Monday, Nov 2, 1987
Genentech Reports Third Quarter Results
South San Francisco, Calif. -- November 2, 1987 -- Genentech, Inc. (NASDAQ:GENE) reported revenues of $48.0 million for the third quarter of 1987, compared to $35.5 million for the same period last year.
Net income for the quarter ended September 30, 1987 was $5.2 million or 6 cents per share, after the effect of extraordinary item related to a tax loss carryforward, compared to $3.7 million or 5 cents per share for the third quarter of 1986.
Nine month revenues for 1987 were $134.1 million, compared to $97.2 million for the same period last year. Nine months net income was $15.1 million or 18 cents per share, after an extraordinary tax credit, compared to $8.2 million or 12 cents per share for the same period in 1986.
Protropin® sales increased to $23.8 million for the quarter, a 19% increase over sales for the second quarter of 1987 and 92% 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 for 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 revenues.
Genentech is a leading biotechnology company, focusing on the development, manufacture and marketing of pharmaceuticals produced by recombinant DNA technology.
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GENENTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended September 30, |
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|---|---|---|---|---|
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| 1987 | 1986 | |||
| Revenues | ||||
| Product sales | $ | 23,802 | $ | 12,372 |
| Contract | 20,733 | 21,937 | ||
| Interest | 3,421 | 1,240 | ||
| Total revenues | 47,956 | 35,549 | ||
| Costs and expenses | ||||
| Research and development | 23,232 | 20,794 | ||
| Marketing, general and administrative | 16,908 | 10,289 | ||
| Interest | 2,124 | - | ||
| Total costs and expenses | 42,264 | 31,083 | ||
| Income before taxes and extraordinary item | 5,692 | 4,466 | ||
| Income tax provision | 783 | 804 | ||
| Income before extraordinary item | 4,909 | 3,662 | ||
| Extraordinary item--tax benefit of operating loss carrying forward | 333 | - | ||
| Net income | $ | 5,242 | $ | 3,662 |
| Income per share: | ||||
| Income before extraordinary item | $ | 0.06 | $ | 0.05 |
| Extraordinary item | - | - | ||
| Net income | $ | 0.06 | $ | 0.05 |
| Weighted average number of shares used in computing per share amounts: |
85,082 | 70,818 | ||
| Nine Months Ended September 30, |
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| 1987 | 1986 | |||
| Revenues | ||||
| Product sales | $ | 60,320 | $ | 29,144 |
| Contract | 65,146 | 63,057 | ||
| Interest | 8,600 | 5,039 | ||
| Total revenues | 134,066 | 97,240 | ||
| Costs and expenses | ||||
| Research and development | 67,645 | 58,806 | ||
| Marketing, general and administrative | 45,436 | 28,388 | ||
| Interest | 4,651 | - | ||
| Total costs and expenses | 117,732 | 87,194 | ||
| Income before taxes and extraordinary item | 16,334 | 10,046 | ||
| Income tax provision | 2,499 | 1,808 | ||
| Income before extraordinary item | 13,835 | 8,238 | ||
| Extraordinary item--tax benefit of operating loss carrying forward | 1,222 | - | ||
| Net income | $ | 15,057 | $ | 8,238 |
| Income per share: | ||||
| Income before extraordinary item | $ | 0.17 | $ | 0.12 |
| Extraordinary item | 0.01 | - | ||
| Net income | $ | 0.18 | $ | 0.12 |
| Weighted average number of shares used in computing per share amounts: |
84,290 | 70,338 | ||
All share and per share amounts reflect the January 1987 two-for-one stock split.