DGAP-News: SYGNIS AG: SYGNIS reports financial results for

DGAP-News: SYGNIS AG / Key word(s): Final Results SYGNIS AG: SYGNIS reports financial results for a successful fiscal year 2013 31.03.2014 / 20:43 --------------------------------------------------------------------- Press Release SYGNIS reports financial results for a successful fiscal year 2013 - Successful restructuring and cost containment - Expenses (pro forma) decreased by 52%; Operating result (pro forma) improved by 55 % - Successful financing of new business model completed - First products launched based on QualiPhi(R) now renamed SensiPhi(R) in early 2014 Madrid, Spain and Heidelberg, Germany, March 31, 2014 - SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the fiscal year ending December 31, 2013. Due to the merger of SYGNIS with X-Pol Biotech (X-Pol) effective December 4, 2012, the results for fiscal year 2013 are not fully comparable to the financial results reported for the prior year. Following the reverse acquisition, the fiscal year 2013 includes the consolidated income and expenses of the new merged SYGNIS group, whereas the previous year records the total income and expenses of X-Pol for 2012 and those of the old SYGNIS only for the month of December 2012. Adjusted for this effect, i.e. assuming that the income and expenses of both parts of the business would have been fully taken into account already in fiscal year 2012, the pro forma comparison of periods shows that cost savings measures have led to a significant decrease in total expenses by 52% to EUR 4.8 million (pro forma FY 2012: EUR 9.8 million). The operating result (EBIT) improved by 55% to -EUR 4.3 million (pro forma FY 2012: -EUR 9.4 million). During 2013 SYGNIS was strongly focused on three main business areas. The most important part was to secure the financial resources required. This was followed by the development of the new business strategy, researching and developing of new tools for DNA amplification and sequencing and finally the complete integration of the two sites following the merger. In March 2013, the Company was granted a shareholder loan of EUR 0.7 million followed by a loan from a new international investor group in July 2013 of EUR 0.6 million which are due to expire at the end of 2015 and 2014 respectively. In December 2013, the Company successfully completed a rights offering and private placement and raised gross proceeds of EUR 3.1 million. With this additional cash the company believes it is fully financed until reaching break-even in 2015. In May 2013, SYGNIS signed a second license agreement for the distribution of a new amplification buffer with QIAGEN. From this agreement SYGNIS has received proceeds in the form of an upfront payment and expects royalties going forward. Resulting from a global exclusive license agreement signed in 2012, QIAGEN has launched the first two products of a series of kits based on SYGNIS' proprietary amplification technology QualiPhi(R), now renamed SensiPhi(R) at the beginning of 2014. The Company expects first sales revenues from to these products in the first half of 2014. Pilar de la Huerta, CEO / CFO, commented: "The fiscal year 2013 was initially marked by restructuring activities, ongoing cost containment and strong and finally successful efforts to finance the new business model of the company. Despite these limitations, which also are responsible for some delays and shortcomings in revenues, we finally concluded the year with significant success. With the launch of two DNA amplification kits by QIAGEN based on our proprietary technology SensiPhi(R), we achieved a major milestone and established our polymerase as the potential future gold standard for isothermal DNA amplification. We expect these two products to be the first in a series of innovative kits targeting sophisticated applications in DNA amplification. With our broad portfolio of proprietary technologies, we are best positioned to sign additional license agreements with market leading industry partners in the fields of Next Generation Sequencing, personalized medicine, molecular diagnostics and drug development." For the following explanations it must be noted that the 2012 reported figures only include SYGNIS AG expenses for the month of December. In the financial year 2013, the reported net loss for the period was EUR 3.2 million (2012: EUR 2.4 million). Revenues for the fiscal year 2013 amounted to EUR 0.5 million (2012: EUR 0.2 million), mainly derived from the completion of the second license agreement with QIAGEN, from the marketing of Caco-2 licensing rights in the U.S. and from services provided but were