Tuesday, Aug 9, 1983

Genentech Reports Second Quarter Results

South San Francisco, Calif. -- August 9, 1983 --

Genentech, Inc. reported revenues of $11 million for the second quarter of 1983, up 45 percent from $7.6 million for the same period last year. Net income for the quarter ended June 30, 1983 was $332,000 or $.02 per share, compared to $81,000 or $.01 per share for the second quarter of 1982.

Six month revenues for 1983 were $20.8 million, compared to $14 million for the same period of 1982. Six months net income was $562,000 or $.04 cents per share, compared to $131,000 or $.01 per share for the first half of 1982.

"Operating revenue, which includes contract research, licensing revenues and product sales for clinical use, represented 90 percent of total revenues for the quarter," according to Robert A. Swanson, president and chief executive officer.

"Genentech is continuing its steady growth. The company is adding staff, particularly in the area of operations and marketing, in anticipation of the launch of human growth hormone early next year."

"Until several Genentech products have reached the market, the company may experience quarter to quarter fluctuations in financial results, due to variations in the timing of revenues for licensing and research benchmarks," Swanson said. "These variations have no significance for the long-term earnings of the company."

Genentech is a leader in the development, manufacture and marketing of recombinant DNA products for pharmaceutical, agricultural and industrial chemicals markets. Major products under development include human growth hormone for the treatment of short stature due to growth hormone deficiency; gamma interferon for anti-cancer and anti-tumor indications; tissue-type plasminogen activator for dissolving blood clots in victims of heart attacks and other cardiovascular disorders; and bovine interferon for the treatment of Bovine Respiratory Disease ("shipping fever").

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GENENTECH, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS

(in thousands, except per share amounts)
(unaudited)

Quarter Ended June 30 1983 1982
Revenues $ 10,968 $ 7,592
Net income 332 81
Share earnings:    
   Net income 0.02 0.01
Average shares 14,166 12,265
 
Six Months Ended June 30 1983 1982
Revenues $ 20,793 $ 14,055
Net income 562 131
Share earnings:    
   Net income 0.04 0.01
Average shares 13,984 12,169