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Deltagen Reports 2008 Third Quarter Financial Results

^{Published on 2008-12-08 17:44:30 - Market Wire}
 

SAN MATEO, Calif.--([ BUSINESS WIRE ])--Deltagen, Inc. (Pink Sheets:DGEN), a leading provider of drug discovery tools to the biopharmaceutical industry, today reported unaudited consolidated financial results for the three months ended September 30, 2008.

Revenues: The Company's consolidated revenues for the three months ended September 30, 2008 totaled $0.500 million. The revenues were attributable primarily to license fees associated with the provision of knockout mice and related phenotypic data pursuant to orders placed by customers under the Company's DeltaOne^TM program.

Interest Income: The Company had interest income of $0.020 million for the three months ended September 30, 2008.

Expenses: Total consolidated expenses for the three months ended September 30, 2008 were $0.388 million. The operating expenses were attributable primarily to labor costs and other general and administrative expenses, including $0.141 million in royalty and commission expenses.

Net Income: Net income before provision for income taxes for the three months ended September 30, 2008 was $0.133 million.

Cash, Cash Equivalents and Accounts Receivable: As of September 30, 2008, the Company had $5.472 million in consolidated cash and cash equivalents (compared to $4.981 million as of June 30, 2008) and $0.216 million in accounts receivable (compared to $1.224 million as of June 30, 2008). The changes in the amounts of accounts receivable and cash and cash equivalents are attributable primarily to the receipt by Deltagen of $0.723 million from The Wellcome Trust in the third quarter of 2008.

The unaudited consolidated financial statements for the third quarter of 2008, accompanying notes, and Management's Discussion and Analysis of Financial Conditions and Results of Operations for such period will be posted on Deltagen's website ([ www.deltagen.com ]).

About Deltagen

Deltagen, Inc. is a leading provider of drug discovery tools to the biopharmaceutical industry. Deltagen offers access to its extensive inventory of knockout mouse lines and related phenotypic data, which enhance the efficiency of target validation and drug discovery. In addition, Deltagen offers target validation data in the areas of immunology and metabolic diseases. Deltagen's products and programs have been validated by customers and partners such as Eli Lilly & Co., GlaxoSmithKline, Merck & Co., Inc. and Pfizer Inc. For more information on Deltagen, visit the Company's website at [ www.deltagen.com ].

Safe Harbor Statement

This press release contains "forward-looking statements," including statements about Deltagen's future revenues, cash flows and operating results, any possible future dividend declarations, third-party royalty obligations and third-party licenses and intellectual property, the impact of Deltagen's restructuring efforts, as well as other matters that are not historical facts or information.These forward-looking statements are based on management's current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Deltagen's ability to achieve its operational objectives and revenue projections, that may cause Deltagen's actual results to be materially different from any future results expressed or implied by such forward-looking statements. There are no assurances that the Company will declare any future dividends.Information identifying such important risk factors is contained in "Management's Discussion and Analysis of Financial Conditions and Results of Operations", which can be found at Deltagen's website at [ www.deltagen.com ].Deltagen undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.