EX-99.1 2 ertext.htm TEXT OF PRESS RELEASE ertext.htm
Exhibit 99.1

ALPHA INNOTECH REPORTS RECORD 32% REVENUE GROWTH AND
CONTINUING PROFITABILITY IN THIRD QUARTER
 
November 10, 2008 – Alpha Innotech Corp., San Leandro, California
 
Alpha Innotech Corp. (OTCBB:APNO), a leading provider of bioanalytical systems for drug discovery and life science research, today reported financial results for the quarter ending September 30, 2008.
 
Third quarter revenues increased 32% to $4.9 million from the $3.7 million reported in the same period in 2007.  The Company continued reporting profitability with net income for the third quarter of 2008 increasing to $21,859, or less than $0.01 per share, from a net loss of $289,555, or $0.03 per share, for the third quarter of 2007.
 
Excluding interest, depreciation and stock-based compensation, on a non-GAAP basis, the Company had net income of $448,591 for the third quarter of 2008 compared to $16,702 for the third quarter of 2007. The non-GAAP net income (loss) is reconciled to comparable GAAP net income (loss) in the table entitled “Non-GAAP Calculation of Net Income (Loss)”.
 
“We enjoyed strong growth in all our markets in the third quarter,” said Ron Bissinger, Chief Executive Officer of Alpha Innotech. “So far this year we’ve launched FluorChem® Q, redTM, AlphaImager® Mini, AlphaSpecTM, and AlphaPart11ViewTM software, while continuing to expand our sales channels internationally.” 
 
For the nine months ended September 30, 2008, total revenue was $12.8 million, an increase of 18% from $10.8 million for the comparable 2007 nine month period.
 
Net income for the first nine months of 2008 was $43,001 or less than $0.01 per share, an increase from a net loss of $627,617 or $.06 per share in the first nine months of 2007.
 
Excluding interest, depreciation and stock-based compensation, on a non-GAAP basis, the Company had net income of $1.2 million for the first nine months of 2008 compared to net income of $252,937 for the same period of 2007. The non-GAAP net income (loss) is reconciled to comparable GAAP net income (loss) in the table entitled “Non-GAAP Calculation of Net Income (Loss)”.
 

 
 

 

Additional Third Quarter 2008 Achievements
 
·  
Entered into a five year strategic supplier alliance agreement with GE Healthcare.  This is a continuation and expansion of the previous OEM agreement signed in April of 2005.  The Company will continue to develop, manufacture and supply a full line of proprietary imaging systems for sale under the GE Healthcare brand.
 
·  
Closed a new debt facility with Bridge Bank intended to provide working capital for growth, particularly for the Company’s rapid expansion in Asia, while reducing the Company’s overall cost of capital.
 
More information on Alpha Innotech can be found at the Company’s website www.alphainnotech.com.
 
About Alpha Innotech Corp.
 
Founded in 1992 and with over 10,000 systems sold worldwide, Alpha Innotech is a leading developer, manufacturer and marketer of digital imaging and analysis systems for the life science research and drug discovery markets. Our goal is to combine instruments, reagents and bioinformatics software to offer integrated modular technology platforms for functional genomics, proteomics and cell analysis markets. Our customers include pharmaceutical and biotechnology companies as well as universities, medical centers, government research institutes and agencies worldwide.
 
Use of Non-GAAP Financial Measures
 
To supplement the Company’s financial statements presented in accordance with GAAP, the Company is also providing non-GAAP financial information. The presentation of non-GAAP financial information should be considered in addition to the Company’s GAAP results and is not intended to be considered in isolation or as a substitute for financial information prepared and presented in accordance with GAAP. The Company believes that both management and investors benefit from referring to non-GAAP financial information that excludes certain expenses in their assessment of the Company’s performance. The Company also believes that investors benefit from increased transparency into supplemental information used by management in its financial and operational decision making.
 

 
 

 

Cautionary Note Regarding Forward-Looking Statements
 
This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. These forward-looking statements involve a number of risks and uncertainties that include, but are not limited to, the Company’s ability to obtain additional financing if needed, the timing of the introduction and success of new products, and the Company's growth prospects, that could cause actual results to differ materially from those anticipated or planned by these forward-looking statements. Please also refer to the risk factors described in our filings with the Securities and Exchange Commission, including our recent Form 10-KSB and Forms 10-Q filed with the Securities and Exchange Commission. We do not intend to update the forward-looking information contained in this news release except as required by law.
 
Contact:
 
Alpha Innotech Corp.
Michael P. Henighan, CFO
Tel: 510-483-5610

 
 

 

Alpha Innotech Corp.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
 

   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2008
   
2007
   
2008
   
2007
 
Revenue
  $ 4,870     $ 3,680     $ 12,782     $ 10,839  
Cost of Goods Sold
    2,369       1,690       5,784       4,885  
Gross profit
    2,501       1,990       6,998       5,954  
Operating expenses:
                               
Sales and Marketing
    1,306       1,299       3,803       3,517  
Research and Development
    349       298       997       946  
General and Administrative
    677       605       1,848       1,890  
Total operating expenses
    2,332       2,202       6,648       6,353  
Income (loss) from operations
    169       (212 )     350       (399 )
Interest expense
    (138 )     (72 )     (396 )     (221 )
Other income (expense), net
    (9 )     (6 )     (11 )     (8 )
Sale of patents
                100        
Net Income (loss) applicable to common stockholders
  $ 22     $ (290 )   $ 43     $ (628 )
Net Income (loss) per share:
                               
Basic
  $ 0.00     $ (0.03 )   $ 0.00     $ (0.06 )
Diluted
  $ 0.00     $ (0.03 )   $ 0.00     $ (0.06 )
Weighted average shares outstanding:
                               
Basic
    10,922       10,449       10,770       10,343  
Diluted
    11,237       10,449       11,012       10,343  

 

 
 

 

Alpha Innotech Corp.
Condensed Consolidated Balance Sheet
September 30, 2008
(in thousands)

 

   
September 30,
2008
   
December 31,
2007
 
   
(Unaudited)
       
Assets
           
Current assets:
           
Cash and cash equivalents
  $ 503     $ 168  
Restricted cash
    50       50  
Accounts receivable, net
    3,343       2,230  
Inventory, net
    1,422       1,006  
Prepaid expenses and other current assets
    178       219  
Total current assets
    5,496       3,673  
Property and equipment, net
    901       914  
Loan fees, net
    148        
Other assets
    90       90  
Total assets
  $ 6,635     $ 4,677  
Liabilities and shareholders deficit
               
Current liabilities:
               
Accounts payable
  $ 1,756     $ 1,786  
Accrued liabilities
    976       1,330  
Current portion of debt
    2,100       1,407  
Deferred revenue
    1,031       1,027  
Other liabilities
    193       265  
Total current liabilities
    6,056       5,815  
Debt, net of current portion
    930       308  
Total shareholders’ deficit
    (351 )     (1,446 )
Total liabilities and shareholders’ deficit
  $ 6,635     $ 4,677  



 

 
 

 


 
Alpha Innotech Corp.
Non-GAAP Calculation of Net Income (Loss)
(Unaudited)
(in thousands)

 
   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2008
   
2007
   
2008
   
2007
 
GAAP net income (loss)
  $ 22     $ (290 )   $ 43     $ (628 )
Interest
    138       72       396       221  
Depreciation
    142       132       387       407  
Share-based compensation
    147       103       404       253  
Non-GAAP basis income (loss)
  $ 449     $ 17     $ 1,230     $ 253