<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
- --------------------------------------------------------------------------------
FORM 10-Q
/ X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended April 30, 1996
or
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From _____ to _____
--------------------------------------------------------
Commission File Number 000-22354
MARTEK BIOSCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 52-1399362
(State of Incorporation) (IRS Employer Identification No.)
6480 DOBBIN ROAD, COLUMBIA, MARYLAND 21045
(Address of principal executive offices)
REGISTRANT'S TELEPHONE NUMBER INCLUDING AREA CODE: (410)740-0081
None
(Former name, former address and former fiscal year, if changed since last
report)
--------------------------------------------------------
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. X Yes No
----- -----
Common stock, par value $.10 per share: 13,353,220 shares outstanding
as of May 29, 1996
Page 1 of 13
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MARTEK BIOSCIENCES CORPORATION
Balance Sheets
($ in thousands)
<TABLE>
<CAPTION>
==========================================================================================================
April 30 October 31,
1996 1995
==========================================================================================================
(Unaudited)
<S> <C> <C>
ASSETS:
Current assets:
Cash and cash equivalents $15,505 $41,039
Short-term investments and marketable securities 28,941 10,584
Accounts receivable 464 316
Inventories (Note 4) 1,337 989
Prepaid expenses 252 196
Other current assets 127 194
----------------- ---------------
Total current assets 46,626 53,318
Property, plant and equipment, net 14,436 11,840
----------------- ---------------
$61,062 $65,158
================= ===============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $840 $575
Accrued liabilities 943 912
Unearned revenue --- 2,075
Current portion of notes payable 2,073 75
----------------- ---------------
Total current liabilities 3,856 3,637
Long-term portion of notes payable 2,134 4,175
Commitments and contingencies (Note 2)
Stockholders' equity:
Preferred stock, $.01 par value, 5,000,000
shares authorized; none issued or outstanding. --- ---
Common stock, $.10 par value; 30,000,000 shares
authorized at April 30, 1996 and at October 31, 1995;
13,353,220 and 13,025,419 shares issued at April 30, 1996
and October 31, 1995, respectively. 1,335 1,302
Additional paid-in capital 78,088 77,321
Accumulated deficit (24,351) (21,277)
----------------- ---------------
Total stockholders' equity 55,072 57,346
----------------- ---------------
$61,062 $65,158
================= ===============
</TABLE>
See accompanying notes.
Page 2 of 13
<PAGE> 3
MARTEK BIOSCIENCES CORPORATION
Statements of Operations
(Unaudited - $ in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended April 30, Six months ended April 30,
=======================================================================================================================
1996 1995 1996 1995
=======================================================================================================================
<S> <C> <C> <C> <C>
Revenues:
License fees and related revenues $91 $135 $2,232 $154
Product sales 288 334 466 691
Royalties 4 0 6 0
Research and development contracts and grants 185 217 384 363
---------- ---------- ---------- ----------
Total revenues 568 686 3,088 1,208
Costs and expenses:
Cost of product sales 163 145 256 310
Research and development 2,963 1,819 5,068 3,712
Selling, general and administrative 1,032 826 2,032 1,629
---------- ---------- ---------- ----------
Total costs and expenses 4,158 2,790 7,356 5,651
---------- ---------- ---------- ----------
Loss from operations (3,590) (2,104) (4,268) (4,443)
Other income (expense):
Miscellaneous income 14 5 29 5
Interest income 617 94 1,311 216
Interest expense (71) (37) (146) (39)
---------- ---------- ---------- ----------
Total other income, net 560 62 1,194 182
---------- ---------- ---------- ----------
Net loss ($3,030) ($2,042) ($3,074) ($4,261)
- --------------------------------------------------------------------------------------------------------------------
Net loss per share (Note 5) ($0.23) ($0.24) ($0.23) ($0.51)
- --------------------------------------------------------------------------------------------------------------------
Weighted average common shares outstanding 13,292,624 8,534,301 13,183,836 8,384,295
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes.