hit by a delay in major product launches as well as an expected further licensing deal. Total operating expenses have increased to EUR 4.8 million compared to the previous year (2012: EUR 2.6 million). The increase primarily resulted from higher research and development costs of EUR 2.2 million (2012: EUR 1.0 million) as well as increased administrative costs of EUR 1.8 million (2012: EUR 0.4 million). Total assets rose to EUR 11.3 million in 2013 compared to EUR 9.6 million in 2012, primarily due to the increase in cash and cash equivalents by EUR 1.7 million as well as deferred tax assets by EUR 1.0 million. Equity decreased slightly to EUR 6.0 million in 2013 compared to EUR 6.3 million in the previous year. Cash outflow from operating activities in 2013 was EUR 3.6 million (2012: EUR 1.3 million). This was especially due to the increased operating expenses for the period. Cash outflow from investing activities was EUR 0.1 million (2012: cash inflow of EUR 0.5 million). Cash flow from financing activities was EUR 5.5 million (2012: EUR 0.5 million), resulting from the inflow from the capital increase of EUR 2.8 million (EUR 3.1 million less charges related to the capital increase of EUR 0.3 million) and loans of EUR 2.7 million. The liquidity level of the Company as of 31 December 2013 has significantly improved and amounted to EUR 2.2 million compared to EUR 0.6 million (including securities) in previous year. Outlook Together with its licensee QIAGEN, SYGNIS will work on the development of additional innovative products for isothermal DNA amplification based on its proprietary polymerase SensiPhi(R) expected to be launched during 2014 to further expand the existing product portfolio commercialized by QIAGEN. Besides SensiPhi(R), SYGNIS owns an impressive portfolio of proprietary technologies in the field of Next Generation Sequencing including QualiPhi(R) mutants and PrimPol as well as DoubleSwitch, an innovative screening platform to be used in drug development. QualiPhi(R) mutants and PrimPol are technologies in late-stage development while DoubleSwitch is ready to commercialize. The Company aims to conclude up to three license agreements with industry partners for these products and technologies in 2014. Depending on the market launch of additional products based on SensiPhi(R) and on the success of commercialization activities around out-licensing of QualiPhi(R) mutants, PrimPol and Double Switch, SYGNIS forecasts revenues in 2014 within a range of EUR 2.0 to EUR 2.5 million. Expenditure for 2014 in the areas of Research & Development and Administration will remain on the level of 2013. The Company expects net loss to be significantly reduced in fiscal year 2014. Based on the financial resources that are currently available, SYGNIS expects the operating expenses to be covered until break even situation which is estimated to be achieved in 2015. <pre> [Numbers in EUR million] 2013 2012 2012 pro forma Revenues 0.5 0.5 0.2 Total Expenses 4.8 9.8 2.6 EBIT -4.3 -9.4 -2.4 Net results for the period -3.2 -1.4 -2.4 Liquidity at year-end 2.2 0.6 0.6 Equity (equity ratio in %) 6.0 6.3 6.3 (52.6) (65.6) (65.6) Long-term financial liabilities 2.8 1.1 1.1 Operating Cash Flow -3.6 -6.9 -1.3 </pre> For further information please contact: <pre> SYGNIS AG Pilar de la Huerta CEO/CFO Tel: +34 91 192 36 50 Email: pdelahuerta@sygnis.es </pre> About SYGNIS AG: www.sygnis.com After the merger in 2012 between X-Pol Biotech, specializing in DNA amplification and sequencing, and SYGNIS AG, listed in the German Stock Exchange (Prime Standard segment, Tick: LIO1; ISIN: DE000A1RFM03), SYGNIS' new mission is to develop and distribute technologies and products from X-Pol, which has a commercial product in the DNA amplification segment, SensiPhi(R) and is currently developing other products in the field of Next Generation Sequencing. ### Disclaimer This publication is intended for information only and constitutes neither an offer to sell nor an invitation to buy securities. Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of SYGNIS AG may deviate greatly from the established conclusions or implied predictions contained in such statements. SYGNIS does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason.### End of Corporate News --------------------------------------------------------------------- 31.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: SYGNIS AG Im Neuenheimer Feld 515 69120 Heidelberg Germany Phone: 06221 454-6 Fax: 06221 454-700 E-mail: contact@sygnis.de Internet: www.sygnis.de ISIN: DE000A1RFM03 WKN: A1RFM0 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 260812 31.03.2014