SEQUENOM INC

CIK:0001076481|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Diagnostic services, net	$ 26,512	$ 30,891	$ 51,922	$ 66,595
License	2,775	1,875	4,935	3,977
Total revenues	29,287	32,766	56,857	70,572
Costs and expenses:
Cost of revenues	13,754	16,595	30,558	35,902
Selling and marketing	8,424	8,359	16,934	16,845
Research and development	4,066	5,652	8,967	11,520
General and administrative	7,308	8,511	15,162	17,186
Restructuring costs	191	656	1,050	656
Total costs and expenses	33,743	39,773	72,671	82,109
Gain on pooled patents agreement	0	0	0	21,000
Operating (loss) income	(4,456)	(7,007)	(15,814)	9,463
Interest expense	(1,990)	(2,000)	(4,047)	(4,013)
Interest income	38	16	76	34
Other income (expense), net	158	26	181	(88)
(Loss) income before income taxes	(6,250)	(8,965)	(19,604)	5,396
Income tax expense	(57)	(48)	(152)	(124)
Net (loss) income	$ (6,307)	$ (9,013)	$ (19,756)	$ 5,272
Net (loss) income per common share, basic
Net (loss) income per basic share (in dollars per share)	$ (0.05)	$ (0.08)	$ (0.17)	$ 0.04
Weighted average number of shares outstanding, basic	119,272	118,120	119,065	117,930
Net (loss) income per common share, diluted
Net (loss) income per diluted share (in dollars per share)	$ (0.05)	$ (0.08)	$ (0.17)	$ 0.04
Weighted average number of shares outstanding, diluted	119,272	118,120	119,065	118,684
Statements of Comprehensive (Loss) Income
Net (loss) income	$ (6,307)	$ (9,013)	$ (19,756)	$ 5,272
Other comprehensive (loss) income:
Unrealized net (loss) gain on available-for-sale securities, net of taxes	(7)	18	(4)	57
Foreign currency translation adjustment	0	19	0	47
Total other comprehensive (loss) income	(7)	37	(4)	104
Comprehensive (loss) income	$ (6,314)	$ (8,976)	$ (19,760)	$ 5,376

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net (loss) income	$ (19,756)	$ 5,272
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Share-based compensation	3,473	3,407
Depreciation and amortization	3,434	5,716
Other non-cash items	564	962
Gain on pooled patents agreement	0	(21,000)
Changes in operating assets and liabilities:
Accounts receivable	(863)	3,338
Inventories	(1,396)	2,996
Prepaid expenses and other assets	(196)	(475)
Accounts payable and accrued expenses	(519)	(7,047)
Other liabilities	115	(1,515)
Net cash used in operating activities	(15,144)	(8,346)
Investing activities
Purchases of property, equipment and leasehold improvements	(695)	(1,626)
Purchases of marketable securities	(9,967)	(14,996)
Maturities and sales of marketable securities	35,196	15,000
Proceeds from pooled patents agreement	0	6,000
Proceeds from Sale of Property, Plant, and Equipment	833	0
Increase (Decrease) in Restricted Cash	233	500
Net cash provided by investing activities	25,600	4,878
Financing activities
Payments on term loan and capital lease obligations	(272)	(3,934)
Proceeds from common stock issued under employee stock plans	203	282
Net cash used in financing activities	(69)	(3,652)
Effect of exchange rate changes on cash and cash equivalents	0	(37)
Net increase (decrease) in cash and cash equivalents	10,387	(7,157)
Cash and cash equivalents at beginning of period	50,344	63,309
Cash and cash equivalents at end of period	$ 60,731	$ 56,152

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 60,731	$ 50,344
Marketable securities, available-for-sale	597	25,826
Accounts receivable, net	7,284	6,421
Inventories	4,276	2,417
Prepaid expenses and other current assets	2,475	2,943
Total current assets	75,363	87,951
Property, equipment and leasehold improvements, net	4,833	10,059
Goodwill	10,007	10,007
Intangible assets, net	6,507	8,087
Other assets	619	624
Total assets	97,329	116,728
Liabilities and stockholders’ deficit
Accounts payable	7,750	5,234
Accrued expenses	14,309	15,368
Long-term debt and obligations, current portion	0	316
Other current liabilities	427	589
Total current liabilities	22,486	21,507
Long-term debt and obligations, less current portion	0	5,294
Convertible senior notes, net	127,803	127,079
Other long-term liabilities	1,523	1,246
Total liabilities	151,812	155,126
Commitments and contingencies
Stockholders’ deficit:
Convertible preferred stock, par value $0.001; 5,000 shares authorized, no shares issued or outstanding at June 30, 2016 and December 31, 2015	0	0
Common stock, par value $0.001; 185,000 shares authorized, 119,243 and 118,568 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	119	119
Additional paid-in capital	994,674	990,999
Accumulated other comprehensive income	108	112
Accumulated deficit	(1,049,384)	(1,029,628)
Total stockholders’ deficit	(54,483)	(38,398)
Total liabilities and stockholders’ deficit	$ 97,329	$ 116,728