Calypte Announces Fourth Quarter and Year End Results Marr
Technologies B.V. Increases Loan Commitment to $15 Million ALAMEDA,
Calif., March 23 /PRNewswire-FirstCall/ -- Calypte Biomedical
Corporation (BULLETIN BOARD: CYPT) announces its financial results
for the fourth quarter and year ended December 31, 2003. Calypte is
currently engaged in developing rapid tests for HIV diagnosis and
is the developer and marketer of the only two FDA-approved HIV-1
antibody tests that can be used on urine samples, as well as an
FDA-approved serum HIV-1 antibody Western Blot supplemental test.
For the fourth quarter ended December 31, 2003, Calypte recorded
revenues of $1,037,000, compared with $809,000 in the fourth
quarter of 2002. The net loss attributable to common stockholders
for the quarter was approximately $4.9 million, or $0.04 per common
share, compared with a net loss attributable to common stockholders
of $6.3 million, or $1.54 per common share, for the three months
ended December 31, 2002. Net loss for the quarter includes non-cash
expenses of $1.5 million in 2003 and $3.4 million in 2002. For the
year-ended December 31, 2003, Calypte reported revenues of $3.5
million, compared with $3.7 million in 2002. The net loss
attributable to common stockholders for 2003 was $26.5 million, or
$0.47 per common share, compared with a net loss attributable to
common stockholders of $13.4 million, or $5.18 per common share,
for the year ended December 31, 2002. Net loss for the year
includes non-cash expenses of $14.3 million for 2003 and $5.4
million for 2002. These non-cash charges for the quarter and year
were primarily related to the grants of common stock and options
and warrants as compensation for services and non-cash interest
expense related primarily to the accounting for Calypte's
convertible debt financing instruments. Richard George, President
and CEO commented, "We continue to become more efficient and
believe that the dedicated staff as well as our proprietary
sciences have shown to be resilient and will continue into the
future. We expect to drive additional efficiencies as we complete
the consolidation of our domestic manufacturing operations into our
Rockville, Maryland facility." On March 19, 2004, the Agreement for
Commitment to Purchase Aggregate of $10,000,000 of 5% Promissory
Notes (the "Agreement") dated November 13, 2003 between Calypte and
Marr Technologies BV ("MTBV") was amended. The amended Agreement
increases the MTBV loan commitment to $15 million and will
terminate on May 31 2005. In conjunction with the amended
Agreement, Calypte granted a warrant to purchase 400,000 shares of
its stock on March 19, 2004. The warrant is exercisable for two
years from the date of grant at an exercise price of $0.46 per
share. Commenting on the amended Agreement, Tony Cataldo, Calypte's
Executive Chairman stated, "This amendment reflects another level
of confidence from MTBV. This credit facility allows Calypte to
support its aggressive business plan as it continues to move
forward in the development and testing of its rapid products." Mr.
Cataldo added, "Included in the initial agreement was a requirement
that Calypte be listed on an exchange in order to activate the
credit facility. The amended Agreement does not include any
reference to that prerequisite, but we continue to aggressively
pursue that possibility. Another milestone to achieve that listing
status is evidenced by the auditors' issuance of an opinion that
does not include a 'going concern' qualification." Recent
Highlights: Following are Calypte's most significant milestones
since the last quarterly release, together with the progress made
in the development of its rapid HIV products and the strengthening
of its balance sheet: * Calypte has significantly strengthened its
financial position with the receipt of an aggregate of $12.5
million in new investment financing in two third-quarter 2003
transactions and the $15 million loan commitment by MTBV. For the
first time in the Company's history, it no longer has a "going
concern" opinion qualification. * Calypte continues to implement
the consolidation of its manufacturing operations into a single
facility at its Rockville, Maryland location. The Company is
manufacturing additional inventory at its Alameda site to ensure an
adequate supply of the Company's current screening tests during the
transition. The consolidation of Calypte's manufacturing
operations, when completed, is expectedto eliminate approximately
$1 million of annual expense, including approximately $500,000 in
annual occupancy costs, and thus create a more efficient and cost
effective manufacturing structure. Calypte expects to complete the
Alameda facility wind-down by June 30, 2004. * Calypte is committed
to and focused on completing the development and commercialization
of one or more rapid HIV-1/2 diagnostic tests into the
international market as the Company's primary new product offering.
* Calypte has begun international field trials of its developmental
stage urine and blood rapid tests in Thailand. The evaluation of
field results is an iterative process. The results gained from
these field trials are the catalyst to initiate formal clinical
trials and international manufacturing operations which will be
significant milestones in achieving the commercialization of our
rapid products. The Company may elect to proceed with the
commercialization of one of the tests while continuing to evaluate
and modify the other. * Calypte will continue to distribute its
products in international markets through resident diagnostic
product distributors, where appropriate, and will also seek to
widen its horizons via new distribution platforms. * The
international AIDS community believes that northern Africa, Russia,
China and India represent the "next wave" of HIV epidemic regions.
