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   Biotech / MedicalTrickle Portfolio


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To: Jibacoa who wrote (1238)10/21/2002 7:00:42 PM
From: tuck
   of 1784
 
More trickle support from Apogent:

>>PORTSMOUTH, N.H., Oct 21 (Reuters) - Apogent Technologies Inc. (NYSE:AOT - News), a leading manufacturer of laboratory and life science products, said on Monday that it slightly raised its guidance for the fiscal year ending September 2003.

The company said it is now forecasting fiscal 2003 earnings per share of $1.37 to $1.44. This guidance does not reflect the benefits anticipated from additional share repurchases or new acquisitions. Thomson First Call published analysts' consensus earnings per share estimates of $1.40.

"Revenues for fiscal 2003 are expected to be approximately 8 to 10 percent higher than fiscal 2002," Apogent President and Chief Executive Frank Jellinek Jr. said. "Operating margins are expected to be maintained or slightly enhanced as the year progresses, and our balance sheet is expected to grow even stronger."

The company is expecting earnings per share of 28 to 29 cents for the first quarter including $2 million to $3 million of expenses for relocation of a facility.

Apogent said it will release its full results for the fiscal year ended September 30, 2002, on Thursday, November 14, 2002, after the close of market.<<

Cheers, Tuck

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To: tuck who wrote (1239)10/21/2002 8:59:15 PM
From: richardred
   of 1784
 
Sorry I didn't see this first before I posted it on NBSC. It's well past ground hogs day, but my head is out, and I'm not seeing my shadow yet!

RR

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To: dalroi who wrote (928)10/22/2002 3:54:58 PM
From: tuck
   of 1784
 
WAT misses and spluts. BDAL holding up well today. Is BDAL taking share or is the market getting saturated or . . . ? Will try to listen to CCs to get clues.

>>MILFORD, Mass.--(BUSINESS WIRE)--Oct. 22, 2002--Waters Corporation (NYSE:WAT - News) reported today that third quarter 2002 sales increased by 4% over prior year levels before favorable currency effects. After currency effects, reported sales growth was up 7% over the prior year. Earnings per diluted share (E.P.S.) were $0.29 for the quarter.
Douglas A. Berthiaume, Chairman and Chief Executive Officer, said, "Financial performance for the quarter was slightly below our expectations due to lower than planned mass spectrometry shipments. Our HPLC business continued to grow nicely with broad based strength across all geographical regions providing revenue growth in the low double digits. Cash flow continued to be very strong and exceeded our expectations, with $52 million of free cash flow for the quarter and $132 million year to date.

"We made significant progress on many fronts during the third quarter including the recently announced acquisition of the rheology product line of Rheometric Scientific and the initiation of a stock buyback program with $54 million of stock purchased to date. Also noteworthy, is the progress on the integration of our HPLC and mass spectrometry field operations which is advancing according to plan. We remain confident that the combined organization will enhance both the effectiveness and efficiency of our operations. We plan to record a restructuring charge in the fourth quarter."

As communicated in a prior press release, Waters Corporation will webcast its third quarter 2002 financial results conference call this morning, October 22, 2002, at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.info, choose Investor Relations and click on the Live Webcast. A replay of the call will be available from today through October 28, 2002 similarly by webcast, and also by phone at 402-220-0283.

Waters Corporation holds worldwide leading positions in three complementary analytical technologies -- high performance liquid chromatography (HPLC), mass spectrometry (MS) and thermal analysis (TA). These markets account for $4.2 billion of the overall $19 billion analytical instrument market.

CAUTIONARY STATEMENT

Certain statements contained herein are forward looking. Many factors could cause actual results to differ from these statements, including loss of market share through competition, introduction of competing products by other companies, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, changes in the healthcare market and the pharmaceutical industry, changes in distribution of the Company's products, and foreign exchange fluctuations. Such factors are discussed in detail in the Company's filings with the Securities and Exchange Commission.


Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended Nine Months Ended
September 30 September 30
2002 2001 2002 2001

Net sales 216,045 202,694 633,578 610,529
Cost of sales 74,909 73,120 222,321 221,963

Gross profit 141,136 129,574 411,257 388,566

Selling, general and
administrative expenses 77,682 66,913 226,641 199,989
Research and development
expenses 13,576 11,794 38,499 34,573
Patent litigation provision - - 2,800 -
Goodwill and purchased
technology amortization 860 1,755 2,697 5,274

Operating income 49,018 49,112 140,620 148,730

Other income, net - - 116 -
Interest income, net 1,661 1,211 4,539 3,848
Income from operations
before income taxes 50,679 50,323 145,275 152,578

Provision for income taxes 11,656 12,077 33,301 36,619
Income before cumulative
effect of change in
accounting principle 39,023 38,246 111,974 115,959

Cumulative effect of change
in accounting principle (A) - - (4,506) -
Net income 39,023 38,246 107,468 115,959

Income per basic common share:
Net income before cumulative
effect of accounting
principle change 0.30 0.29 0.85 0.89
Cumulative effect of change
in accounting principle (A) - - (0.03) -
Net income 0.30 0.29 0.82 0.89

Income per diluted common share:
Net income before cumulative
effect of accounting
principle change 0.29 0.28 0.82 0.84
Cumulative effect of change
in accounting principle (A) - - (0.03) -
Net income 0.29 0.28 0.79 0.84

Weighted average number of
basic common shares 130,788 130,752 131,090 130,486

Weighted average number of
diluted common shares and
equivalents 135,483 136,704 136,511 137,560

(A) Effect at January 1, 2002 of a change in accounting method for
patent related costs.

Waters Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)

September 30, 2002 December 31, 2001
(Unaudited)

Cash and cash equivalents 235,790 226,798
Restricted cash 69,373 -
Accounts receivable 167,594 182,164
Inventories 125,300 102,718
Other current assets 12,696 11,064
Total current assets 610,753 522,744

Property, plant and equipment, net 116,108 114,207
Other assets 262,711 249,960
Total assets 989,572 886,911

Notes payable 1,141 1,140
Accounts payable and accrued expenses 295,808 279,866
Total current liabilities 296,949 281,006

Other liabilities 25,491 24,160
Total liabilities 322,440 305,166

Total equity 667,132 581,745
Total liabilities and equity 989,572 886,911<<


Cheers, Tuck

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To: tuck who wrote (1241)10/22/2002 4:20:38 PM
From: tuck
   of 1784
 
Meanwhile, DPII beats by a penny. Still wondering why the delays for uARCS launch. Hope to listen to this and other conference calls later this week.

>>SAN DIEGO, Oct. 22 /PRNewswire-FirstCall/ -- Discovery Partners International, Inc. (Nasdaq: DPII - News) today announced financial results for the third quarter and nine months ended September 30, 2002.

Revenues for the third quarter of 2002 were $10.5 million, an increase of 9 percent compared to $9.6 million for the third quarter of 2001 and 26 percent above the $8.4 million result in the second quarter of 2002 due to the continued production ramp-up of long term chemistry collaborations with Pfizer and Merck. Net loss for the third quarter ended September 30, 2002 was $0.8 million, or $0.03 per share, compared to a net loss of $6.4 million, or $0.27 per share, including a $4.4 million provision for obsolete inventory, in the third quarter of 2001.

For the nine months ended September 30, 2002, revenues were $29.0 million compared to $30.2 million for the same period in 2001. Net loss in the nine months ended September 30, 2002 was $11.2 million, or $0.46 per share compared to a net loss of $9.5 million, or $0.40 per share for the same period of 2001. Excluding a $5.8 million provision for discontinued products and a $1.5 million accrual for an anticipated contract loss in the second quarter of 2002 and a $4.4 million provision for obsolete inventory in the third quarter of 2001, net loss in the nine months ended September 30, 2002 was $4.0 million, or $0.16 per share compared to a net loss of $5.1 million, or $0.21 per share for the same period of 2001. The 2001 periods included amortization of goodwill; no goodwill has been amortized in 2002 as the Company has adopted FAS 142.

