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  • International Stem Cell Corp. (ISCO) Reports Strong Financial Results And Conference Call 0 comments
    Nov 13, 2013 10:29 AM | about stocks: ISCO

    International Stem Cell Corp., a California-based biotechnology company developing novel stem cell-based therapies and biomedical products, today announced financial results for the three and nine months ended September 30, 2013, and conference call details.

    Q3 2013 Highlights:

    •Recorded revenues of $1.67 million, a 41% increase over the corresponding period of 2012. Lifeline Skin Care sales up 54% and Lifeline Cell Technology sales up 30%. Gross margin stable at 73%.

    •Net cash used in operating cash flows (which exclude capital expenditures and patent costs), reduced to approximately $0.47 million per month compared to $0.57 million per month the corresponding period of 2012.

    •Entered into a clinical research agreement with Duke University for the evaluation of ISCO's stem cell- derived neural stem cells for the treatment of Parkinson's disease. Prof. Mark Stacy, M.D., Vice Dean for Clinical Research, Neurology at Duke University School of Medicine and an internationally recognized leader in the field of Movement Disorders, will be the principal investigator.

    •Convened a key opinion leader meeting bringing together leading experts from throughout North America in the field of cell therapy and movement disorders to obtain feedback and guidance for the IND submission in 2014 for our stem cell-derived neural stem cells for the treatment of Parkinson's disease.

    •Presented the results of the first primate study, carried out in collaboration with the Sanford Burnham Institute of Regenerative Medical, examining the benefits of implanting neural stem cells into primates with chemically-induced parkinsonian symptoms, at the American Neurological Association 2013 Annual Meeting.

    •Obtained gross proceeds of $3.00 million through a public offering, to be used to fund R&D programs.

    For the three months ended September 30, 2013:

    •Revenue for the three months ended September 30, 2013 was $1.67 million, an increase of approximately 41% compared to $1.19 million for the corresponding period in 2012. Sales for Lifeline Skin Care (NYSEARCA:LSC) and Lifeline Cell Technology (LCT) increased by 54% and 30%, and accounted for 49% and 51% of total revenue, respectively. Cost of sales was $0.45 million, or 27% of revenue, compared to $0.32 million or 27% of revenue in the corresponding period a year ago.

    •General and administrative expenses for the three months ended September 30, 2013 declined 13% to $1.36 million, driven primarily by lower personnel-related expenses resulting from lower headcount, lower stock-based compensation expenses, and lower professional and corporate support expenses.

    •Marketing expenses increased 32% to $0.63 million compared to the corresponding period of 2012, reflecting higher spending on advertising, trade shows and promotions.

    •Net cash used in operating cash flows (which exclude capital expenditures and patent costs) was reduced to approximately $0.47 million per month compared to $0.57 million per month the corresponding period of 2012.

    For the nine months ended September 30, 2013:

    •Revenue for the nine months ended September 30, 2013 and 2012 was $4.41 million and $3.32 million, respectively. LSC contributed $2.17 million, up 36% from the same period in 2012 and LCT contributed $2.24 million, up 29% from the corresponding period in 2012.

    •Cost of sales for the nine months ended September 30, 2013 was $1.11 million or 25% of revenue, compared to $0.96 million or 29% of revenue for the corresponding period in 2012 as a result of continued improvements in efficiency and effectiveness in manufacturing and the management of supply chain in Lifeline Skin Care as well as a shift in sales mix from lower to higher margin products in Lifeline Cell Technology.

    •As of September 30, 2013, and December 31, 2012, cash and cash equivalents totaled $1.79 million and $0.65 million, respectively. At September 30, 2013, the company had a working capital deficit of $2.38 million, compared to working capital of $0.40 million as of December 31, 2012. The working capital deficit is due to the fair value of warrant liability of $4.39 million recognized during the third quarter resulting from a financing transaction completed in July 2013.

    •Cash outflows from operations for the first nine months of 2013 were $4.23 million, down from $5.12 million in the corresponding period in 2012. Net cash provided by financing activities was $5.89 million for the nine months ended September 30, 2013, compared to $6.79 million in the corresponding period in 2012

    ISCO's CEO and Co-chairman, Dr. Andrey Semechkin, said of the results: "We're extremely pleased to report outstanding revenues and growth for the quarter, and having achieved revenues in the three quarters thus far almost equal to those reported for the entire year of 2012. The reduction of cash used in operations is a clear demonstration of the success of our commercial businesses in order to support our core therapeutic activities. We have significant scientific milestones in the next twelve months and our clinical collaboration with Duke University provides us with the complementary skills and expertise to achieve these goals."

    Conference Call and Webcast Details:

    Date: Wednesday, November 13, 2013

    Time: 11:00 a.m. Eastern Time

    Conference Line (U.S.): 1-877-941-1428 International

    Dial-In: 1-480-629-9665

    Conference ID: 4648561

    Webcast: webcast.mzvaluemonitor.com/Cover.aspx?PlatformId=1293

    Please dial in at least 10-minutes before the call to ensure timely participation.

    A playback of the call will be available until 11:59 pm ET on November 27, 2013. To listen, call 1-877-870-5176 within the United States or 1-858-384-5517 when calling internationally. Please use the replay pin 4648561.

    For additional information, visit InternationalStemCell.com

    QualityStocks provides investor relations services to publicly traded companies in exchange for compensation. This article may be part of our efforts to widen a client's exposure. To read our full disclaimer, visit http://disclaimer.qualitystocks.net

    Stocks: ISCO
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