Tuesday, Jul 21, 1987
Genentech Reports Second Quarter Results
South San Francisco, Calif. -- July 21, 1987 -- Genentech, Inc. (NASDAQ:GENE) reported revenues of $47.5 million for the second quarter of 1987, compared to $32.6 million for the same period last year.
Net income for the quarter ended June 30, 1987 was $5.3 million or 6 cents per share, after the effect of extraordinary item related to a tax loss carryforward, compared to $2.8 million or 4 cents per share for the second quarter of 1986.
Six month revenues for 1987 were $86.1 million, compared to $61.7 million for the same period last year. Six month net income was $9.8 million or 12 cents per share, after an extraordinary tax credit, compared to $4.6 million or 7 cents per share.
Protropin® sales increased to $20.0 million for the quarter, a 21% increase over sales for the first quarter of 1987 and 111% over 1986 sales for the same quarter.
As in the past, significant quarter-to-quarter income and revenue fluctuations may occur, due to variations in the timing of revenues for licensing and research benchmarks. These fluctuations have no impact on the company’s long-term growth, which will come from growing product sales and revenues.
Genentech is a leading biotechnology company, focusing on the development, manufacture and marketing of pharmaceuticals produced by recombinant DNA technology.
# # #
GENENTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended June 30, |
||||
|---|---|---|---|---|
|
|
||||
| 1987 | 1986 | |||
| Revenues | ||||
| Product sales | $ | 20,008 | $ | 9,461 |
| Contract | 23,978 | 21,373 | ||
| Interest | 3,518 | 1,815 | ||
| Total revenues | 47,504 | 32,649 | ||
| Costs and expenses | ||||
| Research and development | 22,578 | 20,615 | ||
| Marketing, general and administrative | 16,765 | 8,674 | ||
| Interest | 2,203 | - | ||
| Total costs and expenses | 41,546 | 29,289 | ||
| Income before taxes and extraordinary item | 5,958 | 3,360 | ||
| Income tax provision | 263 | 537 | ||
| Income before extraordinary item | 5,695 | 2,823 | ||
| Extraordinary item--tax benefit of operating loss carrying forward | (424) | - | ||
| Net income | $ | 5,271 | $ | 2,823 |
| Income per share: | ||||
| Income before extraordinary item | $ | 0.07 | $ | 0.04 |
| Extraordinary item | (0.01) | - | ||
| Net income | $ | 0.06 | $ | 0.04 |
| Weighted average number of shares used in computing per share amounts: |
85,223 | 70,741 | ||
| Six Months Ended June 30, |
||||
|
|
||||
| 1987 | 1986 | |||
| Revenues | ||||
| Product sales | $ | 36,518 | $ | 16,772 |
| Contract | 44,413 | 41,120 | ||
| Interest | 5,179 | 3,799 | ||
| Total revenues | 86,110 | 61,691 | ||
| Costs and expenses | ||||
| Research and development | 44,413 | 38,012 | ||
| Marketing, general and administrative | 28,528 | 18,099 | ||
| Interest | 2,527 | - | ||
| Total costs and expenses | 75,468 | 56,111 | ||
| Income before taxes and extraordinary item | 10,642 | 5,580 | ||
| Income tax provision | 1,716 | 1,004 | ||
| Income before extraordinary item | 8,926 | 4,576 | ||
| Extraordinary item--tax benefit of operating loss carrying forward | 889 | - | ||
| Net income | $ | 9,815 | $ | 4,576 |
| Income per share: | ||||
| Income before extraordinary item | $ | 0.11 | $ | 0.07 |
| Extraordinary item | 0.01 | - | ||
| Net income | $ | 0.12 | $ | 0.07 |
| Weighted average number of shares used in computing per share amounts: |
83,893 | 70,050 | ||
All share and per share amounts reflect the January 1987 two-for-one stock split.