Cash and short-term investments at September 30, 2002 were $69.9 million, down $7.3 million from the cash balance at December 31, 2001 primarily due to an increase in work-in-process, the acquisition of license rights related to uARCS technology from Abbott Laboratories, capital expenditures, operational cash losses, and a reduction in obligations under capital leases.

"During the third quarter, Discovery Partners expanded its existing collaboration agreement with Allergan and announced a new collaboration with Inspire Pharmaceutical for the optimization of lead cardiovascular compounds in the P2Y12 antagonist program," said Riccardo Pigliucci, Chief Executive Officer of Discovery Partners. "As planned, we also entered the production phase for the multi-year chemistry collaborations with Pfizer and Merck. Our chemists successfully synthesized over 54,000 novel chemical compounds in the quarter and are now in the process of analyzing and purifying them. This is an achievement that clearly places Discovery Partners among the largest and most capable providers of drug-like compounds in the world," concluded Pigliucci.

For the fourth quarter, the Company expects revenues to be in excess of $11.0 million. Gross margin as a percent of revenues is unlikely to increase over the third quarter level due to the forecasted absence of new chemistry licensing revenues and due to potential production ramp-up inefficiencies. The Company expects to reduce R&D expenditures to 10% of revenues. SG&A is also expected to continue to decline as a percentage of sales. Although the company is still aiming to reach profitability in the fourth quarter, EPS could remain negative should significant negative manufacturing variances occur.

For 2003, the Company is anticipating a generally challenging operating environment for the pharmaceutical and biotechnology industries. As a result, Discovery Partners is planning to be EPS positive for 2003 on conservative revenue growth.

The Company continues to have authorization from the Board of Directors to execute its stock repurchase program under which Discovery Partners may acquire up to 2 million shares of its common stock in the open market or otherwise.

A conference call discussing third quarter 2002 financial results as well as financial guidance for the remainder of fiscal 2002 will be publicly available via the Company's website, at discoverypartners.com . The live web cast will begin at 11:00 am Eastern Time, on Tuesday, October 22, 2002. In addition to the live web cast, replays will be available to the public on Discovery Partners' website, discoverypartners.com and by calling (800) 428-6051, access code: 251436 through Tuesday, October 29, 2002.

About Discovery Partners

Discovery Partners International, Inc. has become a leader in drug discovery collaborations by offering integrated services and products that span the drug discovery continuum including target characterization, high throughput screening, lead generation, lead optimization, high throughput synthesis automation, and gene expression analysis. Discovery Partners is headquartered in San Diego, California and has operations in the United States and Europe. For more information on Discovery Partners International, Inc., please visit the Company's website at discoverypartners.com .

Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a high degree of risk and uncertainty. Discovery Partners' actual results may differ materially from those projected in the forward looking statements due to risks and uncertainties that exist in Discovery Partners' operations, development efforts and business environment, including integration of acquired businesses, the trend toward consolidation of the pharmaceutical industry, quarterly sales variability, technological advances by competitors, and other risks and uncertainties more fully described in Discovery Partners' annual report on Form 10-K for the year ended December 31, 2001 as filed with the Securities and Exchange Commission and Discovery Partners' other SEC reports.

DISCOVERY PARTNERS INTERNATIONAL, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(In thousands, except per share amounts)

Consolidated Statement of
Operations data (Unaudited):
Three months ended Nine months ended
September 30, September 30,
2002 2001 2002 2001

Revenue $10,544 $9,640 $28,960 $30,215
Cost of revenue 6,976 4,972 19,159 14,931
Provision for obsolete
inventory and
discontinued products -- 4,397 5,781 4,397
Anticipated contract loss -- -- 1,485 --
Gross margin 3,568 271 2,535 10,887
Operating expenses:
Research and
development 1,301 3,088 5,148 9,956
Selling, general and
administrative 3,524 2,664 9,833 8,178
Amortization of
deferred
compensation 138 244 510 844
Amortization of
goodwill -- 1,472 -- 4,377
Total operating
expenses 4,963 7,468 15,491 23,355

Loss from operations (1,395) (7,197) (12,956) (12,468)

Interest income, net 515 717 1,496 2,700
Foreign currency gains
(losses) (26) (3) (89) 60
Minority interest in
Structural Proteomics,
Inc. 97 61 313 197

Net loss $(809) $(6,422) $(11,236) $(9,511)

Net loss per share,
basic and diluted $(0.03) $(0.27) $(0.46) $(0.40)
Weighted average shares
outstanding, basic
and diluted 24,328 24,135 24,307 23,969

Summary Balance Sheet: September 30, December 31,
2002 2001
(Unaudited)

Cash and cash equivalents $10,560 $50,915
Short-term investments 59,383 26,350
Accounts receivable, net 9,932 10,144
Inventories 4,639 8,175
Prepaid and other current assets 1,591 1,402
Total current assets 86,104 96,986

Property and equipment, net 10,057 10,642
Restricted cash 899 861
Patent, license rights and other
intangible assets, net 7,637 6,400
Goodwill, net 50,918 50,918
Other long term assets, net 1,229 1,215
Total assets $156,844 $167,022

Accounts payable and accrued expenses $4,182 $3,816
Current portion of long-term debt 912 738
Contract loss accrual 1,427 --
Deferred revenue 2,833 3,881
Total current liabilities 9,354 8,435

Other liabilities 421 1,082
Deferred rent 105 95
Minority interest 55 368

Common stock 24 24
Treasury stock (119) (119)
Preferred stock -- --
Additional paid-in-capital 200,686 200,534
Deferred compensation (372) (883)
Note receivable from stockholder (240) (240)
Accumulated other comprehensive income 743 303
Accumulated deficit (53,813) (42,577)

Total stockholders' equity 146,909 157,042

Total liabilities and stockholders' equity $156,844 $167,022

Statements of Cash Flows
Nine months ended Three months ended
September 30, 2002 September 30, 2002
(Unaudited) (Unaudited)

Net loss $(11,236) $(809)

Adjustments to reconcile net loss to cash
used in operating activities:
Depreciation and amortization 3,846 1,176
Amortization of deferred compensation 510 138
Provision for discontinued products 5,781 --
Anticipated contract loss 1,485 --
Minority interest in
Structural Proteomics, Inc. (313) (97)
Change in operating assets and
liabilities:
Accounts receivable (268) (2,860)
Inventories (2,244) (1,531)
Other current assets (175) (116)
Accounts payable, accrued expenses and
contract loss accrual 233 807
Deferred revenue (1,107) (191)
Deferred rent 10 2
Restricted cash -- --
Net cash used in operating activities (3,478) (3,481)

Investing activities
Purchases of property and equipment (1,990) (76)
Other assets 63 (117)
Purchase of patents, license rights and
other intangible assets (2,081) (10)
Purchases of short-term investments (33,033) (14,044)
Net cash used in investing activities (37,041) (14,247)

Financing activities
Proceeds from borrowings (principal
payments) on capital leases, equipment
notes payable, line of credit (634) (457)
Issuance of common stock, net of purchases 152 8
Net cash provided by (used in) financing
activities (482) (449)
Effect of exchange rate changes 646 (42)
Net decrease in cash and cash
equivalents (40,355) (18,219)

Cash and cash equivalents at beginning
of period 50,915 28,779
Cash and cash equivalents at end
of period 10,560 10,560


Cheers, Tuck

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To: tuck who wrote (1242)10/22/2002 4:32:40 PM
From: tuck
   of 1784
 
SIAL beats revenue forecasts, but misses earnings by a penny, while reiterating '02 guidance.

