Press Release Details

Cerus Corporation Announces Third Quarter Financial Results

October, 29 2009

CONCORD, Calif.--(BUSINESS WIRE)-- Cerus Corporation (NASDAQ:CERS) today announced financial results for the third quarter ended September 30, 2009.

Total revenue for the third quarter of 2009 was $4.8 million, up from $3.9 million in revenue recognized during the third quarter of 2008. Total revenue for the first nine months of 2009 was $12.5 million, down from $12.9 million recognized during the first nine months of 2008, when $1.5 million of previously deferred product revenue was recognized.

Product revenue for the INTERCEPT Blood System was $4.6 million during the third quarter of 2009, representing an increase of $0.7 million, or 18%, from the second quarter of 2009. Third quarter 2009 product revenue was up $1.5 million from $3.1 million recognized during the third quarter of 2008. Product revenue for the first nine months of 2009 was $11.5 million, down from $12.0 million during the first nine months of 2008, when the $1.5 million of previously deferred product revenue was recognized.

Gross profit from product revenue for the third quarter of 2009 was $0.3 million, down from $1.2 million for the same period in 2008. Cost of product revenue during the third quarter of 2009 included period costs of $1.0 million, representing idle manufacturing facility costs attributable to the Company's decision to reduce inventory levels.

Total operating expenses for the third quarter of 2009 were $6.6 million, down from $9.6 million for the same period in 2008. The decrease in operating expenses was due to a reduction in research and development expenses and selling, general and administrative expenses associated with the Company's restructuring plans, which were previously announced in March 2009. Operating expenses for the first nine months of 2009 were $22.6 million, down from $29.5 million during the same period in 2008. The reduction in operating expenses was directly attributable to the savings realized from the Company's restructuring plan, which allowed the Company to focus its resources on commercializing the INTERCEPT platelet and plasma systems in Europe, reduce operating expenses, and tightly manage working capital.

Net loss for the third quarter of 2009 was $5.6 million, or $0.16 per share, compared to a net loss of $7.8 million, or $0.24 per share, for the third quarter of 2008. Net loss for the first nine months of 2009 was $19.2 million, or $0.58 per share, compared to a net loss of $22.7 million, or $0.70 per share for the same period in 2008.

At September 30, 2009, the Company had cash, cash equivalents and short-term investments of $22.7 million, up from $22.6 million at December 31, 2008. Cash, cash equivalents and short-term investments at September 30, 2009 reflects the $12.2 million in net proceeds generated from the Company's August 2009 registered direct public offering. Net cash used for the Company's operations during the third quarter of 2009 was $2.4 million, which was in line with the net cash used during the second quarter of 2009 and down by $4.8 million from the first quarter of 2009. Close control of working capital, including management of inventory levels and cash collections, contributed to the relatively low net cash used in operating activities.

"We are pleased with the results of our concerted focus on growing sales and minimizing cash consumption. Third quarter product revenue grew by 18% over the prior quarter and was driven largely by recurring sales of INTERCEPT disposable kits," said Claes Glassell, President and Chief Executive Officer of Cerus Corporation. "The proceeds from the recently completed registered direct offering, combined with our focused approach and financial discipline, have the Company well positioned to achieve profitability with current capital resources."

RECENT HIGHLIGHTS:

    --  Raised $12.2 million of net proceeds in a registered direct public
        offering, providing the Company with a pathway towards profitability
        with current capital resources;
    --  Achieved 18% sequential growth in product revenue during the third
        quarter of 2009;
    --  Maintained low net cash consumption, down by more than 65% from the
        first quarter of 2009;
    --  Converted the Belgian Red Cross, Service Francophone du Sang to routine
        use of the INTERCEPT Blood System for platelets;
    --  Implemented INTERCEPT in two additional centers in France.

QUARTERLY CONFERENCE CALL

The Company will host a conference call and webcast at 4:15 p.m. Eastern time today to discuss its financial results and provide a general business overview. To access the live webcast, please visit the Investor Relations page of the Cerus web site at http://cerus2013.q4web.com. Alternatively, you may access the live conference call by dialing 877-407-0782 (U.S.) or 201-689-8567 (international).

