MorphoSys AG — Earnings Release 2004

Jul 29, 2004

News Details

Ad-hoc | 29 July 2004 07:44

MorphoSys Reports Six Months 2004 Results and Raises Revenue Guidance

Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– MorphoSys Reports Six Months 2004 Results: Company Raises Revenue and Cash Guidance for 2004 MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment) today reported financial results for the first six months ending June 30, 2004, and at the same time, increased its full year revenue and cash projections. Revenues for the first six months increased by 22% over the prior year to EUR 8.8 million, and in the same period total operating expenses decreased by 8% to EUR 9.9 million. The Company increased its projections of year-end revenues to EUR 21 million (previously EUR 19 million). The new guidance represents an increase of sales of almost 40% compared to the prior year (2003: EUR 15.3 million), and resulted from MorphoSys’ strong deal flow during the last months. EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization), excluding stock-based compensation, was positive and amounted to EUR 1.3 million in the first half of 2004 (2003: EUR 2.0 million). As a result the Company reduced its net loss by 84% to EUR 0.8 million. Additionally, MorphoSys’ cash position increased by 29% and amounted to EUR 29.9 million at the end of the second quarter 2004, compared to EUR 23.2 million at year-end 2003. On this basis, the Company raised its year-end cash position guidance predicting that the Company’s cash position at year-end 2004 would be at least at EUR 28 million (previously EUR 20 million). end of ad-hoc-announcement (c)DGAP 29.07.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: First Half Year – 2004: In the first six months of 2004, revenues increased to EUR 8.8 million (2003: EUR 7.2 million). Total operating expenses including stock-based compensation for the first six months of 2004 amounted to EUR 9.9 million, compared to EUR 10.8 million in the same period of 2003. Research and development costs amounted to EUR 5.6 million (2003: EUR 5.7 million); sales, general & administrative expenses decreased to EUR 3.7 million (2003: EUR 4.1 million), and stock-based compensation fell to EUR 0.6 million (2003: EUR 1.1 million). Amortization of intangibles and depreciation amounted to EUR 1.5 million for the first six months of 2004 (2003: EUR 1.1 million). Non-operating income in the first six months of 2004 amounted to EUR 0.3 million (2003: expense of EUR 1.3 million). For the first six months of 2004, the Company posted a net loss of EUR 0.8 million compared to EUR 4.9 million in the same period of the previous year. The number of outstanding shares at June 30, 2004 was 5,349,203 shares, compared to 4,841,570 at December 31, 2003. The resulting net loss per share for the first six months of 2004 amounted to EUR 0.15 (2003: EUR 1.22 per share). Second Quarter – 2004: In the second quarter of 2004, the Company generated revenues of EUR 4.5 million, compared to EUR 3.5 million in the same quarter of 2003. Total operating expenses amounted to EUR 5.5 million, compared to EUR 5.4 million in the same quarter of 2003. The resulting net loss for the second quarter was EUR 1.2 million, compared to EUR 3.1 million in the second quarter of 2003. At the end of the second quarter, MorphoSys employed 120 people, compared to 95 at year-end 2003. The increase in number of employees was attributed to recently signed collaborations. Highlights of the Second Quarter 2004 Included: – Conclusion of a major therapeutic antibody collaboration with Novartis AG; Novartis purchased an equity stake of approx. 10% in MorphoSys – Full year revenue projections met during the second quarter of 2004, resulting in a upwards revision of revenue guidance for the full year – Granting of an U.S. patent for proprietary CysDisplayTM screening technologies – MorphoSys awarded for Corporate Governance Excellence – Appointment of Dr. Metin Colpan, cofounder and former Chief Executive Officer of QIAGEN N.V., to the Supervisory Board of MorphoSys “Our core partnering business is developing very well”, commented Dave Lemus, Chief Financial Officer of MorphoSys AG. “As a result, we have upgraded our revenue guidance and remain optimistic about our prospects.” “We have had an excellent first half year “, commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. “Our core partnering business is generating strong cash flow, as evidenced by the financial results. Most importantly, the good progress with partners continues to strengthen our therapeutic antibody pipeline. More than twenty active programs based on our HuCAL(R) technology represent substantial future value in the form of milestones and royalties.” MorphoSys will hold a public conference call today at 10:00 CET to present the financial results of the first six months of 2004. Dial-in number for the Conference Call (listen-only): +49 (0)69 22222 247 For more information, please contact MorphoSys: Dr. Claudia Gutjahr-Löser, Director Corporate Communications, Tel. +49 (0)89 89927 122, gutjahr@morphosys.com or Mario Brkulj, PR Specialist, Tel. +49 (0)89 89927 454, Brkulj@morphosys.com ——————————————————————————– WKN: 663200; ISIN: DE0006632003; Index: Nemax 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 290744 Jul 04