>>ST. LOUIS--(BUSINESS WIRE)--Oct. 22, 2002--Sigma-Aldrich Corporation (NASDAQ:SIAL - News)
HIGHLIGHTS:

Continuing Operations:

Reported and currency adjusted sales in Q3 increased 11.7 % and 8.1%, respectively, as the U.S. dollar continued to weaken.
Sales growth in Q3 was driven by stronger Biotechnology demand, partially offset by lower Fine Chemicals sales to U.S. pharmaceutical customers.
Diluted EPS increased 10% to $.55 in Q3 and 6.9% to $1.71 YTD (including a one-time Commerce Department pending settlement that reduced diluted EPS by $.02 in 2002, but excluding goodwill amortization and a one-time charge for purchased in-process research and development in 2001). Currency changes added $.01 to Q3 diluted EPS, but reduced YTD diluted EPS by $.03.
Both sales and EPS growth for the final quarter of 2002 are expected to continue to benefit from the weaker dollar. Management forecasts full year 2002 diluted EPS (including the $.02 one-time pending settlement noted above) in the $2.26 to $2.28 range, in line with prior guidance.
Discontinued (Diagnostics) Operations:

Stronger than expected sales, coupled with reduced costs, produced net income of $.01 per diluted share in Q3, reducing YTD net operating losses to $.06 per diluted share.
The Q2 one-time charge of $63 million ($.85 per diluted share) for the cost of discontinuance declined by $5.6 million ($.07 per diluted share) as the sale of the coagulation product line to Trinity Biotech plc reduced expected employee separation and customer costs in Q3.
Efforts to sell remaining assets and/or transfer customer commitments continue, with the expectation that remaining products will be sold or activities concluded by end Q1 2003.
Financial Condition

Return on equity showed strong improvement to 18.5% at the end of Q3 2002.
1.4 million shares repurchased in Q3, bringing total share repurchases at 9-30-02 to 31.1 million.
Working capital management reduced inventory levels at 9-30-02 by $20 million (excluding currency effects) from year-end 2001.
Strong cash flow from operations and working capital management reduced outstanding debt by $130 million in 2002.
OVERALL RESULTS:

Continuing Operations:

The Company's Scientific Research, Biotechnology and Fine Chemicals businesses combined to produce reported sales growth of 11.7% in the third quarter of 2002 as compared to the third quarter of 2001. The weaker U.S. dollar enhanced this reported quarterly sales gain by 3.6%, resulting in currency adjusted sales growth of 8.1%. Earlier expectations for even better currency adjusted growth in the third quarter -- due primarily to the adverse impact of the events of September 11, 2001 -- were not fully realized. Improved demand for Biotechnology products was matched with continued growth for Scientific Research products, while Fine Chemicals growth slowed as sales to U.S. pharmaceutical customers declined. Reported year-to-date sales growth was 8.6%, with 0.7% of this gain coming from the positive benefit of currency rates.

Diluted net income per share for the third quarter (adjusting 2001 results to exclude goodwill amortization) rose 10.0% to $.55 in 2002 from $.50 in 2001. Year-to-date diluted net income per share (adjusting 2001 results to exclude goodwill amortization and a one-time charge for purchased in-process research and development) increased 6.9% to $1.71 in 2002 from $1.60 in 2001. Currency added $.01 to the third quarter 2002 EPS, while a one-time charge for a U.S. Commerce Department pending settlement (explained in our release of September 30, 2002) reduced otherwise reportable EPS by $.02. Otherwise reportable year-to-date diluted per share earnings were reduced by both the $.02 Commerce Department pending settlement and a $.03 currency impact.

Discontinued (Diagnostics) Operations:

As previously announced, the Company sold its coagulation product line to Trinity Biotech plc in August 2002. To date, the Company has sold product lines representing approximately 42% of Diagnostics sales in 2001(after reclassifying products that contributed $11 million to 2001 Diagnostics sales to the Company's Scientific Research unit in both 2001 and 2002). Efforts to sell other product lines continue, with an expectation that all activity will be completed by the end of Q1 2003. Activities to minimize costs, together with sales resulting from supplying customers under contract and inventory liquidations, provided diluted EPS of $.01 in the third quarter, reducing year-to-date operating losses to $.06 per diluted share. The previously recorded one-time charge of $63 million ($.85 per diluted share) was reduced by $5.6 million ($.07 per diluted share) in the third quarter of 2002 as the sale of the coagulation product line reduced expected employee separation and customer costs.

CEO's Statement:

Commenting on third quarter and year-to-date results, Chairman and CEO David Harvey said "Given the current economy, I am pleased with the growth in sales and earnings and continued improvement in return on equity that we have achieved. We are not entirely immune to economic slowdowns, but our broad product and customer base, major presence in growing life science and high technology markets, strong commitment to customer service and ongoing efforts to reduce costs through process improvement have kept us somewhat recession resistant. I'm particularly pleased that our efforts to gain recognition as a key supplier of biotechnology products paid off in the form of better than expected growth in this important part of our business. We expect continued increases in sales and earnings in the final quarter of 2002."

NET INCOME ANALYSIS:

The Company's reported Q3 and YTD net income and diluted earnings per share for continuing and discontinued operations -- before and after currency impacts in 2002, goodwill amortization in 2001 and one-time charges in 2002 and 2001 - are summarized below:



Three Months Ended Three Months Ended
Sept. 30, 2002 Sept. 30, 2001
------------------- -------------------
Diluted Diluted
Earnings Earnings
Net Income Per Net Income Per
(millions) Share (millions) Share
---------- -------- ---------- --------
Net income from continuing
operations before currency
impact and goodwill
amortization $41.2 $0.56 $38.3 $0.50

Currency impact on continuing
operations 0.9 0.01 -- --

Goodwill amortization for
continuing operations -- -- (1.3) (0.01)

---------- -------- ---------- --------
Net income from continuing
operations before one-time
charges 42.1 0.57 37.0 0.49

Purchased in-process R&D -- -- -- --

Department of Commerce pending
settlement (1.8) (0.02) -- --

---------- -------- ---------- --------
Reported net income from
continuing operations 40.3 0.55 37.0 0.49

Net income (loss) from
discontinued operations 0.6 0.01 (3.2) (0.04)

Net gain (loss) on disposition
of discontinued operations 5.6 0.07 -- --

---------- -------- ---------- --------
Total reported net income $46.5 $0.63 $33.8 $0.45
========== ======== ========== ========

Nine Months Ended Nine Months Ended
Sept. 30, 2002 Sept. 30, 2001
------------------- -------------------
Diluted Diluted
Earnings Earnings
Net Income Per Net Income Per
(millions) Share (millions) Share
---------- -------- ---------- --------
Net income from continuing
operations before currency
impact and goodwill
amortization $129.5 $1.76 $121.2 $1.60

Currency impact on continuing
operations (1.9) (0.03) -- --

Goodwill amortization for
continuing operations -- -- (3.8) (0.05)

---------- -------- ---------- --------
Net income from continuing
operations before one-time
charges 127.6 1.73 117.4 1.55

Purchased in-process R&D -- -- (0.8) (0.01)

Department of Commerce pending
settlement (1.8) (0.02) -- --

---------- -------- ---------- --------
Reported net income from
continuing operations 125.8 1.71 116.6 1.54

Net income (loss) from
discontinued operations (4.4) (0.06) (9.1) (0.12)

Net gain (loss) on disposition
of discontinued operations (57.4) (0.78) -- --

---------- -------- ---------- --------
Total reported net income $64.0 $0.87 $107.5 $1.42
========== ======== ========== ========


RESULTS FOR CONTINUING OPERATIONS

(all increases are to comparable periods in 2001):
Reported sales increased 11.7% to $304.8 million for the third quarter and 8.6% to $910.7 million year-to-date. On a currency-adjusted basis, third quarter and year-to-date sales gains were 8.1% and 7.9%, respectively. Sales volume gains of 4.8% remained consistent with first half 2002 levels, while ongoing price increases added another 3.1% to year-to-date growth. Reported and currency adjusted sales gains are as follows:



Three Months Ended Nine Months Ended
Sept. 30, 2002 Sept. 30, 2002
------------------ -----------------
Currency Currency
Reported Adjusted Reported Adjusted
-------- -------- -------- --------
Scientific Research 10.3% 6.6% 7.0% 6.3%
Biotechnology 18.5% 15.1% 12.8% 12.4%
Fine Chemicals 8.5% 4.7% 8.7% 7.6%
Total 11.7% 8.1% 8.6% 7.9%


Scientific Research sales gains in the third quarter (excluding currency impacts, but including product sales reclassified from Diagnostics for both 2001 and 2002) showed continued strength in U.S. and European markets while sales growth in other international markets, while still exceeding growth rates in the U.S. and Europe, did moderate from levels achieved earlier in 2002.

