EX-99.1 3 w74880exv99w1.htm EXHIBIT 99.1 exv99w1
EXHIBIT 99.1
ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
     As further discussed in Note B, Summary of Significant Accounting Policies, and Note T, Adoption of FSP APB 14-1 to the consolidated financial statements, the consolidated financial statements for each period presented have been adjusted for the retrospective application of Financial Accounting Standards Board Staff Position No. APB 14-1, “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (“FSP APB 14-1”).
                                         
    Years Ended December 31,  
    2008     2007     2006     2005     2004  
    (In thousands, except per share and ratio data)  
Statement of Operations Data:
                                        
 
                                        
Revenue — research and development contracts
   $ 48,422     $ 41,851     $ 25,755     $ 19,113     $ 3,831  
 
                              
Costs and expenses:
                                        
Research and development
     243,257       246,293       209,515       228,717       219,549  
General and administrative
     60,865       55,874       53,101       42,066       35,728  
Lease termination and restructuring charges (credits)
     —       (3,673 )     29,510       —       15,408  
 
                              
Total costs and expenses
     304,122       298,494       292,126       270,783       270,685  
 
                              
 
                                        
Income (loss) from operations
     (255,700 )     (256,643 )     (266,371 )     (251,670 )     (266,854 )
 
                                        
Investment income
     23,487       32,988       27,131       24,218       40,298  
Interest expense
     (62,912 )     (60,716 )     (39,606 )     (17,199 )     (19,683 )
Charge for impaired investments
     (6,284 )     —       —       —       —  
Gain on sale of long-term equity investments
     32,518       —       14,759       1,302       255  
Gain (loss) on extinguishment of debt
     —       —       —       (1,204 )     2,433  
 
                              
Income (loss) before taxes
     (268,891 )     (284,371 )     (264,087 )     (244,553 )     (243,551 )
Provision for income taxes
     —       —       —       —       —  
 
                              
 
                                        
Net income (loss)
   $ (268,891 )   $ (284,371 )   $ (264,087 )   $ (244,553 )   $ (243,551 )
 
                              
 
                                        
Net income (loss) per share, basic and diluted
   $ (1.99 )   $ (2.12 )   $ (2.00 )   $ (1.87 )   $ (1.87 )
 
                                        
Other Data:
                                        
Ratio of earnings to fixed charges
     —       —       —       —       —  
 
                                        
Coverage deficiency
   $ (268,891 )   $ (284,371 )   $ (264,087 )   $ (244,553 )   $ (243,551 )

 

 

ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA, CONTINUED
                                         
    As of December 31,
    2008   2007   2006   2005   2004
    (In thousands)
Balance Sheet Data:
                                        
Cash, cash equivalents, short-term investments, marketable securities and restricted investments (1)
   $ 372,939     $ 603,840     $ 763,084     $ 646,220     $ 952,686  
 
                                        
Total assets (2)
     686,832       961,566       1,161,922       1,001,963       1,248,358  
Total debt and lease financing, less current portion (2)
     664,074       637,513       612,811       351,034       419,286  
 
                                        
Accumulated deficit
     (2,192,325 )     (1,923,434 )     (1,639,063 )     (1,374,322 )     (1,130,422 )
Total stockholders’ equity (deficit)
     (136,304 )     117,145       364,892       580,849       740,865  
 
(1)   “Cash, cash equivalents, short-term investments, marketable securities and restricted investments” for 2008, 2007, 2006, 2005 and 2004 includes $69,360, $70,931, $61,165, $220,171 and $215,236 respectively, of restricted investments relating to certain leases.
 
(2)   “Total assets” for 2008, 2007, 2006, 2005 and 2004 includes $69,360, $70,931, $61,165, $220,171 and $215,236 respectively, of restricted investments relating to certain leases. “Total debt and lease financing, less current portion” for 2008, 2007, 2006, 2005 and 2004 does not include any operating lease obligations under various facility and equipment lease arrangements. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” for additional discussion.