A replay will be available on the Cerus web site, or by dialing 877-660-6853 (U.S.) or 201-612-7415 (international) and entering account number 286 and conference ID number 300292. The replay will be available approximately two hours after the call through November 6, 2009.

ABOUT CERUS

Cerus Corporation is a biomedical products company focused on commercializing the INTERCEPT Blood System to enhance blood safety. The INTERCEPT Blood System is designed to inactivate blood-borne pathogens in donated blood components intended for transfusion. Cerus currently markets the INTERCEPT Blood System for both platelets and plasma in Europe, Russia, the Middle East and selected countries in other regions around the world. The INTERCEPT red blood cell system is currently in clinical development. See http://www.cerus.com for more information.

INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus Corporation.

Forward-Looking Statements

Except for the historical statements contained herein, this press release contains forward-looking statements concerning the Company's prospects and results, including the sufficiency of the Company's cash resources, potential profitability, the Company's expectations with respect to its continuing sales and marketing efforts and market acceptance of its INTERCEPT Blood System products. Because the Company's forward-looking statements are subject to risks and uncertainties, there are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, risks and uncertainties involving market acceptance of the INTERCEPT Blood System and the Company's need for additional capital, as well as the other risks and uncertainties disclosed from time to time in reports filed by the Company with the SEC, including the Company's quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2009, filed with the SEC on August 10, 2009. The Company disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release.

CERUS CORPORATION

CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION

(In thousands except per share information)

                                Three Months Ended      Nine Months Ended

                                September 30,           September 30,

                                2009        2008        2009         2008

Revenue

Product revenue                 $ 4,567     $ 3,095     $ 11,523     $ 11,977

Government grant and              247         787         985          904
cooperative agreements

Total Revenue                     4,814       3,882       12,508       12,881

Cost of product revenue           4,242       1,913       8,856        6,704

Gross profit                      572         1,969       3,652        6,177

Operating expenses

Research and development          1,230       2,483       4,867        7,937

Selling, general and              5,340       7,067       16,850       21,607
administrative

Restructuring                     15          --          856          --

Total operating expenses          6,585       9,550       22,573       29,544

Loss from operations              (6,013 )    (7,581 )    (18,921 )    (23,367 )

Interest and other income         376         (199   )    (325    )    700
(expense), net

Net loss                        $ (5,637 )  $ (7,780 )  $ (19,246 )  $ (22,667 )

Net loss per share - basic and  $ (0.16  )  $ (0.24  )  $ (0.58   )  $ (0.70   )
diluted

Weighted average common shares
outstanding used for basic and
diluted loss per share

Basic                             35,000      32,530      33,420       32,400

Diluted                           35,000      32,530      33,420       32,400



Cerus Corporation

Condensed Consolidated Unaudited Balance Sheets

(In thousands)

                                                    September 30,  December 31,

                                                    2009           2008

Cash, cash equivalents, and short-term investments  $ 22,660       $ 22,578

Accounts receivable and other current assets          7,301          8,356

Inventories                                           8,354          11,109

Property and equipment, net                           1,352          1,844

Other assets                                          3,360          3,452

Total Assets                                        $ 43,027       $ 47,339

Accounts payable and accrued liabilities            $ 13,745       $ 12,453

Accrued restructuring                                 209            --

Warrant liability                                     2,800          --

Deferred revenue                                      303            445

Other long-term liabilities                           148            163

Total liabilities                                     17,205         13,061

Stockholders' equity                                  25,822         34,278

Total liabilities and stockholders' equity          $ 43,027       $ 47,339




    Source: Cerus Corporation

    Global Headquarters

  • 1220 Concord Avenue
  • Concord, CA US 94520
  • +1 925.288.6000

    European Headquarters

  • Stationsstraat 79-D
  • 3811 MH Amersfoort, Netherlands
  • +31 (0) 33 49 60 600