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Deltagen Reports 2006 First Quarter Financial Results
 

SAN CARLOS, California, June 30, 2006 - Deltagen, Inc. (Pink Sheets: DGEN), a leading provider of drug discovery tools to the biopharmaceutical industry, today reported financial results for the three months ended March 31, 2006.

Revenues:  The Company's consolidated revenues for the three months ended March 31, 2006 totaled $1.879 million.  The revenues were primarily attributable to license fees associated with the provision of knockout mice and related phenotypic data under its DeltaOneTM program and access extension fees under its DeltaBase collaborations.  The access periods under the Company's DeltaBase collaborations expire between June 30, 2006 and March 31, 2007, and there are no assurances that our DeltaBase collaborators will continue to pay access extension fees. No revenues from our NIH contract were recognized and no new delivery orders were placed by the NIH in the first quarter of 2006. We expect that revenues under the NIH contract will be highly variable from quarter to quarter. We currently expect to recognize approximately $3.2 million from the NIH contract in the second quarter of 2006.

Interest Income: The Company had interest income of $0.100 million for the three months ended March 31, 2006.

Expenses:  Consolidated expenses for the three months ended March 31, 2006 were $1.548 million.  The expenses were primarily attributable to salaries and other general and administrative expenses, third-party royalty and commission obligations, and patent prosecution expenses. Legal and administrative fees associated with prosecution of the Company's patent portfolio were $0.373 million for the three months ended March 31, 2006.

Net Income:  Net income before taxes for the three months ended March 31, 2006 was $0.431 million.  

Cash and Cash Equivalents:  As of March 31, 2006, the Company had $10.392 million in consolidated cash and cash equivalents.

The unaudited consolidated financial statements for the first quarter of 2006, accompanying notes, and Management's Discussion and Analysis of Financial Condition and Results of Operations for such period will be posted on Deltagen's website (www.deltagen.com).

The consolidated balance sheet for 2005 is in the process of being audited. The Company currently intends to post the audited 2005 consolidated balance sheet on the Company's website when the audit has been completed, together with the auditors' opinion, explanation of adjustments, and revised notes and revised Management's Discussion and Analysis of Financial Condition and Results of Operations for such period.

The consolidated balance sheet for the first quarter of 2006 reflects certain expected adjustments to the 2005 consolidated balance sheet made in connection with the audit. The expected adjusted 2005 consolidated balance sheet is provided below, which balance sheet is subject to further changes or adjustments upon completion of the audit.

About Deltagen

Deltagen, Inc. is a leading provider of drug discovery tools to the biopharmaceutical industry. Deltagen offers access to its extensive inventory of knockout mouse lines and related phenotypic data, which enhance the efficiency of target validation and drug discovery. In addition, Deltagen offers target validation data in the areas of immunology and metabolic diseases. Deltagen's products and programs have been validated by customers and partners such as Eli Lilly & Co., GlaxoSmithKline, Merck & Co., Inc. and Pfizer Inc. For more information on Deltagen, visit the Company's website at www.deltagen.com.

Safe Harbor Statement

This press release contains "forward-looking statements," including statements about Deltagen's future revenues and operating results, royalty and milestone revenues, third-party royalty obligations and third-party licenses and intellectual property, as well as other matters that are not historical facts or information.  These forward-looking statements are based on management's current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Deltagen's ability to achieve its operational objectives and revenue projections and to obtain patent protection for its discoveries, that may cause Deltagen's actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important risk factors is contained in "Management's Discussion and Analysis of Financial Conditions and Results of Operations", which can be found at Deltagen's website at www.deltagen.com. Deltagen undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.


 

Consolidated Balance Sheets

 

 

 

 

Unaudited

Year Ended

Quarter Ended

 

 

(In Thousands)

December 31, 2005

March 31, 2006

 

 

 

Adjusted

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

11,557

10,392

 

Receivables

2,487

532

 

Prepaid Deposits and Tax Assets

1,503

1,332

 

 

Total current assets

15,547

12,256

 

 

 

 

 

Property and equipment, net

139

124

Deferred Tax Asset

1,000

1,000

 

 

Total assets

16,686

13,380

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

Current liabilities:

 

 

 

Accounts payable

4,296

1,396

 

Accrued current liabilities

876

224

 

 

Total liabilities

5,172

1,620

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock

39

39

 

Treasury stock

(867)

(867)

 

Additional paid-in capital

238,648

238,648

 

Retained Earnings

(226,306)

(226,306)

 

Current year accumulated (income)/deficit

 

246

 

 

Total stockholders' equity

11,514

11,760

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

16,686

13,380

 

 


 


Consolidated Income Statement and Cash Flow

Unaudited

 

 

Quarter Ended

(In Thousands)

March 31, 2006

 

Income Statement

 

 

 

Revenue

1,879

Operating Costs

1,548

Income From Operations

331

Interest Income

100

Net Income Before Tax Provision

431

Provision for Taxes

185

Net Income

246

 

 

Cash Flow

 

 

 

Sources

 

Cash From Operations

246

Add Depreciation

15

Net Cash Provided From Ops

261

 

 

Change in Receivables

1,955

Change in Other Current Assets

171

Total Sources

2,387

 

 

Uses

 

Change in Deposits

-

Reduction in Liabilities

(3,552)

Total Uses

(3,552)

 

 

Change in Cash

(1,165)

Beginning Cash

11,557

Ending Cash

10,392

 


©2006 Deltagen, Inc. All rights reserved.