Biotechnology sales gains improved in Q3, again exceeding our expectations. Percentage growth in our key life science areas was in the mid- to high-teens, with sales of chromatography products achieving a second consecutive quarter of growth. Market opportunities, new product development efforts and enhanced sales activities all contributed to this improved growth.

Customers continued their migration to ordering through the Company's web site. Electronic orders increased to 22% of our U.S. and 15% of our worldwide research sales in Q3.

Fine Chemicals growth moderated in the third quarter. A decline in custom orders from U.S. pharmaceutical customers was only partially offset by strong double-digit growth in international markets. Booked orders, including those from pharmaceutical customers, remained strong, but at lower levels than experienced in earlier quarters of 2002.

Reported pretax income from continuing operations was 19.4% and 20.1% of sales for the third quarter and first nine months of 2002, respectively. Third quarter pretax income excluding the Commerce Department pending settlement of $1.8 million was 20.0% of sales. After adjusting 2002 results for the settlement and 2001 results for goodwill amortization and a one-time charge for purchased in-process research and development, YTD 2002 pretax income of 20.3% of sales was equal to that for the entire year of 2001. Price gains, process improvement savings, lower interest costs and the abatement of higher utility costs experienced in the first half of 2001 all benefited these results. But these benefits were offset by new costs to operate our Life Science and High Technology Center, higher insurance and employee benefit costs and the reassignment of roughly 80 former Diagnostics employees to various open positions in our continuing businesses.

OUTLOOK:

We expect reported sales gains in the final quarter of 2002 for our Scientific Research and Biotechnology businesses to continue to benefit from the weakening U.S. dollar, special pricing initiatives, the recent distribution of new Aldrich and Fluka/Riedel-de Haen catalogs and growth of web-based sales. We also expect Biotechnology sales to further benefit from new product initiatives in key life science areas. But, we expect Fine Chemicals sales to grow only in line with third quarter results, as stronger anticipated sales to international accounts may well continue to be offset by weaker demand from U.S. pharmaceutical customers. Operating our discontinued Diagnostics business in the final quarter of 2002 might reduce otherwise reportable diluted earnings per share by as much as $.01. We expect profit improvement initiatives, lower interest cost, benefits from the weaker U.S. dollar and possible continued share repurchase activities to continue to enhance earnings and EPS from continuing operations in the fourth quarter. Including the $.02 adverse impact of the Commerce Department pending settlement noted above, management expects EPS from continuing operations for all of 2002 in the $2.26 to $2.28 range.

OTHER INFORMATION:

Share Repurchase: At September 30, 2002, a total of 31.1 million shares (out of an authorized repurchase of 35 million shares) had been acquired at an average purchase price of $32.86 per share. There were 72.3 million shares outstanding at September 30, 2002. Additional shares purchased to date in October bring total repurchases to 31.5 million shares. The Company expects to continue share repurchases to acquire the remaining 3.5 million authorized shares, but the timing and number of shares purchased, if any, will depend upon market conditions and other factors.

Working Capital, Capital Expenditures, Debt and ROE: Working capital management initiatives provided major benefits in the third quarter. Accounts receivable days outstanding of 59 at September 30, 2002 represent a decline of two days from June 30, 2002 and a one-day improvement from the prior year-end. Active inventory management programs reduced inventory quantities by $20 million from prior year-end levels, but the impact of currency rates used in valuing inventories offset roughly $15 million of that reduction. These initiatives, much lower capital expenditure levels and reduced tax payments related to the one-time charge for Diagnostics combined to generate sufficient cash flow for us to reduce total borrowings by $130 million in the first nine months of 2002 to $318 million. Capital expenditures for all of 2002 are expected to total less than $60 million, representing a $45 million reduction from spending levels in 2001. At September 30, 2002, short-term borrowings were $141 million at a weighted average interest rate of 1.8% and long-term debt was $177 million at a weighted average interest rate of 6.6%. The Company's return on equity improved to 18.5%. We remain committed to pursuing our goal of achieving a 20% return on equity by 2004.

Financial Statement Audits: In June 2002, KPMG LLP was selected to replace Arthur Andersen LLP as the Company's external auditor. As a result of our decision to discontinue Diagnostics, accounting standards require the restatement of prior period financials solely to present separate results for continuing and discontinued operations. Due to the inability of our previous external auditor to issue an opinion on such restatements, we have engaged KPMG to audit the Company's full financial statements for 2000 and 2001. KPMG's audit opinion for 2000, 2001 and 2002 will be provided with the Company's 2002 annual report. Management does not expect any other changes to the previously released financial statements.

About Sigma-Aldrich: Sigma-Aldrich is a leading Life Science and High Technology company. Our biochemical and organic chemical products and kits are used in scientific and genomic research, biotechnology, pharmaceutical development, the diagnosis of disease and chemical manufacturing. We have customers in life science companies, university and government institutions, hospitals and in industry. Sigma-Aldrich operates in 34 countries and has 6,000 employees providing excellent service worldwide. We are committed to the success of our Customers, Employees and Shareholders through leadership in Life Science, High Technology and Service. For more information about Sigma-Aldrich, please visit our award-winning web site at www.sigma-aldrich.com

Cautionary Statement: This release contains forward-looking statements relating to future performance, goals, strategic actions and initiatives and similar intentions and beliefs, including without limitation the "Highlights", "Overall Results-Discontinued (Diagnostics) Operations" and "CEO's Statement", and "Outlook" sections contained above and other statements regarding the Company's expectations, goals, beliefs, intentions and the like regarding future sales, earnings, return on equity, the discontinuance of its Diagnostics business, including the effect on sales and earnings from running the discontinued business as assets are held for sale and possible cash proceeds from the discontinuance, and other matters. These statements involve assumptions regarding Company operations, investments and acquisitions, conditions in the markets the Company serves and the sale of assets and actions related to the discontinuance of its Diagnostics business. Although the Company believes its expectations are based on reasonable assumptions, such statements are subject to risks and uncertainties, including, among others, certain economic, political and technological factors. Actual results could differ materially from those stated or implied in this news release, due to, but not limited to, such factors as changes in pricing and the competitive environment, other changes in the business environment in which the Company operates, changes in research funding, uncertainties surrounding government healthcare reform, government regulations applicable to the business, the impact of fluctuations in interest rates and foreign currency exchange rates, the effectiveness of the Company's further implementation of its global software systems, expectations for the discontinuance of the Diagnostics business, including the ability to supply customers while assets are held for sale and the ability to retain customers, suppliers and employees. The Company does not undertake any obligation to update these forward-looking statements.



