10/17/00 - Incyte Reports 47% Year-to-year Increase in Third Quarter Revenue PALO ALTO, Calif., Oct. 17 /PRNewswire/ -- Incyte Genomics, Inc. (Nasdaq: INCY), the leading genomic information company, today reported revenues of $52.0 million for the quarter ended September 30, 2000, compared to $35.4 million for the quarter ended September 30, 1999. Revenues increased to $138.8 million for the nine-month period ended September 30, 2000, compared to $110.9 million for the same period in 1999. Incyte reported a net loss of $7.6 million, or $0.12 per diluted share, for the quarter ended September 30, 2000, compared to net loss of $11.1 million, or $0.20 per diluted share, for the quarter ended September 30, 1999. For the nine months ended September 30, 2000, Incyte reported a net loss of $22.4 million, or $0.36 per diluted share, compared to a net loss of $20.4 million, or $0.36 per diluted share, for the same period in 1999. For the quarter ended September 30, 2000, database and partnership program revenues were $39.8 million compared to $28.1 million for the same period in 1999. For the nine months ended September 30, 2000, database and partnership program revenues increased to $105.4 million, compared to $89.3 million for the prior year. Custom genomics revenues were $12.2 million for the quarter ended September 30, 2000, compared to $7.3 million for the same period in 1999. For the nine months ended September 30, 2000, custom genomics revenues totaled $33.4 million, compared $21.6 million for the same period in 1999. Operating expenses increased to $67.7 million for the quarter ended September 30, 2000, compared to $45.9 million for the same period in 1999. For the nine-month period ended September 30, 2000, operating expenses were $184.3 million compared to $131.1 million for the same period in 1999. During the quarter, Incyte has continued to execute on its strategy to broaden access to its technologies. Incyte announced that Motorola and NEN would commercialize microarrays developed using Incyte proprietary genes. Under the terms of the agreements, Incyte will receive royalties on microarrays developed using Incyte technology and information. These agreements provide a "click through" mechanism to Incyte's web site for researchers using these platforms to quickly and easily obtain information about Incyte's proprietary genes and to order clones and other products for conducting further research. Incyte announced the establishment of a European and Japanese distributorship program, in addition to the expansion of Incyte.com to include access to Incyte's database products. These announcements support Incyte's initiative to broaden customer reach. Researchers can now access public domain data that has been processed using Incyte's proprietary bioinformatics through LifeSeq(R) Public, or purchase information about Incyte proprietary genes through LifeSeq Gene-by-Gene, as well as order clones and other products for conducting further research. Also during the quarter, Incyte announced two partnerships with American Home Products (AHP). In July AHP licensed LifeSeq Gold for use in drug development, earlier this month AHP licensed fundamental microarray-based gene expression technology for internal use. In September, Incyte announced the development of the Genomics Knowledge Platform in collaboration with Secant and IBM, which enables scientists to seamlessly query multiple Incyte database products. The Genomics Knowledge Platform also enables researchers to query other databases. By allowing researchers to easily query across multiple databases, they are able to obtain a more complete view of the genes they are interested in. To date, Incyte has filed patent applications covering over 50,000 full or partial genes. Incyte was issued 35 new U.S. patents during the third quarter, bringing to approximately 510 the total number of full-length gene patents issued to the Company. Incyte has also received notices of allowance on more than 70 full-length gene patents, thus bringing the total number of issued and allowed full-length gene patents to approximately 580. In addition, the Company holds roughly 26 issued technology, database and computer systems patents. Incyte management will hold a conference call to discuss recent events including today's announcement. The telephone number to join the call is 973-633-1010. The conference call will begin at 10:00 a.m. PDT. A replay of the conference call will be available through Friday, October 20, 2000 by calling 402-220-0948. Incyte Genomics, Inc. is a leading provider of an integrated platform of genomic technologies designed to aid in the understanding of the molecular basis of disease. Incyte develops and markets genomic databases, genomic data management software, microarray-based gene expression services, related reagents and services. These products and services assist pharmaceutical and biotechnology researchers with all phases of drug discovery and development including gene discovery, understanding disease pathways, identifying new disease targets and the discovery and correlation of gene sequence variation to disease. For more information, visit Incyte's web site at https://www.incyte.com. Except for the historical information contained herein, the matters set forth in this press release, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of factors that may cause results to differ, see Incyte's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2000. Incyte disclaims any intent or obligation to update these forward-looking statements. INCYTE GENOMICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three months ended Nine months ended September 30, September 30, 2000 1999 2000 1999 Revenue $51,982 $35,415 $138,751 $110,938 Costs and expenses: Research and development 51,880 36,874 138,621 104,240 Selling, general and administrative 15,848 8,989 45,669 26,865 Total costs and expenses 67,728 45,863 184,290 131,105 Loss from operations (15,746) (10,448) (45,539) (20,167) Interest income and other income, net 11,034 1,308 32,251 4,477 Interest expense (2,886) (72) (7,794) (226) Losses from joint venture -- (1,854) (1,283) (4,447) Net loss $(7,598) $(11,066) $(22,365) $(20,363) Basic and diluted net loss per share $(0.12) $(0.20) $(0.36) $(0.36) Shares used in computation of: Basic and diluted net loss per share 64,064 56,380 62,825 56,020 CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, December 31, 2000 1999 Assets Cash and cash equivalents $328,377 $32,220 Marketable securities, available-for-sale 316,255 34,717 Accounts receivable, net 21,015 26,608 Prepaid expenses and other current assets 18,927 15,956 Total current assets 684,574 109,501 Property and equipment, net 96,285 67,293 Long-term investments 54,590 19,275 Goodwill and other intangible assets 12,771 14,564 Deposits and other assets 17,704 11,301 Total assets $865,924 $221,934 Liabilities and Stockholders' Equity Accounts payable $11,848 $6,501 Accrued and other current liabilities 25,168 18,498 Deferred revenue 16,255 26,459 Total current liabilities 53,271 51,458 Non-current liabilities -- 194 Convertible Subordinated Notes 203,167 -- Total liabilities 256,438 51,652 Total stockholders' equity 609,486 170,282 Total liabilities and stockholders' equity $865,924 $ 221,934 SOURCE Incyte Genomics, Inc. Web Site: https://www.incyte.com