Page 3 of 13
<PAGE> 4
MARTEK BIOSCIENCES CORPORATION
Statements of Cash Flows
(Unaudited - $ in thousands)
<TABLE>
<CAPTION>
Six months ended April 30,
===========================================================================================================
1996 1995
===========================================================================================================
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss ($3,074) ($4,261)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 422 179
Changes in assets and liabilities:
Accounts receivable (148) (129)
Inventories (348) 84
Prepaid expenses (56) (82)
Other current assets 67 ---
Accounts payable 265 469
Accrued liabilities 31 (220)
Unearned revenue (2,075) 20
--------------- ----------
Net cash used in operating activities (4,916) (3,940)
INVESTING ACTIVITIES:
Change in short-term investments and marketable securities (18,357) 3,893
Purchase of property, plant and equipment (3,018) (1,358)
--------------- ----------
Net cash used in investing activities (21,375) 2,535
FINANCING ACTIVITIES:
Proceeds from the exercise of warrants and options, and other 800 52
Principal payments on notes payable (43) 108
--------------- ----------
Net cash provided by financing activities 757 160
--------------- ----------
Net increase in cash and cash equivalents (25,534) (1,245)
Cash and cash equivalents at beginning of year 41,039 2,104
--------------- ----------
Cash and cash equivalents at end of period $15,505 $859
- -----------------------------------------------------------------------------------------------------------
Supplemental schedule of non-cash investing and
financing activities:
Purchase of plant $ --- ($9,000)
Proceeds from the issuance of common stock
in connection with the plant purchase --- 5,000
Notes payable in connection with plant purchase $ --- $4,000
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes.
Page 4 of 13
<PAGE> 5
MARTEK BIOSCIENCES CORPORATION
Statement of Stockholders' Equity
(Unaudited - $ in thousands, except share data)
<TABLE>
<CAPTION>
Additional Accumulated
Common Stock Paid-In Capital Deficit Total
---------- ----------- --------------- ----------- ----------
Shares Amounts
<S> <C> <C> <C> <C> <C>
BALANCE AT
OCTOBER 31, 1995 13,025,419 $1,302 $77,321 ($21,277) $57,346
- -------------------------------------------------------------------------------------------------
Exercise of stock options 327,801 33 767 --- 800
Net loss --- --- --- (3,074) (3,074)
- -------------------------------------------------------------------------------------------------
BALANCE AT
APRIL 30, 1996 13,353,220 $1,335 $78,088 ($24,351) $55,072
- -------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes.
Page 5 of 13
<PAGE> 6
Notes to Financial Statements (Unaudited)
1. Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the quarter and six months ended April
30, 1996 are not necessarily indicative of the results that may be expected for
the year ended October 31, 1996. For further information, refer to the
financial statements and footnotes thereto included in Martek Biosciences
Corporation's annual report on Form 10-K for the year ended October 31, 1995.
2. Commitment and Contingencies
The Company had commitments at April 30, 1996 to fund up to $1.7 million of
Phase III Small Business Innovation Research ("SBIR") technology
commercialization expenses, provided the technology under existing Phase II
SBIR grants yields commercial opportunities favorable to the Company.
Costs under U.S. Government contracts are subject to audit by the appropriate
U.S. Government agency. Management believes that cost disallowances, if any,
arising from such audits of costs charged to government contracts through April
30, 1996, would not have a material effect on the financial statements.
Under the terms of one of the Company's license agreements, $2,075,000 received
as license fees prior to April 30, 1996 was recorded as unearned revenue
pending the lapse of the licensee's right to terminate its license agreement
and receive a refund of any license fees paid thereunder. This right to
terminate the agreement and receive a refund lapsed in December 1995, and the
revenue previously recorded as unearned was recognized during the first quarter
of 1996. See "Management's Discussion and Analysis of Financial Condition and
Results of Operations."
Company has entered into various collaborative research and license agreements.
Under the agreements, the Company is required to fund research or to
collaborate on the development of potential products. Certain of these
agreements also commit the Company to make payments upon the occurrence of
certain milestones, and royalties upon the sale of certain products resulting
from such collaborations. Future minimum payments required under these
agreements, exclusive of milestone and royalty payments, are approximately
$100,000 in the year ending October 31, 1996.
