<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant To Section 13 or 15(d) of The Securities Exchange Act Of 1934
Date of Report (Date of earliest event reported) September 14, 1999
INVITROGEN CORPORATION
--------------------------------------------------
(Exact name of registrant as specified in charter)
DELAWARE 0-25317 33-0373077
- ---------------------------- ------------------------ -------------
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1600 FARADAY AVENUE, CARLSBAD, CA 92008
---------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (760) 603-7200
NOT APPLICABLE
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 2. Acquisition Or Disposition Of Assets
On August 17, 1999, Invitrogen Corporation ("Invitrogen") completed a
merger pursuant to which NOVEX, a California corporation ("NOVEX"), became a
wholly owned subsidiary of Invitrogen. NOVEX is involved in producing and
supplying protein and nucleic acid electrophoresis, detection and analysis
products used in molecular biology. Upon completion of the merger, each share of
NOVEX stock was converted into the right to receive a fraction of a share of
Invitrogen common stock equal to an exchange ratio of .23188 and each
outstanding option to purchase NOVEX common stock was converted into the right
to purchase a fraction of a share of Invitrogen common stock equal to the same
exchange ratio. The exchange ratio was calculated by dividing 3,000,000 by the
sum of (i) the total number of shares of NOVEX common stock outstanding
immediately prior to the effective time of the merger and (ii) the number of
shares of NOVEX common stock issuable upon exercise of all NOVEX stock options
outstanding on the day immediately preceding the effective time of the merger.
The exchange ratio was based on (i) the negotiated value of NOVEX, (ii) the
number of NOVEX shares and options outstanding, and (iii) the recent market
price of Invitrogen Common Stock. Invitrogen intends to continue NOVEX's
operations as part of Invitrogen's business segment. A total of 3,000,000 shares
of Invitrogen Common Stock are issuable to the shareholders and optionholders of
NOVEX as a result of the exchange of securities in the merger.
ITEM 7. Financial Statements and Exhibits
(a) Financial Statements of NOVEX. The audited financial
statements required to be filed are incorporated by
reference to Invitrogen Corporation's Registration
Statement on Form S-4 (Commission File No.
333-82593).
The unaudited interim financial statements required
to be filed are filed as an exhibit hereto and are
incorporated herein by reference.
(b) Pro forma financial information. The pro forma
financial statements required to be filed are filed
as an exhibit hereto and are incorporated herein by
reference.
(c) Exhibits.
EXHIBIT DESCRIPTION
------- -----------
2.1 Agreement and Plan of Reorganization
dated as of June 14, 1999 by and among
Invitrogen Corporation, Invo Merger
Corporation, and NOVEX. Schedules and
similar attachments to this Exhibit
have not been filed; upon request,
Invitrogen will furnish supplementally
to the Commission a copy of any
omitted schedule. Incorporated by
reference from Annex A to the
Registration Statement on Form S-4
(Commission File No. 333-82593).
23.1 Consent of Ernst & Young LLP,
Independent Auditors.
27.01 Financial Data Schedule
99.1 NOVEX audited (i) Consolidated Balance
Sheets as of March 31, 1999 and 1998;
(ii) Consolidated Statements of Income
for the years ended March 31, 1999,
1998 and 1997; (iii) Consolidated
Statements of Stockholders' Equity for
the years ended March 31, 1999, 1998
and 1997; (iv) Consolidated Statements
of Cash Flows for the years ended
March 31, 1999, 1998 and 1997; and
related Notes to Consolidated
Financial Statements. Incorporated by
reference to Invitrogen Corporation's
Registration Statement on Form S-4
(Commission File No. 333-82593).
1
<PAGE>
99.2 NOVEX unaudited (i) Consolidated
Balance Sheet as of June 30, 1999;
(ii) Consolidated Statements of
Income for the three months ended
June 30, 1999 and 1998; and (iii)
Consolidated Statements of Cash Flows
for the three months ended June 30,
1999 and 1998.
