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Cellular Dynamics International Reports Second Quarter 2013 Financial Results

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MADISON, Wis., Aug. 29, 2013 (GLOBE NEWSWIRE) — Cellular Dynamics International, Inc. (Nasdaq:ICEL), a leading developer and manufacturer of fully functioning human cells in industrial quantities to precise specifications, today reported financial results for the second quarter ended June 30, 2013.

“We are proud of the strong revenue growth demonstrated in this, our first quarterly earnings announcement as a public company,” said

Robert J. Palay, Chairman and CEO of Cellular Dynamics. “We believe the proceeds from our recent initial public offering provide us the financial resources to continue building our suite of iCell® and MyCell® Products, while enabling ongoing commercial progress in our three target markets: in vitro drug discovery and toxicity testing, stem cell banking and cellular therapeutics.”

Second Quarter 2013 Selected Financial Results

Revenue. Total revenues for the second quarter of 2013 were $2.8 million compared to $1.3 million for the second quarter of 2012, an increase of 123%. For the trailing twelve months ended June 30, 2013, total revenues were $9.4 million, compared to $3.8 million for the trailing twelve months ended June 30, 2012, an increase of 147%. Growth in total revenue is primarily attributable to growth in unit sales of the Company’s iCell products. In addition, the Company recorded its first product sales revenue of $170,000 from its MyCell Products line.

Costs and expenses. Total operating expenses (excluding cost of product sales) were $7.2 million for the second quarter of 2013 compared to $7.0 million for the second quarter of 2012, an increase of less than 3%. Also for the second quarter of 2013, cost of product sales as a percentage of product sales revenue was 34%, for a gross margin from product sales of 66%. This compares favorably to the second quarter of 2012 gross margin from product sales of 64%.

Net loss. For the second quarter of 2013, net loss was $5.1 million, or $2.92 per share, compared with a net loss of $6.2 million, or $3.58 per share, for the second quarter of 2012.

Cash and cash equivalents. On June 30, 2013, cash and cash equivalents totaled $33.5 million. On June 28, 2013, the Company borrowed $12.0 millionunder a credit agreement with Sixth Floor Investors LP and other lenders. In connection with the borrowing, $222,000 of debt issuance costs were incurred. Subsequent to the close of the quarter on July 30, 2013, CDI closed its initial public offering, receiving net proceeds of approximately $41.0 million, leaving a balance of cash and cash equivalents in excess of $74 million.

About Cellular Dynamics International, Inc.

Cellular Dynamics International, Inc. (CDI) is a leading developer of induced pluripotent stem cell technologies for in vitro drug development, stem cell banking and in vivo cellular therapeutic research. CDI harnesses its unique manufacturing technology to produce differentiated tissue cells in industrial quality, quantity and purity from any individual’s induced pluripotent stem cell line created from a standard blood draw. CDI was founded in 2004 by Dr.

James Thomson, a pioneer in human pluripotent stem cell research at the University of Wisconsin-Madison. CDI’s facilities are located in Madison, Wisconsin, with a second facility in Novato, California. See

Forward-looking Statements

To the extent that statements contained in this press release are not descriptions of historical facts regarding Cellular Dynamics International, Inc., including statements regarding the adequacy of the financial resources available to pursue our strategy, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements in this release involve substantial risks and uncertainties that could cause our product development efforts, actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Cellular Dynamics undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see Cellular Dynamic’s Prospectus filed with the Securities and Exchange Commission on July 26, 2013.

Cellular Dynamics International, Inc.
Balance sheets
(dollars in thousands)  December 31,  June 30,
2012 2013
Current assets:
Cash and cash equivalents  $ 33,900  $ 33,539
Accounts receivable, net of allowances 2,658 2,153
Inventories 2,381 2,643
Prepaid expenses and other assets 662 2,288
Total current assets 39,601 40,623
Property and equipment, net 873 738
Goodwill 6,817 6,817
Intangible assets, net 4,195 4,178
Debt issuance costs, net 222
Other assets 10 10
Total $51,496 $52,588
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable $1,035 $1,685
Accrued liabilities 1,830 1,784
Deferred revenue 570 446
Current maturities of long-term debt 336 18
Total current liabilities 3,771 3,933
Long-term debt, less current portion 734 11,736
Warrants 261
Shareholders’ equity:
Series A Convertible preferred stock, $0.01 par value — authorized, 28,413,291 shares at December 31, 2012 and at June 30,2013 ; issued and outstanding, 2,914,187 shares at December 31, 2012 and at June 30, 2013 28,191 28,191
Series B Convertible preferred stock, $0.01 par value — authorized, 70,512,809 at December 31, 2012 and June 30, 2013; issued and outstanding, 7,232,092 at December 31, 2012 and June 30, 2013 91,413 91,413
Common stock, $0.0001 par value — authorized, 135,715,623 at December 31, 2012 and June 30, 2013; issued and outstanding, 1,733,651 shares at December 31, 2012 and 1,734,599 shares at June 30, 2013
Additional paid-in-capital 9,451 9,865
Accumulated deficit (82,064) (92,811)
Total shareholders’ equity 46,991 36,658
Total $51,496 $52,588
Cellular Dynamics International, Inc.
Statements of operations
Three months ended
June 30,
Six months ended
June 30,
(dollars in thousands, except per share data) 2012 2013 2012 2013
Product sales $1,174 $1,969 $1,817 $3,723
Collaborations, partnerships and other revenues 86 843 589 1,479
Total revenues 1,260 2,812 2,406 5,202
Costs and expenses:
Cost of product sales 418 676 561 1,253
Research and development 3,765 3,911 6,823 7,767
Sales and marketing 1,078 1,504 1,992 3,031
General and administrative 2,173 1,778 3,992 3,887
Total costs and expenses 7,434 7,869 13,368 15,938
Loss from operations (6,174) (5,057) (10,962) (10,736)
Other (expense) income:
Interest expense (9) (4) (19) (11)
Other income  1
Total other expense (9) (4) (18) (11)
Net loss ($6,183) ($5,061) ($10,980) ($10,747)
Net loss per share of common stock, basic and diluted ($3.58) ($2.92) ($6.38) ($6.20)
Shares used in computing net loss per share of common stock, basic and diluted 1,726,782 1,734,484 1,720,501 1,734,080

Source: Cellular Dynamics International, Inc.


  • Joleen Rau Senior Director, Marketing & Communications
    Cellular Dynamics International, Inc.
    (608) 310-5142

Investor Relations:


Source: Cellular Dynamics International, Inc.

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