Cerus Corporation Announces Third Quarter Financial Results

http://www.businesswire.com/news/home/20091029006287/en

CONCORD, Calif.--(Business Wire)--
Cerus Corporation (NASDAQ:CERS) today announced financial results for the third
quarter ended September 30, 2009.

Total revenue for the third quarter of 2009 was $4.8 million, up from $3.9
million in revenue recognized during the third quarter of 2008. Total revenue
for the first nine months of 2009 was $12.5 million, down from $12.9 million
recognized during the first nine months of 2008, when $1.5 million of previously
deferred product revenue was recognized.

Product revenue for the INTERCEPT Blood System was $4.6 million during the third
quarter of 2009, representing an increase of $0.7 million, or 18%, from the
second quarter of 2009. Third quarter 2009 product revenue was up $1.5 million
from $3.1 million recognized during the third quarter of 2008. Product revenue
for the first nine months of 2009 was $11.5 million, down from $12.0 million
during the first nine months of 2008, when the $1.5 million of previously
deferred product revenue was recognized.

Gross profit from product revenue for the third quarter of 2009 was $0.3
million, down from $1.2 million for the same period in 2008. Cost of product
revenue during the third quarter of 2009 included period costs of $1.0 million,
representing idle manufacturing facility costs attributable to the Company`s
decision to reduce inventory levels.

Total operating expenses for the third quarter of 2009 were $6.6 million, down
from $9.6 million for the same period in 2008. The decrease in operating
expenses was due to a reduction in research and development expenses and
selling, general and administrative expenses associated with the Company`s
restructuring plans, which were previously announced in March 2009. Operating
expenses for the first nine months of 2009 were $22.6 million, down from $29.5
million during the same period in 2008. The reduction in operating expenses was
directly attributable to the savings realized from the Company`s restructuring
plan, which allowed the Company to focus its resources on commercializing the
INTERCEPT platelet and plasma systems in Europe, reduce operating expenses, and
tightly manage working capital.

Net loss for the third quarter of 2009 was $5.6 million, or $0.16 per share,
compared to a net loss of $7.8 million, or $0.24 per share, for the third
quarter of 2008. Net loss for the first nine months of 2009 was $19.2 million,
or $0.58 per share, compared to a net loss of $22.7 million, or $0.70 per share
for the same period in 2008.

At September 30, 2009, the Company had cash, cash equivalents and short-term
investments of $22.7 million, up from $22.6 million at December 31, 2008. Cash,
cash equivalents and short-term investments at September 30, 2009 reflects the
$12.2 million in net proceeds generated from the Company`s August 2009
registered direct public offering. Net cash used for the Company`s operations
during the third quarter of 2009 was $2.4 million, which was in line with the
net cash used during the second quarter of 2009 and down by $4.8 million from
the first quarter of 2009. Close control of working capital, including
management of inventory levels and cash collections, contributed to the
relatively low net cash used in operating activities.

"We are pleased with the results of our concerted focus on growing sales and
minimizing cash consumption. Third quarter product revenue grew by 18% over the
prior quarter and was driven largely by recurring sales of INTERCEPT disposable
kits," said Claes Glassell, President and Chief Executive Officer of Cerus
Corporation. "The proceeds from the recently completed registered direct
offering, combined with our focused approach and financial discipline, have the
Company well positioned to achieve profitability with current capital
resources."

RECENT HIGHLIGHTS:

* Raised $12.2 million of net proceeds in a registered direct public offering,
providing the Company with a pathway towards profitability with current capital
resources;
* Achieved 18% sequential growth in product revenue during the third quarter of
2009;
* Maintained low net cash consumption, down by more than 65% from the first
quarter of 2009;
* Converted the Belgian Red Cross, Service Francophone du Sangto routine use of
the INTERCEPT Blood System for platelets;
* Implemented INTERCEPT in two additional centers in France.