Calypte's initial internationalfocus for its anticipated rapid
HIV-1/2 diagnostic tests will be China and Russia. The Company is
also planning to pursue additional international distribution
opportunities in key African countries as funding from the federal
government's AIDS initiatives and related humanitarian organization
financing provides funds for testing in lesser-developed countries
where the HIV infection is epidemic. Calypte's management will host
a conference call today to discuss the Company's fourth quarter and
year end financial results at 5:00 p.m. Eastern Time. The call can
be accessed in the U.S. by dialing 800-299-9086 and outside of the
U.S. by dialing 617-786-2903. The participant passcode is 85929133.
The conference call will also be Web cast live at
http://www.calypte.com/. An audio replay of the call will be
available, beginning approximately 1 hour after the conference call
ends, by dialing 888-286-8010 in the US, or 617-801-6888 from
outside of the U.S. The account code for the playback is 46154238.
The Web cast will also be available for replay on the company's
website. This call is being webcast by CCBN and can be accessed at
Calypte's web site at http://www.calypte.com/. Individual investors
can also listen to the call through CCBN's individual investor
center at http://www.fulldisclosure.com/ or by visiting any of the
investor sites in CCBN's Individual Investor Network. About Calypte
Biomedical: Calypte Biomedical Corporation, headquartered in
Alameda, California, is a public healthcare company dedicated to
the development and commercialization of in vitro diagnostic tests,
primarily for the detection of antibodies to Human Immunodeficiency
Virus (HIV), and other sexually transmitted and infectious
diseases. Calypte's currently marketed laboratory-based tests
include an enzyme immunoassay (EIA) HIV-1 antibody screening test
and an HIV-1 antibody western blot supplemental test, the only two
FDA-approved HIV-1 antibody tests for use on urine samples, as well
as an FDA-approved serum HIV-1 antibody western blot supplemental
test. Calypte is actively engaged in developing new test products
for the rapid detection of HIV and other infectious diseases.
Calypte believes that there is a significant need forrapid
detection of such diseases globally to control their proliferation,
particularly in lesser-developed countries which lack the medical
infrastructure to support laboratory-based testing. Calypte
believes that testing for HIV and other infectious diseases may
make important contributions to public health. Statements in this
press release that are not historical facts are forward-looking
statements within the meaning of the Securities Act of 1933, as
amended. Those statements include statements regarding the intent,
belief or current expectations of the Company and its management.
Such statements reflect management's current views, are based on
certain assumptions and involve risks and uncertainties. Actual
results, events, or performance may differ materially from the
above forward-looking statements due to a number of important
factors, and will be dependent upon a variety of factors,
including, but not limited to, the Company's ability to obtain
additional financing and access funds from its existing financing
arrangements that will allow it to continue its current and future
operations and whether demand for its test products in domestic and
international markets will continue to expand. The Company
undertakes no obligation to publiclyupdate these forward-looking
statements to reflect events or circumstances that occur after the
date hereof or to reflect any change in the Company's expectations
with regard to these forward-looking statements or the occurrence
of unanticipated events. Factors that may impact the Company's
success are more fully disclosed in the Company's most recent
public filings with the U.S. Securities and Exchange Commission
("SEC"), including its annual report on Form 10-K for the year
ended December 31, 2002 and its subsequent filings with the SEC.
Investor Relations Contact: Tim Clemensen 212-843-9337 email:
CALYPTE BIOMEDICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share data)
Unaudited Three Months Ended Twelve Months Ended December 31,
December 31, 2003 2002 2003 2002 Revenues: Product sales $1,037
$809 $3,467 $3,670 Cost of product sales 1,406 1,592 6,121 6,162
Gross margin (loss) on product sales (369) (783) (2,654) (2,492)
Other operating expenses: Research and development costs 591 289
1,544 929 Selling, general and administrative costs 3,145 4,139
15,517 9,006 Total other operating expenses 3,736 4,428 17,061
9,935 Loss from operations (4,105) (5,211) (19,715) (12,427)
Interest income (expense) (primarily non-cash for both periods)
(885) (994) (6,969) (2,203) Gain on settlement of debt - - - 1,319
Minority interest in JV 90 - 90 - Other income (expense) 7 (17) 182
16 Loss before income taxes (4,893) (6,222) (26,412) (13,295)
Income taxes - - (2) (2) Net loss (4,893) (6,222) (26,414) (13,297)
Less dividends on mandatorily redeemable Series A preferred stock -
(30) (60) (120) Net loss attributable to common stockholders
$(4,893) $(6,252) $(26,474) $(13,417) Net loss per share
attributable to common stockholders (basic and diluted) $(0.04)
$(1.54) $(0.47) $(5.18) Weighted average shares used to compute net
loss per share attributable to common stockholders (basic and
diluted) 136,340 4,054 55,903 2,591 CALYPTE BIOMEDICAL CORPORATION
AND SUBSIDIARY CONSOLIDATED BALANCE SHEET DATA (in thousands)
Unaudited December 31, December 31, 2003 2002 Cash and cash
equivalents $5,084 $147 Working capital 2,865 (5,549) Total Assets
9,517 3,297 Convertible notes and debentures, net of discount 868
2,181 Mandatorily redeemable Series A preferred stock 2,696 2,576
Total stockholders' equity (deficit) 917 (7,494) DATASOURCE:
Calypte Biomedical Corporation CONTACT: Investors, Tim Clemensen of
Calypte Biomedical Corporation, +1-212-843-9337, or Web site:
http://www.calypte.com/ http://www.fulldisclosure.com/
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