99.3 Invitrogen Corporation and NOVEX
Unaudited Pro Forma (i) Combined
Balance Sheet as of June 30, 1999;
(ii) Combined Statements of Income for
the six months ended June 30, 1999 and
1998 and for the years ended December
31, 1998, 1997 and 1996; and (iii)
related Notes to Combined Financial
Statements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: September 14, 1999 INVITROGEN CORPORATION
By: /s/ James R. Glynn
-----------------------
James R. Glynn
Chief Financial Officer
2
<PAGE>
INDEX OF EXHIBITS
EXHIBIT DESCRIPTION
------- -----------
2.1 Agreement and Plan of Reorganization
dated as of June 14, 1999 by and among
Invitrogen Corporation, Invo Merger
Corporation, and NOVEX. Schedules and
similar attachments to this Exhibit
have not been filed; upon request,
Invitrogen will furnish supplementally
to the Commission a copy of any
omitted schedule. Incorporated by
reference from Annex A to the
Registration Statement on Form S-4
(Commission File No. 333-82593).
23.1 Consent of Ernst & Young LLP,
Independent Auditors.
27.01 Financial Data Schedule
99.1 NOVEX audited (i) Consolidated Balance
Sheets as of March 31, 1999 and 1998;
(ii) Consolidated Statements of Income
for the years ended March 31, 1999,
1998 and 1997; (iii) Consolidated
Statements of Stockholders' Equity for
the years ended March 31, 1999, 1998
and 1997; (iv) Consolidated Statements
of Cash Flows for the years ended
March 31, 1999, 1998 and 1997; and
related Notes to Consolidated
Financial Statements. Incorporated by
reference to Invitrogen Corporation's
Registration Statement on Form S-4
(Commission File No.
333-82593).
99.2 NOVEX unaudited (i) Consolidated
Balance Sheet as of June 30, 1999;
(ii) Consolidated Statements of
Income for the three months ended
June 30, 1999 and 1998; and (iii)
Consolidated Statements of Cash Flows
for the three months ended June 30,
1999 and 1998.
99.3 Invitrogen Corporation and NOVEX
Unaudited Pro Forma (i) Combined
Balance Sheet as of June 30, 1999;
(ii) Combined Statements of Income for
the six months ended June 30, 1999 and
1998 and for the years ended December
31, 1998, 1997 and 1996; and (iii)
related Notes to Combined Financial
Statements.
3
<PAGE>
EXHIBIT 23.1
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Form 8-K/A to be
filed on September 14, 1999 of Invitrogen Corporation of our report dated May
28, 1999, except for the third paragraph of Note 11, as to which the date is
August 17, 1999, with respect to the consolidated financial statements of
Novex, included in the Registration Statement (Form S-4, No. 333-82593) and
Prospectus of Invitrogen Corporation to be filed with the Securities and
Exchange Commission.
ERNST & YOUNG LLP
San Diego, California
September 13, 1999
<PAGE>
EXHIBIT 99.2
NOVEX
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
<TABLE>
<CAPTION>
JUNE 30, 1999
-------------
(UNAUDITED)
<S> <C>
ASSETS
Current Assets:
Cash and cash equivalents ................................... $ 111
Accounts and notes receivable ............................... 3,481
Inventories ................................................. 2,845
Deferred income taxes ....................................... 201
Prepaid expenses and other current assets ................... 167
--------
Total current assets .................................... 6,805
Property and equipment, net ..................................... 2,643
Intangible assets, net .......................................... 436
Other assets .................................................... 186
--------
Total Assets .................................................... $ 10,070
--------
--------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable to bank ........................................ $ 570
Current portion of long-term debt............................ 1,031
Accounts payable ............................................ 1,334
Accrued expenses ............................................ 1,076
Income taxes payable ........................................ 355
--------
Total current liabilities ............................... 4,366
--------
Long-term debt, less current maturities ......................... 825
Redeemable convertible preferred stock .......................... 2,939
Stockholders' Equity:
Common stock, par value...................................... 750
Other stockholders' equity................................... 1,190
--------
Total stockholders' equity ...................................... 1,940
--------
Total Liabilities and Stockholders' Equity ...................... $ 10,070
--------
--------
</TABLE>
1
<PAGE>
NOVEX
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30,
------------------
1999 1998
---- ----
(UNAUDITED)
<S> <C> <C>
Revenues........................................................ $ 6,936 $ 5,081
Cost of Revenues................................................ 3,178 2,284
-------- --------
Gross margin................................................. 3,758 2,797
Operating Expenses:
Sales and marketing........................................... 1,616 1,151
General and administrative.................................... 1,053 904
Research and development...................................... 486 412
-------- --------
Total operating expenses................................... 3,155 2,467
-------- --------
Income from operations................................... 603 330
