Aerogen Inc (1039160) SEC Filing 10-Q Quarterly report for the period ending Thursday, September 30, 2004

Exhibit 99.1

 

 

Contact:  Robert S. Breuil
	(650) 864-7431

 

AEROGEN, INC. REPORTS THIRD QUARTER 2004 FINANCIAL RESULTS

 

Mountain View, CA, October 28, 2004

– Aerogen, Inc. (Nasdaq: AEGN) today announced financial results for the three months and nine months ended September 30, 2004.  The net loss attributable to common stockholders for the three months ended September 30, 2004 was $4.6 million, or $0.96 per share, compared with a net loss of $4.4 million, or $1.06 per share, for the same period in 2003.  The net loss attributable to common stockholders for the nine months ended September 30, 2004 was $25.6 million, or $5.47 per share, compared with $12.3 million, or $3.00 per share, for the same period in 2003.

 

Aerogen’s cash balance as of September 30, 2004 was $20.3 million.

 

The results for the nine months ended September 30, 2004 include a charge of $12.4 million, or $2.65 per share, reflecting a deemed dividend imputed from the difference between the value of the Company’s common stock and the accounting value of the Company’s Series A-1 Convertible Preferred Stock that was issued during the first half of 2004.  There were no deemed dividends in 2003.  As deemed dividends are only incurred upon the issuance of certain securities, and the Company completed its planned issuance of Series A-1 Convertible Preferred Stock in May 2004, there will be no further charges for deemed dividends related to the Series A-1 Convertible Preferred Stock financing.

 

The terms of the Series A-1 Convertible Preferred Stock provide for a dividend, at the rate of 6% per year, to be paid quarterly in cash or Aerogen common stock, at the Company’s election, to each holder of Series A-1 Convertible Preferred Stock.  During the three and nine months ended September 30, 2004, the Company elected to pay this dividend in Aerogen common stock, resulting in charges related to ordinary dividends of $0.5 million, or $0.11 per share, and $0.9 million, or $0.20 per share, respectively.  The Company did not pay any such dividends during 2003.

 

Revenues for the three months ended September 30, 2004 were $1.2 million, compared with $0.5 million for the same period in 2003.  Revenues for the nine months ended September 30, 2004 were $4.0 million compared with $3.2 million for the same period in 2003.  The increase in revenues for the three-month period ending September 30, 2004, as compared with the same period in 2003, primarily resulted from an increase in product sales of the Aeroneb Pro, in addition to revenues recognized under our distribution agreement with Evo Medical Solutions (“Evo”) related to the continued amortization of up-front payments, and royalty revenues associated with Evo’s sales of the Aeroneb® Go Nebulizer.  The increase in revenues for the nine-month period ending September 30, 2004, as compared with the same period in 2003, was primarily due to higher royalty revenues associated with our distribution partner’s sales of the Aeroneb Go and amortization of up-front payments, in addition to the higher product sales of the Aeroneb Pro.

 

Cost of products sold for the three months ended September 30, 2004 was $0.8 million, compared with $0.2 million for the same period in 2003.  Cost of products sold for the nine

 

-more-