Cellular Dynamics Q4 Revenues Increase 41%

“We continue to be pleased with the revenue growth of the company. Total revenues for the fiscal year ended December 31, 2013, increased 81% when compared to last year and average sales to our top 10 customers increased by 87% over the same period," said Bob Palay, Chairman and CEO of CDI.

“A growing number of pharmaceutical, biotech and CRO companies are adopting CDI’s products for their research programs. During the year ended December 31, 2013, CDI sold to 150 customers up from 128 for the year ended December 31, 2012. Our top 10 customers averaged $830,000 in revenue for the year ended December 31, 2013, up from $445,000 for the same period last year.  CDI achieved an important milestone when one of its customers, Eli Lilly and Company, generated over $2.0 million in revenue in a single year.  In addition, we also sold products to Nestle S.A. under our first supply agreement with a world leading food company.  We believe these results add to the growing evidence that our iCell® and MyCell® products are becoming an industry standard for manufactured human cells.

"Strategically, during the year CDI continued to make solid commercial progress in selling into both the in vitro market with our growing portfolio of iCell products and into the stem cell banking market.  During the fourth quarter we announced the $6.3 million contract with Coriell, which supplements our existing $16 million project with the California Institute for Regenerative Medicine (CIRM) to make iPS cell lines from 3,000 donors.  Our announced projects with the Jain Foundation and The Hamner Institutes for Health Sciences provide further evidence of the traction we're getting with our MyCell products within the stem cell banking market.  All of these projects take advantage of our proprietary episomal programming methodology, for which we received an issued patent during the fourth quarter of 2013."

Fourth Quarter 2013 Selected Financial Results
Revenue. Total revenues for the fourth quarter of 2013 were $4.2 million compared to $2.9 million for the fourth quarter of 2012, an increase of 41%. Total revenues grew for three principal reasons: 1) increased unit sales of the Company’s iCell products, 2) significant increases in Collaborations, partnerships and other revenues arising from our center of excellence agreements with Eli Lilly and Company and AstraZeneca UK Limited, and 3) sales of new cell types in early release testing with our customers. Lastly, we also recognized our first revenues from our contract with CIRM.

Costs and expenses. Cost of product sales as a percentage of Product sales declined from 54% in the fourth quarter of 2012 to 27% in the fourth quarter of 2013.  As a consequence, gross margin from product sales remained attractive at 73% for the quarter.

Total costs and expenses (excluding Cost of product sales) were $9.8 million for the fourth quarter of 2013 compared to $7.5 million for the fourth quarter of 2012, an increase of 31%.  This growth is attributable principally to an increase in materials expense within our research and development organization, an increase in staffing within our sales and marketing organization and to general and administrative costs attributable to or triggered by our initial public offering.

Net loss. For the fourth quarter of 2013, Net loss was $6.7 million, or $0.43 per share, compared with a Net loss of $5.8 million, or $3.35 per share, for the fourth quarter of 2012.  Weighted average shares outstanding for the fourth quarter of 2013 was 15,756,363 versus 1,733,651 for the fourth quarter of 2012.  The difference in weighted average shares outstanding is principally attributable to both the common shares issued in our IPO and the conversion of our Series A and Series B preferred stock to common shares immediately prior to the consummation of our IPO. 

Fiscal Year 2013 Results
Revenue. Total revenues for the year ended December 31, 2013, were $11.9 million compared to $6.6 million for the year ended December 31, 2012, an increase of 81%. Growth in Total revenues is primarily attributable to growth in unit sales of the Company’s iCell products and significant increases in Collaborations, partnerships and other revenues from our center of excellence agreements with Eli Lilly and Company and AstraZeneca UK Limited and sales of new cell types in early release testing with our customers.

Costs and expenses. Cost of product sales as a percentage of Product sales declined from 40% for the year 2012 to 29% for the year 2013.  Consequently, gross margin from product sales increased from 60% for the year 2012 to 71% for the year 2013.

Total costs and expenses (excluding Cost of product sales) were $33.8 million for the year 2013 compared to $26.7 million for the year 2012, an increase of 27%.  This growth is attributable principally to an increase in materials expense within our research and development organization, an increase in staffing within our sales and marketing organization and to general and administrative costs attributable to or triggered by our initial public offering.

Net loss. For the year 2013, Net loss was $25.0 million, or $3.17 per share, compared with a Net loss of $22.3 million, or $12.89 per share, for the year 2012.  Weighted average shares outstanding for the year 2013 was 7,878,060 versus 1,727,086 for 2012.  The difference in weighted average shares outstanding is principally attributable to both the common shares issued in our IPO and the conversion of our Series A and Series B preferred stock to common shares immediately prior to the consummation of our IPO. 

Cash and cash equivalents.  At December 31, 2013, Cash and cash equivalents totaled $62.0 million.