Friday, Oct 21, 1988

Genentech Reports Results For Third Quarter

South San Francisco, Calif. -- October 21, 1988 --

Genentech, Inc. today reported third quarter net income of $5.3 million, or six cents per share, compared to $5.2 million, or six cents per share, for the same quarter last year.

Total revenues increased to $81.6 million from $48.0 million in the 1987 quarter. Product sales were $57.5 million, compared to $23.8 million a year ago.

For the first nine months, net income was $36.0 million, or 42 cents per share, compared to $15.1 million, or 18 cents per share, in the corresponding 1987 period. Total revenues were $245.3 million and product sales $196.1 million, compared to $134.1 million and $60.3 million respectively in the first nine months of 1987.

Genentech is a 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,

1988 1987
Revenues
   Product sales $ 57,519 $ 23,802
   Contract 21,026 20,733
   Interest 3,074 3,421
      Total revenues 81,619 47,956
     
Costs and expenses
   Cost of sales 11,477 5,111
   Research and development 36,065 23,232
   Marketing, general and administrative 27,118 11,797
   Interest 1,525 2,124
      Total costs and expenses 76,185 42,264
     
Income before taxes 5,434 5,692
Income tax provision 132 450
     
Net income $ 5,302 $ 5,242
     
Net income per share $ 0.06 $ 0.06
     
Weighted average number of shares used in
   computing per share amounts:
84,268 85,082
 
Nine Months
Ended September 30,

1988 1987
Revenues
   Product sales $ 196,125 $ 60,320
   Contract 39,873 65,146
   Interest 9,331 8,600
      Total revenues 245,329 134,066
     
Costs and expenses
   Cost of sales 34,203 11,678
   Research and development 95,293 67,645
   Marketing, general and administrative 70,048 33,758
   Interest 5,482 4,651
      Total costs and expenses 205,026 117,732
     
Income before taxes 40,303 16,334
Income tax provision 4,316 1,277
     
Net income $ 35,987 $ 15,057
     
Net income per share $ 0.42 $ 0.18
     
Weighted average number of shares used in
   computing per share amounts:
84,692 84,290