QUARTERLY CONFERENCE CALL

The Company will host a conference call and webcast at 4:15 p.m. Eastern time
today to discuss its financial results and provide a general business overview.
To access the live webcast, please visit the Investor Relations page of the
Cerus web site at http://investor.cerus.com. Alternatively, you may access the
live conference call by dialing 877-407-0782 (U.S.) or 201-689-8567
(international).

A replay will be available on the Cerus web site, or by dialing 877-660-6853
(U.S.) or 201-612-7415 (international) and entering account number 286 and
conference ID number 300292. The replay will be available approximately two
hours after the call through November 6, 2009.

ABOUT CERUS

Cerus Corporation is a biomedical products company focused on commercializing
the INTERCEPT Blood System to enhance blood safety. The INTERCEPT Blood System
is designed to inactivate blood-borne pathogens in donated blood components
intended for transfusion. Cerus currently markets the INTERCEPT Blood System for
both platelets and plasma in Europe, Russia, the Middle East and selected
countries in other regions around the world. The INTERCEPT red blood cell system
is currently in clinical development. See http://www.cerus.com for more
information.

INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus Corporation.

Forward-Looking Statements

Except for the historical statements contained herein, this press release
contains forward-looking statements concerning the Company`s prospects and
results, including the sufficiency of the Company`s cash resources, potential
profitability, the Company`s expectations with respect to its continuing sales
and marketing efforts and market acceptance of its INTERCEPT Blood System
products. Because the Company`s forward-looking statements are subject to risks
and uncertainties, there are important factors that could cause actual results
to differ materially from those in the forward-looking statements. These factors
include, without limitation, risks and uncertainties involving market acceptance
of the INTERCEPT Blood System and the Company`s need for additional capital, as
well as the other risks and uncertainties disclosed from time to time in reports
filed by the Company with the SEC, including the Company`s quarterly report on
Form 10-Q for the fiscal quarter ended June 30, 2009, filed with the SEC on
August 10, 2009. The Company disclaims any obligation or undertaking to update
or revise any forward-looking statements contained in this press release.

CERUS CORPORATION

CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION

(In thousands except per share information)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenue
Product revenue $ 4,567 $ 3,095 $ 11,523 $ 11,977
Government grant and cooperative agreements 247 787 985 904
Total Revenue 4,814 3,882 12,508 12,881

Cost of product revenue 4,242 1,913 8,856 6,704
Gross profit 572 1,969 3,652 6,177

Operating expenses
Research and development 1,230 2,483 4,867 7,937
Selling, general and administrative 5,340 7,067 16,850 21,607
Restructuring 15 -- 856 --
Total operating expenses 6,585 9,550 22,573 29,544
Loss from operations (6,013 ) (7,581 ) (18,921 ) (23,367 )
Interest and other income (expense), net 376 (199 ) (325 ) 700

Net loss $ (5,637 ) $ (7,780 ) $ (19,246 ) $ (22,667 )

Net loss per share - basic and diluted $ (0.16 ) $ (0.24 ) $ (0.58 ) $ (0.70 )

Weighted average common shares outstanding used for basic and diluted loss per share
Basic 35,000 32,530 33,420 32,400
Diluted 35,000 32,530 33,420 32,400

Cerus Corporation

Condensed Consolidated Unaudited Balance Sheets

(In thousands)

September 30, December 31,
2009 2008

Cash, cash equivalents, and short-term investments $ 22,660 $ 22,578
Accounts receivable and other current assets 7,301 8,356
Inventories 8,354 11,109
Property and equipment, net 1,352 1,844
Other assets 3,360 3,452
Total Assets $ 43,027 $ 47,339

Accounts payable and accrued liabilities $ 13,745 $ 12,453
Accrued restructuring 209 --
Warrant liability 2,800 --
Deferred revenue 303 445
Other long-term liabilities 148 163
Total liabilities 17,205 13,061
Stockholders` equity 25,822 34,278
Total liabilities and stockholders` equity $ 43,027 $ 47,339

Cerus Corporation
Kevin D. Green, 925-288-6138
Vice President, Finance & CAO
or
Porter Novelli Life Sciences
Jason Spark, 619-849-6005

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