3. Income Taxes
At April 30, 1996, the Company has net operating loss carryforwards of
approximately $35,500,000 for income tax purposes that expire in years 2000
through 2010.
Section 382 of the Internal Revenue Code limits the utilization of net
operating losses when ownership changes, as defined by that section, are
greater than 50 percent. The Company has had significant ownership changes
over the past three years, including an initial public offering of its common
stock in December 1993 and a follow-on public offering of its common stock in
October 1995, which may have caused these limitations to apply.
Page 6 of 13
<PAGE> 7
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. Significant components
of the Company's deferred tax assets as of April 30, 1996 are as follows:
<TABLE>
<S> <C>
Deferred tax assets:
Write-off of patent 251,000
Net operating loss carryforwards 14,218,000
-----------
Total deferred tax assets $14,469,000
===========
Valuation allowance for net
deferred tax assets ($14,469,000)
===========
Net deferred tax assets $ ---
===========
</TABLE>
4. Inventories
Inventories consist of the following:
<TABLE>
<CAPTION>
April 30, October 31,
1996 1995 .
------------ --------------
<S> <C> <C>
Finished products $699,527 $468,472
Work in process 375,621 272,741
Raw materials 262,154 248,160
------- -------
$1,337,302 $989,373
========== ========
</TABLE>
Inventories include products and materials held for sale as well as products
and materials that could alternatively be used in the Company's research and
development activities.
5. Net loss per share
Net loss per share is computed using the weighted average number of shares of
common stock outstanding during the period. Common equivalent shares from
stock options and warrants are excluded as their effect is anti-dilutive.
Page 7 of 13
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
General
THIS MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS CONTAINS FORWARD-LOOKING STATEMENTS CONCERNING THE COMPANY'S
BUSINESS AND OPERATIONS, INCLUDING STATEMENTS ABOUT FUTURE PRODUCTION
EFFICIENCIES FOR ITS NUTRITIONAL OIL PRODUCTS. SUCH STATEMENTS INVOLVE RISKS
AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER DUE TO A VARIETY OF
RISK FACTORS SET FORTH HEREIN AND FROM TIME TO TIME IN THE COMPANY'S FILINGS
WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING BUT NOT LIMITED TO ITS
RECENTLY FILED REPORT ON FORM 10-K AND ITS FORM S-3 DECLARED EFFECTIVE ON
SEPTEMBER 26, 1995.
Since its inception in 1985, Martek has been engaged primarily in the research
and development of products derived from microalgae. In 1989, the Company
began the commercial production and sale of its products for drug design. In
1992, Martek began to realize revenues from license fees related to
Formulaid(R) and sales of sample quantities of Formulaid(R). In 1995, Martek
recognized its first royalty revenue from sales of infant formula containing
Formulaid(R). Martek has incurred net losses in each year since its inception.
At April 30, 1996, the Company's accumulated deficit was $24,351,000. Martek
expects its annual losses to continue and possibly increase for at least the
remainder of fiscal 1996, or until significant royalties from sales of products
containing Formulaid(R) are received, as it expands its research and
development efforts, optimizes Formulaid(R) production, and increases its
product marketing activities. In addition, the Company expects to experience
quarter-to-quarter and year-to-year fluctuations in revenues, expenses and
losses, some of which could be significant. The timing and extent of such
fluctuations will depend, in part, on the timing and receipt of
Formulaid(R)-related revenues, if any, and the timing and extent of funding of
clinical studies on the Company's potential products.
The Company is not able to predict when, or if, any of the Company's
Formulaid(R) licensees will introduce or expand their offerings of products
containing Formulaid(R). The Company does not believe that broad product
introductions of term infant formulas containing Formulaid(R) will occur before
1997, at the earliest, and cannot predict the timing or extent of further
Formulaid(R)-containing pre-term infant formula product launches or expansions.