SIGMA-ALDRICH CORPORATION
Consolidated Statements of Income (Unaudited)
(in thousands except per share amounts)

Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
------------------- -------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Net sales $304,830 $272,816 $910,723 $838,774
Cost of products sold 152,115 134,396 447,484 402,546
--------- --------- --------- ---------
Gross profit 152,715 138,420 463,239 436,228
Selling, general and
administrative expenses 80,416 73,094 238,626 226,870
Research and development
expenses 9,855 9,263 30,436 28,272
Purchased in-process research
and development -- -- -- 1,200
Interest, net 3,269 4,598 11,030 13,243
--------- --------- --------- ---------
Income from continuing
operations before income taxes 59,175 51,465 183,147 166,643
Provision for income taxes 18,888 14,454 57,318 50,081
--------- --------- --------- ---------
Net income from continuing
operations 40,287 37,011 125,829 116,562
Discontinued operations:
Net income (loss) from
operations of discontinued
business, net of taxes 617 (3,228) (4,474) (9,090)
Net gain (loss) on disposition
of discontinued operations,
net of taxes 5,600 -- (57,400) --
--------- --------- --------- ---------
Net income $46,504 $33,783 $63,955 $107,472
========= ========= ========= =========

Supplemental net income
information
Net income from continuing
operations $40,287 $37,011 $125,829 $116,562
Add back: goodwill
amortization, net of taxes -- 1,286 -- 3,778
--------- --------- --------- ---------
Adjusted net income from
continuing operations $40,287 $38,297 $125,829 $120,340
========= ========= ========= =========

Weighted average number of
shares outstanding - Basic 72,979 74,196 73,083 75,011
========= ========= ========= =========
Weighted average number of
shares outstanding - Diluted 73,623 74,826 73,677 75,666
========= ========= ========= =========

Net income per share - Basic
Net income from continuing
operations $0.55 $0.50 $1.72 $1.55
Net income (loss) from
operations of discontinued
business, net of taxes 0.01 (0.04) (0.06) (0.12)
Net gain (loss) on disposition
of discontinued operations,
net of taxes 0.08 -- (0.78) --
--------- --------- --------- ---------
Net income $0.64 $0.46 $0.88 $1.43
========= ========= ========= =========

Net income per share - Diluted
Net income from continuing
operations $0.55 $0.49 $1.71 $1.54
Net income (loss) from
operations of discontinued
business, net of taxes 0.01 (0.04) (0.06) (0.12)
Net gain (loss) on disposition
of discontinued operations,
net of taxes 0.07 -- (0.78) --
--------- --------- --------- ---------
Net income $0.63 $0.45 $0.87 $1.42
========= ========= ========= =========

Supplemental net income per
share - Diluted
Net income from continuing
operations $0.55 $0.49 $1.71 $1.54
Add back: goodwill
amortization, net of taxes -- 0.01 -- 0.05
--------- --------- --------- ---------
Adjusted net income from
continuing operations $0.55 $0.50 $1.71 $1.59
========= ========= ========= =========

SIGMA-ALDRICH CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)

Sept. 30, Dec. 31,
2002 2001
----------- -----------
ASSETS

Cash and cash equivalents $39,718 $37,637
Accounts receivable, net 198,775 181,450
Inventories 422,456 427,094
Other current assets 37,165 35,231
Current assets held for sale 5,064 45,899
----------- -----------
Total current assets 703,178 727,311

Property, plant and equipment, net 531,634 531,391
Other assets 151,426 140,844
Noncurrent assets held for sale -- 40,256
----------- -----------
Total assets $1,386,238 $1,439,802
=========== ===========

Sept. 30, Dec. 31,
2002 2001
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term debt $141,118 $270,382
Accounts payable 58,647 59,509
Accrued expenses 73,085 54,281
Accrued income taxes 21,541 13,391
Current liabilities of discontinued operations 9,939 --
----------- -----------
Total current liabilities 304,330 397,563

Long-term debt 176,708 177,700
Noncurrent liabilities 58,153 54,824
Stockholders' equity 847,047 809,715
----------- -----------
Total liabilities and equity $1,386,238 $1,439,802
=========== ===========

Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

Nine Months Ended
Sept. 30,
-------------------
2002 2001
--------- ---------
Cash flows from operating activities:
Net income $63,955 $107,472
Adjustments:
Net loss from operations of discontinued
business 4,474 9,090
Net loss on disposition of discontinued
operations 57,400 --
Depreciation and amortization 50,346 49,426
Purchased in-process research and development -- 1,200
Net changes in assets and liabilities 70,010 (58,519)
--------- ---------
Net cash provided by operating activities
of continuing operations 246,185 108,669
Net cash provided by (used in) operating
activities of discontinued operations 9,582 (5,805)
--------- ---------
Net cash provided by operating activities 255,767 102,864
--------- ---------

Cash flows from investing activities:
Net property additions (41,232) (75,277)
Acquisitions -- (37,574)
Proceeds from disposition of discontinued
operations 3,559 --
Other (7,255) (5,307)
--------- ---------
Net cash (used in) investing activities of
continuing operations (44,928) (118,158)
Net cash (used in) investing activities of
discontinued operations (2,286) (4,124)
--------- ---------
Net cash (used in) investing activities (47,214) (122,282)
--------- ---------

Cash flows from financing activities:
Net (repayment) borrowings of debt (131,298) 165,319
Payment of dividends (18,693) (18,632)
Treasury stock purchases (69,008) (142,986)
Exercise of stock options 18,893 21,366
--------- ---------
Net cash (used in) provided by financing
activities (200,106) 25,067
--------- ---------

Effect of exchange rate changes on cash (6,366) 566
--------- ---------
Net change in cash and cash equivalents 2,081 6,215
Cash and cash equivalents at January 1 37,637 31,058
--------- ---------
Cash and cash equivalents at September 30 $39,718 $37,273
========= =========

SIGMA-ALDRICH CORPORATION
Supplemental Financial Information - Continuing Operations (Unaudited)
(in thousands)

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------- -------------------
Business Unit Sales 2002 2001 2002 2001
--------- --------- --------- ---------

Scientific Research $179,480 $162,710 $536,907 $501,726
Biotechnology 69,688 58,811 202,697 179,660
Fine Chemicals 55,662 51,295 171,119 157,388
--------- --------- --------- ---------
Total $304,830 $272,816 $910,723 $838,774
========= ========= ========= =========

Nine Months Ended
Sept. 30,
-------------------
Selected Financial Information 2002 2001
--------- ---------

Property, plant and equipment
additions, net $41,232 $75,277
Share repurchase 69,008 142,986<<


Cheers, Tuck

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To: tuck who wrote (1243)10/23/2002 12:03:33 PM
From: tuck
   of 1784
 
Pfizer sues Lilly & ICOS over ED, now this. Must be National Be Kind to an Attorney Week.

>>FARMINGDALE, N.Y.--(BUSINESS WIRE)--Oct. 23, 2002-- Enzo Biochem, Inc. (NYSE:ENZ - News) and its wholly owned subsidiary Enzo Life Sciences, Inc. filed an action in the U.S. District Court for the Southern District of New York against Amersham plc (NYSE:AHM - News) and PerkinElmer, Inc. (NYSE:PKI - News) charging them and six other companies with breach of contract, patent infringement, and other counts arising out of their misuse of Enzo's patented labeled nucleotide products and technologies, the Company announced today.

Named in the suit as defendants are Amersham plc and its U.S. subsidiary, Amersham Biosciences, PerkinElmer, Inc. and PerkinElmer Life Sciences, Inc., Molecular Probes, Inc., Orchid Biosciences, Inc. (NASDAQ:ORCH - News), Sigma-Aldrich Corp. (NASDAQ:SIAL - News) and its subsidiary, Sigma Chemical Company, Inc.. Amersham, PerkinElmer and Sigma had previously signed agreements with Enzo to distribute Enzo's labeled nucleotide products and are referred to as "Distributor Defendants" in the Enzo complaint.

The complaint alleges that the Distributorship Defendants have a limited right to distribute, strictly for research purposes, only those products listed in their respective distributorship agreements with Enzo. According to the complaint, the agreements are not patent licenses, and specifically prohibit the Distributor Defendants from selling Enzo's products for diagnostic or therapeutic use, from engaging in any commercial development or exploitation of Enzo's patented products or technologies, and from manufacturing any product covered by Enzo's patents, except as expressly authorized by Enzo. The complaint states that the Distributor Defendants began breaching their distributorship agreements shortly after signing. According to the complaint, the distributor defendants have continued to breach their agreements ever since.

