3/31/96 Operating Highlights: Epitope Medical Products Revenues $2,336 $ 1,207 $ 4,977 $ 2,432 Loss from operations (1,238) (1,612) (1,849) (2,898) Loss from continuing operations (1,029) (1,394) (1,410) (2,455) Net loss (1,029) (1,394) (1,410) (2,455) Agritope Revenues $226 $263 $252 $ 349 Loss from operations (911) (428) (2,058) (1,016) Loss from continuing operations (809) (423) (4,935) (1,014) Net loss (9,138) (423) (13,141) (1,014) Epitope, Inc. and Subsidiaries Revenues $2,562 $1,470 $ 5,229 $ 2,781 Loss from operations (2,149) (2,040) (3,907) (3,914) Loss from continuing operations, (1,838) (1,817) (6,344) (3,469) Net loss (10,166) (1,817) (14,551) (3,469) Per share: Loss from continuing operations $ (.13) $ (.14) $ (.47) $ (.28) Net loss $ (.74) $ (.14) $(1.08) $(.28) Selected Balance Sheet Data: Epitope, Inc. and Subsidiaries 3/31/97 9/30/96 Cash and marketable securities $ 12,995 $24,517 Working capital 13,288 21,630 Shareholders' equity 25,242 27,967 Epitope, Inc. is an Oregon corporation utilizing biotechnology to develop and market medical diagnostic products through its Epitope Medical Products group and superior new plants and related products through its Agritope group. Source: EPITOPE Inc. Content of this page is copyright and reprinted here for educational and historical information. |
||