Although one of the Company's licensees has introduced a pre-term infant
formula containing Formulaid(R) in two European countries, the Company is still
unable to predict whether this licensee will broaden its use of, or continue to
use, Formulaid(R), or if Formulaid(R) will be used by any of the Company's
other licensees for their formula products. Accordingly, future revenues from
Formulaid(R), and the timing or likelihood of future profitability, are largely
dependent on factors over which the Company has no control.
Results of Operations - Comparison of Quarters and Six Months Ended April 30,
1996 and 1995
Revenues for the quarter ended April 30, 1996, were $568,000, a 17% decrease
from revenues of $686,000 for the same period in 1995. This decrease is due to
a combination of a 33% drop in license fees and related revenues (resulting
from anniversary Formulaid(R) license fee payments that, by contract, are only
two-thirds of the initial fees paid), and decreases in revenues from product
sales and research and development contracts and grants. Revenues for the
six-month period ended April 30, 1996 were $3,088,000, an increase of
$1,880,000, or 156%, from the same period in 1995. This increase resulted from
the recognition of $2,075,000 in license fees during the first quarter of 1996
that were previously recorded as unearned pending the lapse of certain
conditions contained in the related license agreement.
Page 8 of 13
<PAGE> 9
Product sales during the second quarter and six months ended April 30, 1996
decreased by 14% and 33%, respectively, from the same periods in 1995 due to
lower prices caused by continued competition for carbon-13 products. In an
effort to address this situation, the Company has lowered prices, reduced
production costs and developed new proprietary products. Product sales in the
second quarter of 1996 increased by 62% over first quarter 1996 product sales.
The effect of the Company's efforts on future sales cannot be predicted. It is
likely however, that gross margins on carbon-13 products will decline from
previous levels. Revenues from research and development contracts and grants
decreased by 15% in the second quarter of 1996 when compared with the second
quarter of 1995, but increased by 6% for the six months ended April 30, 1996
from the same period in 1995.
Cost of product sales increased to 57% of revenues from product sales for the
second quarter of 1996 from 43% for the second quarter of 1995. For the
six-month period ended April 30, 1996 cost of product sales increased to 55% of
revenues from product sales from 45% for the same period in 1995. These
increases resulted partially from the cost of sales of Martek's nutritional
oils. Initial sales of these oils occurred in 1995. Sales of these oils
during 1995 and 1996 were made at or below cost in certain cases in an effort
to create demand for these products. As sales volume increases, and
manufacturing efficiencies and optimization occurs, the cost of production of
the nutritional oils products has the potential to decrease. The balance of
the increase in cost of sales resulted from price reductions in the Company's
carbon-13 drug design products brought about by competition for these products.
The Company is working to decrease its production costs and develop new,
proprietary products in an effort to reduce its costs of sales. The ultimate
impact of these efforts on cost of sales, however, cannot be predicted.
Consistent with the Company's efforts to optimize oil production quickly,
research and development costs increased $1,144,000, or 63%, in the second
quarter of 1996 and $1,356,000, or 37% during the six months ended April 30,
1996 over the second quarter and six months ended April 30, 1995, respectively.
Research and development costs were also increased in the second quarter of
1996 as result of a program to qualify additional manufacturing sources for
Martek's nutritional oils. Production development and other oils-related
development costs comprised over 75% of research and development expenses for
the first six months of 1996.
Selling, general and administrative expenses increased by $206,000, or 25%,
during the second quarter of 1996 and $403,000, or 25%, in the six months ended
April 30, 1996 over the second quarter and six months ended April 30, 1995,
respectively. These costs increased primarily due to: costs associated with a
public relations campaign for DHA; other Formulaid(R) and DHA marketing costs;
and, increased insurance and other corporate overhead costs. Other income was
$498,000 higher during the second quarter of 1996 than in the second quarter of
1995 and $1,012,000 higher in the first six months of 1996 than in the first
six months of 1995 mainly due to interest earned on the investment of funds
received in the Company's 1995 public offering.