-------- --------
Other Income (Expense):
Gain (loss) on foreign currency transactions.................. 4 (5)
Interest and other expense.................................... (50) (43)
-------- --------
(46) (48)
-------- --------
Income before provision for income taxes........................ 557 282
Provision for income taxes...................................... 212 106
-------- --------
Net income...................................................... 345 176
Less: Preferred stock dividends............................. (39) (39)
-------- --------
Income available to common stockholders.................. $ 306 $ 137
-------- --------
-------- --------
Earnings per share:
Basic $ 0.05 $ 0.02
-------- --------
-------- --------
Diluted....................................................... $ 0.03 $ 0.02
-------- --------
-------- --------
Weighted average shares used in per share calculation:
Basic 6,710 6,687
Diluted....................................................... 12,205 10,985
</TABLE>
2
<PAGE>
NOVEX
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30,
------------------
1999 1998
---- ----
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income.................................................................... $ 345 $ 176
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization................................................. 213 161
Deferred income taxes......................................................... - 19
Provision for uncollectible accounts.......................................... - 5
Changes in operating assets and liabilities:
Accounts receivable......................................................... (142) (413)
Inventories................................................................. (280) (737)
Prepaid expenses and other current assets................................... (62) (74)
Account payable............................................................. (7) 132
Accrued expenses............................................................ (127) 172
Income taxes payable........................................................ 170 1
-------- --------
Net cash provided (used) by operating activities......................... 110 (558)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment ........................................ (256) (338)
Payments for intangible assets.............................................. (2) (2)
Other assets................................................................ (56) -
-------- --------
Net cash used by investing activities.................................... (314) (340)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on notes payable to bank, net...................................... 19 50
Additions to long-term debt................................................... - 921
Payments on long-term debt.................................................... - (22)
Proceeds from sale of common stock............................................ 12 -
-------- --------
Net cash provided by financing activities................................ 31 949
-------- --------
Effect of exchange rate changes on cash....................................... (22) (1)
-------- --------
Net increase (decrease) in cash and cash equivalents..................... (195) 50
Cash and cash equivalents, beginning of period................................ 306 188
-------- --------
Cash and cash equivalents, end of period...................................... $ 111 $ 238
-------- --------
-------- --------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest........................................................ $ 35 $ 48
-------- --------
-------- --------
Cash paid for income taxes.................................................... $ 60 $ 91
-------- --------
-------- --------
NONCASH INVESTING AND FINANCING ACTIVITIES:
Assets acquired with long-term debt......................................... $ - $ 500
-------- --------
-------- --------
</TABLE>
3
<PAGE>
EXHIBIT 99.3
INVITROGEN UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma condensed combined balance sheet as
of June 30, 1999, illustrates the effect of the merger as if it had occurred on
June 30, 1999. The following unaudited pro forma combined statements of income
for the six months ended June 30, 1999 and 1998 and for the three years ended
December 31, 1998, illustrate the effect of the merger as if it had occurred on
January 1, 1996. There were no material differences between the accounting
policies of Invitrogen and NOVEX and, therefore, no adjustments have been made
to the pro forma financial statements. The unaudited pro forma combined
statements of income for the three years ended December 31, 1998 include both
Invitrogen's and NOVEX's financial data for these same periods, whereas in our
previously filed registration statement for the merger NOVEX's financial data
for the three fiscal years ended March 31, 1999 was used in the unaudited pro
forma combined statements of income.
The pro forma combined financial statements are presented for
comparative purposes only and are not necessarily indicative of the combined
financial position or results of operations of future periods or the results
that actually would have been realized had Invitrogen and NOVEX been a single
entity during the periods presented.
