Archive for March 16th, 2007
16
Press Release [ source ] Diversa Reports Financial Results for the Quarter and Year Ended December 31, 2006
Friday March 16, 7:22 pm ET
Company Achieved 61% Increase in Product Revenue Over 2005
SAN DIEGO, March 16 /PRNewswire-FirstCall/ — Diversa Corporation (Nasdaq: DVSA - News), a leader in the development of high-performance specialty enzymes, today reported financial results for the quarter and year ended December 31, 2006. Revenue for the year ended December 31, 2006 was $49.2 million, compared to revenue of $54.3 million in 2005. The net loss for the year, including restructuring and non-cash stock based compensation charges of $17.7 million, was $39.3 million, or $0.85 per share, compared to a net loss of $89.7 million, or $2.04 per share, in 2005, which included a non-cash impairment charge of $45.7 million. Product-related revenue was $15.9 million in 2006, representing a 61% increase over product-related revenue of $9.8 million in 2005. This increase resulted primarily from increased sales of Phyzyme(TM) Phytase sold through the Company’s partnership with Danisco Animal Nutrition.
Revenue for the quarter ended December 31, 2006 was $14.8 million, compared to revenue of $14.5 million for the fourth quarter of 2005. Product-related revenue for the quarter ended December 31, 2006 was $5.3 million, compared to product revenue of $3.7 million in the fourth quarter of 2005. The net loss for the quarter was $6.1 million, or $0.13 per share, compared to a net loss of $54.7 million, or $1.23 per share, in the fourth quarter of 2005, which included a non-cash impairment charge of $45.7 million. At December 31, 2006, the Company had cash, cash equivalents, and short-term investments totaling $51.9 million.
The decrease in total revenue for the year ended December 31, 2006, when compared to 2005, resulted primarily from the Company’s corporate strategy to de-emphasize grant revenue and certain collaborations that were not strategic to its three focus areas of biofuels, specialty industrial processes, and health and nutrition. As a result, total revenues decreased 9% compared to the year ended December 31, 2005, while product-related revenue increased 61% over the same period. Revenues have historically fluctuated from period to period and will likely continue to fluctuate in the future based upon the timing and composition of funding under existing and future collaboration agreements and grants, the expected increase in product sales based upon new product introductions, and regulatory approval timelines.
The decrease in net loss from the previous year was primarily due to a restructuring, announced January 5, 2006, which focused the Company’s resources on products with the greatest near-term opportunities, reduced its workforce, and consolidated its facilities. The Company recognized restructuring charges of approximately $12.0 million in 2006 related to employee separation and facilities consolidation costs.
In February of 2007, Diversa entered into an agreement to merge with Celunol Corp. to create what Diversa believes would be the first company with integrated, end-to-end technologies to convert cellulosic biomass into fuel ethanol. In addition to accelerating the Company’s strategy to pursue vertical integration within the biofuels industry, the Company expects that the proposed merger has the potential to enhance Diversa’s existing enzyme business by providing access to a cellulosic ethanol pilot plant and other downstream assets and capabilities to accelerate Diversa’s development of novel enzymes and enzyme cocktails for the production of cellulosic ethanol. Subject to receiving required regulatory and stockholder approvals, the merger is expected to be completed by the end of the second quarter of 2007.
"In 2006, Diversa substantially increased product revenues and practiced fiscal discipline, all of which helped to produce a significantly reduced net loss," commented Edward T. Shonsey, Diversa’s chief executive officer. "We continued to rebalance our resources and developed a more focused business strategy. In early 2007, we announced that we would explore additional opportunities in the biofuels market where we believe the potential for significant breakout opportunities exist and then subsequently announced our agreement to merge with Celunol Corp. in order to accelerate this vertical integration strategy. Near-term, we expect to concentrate on:
* Expanding the marketing and sales of our Fuelzyme(TM)-LF enzyme for more efficient grain ethanol production; * Continuing to market our Purifine(TM) enzyme for enhanced processing of both edible oils and biodiesel fuels; * Making significant progress in our cellulosic ethanol programs, including using vertical integration as a means to accelerate enzyme development and logistics for the production of cellulosic ethanol; and * Successful completion of our merger with Celunol Corp."