Net loss for the second quarter of 1996 was $3,030,000, or $.23 per share,
compared to a net loss of $2,042,000, or $.24 per share, for the same period in
1995. This increased loss resulted from increased research and development
expenses primarily relating to costs associated with efforts to commercialize
Formulaid(R), as well as increases in certain operating expenses. A net loss
of $3,074,000, or $.23 per share for the six-month period ended April 30, 1996,
was a decrease from a net loss of $4,261,000, or $.51 per share for the same
period in 1995. This decrease reflects the anniversary license fee recognized
in the first quarter of 1996 which more than offset increased research and
development expenses in the 1996 period.
Recent Accounting Pronouncements
In October 1995, the Financial Accounting Standards Board issued SFAS No. 123,
"Accounting for Stock-Based Compensation." SFAS No. 123 allows companies to
either account for stock-based
Page 9 of 13
<PAGE> 10
compensation under the new provisions of SFAS No. 123 or under the provisions
of APB No. 25. If companies elect to account for stock-based compensation
under the provisions of APB No. 25, pro forma disclosure is required in the
footnotes to the financial statement as if the measurement provisions of SFAS
123 had been adopted. The Company intends to continue accounting for its
stock-based compensations in accordance with the provisions of APB No. 25. As
such, the adoption of SFAS No. 123 will not impact the financial position of
the Company.
Liquidity and Capital Resources
Cash, cash equivalents, short-term investments and marketable securities
decreased by $7,177,000 in the first six months of 1996 resulting in a cash
balance of $15,505,000 and a balance of $28,941,000 in short-term investments
and marketable securities at April 30, 1996. Capital acquisitions of
$1,581,000 were made in the second quarter of 1996, a significant portion of
which represents upgrades to the Company's fermentation facility in Winchester,
Kentucky and construction of an oil processing plant at the site. The Company
expects additional capital expenditures as a result of escalating fermentation
activity and installation of oil processing capabilities at the facility.
Martek may require substantial additional funds to continue its research and
development programs, to conduct preclinical and clinical studies and to
commercialize Formulaid(R) and its other products under development. The
ultimate levels of these expenditures will depend, in part, on whether the
Company seeks independently, or with other parties through collaborative
agreements, to develop, manufacture and market its products. The capital
requirements of Martek will depend, among other things, on one or more of the
following factors: the progress of preclinical and clinical studies; the time
and costs of obtaining regulatory clearance for those products subject to
regulatory clearance; the costs involved in filing, protecting and enforcing
patents and other intellectual property rights; competing technological and
market developments; the costs of manufacturing facilities for those products
the Company chooses to manufacture itself; the costs of commercializing its
products; and the extent of future facilities expansion and collaborative
partnerships. The Company's 1995 purchase of a fermentation facility has had,
and will continue to have, a material effect upon Martek's liquidity and
capital resources. In addition to the $1.0 million in cash used to close the
transaction, additional capital expenditures, including the addition of oil
processing capabilities, will be needed to modify the plant to meet the needs
of Martek's production processes. The extent of such modifications cannot be
predicted. The Company will also be required to repay or refinance promissory
notes due in March and September of 1997 in the aggregate principal amount of
$4,000,000 and interest accrued thereon, associated with the facility purchase.
The notes are secured by the fermentation plant but are without recourse
otherwise. There can be no assurance that the Company will be able to repay or
refinance these notes.
The Company believes its existing capital resources will provide adequate
capital, for at least the next 24 months. However, due to the Company's
expectations of growth and the rapidly changing nature of the markets in which
it competes, no prediction can be made with certainty of the Company's need for
additional capital or its likely liquidity position over a longer term. The
Company intends to seek additional funding through commercial and government
research and development contracts and grants, product sales and license fee
arrangements. The Company may pursue other methods of financing its
activities, including asset-based borrowing, equity issuances, additional lease
financing and collaborative arrangements with partners if such methods are
available to the Company and on favorable terms. Should the Company need to
raise additional funds, there can be no assurance that such funds will be
available to the Company on acceptable terms, if at all.
