EX-99 2 ex99-1g.txt EX-99.1 EXHIBIT 99.1 ALPHA INNOTECH REPORTS STRONG FIRST QUARTER REVENUES AND MARGINS May 3, 2006 - Alpha Innotech Corporation, 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 March 31, 2006. First quarter revenues of $2.959 million increased over 18% from $2.505 million reported in the same period in 2005. The net loss of $415,000 in the first quarter ending March 31, 2006 is a 54% reduction from the $904,000 loss reported in the comparable period of 2005. "Not only am I pleased with our strong revenue growth, but our gross margin of 49% is the highest first quarter gross margin in the last four years and is over 5 percentage points higher than that of our first quarter in 2005," stated Haseeb Chaudhry, Chief Executive Officer of Alpha Innotech. He continued, "We expect our gross margins to improve as we continue to realize the benefits from many initiatives aimed at reducing our manufacturing costs, introducing new products, expanding our sales channel and increasing sales of higher margin products." Additional highlights from Alpha Innotech's quarter ending March 31, 2006 include: o Announced an agreement with GE Healthcare under which Alpha Innotech will bundle ArrayVision software for microarray analysis with its new multiplex array detection system NovaRay(R) and its new laser based scanner, AlphaScanTM. o As part of the recently announced strategy to increase high margin consumable revenues, Alpha Innotech entered into a collaboration with Marligen Biosciences to offer a comprehensive line of products used for studying gene regulation. More information on Alpha Innotech can be found at the Company's website www.alphainnotech.com. About Alpha Innotech Corporation Founded in 1992 and with over 7,000 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. 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 need for additional financing, 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 filed with the Securities and Exchange Commission. We assume no obligation to update the forward-looking information contained in this news release. CONTACT: ALPHA INNOTECH CORP. RON BISSINGER, COO/CFO TEL: 510-483-9620 ALPHA INNOTECH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) THREE MONTHS ENDED MARCH 31, ---------------------------- 2006 2005 ----------- ----------- SALES ........................................ $ 2,959 $ 2,505 COST OF SALES ................................ 1,508 1,405 ----------- ----------- GROSS PROFIT .......................... 1,451 1,100 ----------- ----------- OPERATING EXPENSES: SALES AND MARKETING ................... 983 1,061 RESEARCH AND DEVELOPMENT .............. 327 397 GENERAL AND ADMINISTRATIVE ............ 504 285 ----------- ----------- TOTAL OPERATING EXPENSES ........ 1,814 1,743 ----------- ----------- INCOME (LOSS) FROM CONTINUING OPERATIONS, BEFORE TAXES .............. (363) (643) INTEREST EXPENSE ............................. (84) (43) OTHER INCOME (EXPENSE), NET .................. 32 -- ----------- ----------- TOTAL OTHER INCOME (EXPENSE) .......... (52) (43) ----------- ----------- NET INCOME (LOSS) ................ (415) (686) ACCRETIONS ON REDEEMABLE CONVERTIBLE PREFERRED STOCK ........................... -- (218) ----------- ----------- NET LOSS APPLICABLE TO COMMON STOCKHOLDERS .......................... $ (415) $ (904) =========== =========== NET INCOME (LOSS) PER SHARE: BASIC & DILUTED ....................... $ (0.05) $ (0.34) =========== =========== SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE: BASIC & DILUTED ....................... 7,738,433 2,649,119 =========== =========== ALPHA INNOTECH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) MARCH 31, DECEMBER 31, 2006 2005 ---------- ---------- ASSETS CURRENT ASSETS: CASH AND CASH EQUIVALENTS .................... $ 238 $ 546 ACCOUNTS RECEIVABLE, NET ..................... 1,991 2,411 INVENTORY, NET ............................... 832 952 PREPAID EXPENSES AND OTHER CURRENT ASSETS ............................ 193 212 ---------- ---------- TOTAL CURRENT ASSETS ......................... 3,254 4,120 PROPERTY AND EQUIPMENT, NET ........................ 1,196 1,171 OTHER ASSETS ....................................... 99 76 ---------- ---------- TOTAL ASSETS ................................. $ 4,549 $ 5,368 ========== ========== LIABILITIES AND STOCKHOLDERS EQUITY CURRENT LIABILITIES: ACCOUNTS PAYABLE ............................. $ 1,273 $ 1,497 ACCRUED LIABILITIES .......................... 1,068 1,084 SHORT TERM DEBT .............................. 1,580 1,556 DEFERRED REVENUE ............................. 755 775 OTHER CURRENT LIABILITIES .................... 198 230 ---------- ---------- TOTAL CURRENT LIABILITIES .................... 4,874 5,142 LONG TERM DEBT ..................................... 650 800 ---------- ---------- TOTAL STOCKHOLDERS' EQUITY (DEFICIT) ............... (975) (574) ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) .......................... $ 4,549 $ 5,368 ========== ==========