Pursuant to the terms of the merger, each share of NOVEX stock was
converted into the right to receive .23188 of a share of Invitrogen. The pro
forma combined financial statements have been derived from the respective
historical audited and unaudited consolidated financial statements of
Invitrogen and NOVEX and should be read in conjunction with such financial
statements and the notes thereto that are incorporated herein by reference.
1
<PAGE>
INVITROGEN CORPORATION AND NOVEX
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
JUNE 30, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
INVITROGEN NOVEX ADJUSTMENTS COMBINED
---------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents ....................... $ 36,094 $ 111 $ - $ 36,205
Short-term investments .......................... 2,439 - - 2,439
Accounts and notes receivable ................... 4,116 3,481 (3) (2) 7,594
Inventories ..................................... 2,823 2,845 - 5,668
Deferred income taxes ........................... 595 201 - 796
Prepaid expenses and other current assets ....... 1,539 167 692 (4) 2,398
----------- ----------- ----------- -----------
Total current assets ........................ 47,606 6,805 689 55,100
Property and equipment, net ......................... 7,182 2,643 - 9,825
Intangible assets, net .............................. 3,192 436 - 3,628
Other assets ........................................ 171 186 - 357
----------- ----------- ----------- -----------
Total Assets ........................................ $ 58,151 $ 10,070 $ 689 $ 68,910
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable to bank ............................ $ - $ 570 $ - $ 570
Current portion of long-term obligations ........ 438 1,031 - 1,469
Accounts payable ................................ 1,742 1,334 (3) (2) 3,073
Accrued expenses ................................ 1,697 1,076 4,442 (4) 7,215
Income taxes payable ............................ 631 355 (663) (4) 323
----------- ----------- ----------- -----------
Total current liabilities ................... 4,508 4,366 3,776 12,650
----------- ----------- ----------- -----------
Long-term obligations, less current maturities ...... 664 825 - 1,489
Redeemable convertible preferred stock .............. - 2,939 (2,939) (3) -
Stockholders' Equity:
Common stock, par value.......................... 134 750 (724) (3) 160
Other stockholders' equity....................... 52,845 1,190 576 (3)(4) 54,611
----------- ----------- ----------- -----------
Total stockholders' equity .......................... 52,979 1,940 (148) 54,771
----------- ----------- ----------- -----------
Total Liabilities and Stockholders' Equity .......... $ 58,151 $ 10,070 $ 689 $ 68,910
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See Notes to Unaudited Pro Forma Combined Financial Statements.
2
<PAGE>
INVITROGEN CORPORATION AND NOVEX
UNAUDITED PRO FORMA COMBINED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 1999
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
INVITROGEN NOVEX ADJUSTMENTS COMBINED
---------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Revenues................................................. $ 19,888 $ 13,897 $ (19) (2) $ 33,766
Cost of Revenues......................................... 5,087 6,496 (5) (2) 11,578
-------- -------- -------- --------
Gross margin.......................................... 14,801 7,401 (14) 22,188
Operating Expenses:
Sales and marketing.................................... 3,878 3,128 - 7,006
General and administrative............................. 2,498 1,900 - 4,398
Research and development............................... 3,963 961 (14) (2) 4,910
-------- -------- -------- --------
Total operating expenses............................ 10,339 5,989 (14) 16,314
-------- -------- -------- --------
Income from operations............................ 4,462 1,412 - 5,874
-------- -------- -------- --------
Other Income (Expense):
Gain (loss) on foreign currency transactions........... (206) - - (206)
Interest and other expense............................. (13) (126) - (139)
Interest and other income.............................. 602 1 - 603
-------- -------- -------- --------
383 (125) - 258
-------- -------- -------- --------
Income before provision for income taxes................. 4,845 1,287 - 6,132
Provision for income taxes............................... 1,696 488 - 2,184
-------- -------- -------- --------
Net income............................................... 3,149 799 - 3,948
Less: Preferred stock dividends......................... (163) (78) 78 (3) (163)
Accretion of non-voting redeemable common stock.... (74) - - (74)
Adjustment to beneficial conversion feature related
to convertible preferred stock................... 985 - - 985
-------- -------- -------- --------
Income available to common stockholders........... $ 3,897 $ 721 $ 78 $ 4,696
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per share:
Basic.................................................. $ 0.32 $ 0.11 $ 0.32
-------- -------- --------
-------- -------- --------
Diluted................................................ $ 0.27 $ 0.07 $ 0.27
-------- -------- --------
-------- -------- --------
Weighted average shares used in per share calculation:
Basic.................................................. 12,116 6,706 14,645 (3)
Diluted................................................ 14,230 11,810 17,101 (3)
</TABLE>
See Notes to Unaudited Pro Forma Combined Financial Statements.