Page 10 of 13
<PAGE> 11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
As previously reported in the Company's annual report on Form 10-K for its
fiscal year ended October 31, 1995, on November 29, 1995 Martek received a
letter from the United States Environmental Protection Agency ("EPA") notifying
Martek of potential liability under the Comprehensive Environmental Response,
Compensation and Liability Act in connection with the cleanup of the RAMP
Industries Site in Denver, Colorado. EPA has stated that to date it has
incurred $2.1 million in costs in connection with the cleanup of the site, but
that at this time it is unable to estimate total cleanup costs. EPA has
informally indicated that based on its initial review, it believes that Martek
is responsible for less than .02% of the waste at the RAMP Site. Martek's own
review indicates that its contribution to the site, if any, may be a lower
percentage. EPA has stated that it intends to enter into a "de minimis"
settlement with smaller contributors based on a waste-in list it is currently
compiling. Martek believes that the impact of any settlement will be
immaterial to its financial condition and results of operations.
The Company is not a party to any other legal proceedings.
ITEM 2. CHANGES IN SECURITIES.
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not Applicable
ITEM 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS.
The Company's Annual Meeting of Stockholders was held on March 18, 1996. The
following items were voted on at the Annual Meeting:
1. Proposal to approve an amendment to the Corporation's Directors'
Stock Option Plan whereby, each Outside Director who is either
reelected to or serving on the Board on March 18, 1996 is granted an
option to purchase 3,500 shares of stock provided he or she has served
as a Director of the Corporation for at least one year, and, in each
year thereafter, each Outside Director will receive an option to
purchase 5,000 shares of stock following each annual stockholders'
meeting provided he or she has served as a Director of the Corporation
for at least one year and is continuing as a director.
<TABLE>
<CAPTION>
IN FAVOR OPPOSED ABSTAINED NON-VOTE
<S> <C> <C> <C>
9,536,006 509,345 55,938 341,473
</TABLE>
Page 11 of 13
<PAGE> 12
2. The following members were elected to the Company's Board of Directors to
hold office for the periods indicated below:
<TABLE>
<CAPTION>
ELECTED UNTIL
ANNUAL MEETING
NOMINEE TO BE HELD IN FAVOR WITHHELD
<S> <C> <C> <C>
Henry Linsert, Jr. 1999 10,400,432 42,330
Jules Blake 1999 10,292,272 150,490
Ann L. Johnson 1999 10,400,397 42,365
Sandra Panem 1999 10,400,432 42,330
</TABLE>
DIRECTORS CONTINUING IN OFFICE:
Bruce E. Elmblad
Douglas J. MacMaster, Jr.
John H. Mahar
Richard J. Radmer
Eugene H. Rotberg
William D. Smart
ITEM 5. OTHER INFORMATION.
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None
(b) Reports on Form 8-K: None
Page 12 of 13
<PAGE> 13
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 thereunto duly authorized.
<TABLE>
<S> <C>
MARTEK BIOSCIENCES CORPORATION
------------------------------
(Registrant)
Date: June 11, 1996 /s/ Steve Dubin
------------------- ---------------------------------------------------
Steve Dubin, Chief Financial and Accounting Officer
</TABLE>
Page 13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> FEB-01-1996
<PERIOD-END> APR-30-1996
<CASH> 15,505,000
<SECURITIES> 28,941,000
<RECEIVABLES> 464,000
<ALLOWANCES> 0
<INVENTORY> 1,337,000
<CURRENT-ASSETS> 46,626,000
<PP&E> 16,337,000
<DEPRECIATION> 1,901,000
<TOTAL-ASSETS> 61,062,000
<CURRENT-LIABILITIES> 3,856,000
<BONDS> 0
0
0
<COMMON> 1,335,000
<OTHER-SE> 53,737,000
<TOTAL-LIABILITY-AND-EQUITY> 61,062,000
<SALES> 288,000
<TOTAL-REVENUES> 568,000
<CGS> 163,000
<TOTAL-COSTS> 4,158,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (71,000)
<INCOME-PRETAX> (3,030,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,030,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,030,000)
<EPS-PRIMARY> (0.23)
<EPS-DILUTED> (0.23)
</TABLE>
