TOKYO--(BUSINESS WIRE)--Investment Bridge, one of Japan's leading IR services companies, has released a "Bridge Report" on CellSeed Inc. (JASDAQ Growth: 7776) reviewing fiscal year December 2010 earnings results and the company's projections for fiscal year December 2011.
Report Highlights
- CellSeed recorded a 23.8% year-over-year decline in sales and a recurring loss of JPY1.0 billion, which compares with a loss of JPY0.78 billion during the previous term, due to sales promotional expenses for temperature responsive cell cultureware, and anticipatory investment costs for corneal regeneration epithelial cell sheets.
- CellSeed expects to see a recurring loss of JPY1.46 billion as a result of a peak in expenses during fiscal year December 2011. However from fiscal year December 2012 earnings are expected to improve on the back of an expansion in compassionate uses of and the start of commercial applications for corneal regeneration epithelial cell sheets.
- CellSeed boasted of JPY1.81 billion in cash on hand, including short term government bonds used as part of the Company's cash management program, at the end of the current term. Therefore the Company has adequate funds for its operations despite the loss expected to be incurred in the fiscal year December 2011.
CellSeed Inc. is the leading company in regenerative medicine that employs leading edge technology of "cell sheet engineering" as its technological base to bring about fundamental changes in conventional medical treatments.
| FY12/07 | FY12/08 | FY12/09 | FY12/10 | YoY | FY12/11 Est. | YoY | ||||||||
| Sales | 40 | 61 | 87 | 66 | -23.8% | 175 | 161.3% | |||||||
| Operating Income | -809 | -778 | -785 | -1,204 | -- | -1,531 | -- | |||||||
| Recurring Income | -614 | -644 | -788 | -1,002 | -- | -1,460 | -- | |||||||
| Net Income | -616 | -650 | -790 | -1,009 | -- | -1,464 | -- | |||||||
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(Units: Million Yen) |
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Front loading of sales resulting from aggressive sales and marketing activities conducted during the previous term, which was Cellseed's first year of commercial operations, and weaker sales in Europe resulting from the stronger yen contributed the 23.8% year-over-year decline in sales to JPY66 million in FY12/10. At the same time increased marketing and sales promotional costs for temperature responsive cell cultureware, manufacturing consignment support fees paid to Lyon National Hospital, and anticipatory investments relating to corneal regenerative cell sheet applications led to an expansion in operating losses to JPY1.2 billion.
At the end of the current term, total assets rose by JPY0.90 billion from the end of the previous term to JPY2.09 billion. The funds raised during the initial public offering in March 2010 allowed cash on hand (cash and equivalents, and short term government bonds) to rise to JPY1.81 billion. Therefore the Company has adequate funds for its operations despite the loss expected to be incurred in the fiscal year December 2011.
CellSeed expects the peak in expenses to be seen in fiscal year December 2011. Therefore despite the rise in sales, losses at the operating and other levels are also expected to expand. However the full scale commercial launch of corneal regeneration epithelial cell sheets and alliances on other products in the development pipeline are expected to begin contributing and allow earnings to improve from fiscal year December 2012 forward.
To view the full report, please go to the website at the URL listed
below.
http://www.bridge-salon.jp/report_bridge/archives/eng/7776/20110328.html
About Bridge Report:
Bridge Report is produced by Investment
Bridge Co., Ltd. and provides accurate and objective information
about the earnings, business strategies, and other information of
publicly traded Japanese companies. Investment Bridge was founded in
August 2000 and is one of Japan's leading independent IR support
services companies. Investment Bridge specializes in providing various
solutions to Japan's publicly traded companies with the goal of
expanding our clients' shareholder base and liquidity through increased
recognition and understanding of companies.