About Diversa
Since 1994, San Diego-based Diversa Corporation has pioneered the development of high-performance specialty enzymes. Diversa possesses the world’s broadest array of enzymes derived from bio-diverse environments as well as patented DirectEvolution® technologies. Diversa customizes enzymes for manufacturers within the biofuels, industrial, and health and nutrition markets to enable higher throughput, lower costs, and improved environmental outcomes. On February 12, 2007, Diversa entered into a merger agreement with Celunol Corp. pursuant to which a wholly owned subsidiary of Diversa will merge with and into Celunol, with Celunol as the surviving corporation, becoming a wholly owned subsidiary of Diversa. The proposed merger transaction is subject to customary closing conditions, including receipt of certain regulatory approvals and the approval of the stockholders of Diversa and Celunol. For more information, please visit www.diversa.com.
Additional Information about the Diversa/Celunol Merger and Where to Find It
Diversa Corporation intends to file with the Securities and Exchange Commission a registration statement on Form S-4 that will include a proxy statement/prospectus and other relevant documents in connection with the proposed merger transaction. Investors and security holders of Diversa and Celunol are urged to read the proxy statement/prospectus (including any amendments or supplements to the proxy statement/prospectus) and other relevant materials when they become available, because they will contain important information about Diversa, Celunol, and the proposed merger transaction. Investors may obtain a free copy of these materials (when they are available) and other documents filed with the Securities and Exchange Commission at the SEC’s website at http://www.sec.gov. A free copy of the proxy statement/prospectus, when it becomes available, may also be obtained from Diversa by directing a request to: Diversa Corporation, 4955 Directors Place, San Diego, CA 92121, Attn. Investor Relations. In addition, investors may access copies of the documents filed with the SEC by Diversa on Diversa’s website at http://www.diversa.com.
Participants in the Solicitation
Diversa and its executive officers and directors and Celunol and its executive officers and directors may be deemed to be participants in the solicitation of proxies from the stockholders of Diversa in connection with the proposed transaction. Information regarding the special interests of these executive officers and directors in the proposed transaction will be included in the proxy statement/prospectus referred to above. Additional information regarding the executive officers and directors of Diversa is also included in Diversa’s proxy statement for its 2006 Annual Meeting of Stockholders, which was filed with the SEC on April 5, 2006. This document is available free of charge at the SEC’s website (http://www.sec.gov) and from Investor Relations at Diversa at the address described above.
Forward-Looking Statements
Statements in this press release that are not strictly historical are "forward-looking" and involve a high degree of risk and uncertainty. These include statements related to fluctuating revenues based on new product-related revenues and under existing and future grants and collaboration agreements, the potential benefits of the proposed merger with Celunol Corp. and its anticipated closing date and Diversa’s business strategy and near-term strategic focus, all of which are prospective. Such statements are only predictions, and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks involved with Diversa’s ability to close its merger with Celunol Corp., including the risk that the merger may not close for one of a number of reasons, risks involved with the Company’s new and uncertain technologies, risks associated with the Company’s dependence on patents and proprietary rights, risks associated with the Company’s protection and enforcement of its patents and proprietary rights, the Company’s dependence on existing collaborations and its ability to achieve milestones under existing and future collaboration agreements, the ability of the Company and its collaborators to commercialize products using the Company’s technologies, the development or availability of competitive products or technologies, and the future ability of the Company to enter into and/or maintain collaboration and joint venture agreements. Certain of these factors and others are more fully described in Diversa’s filings with the Securities and Exchange Commission, including, but not limited to, Diversa’s Annual Report on Form 10-K for the year ended December 31, 2006. These forward-looking statements speak only as of the date hereof. Diversa expressly disclaims any intent or obligation to update these forward-looking statements.
Note: Fuelzyme and Purifine are trademarks of Diversa Corporation.
