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Targacept Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 9, 2012 05:30PM
Targacept Inc. (TRGT) filed Quarterly Report for the period ended 2012-03-31.
Highlight of Business Operations:Net operating revenues for the three months ended March 31, 2012 decreased by $16.1 million as compared to the three months ended March 31, 2011. The lower net operating revenues for the 2012 period were primarily attributable to a decrease of $16.3 million in license fees and milestones from collaborations, partially offset by an increase of $178,000 in grant revenue for the 2012 period. The lower license fees and milestones from collaborations for the 2012 period primarily resulted from decreases of $18.4 million in recognition of payments previously received from GlaxoSmithKline, as all amounts that had yet to be recognized as of the time we received notice
We expect our net operating revenues for the year ended December 31, 2012 to decrease as compared to the year ended December 31, 2011, primarily due to 2012 including recognition of a portion of the upfront payment received under our TC-5214 agreement with AstraZeneca for only a part of the year, as the upfront payment will become fully recognized in mid 2012.
ended March 31, 2011, a difference of $12.3 million. Cash used in investing activities reflects the portion of our cash that we allocate to, and the timing of purchases and maturities of, our investments in marketable securities and equipment purchases. Our net sales of investments in marketable securities for the three months ended March 31, 2012 were $6.8 million and occurred primarily to fund our short-term liquidity requirements. Our net purchases of investments in marketable securities for the three months ended March 31, 2011 were $4.9 million and occurred primarily as a result of the timing of maturities and subsequent reinvestment in marketable securities. Our net equipment purchases decreased by $552,000 to $46,000 for the 2012 period, from $598,000 for the 2011 period.