3
<PAGE>
INVITROGEN CORPORATION AND NOVEX
UNAUDITED PRO FORMA COMBINED STATEMENTS OF INCOME
SIX MONTHS ENDED JUNE 30, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
INVITROGEN NOVEX ADJUSTMENTS COMBINED
---------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Revenues................................................. $ 14,873 $ 9,857 $ (25) (2) $ 24,705
Cost of Revenues......................................... 4,065 4,221 (6) (2) 8,280
--------- --------- ---------- ---------
Gross margin.......................................... 10,808 5,636 (19) 16,425
Operating Expenses:
Sales and marketing.................................... 3,438 1,873 - 5,311
General and administrative............................. 2,098 1,811 - 3,909
Research and development............................... 3,306 762 (19) (2) 4,049
--------- --------- ---------- ---------
Total operating expenses............................ 8,842 4,446 (19) 13,269
--------- --------- ---------- ---------
Income from operations............................ 1,966 1,190 - 3,156
--------- --------- --------- ---------
Other Income (Expense):
Gain (loss) on foreign currency transactions........... 3 (9) - (6)
Interest and other expense............................. (18) (116) - (134)
Interest and other income.............................. 184 3 - 187
--------- --------- --------- ---------
169 (122) - 47
--------- ---------- --------- ---------
Income before provision for income taxes................. 2,135 1,068 - 3,203
Provision for income taxes............................... 761 410 - 1,171
-------- -------- -------- ---------
Net income............................................... 1,374 658 - 2,032
Less: Preferred stock dividends......................... (450) (77) 77 (3) (450)
Accretion of non-voting redeemable common stock.... (98) - - (98)
--------- --------- --------- ---------
Income available to common stockholders........... $ 826 $ 581 $ 77 $ 1,484
--------- --------- --------- ---------
--------- --------- --------- ---------
Earnings per share:
Basic.................................................. $ 0.09 $ 0.09 $ 0.12
--------- --------- ---------
--------- --------- ---------
Diluted................................................ $ 0.08 $ 0.05 $ 0.11
--------- --------- ---------
--------- --------- ---------
Weighted average shares used in per share calculation:
Basic.................................................. 9,632 6,687 12,157 (3)
Diluted................................................ 10,996 10,985 13,581 (3)
</TABLE>
See Notes to Unaudited Pro Forma Combined Financial Statements.
4
<PAGE>
INVITROGEN CORPORATION AND NOVEX
UNAUDITED PRO FORMA COMBINED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
INVITROGEN NOVEX ADJUSTMENTS COMBINED
---------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Revenues................................................. $ 31,414 $ 22,293 $ (47) (2) $ 53,660
Cost of Revenues......................................... 8,642 10,560 (11) (2) 19,191
--------- --------- ---------- ---------
Gross margin.......................................... 22,772 11,733 (36) 34,469
Operating Expenses:
Sales and marketing.................................... 6,976 4,376 - 11,352
General and administrative............................. 4,428 3,663 - 8,091
Research and development............................... 7,209 1,430 (36) (2) 8,603
--------- --------- ---------- ---------
Total operating expenses............................ 18,613 9,469 (36) 28,046
--------- --------- ---------- ---------
Income from operations............................ 4,159 2,264 - 6,423
--------- --------- --------- ---------
Other Income (Expense):
Gain (loss) on foreign currency transactions........... 61 (36) - 25
Interest and other expense............................. (35) (214) - (249)
Interest and other income.............................. 431 10 - 441
--------- --------- --------- ---------
457 (240) - 217
--------- ---------- --------- ---------
Income before provision for income taxes................. 4,616 2,024 - 6,640
Provision for income taxes............................... 1,638 772 - 2,410
--------- -------- -------- ---------
Net income............................................... 2,978 1,252 - 4,230
Less: Preferred stock dividends......................... (900) (155) 155 (3) (900)
Accretion of non-voting redeemable common stock.... (204) - - (204)
--------- --------- --------- ---------
Income available to common stockholders........... $ 1,874 $ 1,097 $ 155 $ 3,126
--------- --------- --------- ---------
--------- --------- --------- ---------
Earnings per share:
Basic ................................................. $ 0.19 $ 0.16 $ 0.26
--------- --------- ---------
--------- --------- ---------
Diluted................................................ $ 0.17 $ 0.11 $ 0.23
--------- --------- ---------
--------- --------- ---------
Weighted average shares used in per share calculation:
Basic.................................................. 9,626 6,691 12,152 (3)
Diluted................................................ 11,208 11,195 13,883 (3)
</TABLE>
See Notes to Unaudited Pro Forma Combined Financial Statements.