In addition to breaching distributorship agreements, the Distributor Defendants and the other defendants are charged with infringing Enzo's patents and improperly using Enzo's patented products and technologies and with providing others with unauthorized and prohibited access to Enzo's patented products and technologies.

The Company says that Enzo's patented labeled nucleotide products and technologies are breakthrough, pioneering inventions that have proved their considerable value in applications ranging from detecting pathogens and human diseases, such as cancer, to decoding and analyzing the human genome.<<

snip

The Street figures the only real winners are the lawyers; last I looked, the stock of every company every suing or being sued was down.

Cheers , Tuck

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To: tuck who started this subject10/24/2002 9:36:56 AM
From: tuck
   of 1784
 
ABI beats by a penny, reaffirms 03.

>>FOSTER CITY, Calif.--(BUSINESS WIRE)--Oct. 24, 2002--Applied Biosystems Group (NYSE: ABI - News), an Applera Corporation business, today reported that earnings per share from continuing operations in the first quarter of fiscal 2003, ended September 30, 2002, were $0.16 per diluted share versus $0.15 per diluted share in the first quarter of fiscal 2002.

All per share amounts refer to per share of Applera Corporation-Applied Biosystems Group Common Stock.

The Group, as successor to The Perkin-Elmer Corporation in a patent lawsuit, recorded a $16.4 million charge, net of income taxes, as a result of an adverse jury verdict received in October 2002. The amount awarded of $13.3 million is subject to entry of a final judgment by the court, where interest and additional damages may be added. As the litigation related to a product line which was sold in 1999, the related charge was recorded to discontinued operations. Including this charge, diluted earnings per share for the first quarter of fiscal 2003 were $0.08 versus $0.15 for the prior year.

Income from continuing operations in the first quarter of fiscal 2003 was $34.2 million compared to $32.2 million in the same period last year. Foreign currency effects increased income from continuing operations by approximately $2 million, or $0.01 per diluted share. Operating income in the first quarter of fiscal 2003 was $43.3 million compared to $43.1 million in the year-earlier quarter. Net income after the $16.4 million charge to discontinued operations for the first quarter of fiscal 2003 was $17.8 million.

Net revenues for the Group for the first quarter of fiscal 2003 were $395.9 million compared to $366.6 million for the first quarter of fiscal 2002, an 8 percent increase. Excluding the effects of foreign currency, revenues increased approximately 7 percent. Revenues from instrument sales in the first quarter of fiscal 2003 increased approximately 16 percent to $189.0 million from $162.3 million in the same period last year. Instrument sales increased in all three strategic product categories including DNA Sequencing, Sequence Detection Systems (SDS), and Mass Spectrometry. Consumables sales in the first quarter of fiscal 2003 decreased 7 percent to $138.4 million from $149.2 million in the same period a year ago. This decrease was primarily a result of a decline in DNA sequencing consumables. Revenues from other sources, including service contracts, royalties, licenses, and contract research, increased 24 percent to $68.5 million from $55.1 million in the year-earlier quarter. This increase resulted primarily from higher service revenues, license fees, and royalties, including $5.4 million for a license relating to certain mass spectrometry technology.

Gross margin in the first quarter of fiscal 2003 was 51.2 percent versus 51.1 percent in the prior year. Although gross margin was relatively unchanged year-to-year, higher margins from royalty and license revenues were offset by increases in lower margin service revenues. The operating margin in the first quarter of fiscal 2003 was 10.9 percent, compared with 11.8 percent in the same period a year ago. SG&A expenses were approximately 25 percent of revenues for both periods.

R&D expenditures in the first quarter of fiscal 2003 increased 17 percent to $61.0 million, or 15.4 percent of revenues, from $52.3 million, or 14.3 percent of revenues, in the year-earlier quarter. R&D expenses were primarily driven by the ongoing funding of the Applera Genomics Initiative and support for new products in development.

The first tangible outcomes from the Applera Genomics Initiative emerged in the first quarter of fiscal 2003 with the launch of the first sets of next-generation SDS reagents using the TaqMan® chemistries. These products currently include approximately 120,000 Assays-on-DemandTM for SNP genotyping and nearly 13,000 gene expression assays.

Tony L. White, Chief Executive Officer of Applera said, "First quarter results demonstrate that our aggressive investments in R&D are working, and as a result, we expect continued revenue growth for the balance of this fiscal year."

Michael W. Hunkapiller, Ph.D., President, Applied Biosystems, said, "Strong early adoption of new Applied Biosystems' sequencing product lines, in particular the ABI 3730xl DNA Analyzer by the major academic genome centers, suggests that we have turned the corner on declines in our sequencing product line. We anticipate that the lower operating costs of the ABI 3730 DNA Analyzer product line are likely to lead to more sequencing and related applications using DNA electrophoresis technology, which should be positive for ABI's sequencing prospects."

"In the first quarter we saw strong growth in the SDS product category as we did in previous quarters, and exceptional growth in the mass spectrometry category," Dr. Hunkapiller said. "While the performance of our mass spectrometry product lines indicates our success in both the proteomics and the drug metabolism and pharmacokinetics markets, we would expect to see the growth rates in mass spectrometry moderate over the next few quarters."

Applied Biosystems Outlook

Forecasting remains challenging for several reasons, including: unpredictable spending patterns in the pharmaceutical and biotechnology sectors; delays in consideration by the U.S. Congress of the fiscal 2003 National Institutes of Health budget; uncertainty over the status of supplemental annual funding by the Japanese government in its current fiscal year; and difficulties in predicting trends in the consumption of sequencing reagents by the Group's customer base.

At this time, the Group reiterates its previous expectation that revenue percentage growth in fiscal 2003 will be in the high single digits to low teens. The Group continues to expect that growth in fiscal 2003 will be heavily influenced by the adoption of new products. Gross margin in fiscal 2003 is expected to approximate fiscal 2002 levels. Additionally, the Group expects SG&A expenses to rise somewhat more slowly than revenue during fiscal 2003.

While the Group anticipates that the Applera Genomics Initiative will be substantially completed by the end of calendar year 2002, spending for this initiative, as well as development costs related to the Knowledge Business, are expected to lead to an increase in the level of overall R&D spending during the second quarter of fiscal 2003. However, as a percentage of revenues, R&D spending is expected to trend downward during the second and remaining quarters of fiscal 2003 and to approximate 14 percent of revenue for the fiscal year. This annual outlook includes approximately $12 million in expenses, the majority of which are expected to be spent during the first half of fiscal 2003, for Applied Biosystems' share of the Applera Genomics Initiative funding.

The Group expects the effective tax rate for fiscal 2003 to be approximately 28 percent, one percentage point lower than previously forecast due to anticipated higher utilization of foreign tax credits. Future tax legislation may repeal or replace the existing U.S. export tax regime, as well as significantly change other international tax provisions of the Internal Revenue Code. Such changes may result in a change in the effective tax rate for the Group.

The Group reiterates its previous expectation that diluted earnings per share from continuing operations for fiscal 2003 will be in the range of $0.85 to $0.95. The Group expects diluted EPS from continuing operations during the first half of fiscal 2003 to be approximately flat with the prior year period due to the high levels of R&D spending anticipated during this period. The Group anticipates EPS growth in the second half of fiscal 2003 due to the expected increases in sales and the moderation in R&D spending growth.

Capital spending in fiscal 2003 is anticipated to be approximately $170 million, including approximately $80 million for the facilities expansion in Pleasanton, CA.

The comments in the Outlook sections of this press release, including the Celera Diagnostics Joint Venture outlook below, reflect management's current outlook. The Company does not have any current intention to update this outlook and plans to revisit the outlook for its businesses only once each quarter when financial results are announced.

