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Deltagen Reports 2010 Third Quarter Financial Results

^{Published on 2010-12-07 09:30:28 - 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, 2010.

"Managementa™s Discussion and Analysis of Financial Conditions and Results of Operations"

Revenues: The Companya™s consolidated revenues for the three months ended September 30, 2010 totaled $0.577 million. The revenues in the third quarter 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 Companya™s DeltaOne^TM program.

Interest Income: The Company had interest income of $0.003 million for the three months ended September 30, 2010.

Expenses: Total consolidated expenses for the three months ended September 30, 2010 were $0.703 million. The expenses in the third quarter were attributable primarily to labor costs and other general and administrative expenses, including $0.193 million in royalty and commission expenses. The total expenses included about $0.228 million and $0.025 million relating to the operation of the Companya™s wholly-owned subsidiaries, Benten BioServices, Inc. (aBenten Expensesa) and XenoPharm, Inc., respectively.

Net Losses: Consolidated net losses before provision for income taxes for the three months ended September 30, 2010 were $0.123 million. Excluding Benten Expenses, the Company had a net profit of about $0.105 million before provision for income taxes for the three months ended September 30, 2010.

Cash, Cash Equivalents and Accounts Receivable: As of September 30, 2010, the Company had $3.937 million in consolidated cash and cash equivalents, compared to $4.816 million as of June 30, 2010, and had $0.282 million in accounts receivable. The change in cash and cash equivalents was due primarily to property and equipment expenditures of $0.847 million, including an expenditure of $0.736 million relating to a down-payment for capital equipment to be used at the Companya™s Malvern, Pennsylvania facility.

The unaudited consolidated financial statements for the third quarter of 2010, accompanying notes, and Managementa™s Discussion and Analysis of Financial Conditions and Results of Operations for such period will be posted on Deltagena™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. Benten BioServices, Inc. (aBentena), a wholly-owned subsidiary of Deltagen based in Malvern, Pennsylvania, will provide regulatory-compliant services to support the development and commercialization of biopharmaceutical products. Bentena™s services are designed to address specific requirements for critical stages in product development, including biosafety testing, raw materials testing, assay and process validation services, cell banking and characterization services, and technology platform-specific R&D support and consulting services. For more information on Deltagen, visit the Company's website at [ www.deltagen.com ].

Safe Harbor Statement

This press release contains aforward-looking statements,a including statements about Deltagena™s future revenues, cash flows and operating results, third-party royalty obligations and third-party licenses and intellectual property, Bentena™s business plans, as well as other matters that are not historical facts or information.These forward-looking statements are based on managementa™s current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Deltagena™s ability to achieve its operational objectives and revenue projections, that may cause Deltagena™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 aManagementa™s Discussion and Analysis of Financial Conditions and Results of Operationsa, which can be found at Deltagena™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.