5
<PAGE>
INVITROGEN CORPORATION AND NOVEX
UNAUDITED PRO FORMA COMBINED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1997
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
INVITROGEN NOVEX ADJUSTMENTS COMBINED
---------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Revenues................................................. $ 24,965 $ 16,240 $ (23) (2) $ 41,182
Cost of Revenues......................................... 7,989 7,976 (7) (2) 15,958
--------- --------- ---------- ---------
Gross margin.......................................... 16,976 8,264 (16) 25,224
Operating Expenses:
Sales and marketing.................................... 4,959 3,346 - 8,305
General and administrative............................. 3,932 3,380 - 7,312
Research and development............................... 4,416 1,518 (16) (2) 5,918
--------- --------- ---------- ---------
Total operating expenses............................ 13,307 8,244 (16) 21,535
--------- --------- ---------- ---------
Income from operations............................ 3,669 20 - 3,689
--------- --------- --------- ---------
Other Income (Expense):
Gain (loss) on foreign currency transactions........... 145 - - 145
Interest and other expense............................. (88) (154) - (242)
Interest and other income.............................. 211 3 - 214
--------- --------- --------- ---------
268 (151) - 117
--------- ---------- --------- ---------
Income before provision for income taxes................. 3,937 (131) - 3,806
Provision for income taxes............................... 1,413 (42) - 1,371
--------- ---------- --------- ---------
Net income............................................... 2,524 (89) - 2,435
Less: Preferred stock dividends......................... (475) (147) 147 (3) (475)
Accretion of non-voting redeemable common stock.... (175) - - (175)
Adjustment to beneficial conversion feature related
to convertible preferred stock................... (15,000) - - (15,000)
--------- ---------- --------- ---------
Income available to common stockholders........... $(13,126) $ (236) $ 147 $(13,215)
--------- ---------- --------- ---------
--------- ---------- --------- ---------
Earnings per share:
Basic.................................................. $ (1.47) $ (0.04) $ (1.15)
--------- ---------- ---------
--------- ---------- ---------
Diluted................................................ $ (1.47) $ (0.04) $ (1.15)
--------- ---------- ---------
--------- ---------- ---------
Weighted average shares used in per share calculation:
Basic.................................................. 8,939 6,679 11,461 (3)
Diluted................................................ 8,939 6,679 11,461 (3)
</TABLE>
See Notes to Unaudited Pro Forma Combined Financial Statements.