Celera Diagnostics Joint Venture

During the first quarter of fiscal 2003, end-user sales of products manufactured by Celera Diagnostics, a 50/50 joint venture between Applied Biosystems and Celera Genomics, were $3.9 million, a 63 percent increase over the $2.4 million in the comparable year-earlier period, primarily due to continued higher sales of its cystic fibrosis reagents. Reported fiscal 2003 first quarter revenues for Celera Diagnostics were $3.0 million, compared to $1.8 million in the same period last year. On October 1, 2002, sales responsibilities for products manufactured by Celera Diagnostics were largely transferred from Applied Biosystems to the diagnostic division of Abbott Laboratories, which now records end user sales. Net cash use was $16.0 million in the first quarter of fiscal 2003 compared to $7.4 million in the first quarter of fiscal 2002. The pre-tax loss for the quarter was $13.3 million, compared to $9.4 million in the same period last year.

Developments at Celera Diagnostics over the last three months include the following:

Celera Diagnostics and Bristol-Myers Squibb (BMS) entered into a collaboration to study genes that may be useful in the diagnosis and treatment of cardiovascular disease and diabetes. Celera Diagnostics will retain exclusive rights to develop and market diagnostic products for these conditions based on markers identified by the studies. Recently, Celera Diagnostics began processing cardiovascular samples received from BMS and from other sources through its high-volume testing lab in Alameda, CA.
Celera Diagnostics and Laboratory Corporation of America (LabCorp) announced a collaboration to establish the clinical utility of laboratory tests based on novel diagnostic markers for Alzheimer's disease, breast cancer, and prostate cancer. The agreement provides LabCorp with exclusive access for a defined time to markers found to have clinical utility through the collaboration, and establishes Celera Diagnostics as a preferred vendor to LabCorp for molecular diagnostics products.
Celera Diagnostics and Quest Diagnostics announced a collaboration to establish the clinical utility of laboratory tests based on novel diagnostic markers for cardiovascular disease and diabetes. The agreement provides Quest with exclusive access for a defined time to markers found to have clinical utility through the collaboration, and establishes Celera Diagnostics as a preferred vendor to Quest for molecular diagnostics products.
Celera Diagnostics remains on schedule to complete at least three large disease association studies in fiscal 2003. The Alzheimer's study is progressing according to plan, and samples are beginning to be processed for studies in cardiovascular disease and breast cancer.
Celera Diagnostics Joint Venture Outlook

For fiscal 2003, Celera Diagnostics continues to anticipate end-user sales, including those from its alliance with Abbott Laboratories, in a range of $18 to $22 million. This outlook assumes continued demand growth, both from new products and from higher sales of existing products, and successful product migration into the alliance. For fiscal 2003, Celera Diagnostics anticipates pretax losses of $50 to $60 million and net cash use in the range of $55 to $65 million, including capital spending of approximately $10 million.

Conference Call & Webcast

A conference call with Applera Corporation executives will be held October 24, 2002 at 10:00 a.m. (EDT) with investors and media to discuss these results and management's current outlook for the Company. The call will be formatted to focus on each of the Applera businesses separately, with the following expected start times:

Applied Biosystems Group 10:00 a.m. (EDT)
Celera Diagnostics 10:45 a.m.
Celera Genomics Group 11:00 a.m.
Investors, securities analysts, representatives of the media, and other interested parties who would like to participate should dial (+1) 706.634.4992 (code "applera") at any time from 9:45 a.m. until the end of the call. This conference call will also be webcast. Interested parties who wish to listen to the webcast should visit either www.applera.com and go to the Investor Relations section of the web site, or www.appliedbiosystems.com and go to the Investor section. A digital recording will be available two hours after the completion of the conference call from October 24 to November 2, 2002. Interested parties should call 706.645.9291 and enter Conference ID 6096430.

About Applera Corporation and Applied Biosystems

Applera Corporation comprises two operating groups. The Applied Biosystems Group develops and markets instrument-based systems, reagents, software, and contract services to the life science industry and research community. Customers use these tools to analyze nucleic acids (DNA and RNA), small molecules, and proteins to make scientific discoveries, leading to the development of new pharmaceuticals, and to conduct standardized testing. Applied Biosystems is headquartered in Foster City, CA, and reported sales of $1.6 billion during fiscal 2002. The Celera Genomics Group (NYSE:CRA - News), located in Rockville, MD, and South San Francisco, CA, is engaged principally in integrating advanced technologies to discover and develop new therapeutics. Celera intends to leverage its proteomic, bioinformatic, and genomic capabilities to identify and validate drug targets and diagnostic marker candidates, and to discover and develop new therapeutics. Its Celera Discovery SystemTM online platform, marketed exclusively through the Knowledge Business of Applied Biosystems, is an integrated source of information based on the human genome and other biological and medical sources. Celera Diagnostics, a 50/50 joint venture between Applied Biosystems and Celera Genomics, is focused on discovery, development, and commercialization of novel diagnostic tests. Information about Applera Corporation, including reports and other information filed by the company with the Securities and Exchange Commission, is available at www.applera.com, or by telephoning 800.762.6923. Information about Applied Biosystems is available at www.appliedbiosystems.com.


APPLERA CORPORATION
APPLIED BIOSYSTEMS GROUP
COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)

Three months ended
September 30,
2002 2001
--------- ---------
Net revenues $ 395.9 $ 366.6
Cost of sales 193.3 179.4
--------- ---------
Gross margin 202.6 187.2
Selling, general and administrative 98.3 91.8
Research, development and engineering 61.0 52.3
--------- ---------
Operating income 43.3 43.1
Interest income, net 3.2 3.3
Other income (expense), net 1.0 (1.0)
--------- ---------
Income before income taxes 47.5 45.4
Provision for income taxes 13.3 13.2
--------- ---------
Income from continuing operations 34.2 32.2
Loss from discontinued operations,
net of income taxes (16.4)
--------- ---------
Net income $ 17.8 $ 32.2
========= =========

Income from continuing operations per share
Basic $ 0.16 $ 0.15
Diluted $ 0.16 $ 0.15
Loss from discontinued operations per share
Basic $ (0.08) $ -
Diluted $ (0.08) $ -
Net income per share
Basic $ 0.08 $ 0.15
Diluted $ 0.08 $ 0.15

Average common shares outstanding
Basic 208,825,000 211,363,000
Diluted 210,010,000 215,213,000

APPLERA CORPORATION
APPLIED BIOSYSTEMS GROUP
Revenues By Product Categories
(Dollar amounts in millions)
(Unaudited)

Three months ended
September 30,
2002 2001 Change
--------- --------- ---------
DNA Sequencing $ 149.3 $ 150.2 -1%
% of total revenues 38% 41%
SDS & Other Applied Genomics 83.5 68.8 21%
% of total revenues 21% 19%
Mass Spectrometry 83.4 54.2 54%
% of total revenues 21% 15%
Core DNA Synthesis & PCR 49.0 59.1 -17%
% of total revenues 12% 16%
Other Product Lines 30.7 34.3 -10%
% of total revenues 8% 9%
--------- ---------
Total $ 395.9 $ 366.6 8%
========= =========<<

snipped some Celera stuff and a lot of safe harbor stuff

Cheers, Tuck

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To: tuck who wrote (1245)10/24/2002 11:35:52 AM
From: tuck
   of 1784
 
From Briefing.com:

>>9:06AM Sigma-Aldrich downgraded at Solly (SIAL) 44.75: Salomon Smith Barney downgrades to IN-LINE from Outperform based on slowing top line growth that is likely to persist for several qtrs; cuts price target to $48 from $52.<<

Not sure if this is responsible for the sorry performance of other reagent company stocks today. QGENF had run up over $7 in a few days, and has now given it all back in two. Just wild; will probably settle down after earnings season.

Cheers, Tuck

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To: tuck who wrote (1246)10/24/2002 12:34:04 PM
From: tuck
   of 1784
 
BDAL going well today; thinking that ABI's report may be helping, as mass spec sales there are still brisk (see the breakout by product at bottom of financial figures in previous post).

