Exhibit 99.1
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COMPANY CONTACT:
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INVESTOR CONTACTS: |
Mark Fischer-Colbrie
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Jody Cain (jcain@lhai.com) |
Chief Financial Officer
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Bruce Voss (bvoss@lhai.com) |
Adeza Biomedical Corporation
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Lippert/Heilshorn & Associates, Inc. |
(408) 745-0975 ext 520
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(310) 691-7100 |
ir@adeza.com |
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For Immediate Release
ADEZA ANNOUNCES 2005 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Achieves 14th Consecutive Quarter of Profitability on Record Product Sales
Conference Call Begins at 4:30 p.m. Eastern Time Today
SUNNYVALE, Calif. (March 2, 2006) – Adeza (NASDAQ: ADZA) today announced financial results for the
fourth quarter and year ended December 31, 2005.
For the fourth quarter of 2005 Adeza reported record quarterly product sales of $11.9 million, an
increase of 30% from product sales of $9.2 million for the fourth quarter of 2004. This increase
is primarily attributable to higher sales volume of FullTerm™, The Fetal Fibronectin Test.
Adeza announced its 14th consecutive profitable quarter with income before income taxes of $2.1
million, compared with income before income taxes of $1.7 million in the 2004 fourth quarter. Net
income for the fourth quarter of 2005 was $6.9 million, compared with net income of $1.6 million
for the fourth quarter of 2004. The company reported a one-time benefit from income taxes of $4.8
million in the fourth quarter of 2005 primarily related to a positive impact from recording a tax
asset.
Diluted earnings per share for the fourth quarter of 2005 was $0.38 based on 18.1 million shares
outstanding, which includes the one-time income tax benefit of $0.27 per diluted share. This
compares with diluted earnings per share of $0.11 based on 14.5 million shares outstanding for the
fourth quarter of 2004. The increase in share count is primarily the result of the company’s
initial public offering of 4.3 million common shares in December 2004.
Selling and marketing expenses for the 2005 fourth quarter were $5.7 million, up from $4.3 million
for the comparable quarter in 2004, reflecting expansion of the company’s direct sales force and
marketing programs. General and administrative expenses for the quarter increased to $2.1 million
from $1.4 million in the comparable quarter of the prior year, due primarily to costs associated
with operating as a public company. Research and development expenses were $1.4 million for the
fourth quarter of 2005, compared with $0.7 million in the comparable quarter of the prior year,
with the increase largely due to costs related to expanded product development efforts.
For the year ended December 31, 2005, product sales totaled $43.6 million, an increase of 30% from
product sales of $33.6 million for the year ended December 31, 2004. Adeza reported 2005 net
income of $12.3 million, or $0.69 per diluted share based on 17.9 million shares outstanding, which
includes a one-time benefit from income taxes of $4.5 million, or $0.25 per diluted share. This
compares with 2004 net income of $8.9 million, or $0.65 per diluted share based on 13.6 million
shares outstanding, which included a one-time decrease in royalty expenses of $2.7 million.
As of
December 31, 2005, Adeza had cash and cash equivalents of
$89.7 million, an increase of $9.6 million compared with December 31, 2004. The increase was due primarily to income from operations.
Stockholders’ equity as of December 31, 2005 was $97.4 million. Working capital as of December 31, 2005 was $96.7 million.
“Our performance throughout 2005 was solid as we reported revenue growth of 30% compared with
2004,” said Emory V. Anderson, president and chief executive officer of Adeza. “In addition, we
have added 10 sales representatives, bringing our direct sales force to approximately 87 to further
support increasing utilization of FullTerm, The Fetal Fibronectin Test in our ‘signs-and-symptoms’
and ‘high risk’ markets. We continue the implementation of marketing programs that support testing
women in both of these markets.”
Adeza today introduced 2006 revenue guidance in the range of $54 million to $57 million.
Conference Call
Adeza’s management will host an investment-community conference call today beginning at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss these results and answer questions.
Individuals interested in participating in the conference call may do so by dialing (888) 463-4383
for domestic callers, or (706) 634-5615 for international callers. A telephone replay will be
available for 48 hours following the conclusion of the call by dialing (800) 642-1687 for domestic
callers, or (706) 645-9291 for international callers, and entering reservation code 5350834.
The live call also will be available via the Internet on the Investors section of the company’s Web
site at www.adeza.com. A webcast replay of the call will be available following the conclusion of
the call.
About Adeza
Adeza designs, manufactures and markets innovative products for women’s health. Adeza’s initial
focus is on reproductive healthcare, using its proprietary technologies to predict preterm birth
and assess infertility. Adeza’s principal product is a patented diagnostic test, FullTerm, The
Fetal Fibronectin Test, which utilizes a single-use, disposable cassette and is analyzed on Adeza’s
patented TLiIQ® System. This product is approved by the U.S. Food and Drug
Administration (FDA) for use in assessing the risk of preterm birth. Adeza also markets and sells
the E-tegrity® Test, an infertility-related test to assess receptivity of the uterus to
embryo implantation in women with unexplained infertility.
Adeza cautions you that statements included in this press release that are not a description of
historical facts may be forward-looking statements, including, for example, statements relating to
Adeza’s future financial results and its sales and marketing strategy. The inclusion of
forward-looking statements should not be regarded as a representation by Adeza that any of its
plans will be achieved. Actual results may differ materially from those set forth in this release
due to the risks and uncertainties inherent in Adeza’s business including, without limitation,
risks and uncertainties relating to the expansion of products, markets and offerings and additional
product indications. All forward-looking statements are qualified in their entirety by this
cautionary statement and Adeza undertakes no obligation to revise or update this news release to
reflect events or circumstances after the date hereof.
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