6
<PAGE>
INVITROGEN CORPORATION AND NOVEX
UNAUDITED PRO FORMA COMBINED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1996
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
INVITROGEN NOVEX ADJUSTMENTS COMBINED
---------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Revenues................................................. $ 19,121 $ 13,450 $ (15) (2) $ 32,556
Cost of Revenues......................................... 5,818 6,280 (4) (2) 12,094
--------- --------- ---------- ---------
Gross margin.......................................... 13,303 7,170 (11) 20,462
Operating Expenses:
Sales and marketing.................................... 4,236 2,327 - 6,563
General and administrative............................. 3,880 2,411 - 6,291
Research and development............................... 2,659 1,234 (11) (2) 3,882
--------- --------- ---------- ---------
Total operating expenses............................ 10,775 5,972 (11) 16,736
--------- --------- ---------- ---------
Income from operations............................ 2,528 1,198 - 3,726
--------- --------- --------- ---------
Other Income (Expense):
Gain (loss) on foreign currency transactions........... 172 - - 172
Interest and other expense............................. (87) (131) - (218)
Interest and other income.............................. 70 4 - 74
--------- --------- --------- ---------
155 (127) - 28
--------- ---------- --------- ---------
Income before provision for income taxes................. 2,683 1,071 - 3,754
Provision for income taxes............................... 939 479 - 1,418
--------- ---------- --------- ---------
Net income............................................... 1,744 592 - 2,336
Less: Accretion of non-voting redeemable common stock.... (171) - - (171)
--------- ---------- --------- ---------
Income available to common stockholders........... $ 1,573 $ 592 $ - $ 2,165
--------- ---------- --------- ---------
--------- ---------- --------- ---------
Earnings per share:
Basic.................................................. $ 0.19 $ 0.09 $ 0.20
--------- ---------- ---------
--------- ---------- ---------
Diluted................................................ $ 0.16 $ 0.06 $ 0.17
--------- ---------- ---------
--------- ---------- ---------
Weighted average shares used in per share calculation:
Basic.................................................. 8,356 6,679 10,831 (3)
Diluted................................................ 10,080 10,672 12,554 (3)
</TABLE>
See Notes to Unaudited Pro Forma Combined Financial Statements.
7
<PAGE>
INVITROGEN CORPORATION AND NOVEX
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The Merger is intended to be accounted for as a pooling of interests.
Under this method of accounting the unaudited pro forma combined
statements of income combine the historical statements of income for
Invitrogen for the six months ended June 30, 1999 and 1998 and three
years ended December 31, 1998 with the historical statements of income
for NOVEX for the same periods. All unaudited pro forma combined income
statements assume consummation of the Merger on January 1, 1996.
The unaudited pro forma combined balance sheet combines the historical
balance sheets of Invitrogen and NOVEX at June 30, 1999 and assumes
consummation of the Merger on June 30, 1999.
2. INTERCOMPANY TRANSACTIONS
All significant intercompany sales and balances have been eliminated in
the combination.
3. MERGER TRANSACTION
The unaudited pro forma combined financial statements reflects the
conversion of NOVEX redeemable convertible preferred stock into NOVEX
common stock and the subsequent issuance of 2.5 million shares of
Invitrogen common stock for all of the outstanding common stock for
NOVEX at an exchange ratio of 0.23188. The unaudited pro forma combined
net income (loss) per share also reflects the assumption of all
outstanding NOVEX stock options by Invitrogen at the same exchange
ratio.
4. MERGER COSTS
Costs incurred as a result of the Merger are expected to be $4.4 million
and are subject to change. These costs will be expensed after the Merger
is completed. The unaudited pro forma combined statements of income
exclude expenses related to the Merger as they are nonrecurring in
nature.
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> MAR-31-2000 MAR-31-1999
<PERIOD-START> APR-01-1999 APR-01-1998
<PERIOD-END> JUN-30-1999 JUN-30-1998
<CASH> 111 238
<SECURITIES> 0 0
<RECEIVABLES> 3,587 2,151
<ALLOWANCES> 106 130
<INVENTORY> 2,845 2,253
<CURRENT-ASSETS> 6,805 5,473
<PP&E> 4,926 3,910
<DEPRECIATION> 2,283 1,552
<TOTAL-ASSETS> 10,070 8,317
<CURRENT-LIABILITIES> 4,366 4,460
<BONDS> 0 0
2,939 2,784
0 0
<COMMON> 750 561
<OTHER-SE> 1,190 139
<TOTAL-LIABILITY-AND-EQUITY> 10,070 8,317
<SALES> 6,936 5,081
<TOTAL-REVENUES> 6,936 5,081
<CGS> 3,178 2,284
<TOTAL-COSTS> 3,178 2,284
<OTHER-EXPENSES> 3,155 2,467
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 50 43
<INCOME-PRETAX> 557 282
<INCOME-TAX> 212 106
<INCOME-CONTINUING> 345 176
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 345 176
<EPS-BASIC> 0.05 0.02
<EPS-DILUTED> 0.03 0.02
</TABLE>