Cheers, Tuck

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To: tuck who started this subject10/24/2002 4:29:30 PM
From: tuck
   of 1784
 
AGNT, still at half cash, seems to be turning around a little. Strength mentioned in consumables:

>>FOSTER CITY, Calif., Oct. 24 /PRNewswire-FirstCall/ -- Argonaut Technologies, Inc. (Nasdaq: AGNT - News) today reported financial results for the third quarter ended September 30, 2002.
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For the third quarter of 2002, net sales were $7.3 million compared to $3.6 million for the third quarter of 2001. These results were somewhat better than the guidance given on the Company's second quarter 2002 conference call. For the third quarter of 2002, before previously announced restructuring charges, the net loss was about $2.8 million, or $(0.14) per share, compared to a net loss of $3.7 million, or $(0.19) per share, for the third quarter of 2001. The net loss for the third quarter of 2002, including restructuring charges of approximately $2.6 million, was $5.3 million, or $(0.27) per share.

"We are not standing still waiting for the capital spending environment to improve at pharmaceutical companies," stated Lissa A. Goldenstein, Argonaut's president and chief executive officer. "In the third quarter of 2002, we made progress on several important strategic initiatives. We added GlaxoSmithKline as a new Technology Access Program partner, introduced a new benchtop process analysis instrument, the Advantage Series(TM) 2050 and improved our intellectual property portfolio with an expansion of our license with Symyx Corporation. Importantly, we remain focused on achieving cash flow break-even as our primary financial goal and have continued to streamline our operations by doubling our revenue base and only increasing operating costs by 4%."

Ms. Goldenstein continued, "We experienced solid demand in the third quarter for chemistry consumables and we believe our consumables provide leading-edge, cost effective solutions for chemical synthesis and purification. Capital equipment expenditures continue to be lackluster and as part of our announced restructuring we will be focusing our sales and marketing efforts on products with the largest market and profitability opportunities."

In August 2002, the Company announced a second cost savings initiative that should result in expense reductions of approximately $3 million on an annualized basis. During the first part of 2002, Argonaut had already instituted cost savings initiatives that had cut expenses by about $5 million on an annualized basis relative to the prior year.

As of September 30, 2002, Argonaut had approximately $40.8 million in cash, cash equivalents, short-term investments and restricted cash.

For the nine months ended September 30, 2002, Argonaut reported net sales of $18.8 million compared to $11.4 million for the nine months ended September 30, 2001. The net loss for the nine months of 2002, including the restructuring charge was $11.6 million, or $(0.59) per share compared to a net loss of $10.9 million, or $(0.57) per share, for the nine months of 2001.

Business Outlook

"We expect net sales for the fourth quarter of 2002 to be between $7.4 million and $7.8 million, bringing estimated net sales for the full year 2002 to about $26.5 million," commented Ms. Goldenstein.

"Gross margin for the fourth quarter of 2002 is expected to be higher than the third quarter, but similar to the gross margin range, excluding special charges, experienced during the nine months of 2002, or between 45% and 47%. We are carefully managing expenses and estimate total operating expenses for the fourth quarter of 2002 to be between $6.0 million and $6.2 million and would anticipate a net loss for the fourth quarter to be less than the third quarter of 2002, and between $2.6 and 2.8 million. We expect a full year 2002 net loss of between $11.7 million and $11.9 million, not including the restructuring charges."

Conference Call Details

Argonaut Technologies will discuss these financial results and its outlook during a conference call scheduled for today, Thursday, October 24, 2002 at 2:00 p.m. Pacific / 5:00 p.m. Eastern. Interested parties may participate in the conference call by dialing 888-277-8128 (international callers dial: 973-582-2729). The call will also be available via live audio broadcast over the Internet at www.argotech.com. For those unable to participate on the live call, a 24-hour replay will be available for seven days after the call at www.argotech.com, or by calling 877-519-4471 (international callers dial: 973-341-3080) and giving the following pass code: 3531697.

About Argonaut Technologies, Inc.

Argonaut Technologies, Inc. is a leading provider of instruments, chemistry consumables, software, and services designed to accelerate and improve chemical development processes. The Company's products are designed to enable chemists to increase productivity, reduce operating costs through automation and process simplification, achieve faster time-to-market, and explore the increasing number of targets and chemical compounds available for drug and chemical development. Argonaut's products are used in more than 1,000 pharmaceutical, chemical, and academic laboratories worldwide. For more information, visit www.argotech.com.

Forward Looking Statements

Statements included in this press release that are not historical in nature may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of such forward-looking statements include, without limitation, statements regarding the outlook for net sales, gross margins, operating expenses and net loss for the 2002 fourth quarter and 2002 fiscal year, the future demand for instruments and consumables, anticipated growth in the market for our products, anticipated revenue from contract R&D programs, and the benefits from cost savings initiatives. Any such forward-looking statements reflect the judgment of our management as of the date of this release, and involve risks and uncertainties, including the risk that increasing revenues and decreasing expenses may not be realized as quickly as anticipated or at all and the risk that the current slow period in our industry continues for longer than we expect or deteriorates further, with a reduction in demand for instruments and consumables, each of which could significantly impact our business and results of operations. These and other risk factors are discussed in Argonaut's Annual Report on Form 10-K for the year ended December 31, 2001 filed on April 1, 2002, in its most recent quarterly report on Form 10-Q for the quarter ended June 30, 2002 filed on August 13, 2002, and its other reports with the Securities and Exchange Commission. Argonaut disclaims any intent or obligation to update these forward-looking statements. The Company claims the protection of the Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

ARGONAUT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001

Net sales $7,282 $3,583 $18,762 $11,445
Costs and Expenses:
Costs of sales 4,021 1,964 10,141 6,128
Costs of sales - special
charges 765 -- 765 --
Research and development 1,468 1,530 4,307 5,035
Selling, general and
administrative 4,476 4,178 13,190 12,552
Amortization of goodwill
and other purchased
intangible assets 209 216 524 504
Acquired in-process research
and development -- -- -- 270
Restructuring charges 1,802 -- 1,802 --
Total costs and expenses 12,741 7,888 30,729 24,489
Loss from operations (5,459) (4,305) (11,967) (13,044)
Other income (expenses):
Interest and other income 294 593 977 2,347
Interest and other expense (173) (10) (422) (211)
Net loss before provision
for income taxes (5,338) (3,722) (11,412) (10,908)
Provision for income taxes -- -- (200) --
Net loss $(5,338) $(3,722) $(11,612)
$(10,908)
Net loss per common share,
basic and diluted $(0.27) $(0.19) $(0.59) $(0.57)
Weighted-average shares
used in computing net
loss per common share,
basic and diluted 19,973 19,199 19,839 18,975

ARGONAUT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, Dec. 31,
2002 2001
(Unaudited) (A)
ASSETS
Current assets:
Cash and cash equivalents $10,622 $17,996
Short-term investments 18,198 39,636
Accounts receivable, net 5,254 4,187
Inventories 6,783 4,096
Prepaid expenses & other current assets 987 784
Notes receivable 177 --
Total current assets 42,021 66,699

Restricted cash 11,949 --
Property and equipment, net 5,255 3,233
Goodwill 9,387 763
Other intangible assets, net 6,649 1,450
Other assets 139 26
$75,400 $72,171

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,620 $1,681
Accrued compensation 848 1,421
Other accrued liabilities 2,629 1,679
Deferred revenue 3,012 3,439
Current portion of notes payable and
capital lease obligations 274 187
Total current liabilities 8,383 8,407

Long term debt 12,103 --

Stockholders' equity 54,914 63,764
$75,400 $72,171

(A) The condensed consolidated balance sheet at December 31, 2001 has been
derived from the audited consolidated financial statements at that
date but does not include all of the information and footnotes
required by accounting principles generally accepted in the
United States for complete financial statements.<<

Cheers, Tuck

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