Financial News: Immunomedics, Emageon

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Immunomedics Inc. reported revenues of $0.9 million and a net loss of $5.1 million, or $0.08 per share, for the third quarter of fiscal year 2007, which ended March 31, 2007. This compares to revenues of $1.3 million and a net loss of $5.7 million, or $0.10 per share, for the same period last year. Revenues for the three-month period ended March 31, 2007, did not include any amortization of deferred revenues derived from the May 2006 agreement with biopharmeutical company UCB, due to the decision by UCB to begin new clinical trials for the treatment of systemic lupus erythematosus. Immunomedics and UCB entered into an agreement whereby UCB purchased exclusive worldwide rights to develop, market and sell Immunomedics' lead product candidate, epratuzumab, for all autoimmune disease indications.

As a result of this decision, Immunomedics has discontinued the amortization of the deferred revenue until a determination can be made as to how the UCB decision will impact the company's obligations under the UCB agreement. The decrease in net loss for the three-month period in 2007 was primarily due to higher interest income combined with lower interest and operating expenses.

For the first nine months of the 2007 fiscal year, the company reported revenues of $7.7 million and a net loss of $12.1 million, or $0.20 per share. This compares to revenue of $2.2 million and a net loss of $23.1 million, or $0.42 per share, for the same period last year. Recognition of deferred revenue from the UCB agreement for the first six months of the 2007 fiscal year contributed to the decrease in net loss for the nine-month period in 2007, as well as increased sales of LeukoScan in Europe, and higher interest income. The current period's results also benefited from reduced operating and interest expenses. 

As of March 31, 2007, the company had $27.7 million in cash and marketable securities. On May 7, 2007, the company closed on its previously announced $24 million registered direct offering of common stock. After payment of fees and expenses, the net proceeds to the company are expected to be approximately $22.3 million.

"We are pleased that our financial results for the third quarter of the 2007 fiscal year were in line with our expectations.  Although we have recently bolstered our cash position with a sale of our common stock, licensing remains an important means for us to raise capital," commented Gerard G. Gorman, senior vice president, Finance and Business Development, and chief financial officer.


Emageon Inc. reported financial results for its first quarter ended March 31, 2007. Revenue for the quarter was $27.3 million compared to first quarter 2006 revenue of $27.0 million. The net loss for the quarter was $1.8 million, or $0.09 per share, compared to a net loss in the prior year quarter ended March 31, 2006, of $7.0 million, or $0.34 per share. The first quarter 2006 loss included $1.2 million, or $0.06 per share, in expenses related to the integration of Camtronics Medical Systems Ltd. into the company’s operations. Camtronics was acquired by the company in November 2005.

The company’s earnings excluding non-cash charges for depreciation, amortization of intangible assets, and stock-based compensation were $1.3 million, or $0.06 per share in first quarter 2007 compared to a net loss of $3.4 million, or $0.17 per share, in first quarter 2006. These measures of earnings were not determined in accordance with generally accepted accounting principles (GAAP).

Cash used in operations for the quarter was $3.6 million. At March 31, 2007, cash totaled $18.0 million compared to $23.0 million at Dec. 31, 2006.

The company also lowered its financial guidance for the full year 2007 from that announced in January 2007. Determined on a GAAP basis, total revenue for the year is now anticipated in the range of $112 to $115 million, with an anticipated net loss of $3.7 to $4.9 million, or $0.17 to $0.22 per share. Excluding non-cash charges, the company expects to earn $7.6 to $8.8 million, or $0.35 to $0.40 per share, for the year. This non-GAAP measure of earnings was determined by adjusting the company’s anticipated 2007 GAAP earnings for anticipated depreciation expense of $0.29 per share, amortization expense of $0.13 per share, and stock-based compensation expense of $0.17 per share.

“Our operating results for the first quarter of 2007 were in line with our internal expectations,” said Chuck Jett, chairman, president, and CEO of Emageon. “However, we have seen a slowdown in sales bookings since the first of the year and, as a result, we are today lowering our financial guidance for the full year 2007. While we are disappointed with the lower bookings, they are largely the result of delays on the part of our customers and potential customers as opposed to competitive losses.”