Contact: Wendy Kelley Investor Relations (858) 526-5437
Selected Financial Information Condensed Consolidated Statements of Operations (in thousands, except per share amounts)
Three Months Ended Year Ended December 31, December 31, 2006 2005 2006 2005 (unaudited) (unaudited) Revenues: Collaborative revenue $7,864 $8,050 $30,014 $34,392 Grant revenue 1,613 2,739 3,317 10,079 Product-related revenue 5,301 3,727 15,867 9,832 Total revenues 14,778 14,516 49,198 54,303
Expenses: Cost of product-related revenue 4,250 3,112 12,914 10,662 Research and development 12,357 16,820 50,033 72,751 Selling, general and administrative 4,172 3,200 14,800 12,990 Amortization of intangible assets — 650 — 2,602 Restructuring charges 493 — 12,026 – Asset impairment charges — 45,745 — 45,745 Total operating expenses 21,272 69,527 89,773 144,750
Loss from operations (6,494) (55,011) (40,575) (90,447)
Interest and other income, net 371 323 1,304 729
Net loss $(6,123) $(54,688) $(39,271) $(89,718)
Basic and diluted net loss per share $(0.13) $(1.23) $(0.85) $(2.04)
Weighted average shares used in computing basic and diluted net loss per share 47,006 44,330 46,474 44,064
Condensed Consolidated Balance Sheets (in thousands)
December 31, December 31, 2006 2005 Cash, cash equivalents and short-term investments $51,912 $65,428 Accounts receivable 8,646 9,012 Other current assets 6,476 4,996 Property and equipment, net 12,418 18,245 Other assets 453 388 Total assets $79,905 $98,069
Current liabilities $21,199 $18,148 Deferred revenue 6,178 8,785 Long-term liabilities 9,612 6,332 Stockholders’ equity 42,916 64,804 Total liabilities and stockholders’ equity $79,905 $98,069
Source: Diversa Corporation
16
Press Release [ source ] Qualcomm Dismisses Remaining Cases Against Broadcom
Friday March 16, 8:38 pm ET In Turn, Broadcom Dismisses San Diego-based Counterclaims, but Proceeds With Cases Against Qualcomm in All Other Venues
In turn, Broadcom dismissed its counterclaims against Qualcomm in those San Diego cases. Broadcom’s claims of patent infringement against Qualcomm in U.S. District Court in Santa Ana, Calif. and in the U.S. International Trade Commission (ITC) in Washington, D.C., and Broadcom’s antitrust claim against Qualcomm, which is on appeal in the United States Court of Appeals for the Third Circuit, are not affected by the dismissals in San Diego, and will continue forward.
The remaining Broadcom patent cases against Qualcomm are:
* The patent infringement action in the International Trade Commission in which a remedy hearing regarding Qualcomm’s infringement of a Broadcom patent will proceed as scheduled on March 21 and 22 in Washington, D.C.
* A U.S. District Court case in Santa Ana in which Broadcom alleges that Qualcomm infringes three Broadcom patents which will go to trial in May 2007.
The remaining Qualcomm case against Broadcom is a U.S. District Court case in San Diego in which Qualcomm alleged that Broadcom infringed two patents relating to video compression. In January, a unanimous jury found that Broadcom did not infringe the patents and recommended findings that Qualcomm committed inequitable conduct and standards abuse. The parties are awaiting the court’s final ruling on those issues.
Broadcom currently has six patents in suit against Qualcomm in Santa Ana (including a stayed case on three patents pending in the ITC).
About Broadcom
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom® products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry’s broadest portfolio of state-of-the-art, system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.
Broadcom is one of the world’s largest fabless semiconductor companies, with 2006 revenue of $3.67 billion, and holds over 1,950 U.S. and 750 foreign patents, more than 5,900 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video and data.
Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5900 or at www.broadcom.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
Our Annual Report on Form 10-K, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
Broadcom®, the pulse logo, Connecting everything® and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.
Broadcom Media Contact: Bill Blanning Vice President, Global Media Relations 949-926-5555 blanning@broadcom.com Broadcom Financial Analyst Contact: T. Peter Andrew Vice President, Corporate Communications 949-926-5663 pandrew@broadcom.com
Source: Broadcom Corporation; BRCM Corporate